Shares of Micron Technology (MU) and SanDisk (SNDK) fell around 5% in pre-market trading after both stocks posted strong gains in the prior session. The pullback came without any clear signs of weakening memory demand. Instead, the broader market was also under pressure. Nasdaq 100 futures fell about 1.2%, while the 30-year Treasury yield rose to around 5.32%, its highest level in nearly two decades. Higher bond yields can weigh on highly valued tech stocks.
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Explore why XOVR invested in Kalshi and how it identifies innovative private companies before they reach the public markets.For context, Micron makes DRAM and NAND memory used in data centers, PCs, smartphones, and other devices, while SanDisk focuses on NAND flash memory and storage products for data centers, PCs, mobile devices, and consumer electronics.
MU, SNDK Stocks Remain Volatile
Micron rose 4.1% on Monday, while SanDisk jumped 8.9% as investors returned to memory stocks after July’s sharp selloff. SanDisk had already climbed about 35% in the five sessions through Friday, adding to the strong rebound. Meanwhile, Micron briefly crossed the $1,000 mark after Monday’s gain but slipped back below that level in pre-market trading today.
The rally was fueled by AI infrastructure spending, SanDisk’s upbeat investor-day targets, and reports that U.S. officials were discouraging Apple (AAPL) from buying memory chips from Chinese suppliers.
Analysts Say Memory Market Remains Strong
The semiconductor industry remains on solid footing despite Tuesday’s stock market moves. But after the huge gains in memory stocks, investors are more likely to lock in profits if sentiment weakens. Higher stock prices also mean companies now need strong results to justify their higher valuations.
ClearBridge Investments portfolio manager Divya Mathur told Reuters, “The recent volatility in semiconductor stocks appears disconnected from any material change in long-term fundamentals.”
Meanwhile, Deutsche Bank analyst Melissa Weathers sees this memory cycle as different from past cycles. She expects DRAM supply to remain tight through 2027 and into 2028, as strong AI demand keeps pressure on high-bandwidth memory supply.
Which Memory Chip Stock Is the Better Buy, According to Analysts?
Using TipRanks’ Stocks Comparison tool, we compared major memory chip stocks. Among these stocks, MU stock offers the highest upside of 55% at a price target of $1,568.39 with a Strong Buy rating. On the other hand, SNDK offers a modest upside of 22.3%.
