Memory stocks are rallying Thursday, clawing back a chunk of Wednesday’s steep losses. Sandisk Corp. (NASDAQ:SNDK), Micron (NASDAQ:MU), Seagate (NASDAQ:STX), Western Digital (NASDAQ:WDC), SK Hynix Inc. (NASDAQ:SKHY) and the Roundhill Memory ETF (NASDAQ:DRAM) are all higher in early trading, reversing course after a sharp selloff a day earlier.
Fresh numbers out of Samsung Electronics Co. and a bullish new call on SK Hynix are helping to drive the bounce.
- SNDK stock is climbing. See the chart and price action here.
Samsung released its second-quarter results Thursday morning, with revenue climbing 130% year-over-year and profit surging more than 1,800%.
SK Hynix also drew attention with UBS initiating coverage on its US-listed shares with a Buy rating and a $204 price target. The analyst argued the stock does not fully reflect a structural improvement in the memory industry driven by AI-related demand, according to CNBC.
UBS expects agentic AI to accelerate DRAM and NAND bit-demand growth through 2027. The firm sees that trend supporting higher profitability, stronger free cash flow, and long-term returns on equity well above what current valuations imply.
Tight supply and long-term customer agreements underpin the bullish call and extends to other memory names, even after a sharp pullback in recent weeks.
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A Rocky Stretch for the Sector
Thursday’s memory rebound follows a volatile stretch for the sector. SanDisk alone had sunk more than 50% from its July peak amid competition fears tied to Chinese rival CXMT and profit-taking after enormous year-to-date gain.
Micron and Western Digital slid alongside it during the correction, even as underlying demand signals stayed strong.
Seagate leads Thursday’s bounce following its blowout fiscal fourth-quarter report on Tuesday. Revenue grew 48%, gross margin hit a record 52.7% and demand is booked through 2028. Citi cited the results in raising its price target on the stock, calling it a confidence booster for the broader group.
A similar pattern played out earlier this month. Samsung’s initial preliminary Q2 print on July 7 triggered a sell-the-news selloff, followed by a sharp rebound days later on Micron’s earnings beat and bullish Wall Street pricing forecasts.
Thursday’s setup looks familiar, with strong Samsung and SK Hynix data landing against already-improving sentiment. Early trading action Thursday showed the sector clawing back some losses:
- SanDisk was up 18%.
- Micron was up 11%.
- Seagate was 14% higher.
- Western Digital was up 15%.
- SK Hynix climbed 10%.
- Roundhill Memory ETF was up 11%.
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