Micron Technology and Sandisk stocks jumped Monday as investors returned to memory and storage stocks following last week's sharp selloff. Micron shares were up 5.13% at $923.93 at the time of publication on Monday, according to Benzinga Pro data. Sandisk shares were up 7.56% at $1,397.55, according to the same data.
Technology stocks led a broader market recovery. The Nasdaq gained 1.04%. The S&P 500 rose 0.41%. The technology sector climbed 1.30%. Easing oil prices and the broader technology recovery also supported sentiment.
Micron and Sandisk faced heavy selling last week as investors questioned the sustainability of the AI-driven memory boom. The stocks fell sharply amid concerns about Chinese competition, rising financing costs and the outlook for AI infrastructure spending. However, Monday's rebound suggests some investors viewed the pullback as a buying opportunity.
Concerns surrounding China's ChangXin Memory Technologies, or CXMT, also showed signs of easing. CXMT recently announced memory technology advances, raising fears that CXMT could eventually challenge established suppliers. However, analysts have questioned whether the technology can achieve commercial production at scale. The uncertainty has tempered fears of an immediate competitive threat, although China's expanding memory industry remains a longer-term risk.
Investors are refocusing on strong demand for memory and storage products used in AI data centers. Micron benefits from tight supplies of high-bandwidth memory, or HBM, which supports advanced AI processors. Sandisk stands to benefit from enterprise solid-state drive demand as AI applications generate larger volumes of data.
Roundhill Investments CEO Dave Mazza recently said AI demand is pushing memory suppliers toward longer-term customer agreements, improving revenue visibility. Mazza said memory supplies are effectively committed through 2026 and into 2027, even as higher interest rates and Chinese competition pressure investor sentiment.
Bernstein analyst Mark Newman remains optimistic about the sector following the recent pullback. Newman recently said demand remains "extremely strong" across DRAM, NAND flash memory and hard drives. However, Newman cautioned that memory price increases are no longer accelerating, suggesting that the industry's pricing momentum may be moderating. Investors must weigh AI-supported growth against slowing price increases and the possibility of greater competition.
Micron shares have gained nearly 220% in 2026 despite last week's declines. Sandisk shares have gained about 490% in 2026. The Roundhill Memory ETF (DRAM) and Tema Memory ETF (DISK) both hold Micron and Sandisk. The exchange-traded funds offer broader exposure to memory and storage companies.
Micron and Sandisk Stocks Surge Amid AI-Driven Memory Demand
BenzingaShare
Summary
The fear and greed index shifted toward greed as Micron Technology (NASDAQ:MU) and SanDisk (NASDAQ:SNDK) shares jumped 5.13% and 7.56% on Monday. The rally followed a selloff last week linked to Chinese competition and AI spending concerns. On-chain data shows renewed focus on memory and storage demand for AI data centers. Micron benefits from tight HBM supplies, while SanDisk gains from enterprise SSD demand.
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