SanDisk Corp. shares soared 10.17% in Thursday's session, staging a powerful rebound as the memory storage sector came roaring back to life. The surge marks a dramatic reversal for the stock, which had been pummeled throughout July, losing nearly half its value from its June peak amid fears over artificial intelligence spending sustainability and rising competition.

The rally was fueled by a confluence of positive catalysts across the semiconductor landscape. Samsung Electronics reported blockbuster quarterly results, with operating profit surging over 1,800% year-over-year and management signaling that memory supply shortages could persist through 2028. Additionally, SK Group Chairman Choi Tae-won's personal purchase of SK Hynix shares lifted sentiment, while UBS initiated coverage on SK Hynix with a Buy rating, arguing the stock does not fully reflect structural improvements driven by AI-related demand.

Microsoft's earnings also played a pivotal role in reigniting chip stocks. The software giant reported strong cloud growth and maintained its capital expenditure guidance, easing fears of runaway AI spending without returns. Analysts noted Microsoft's "responsible approach" to AI investments, with improving free cash flow projections, made the market more comfortable with the broader AI investment cycle. This, combined with oversold conditions after a brutal July selloff, sparked a broad-based recovery in memory names including Micron, Western Digital, and Seagate, all of which posted double-digit gains alongside SanDisk.