Storage chip shares shined. SanDisk soared over 7%; Seagate Tech, Western Digital up around 6%; Rambus up 4%; DRAM, SK Hynix, Micron up over 2%.
Analyst Kevin Cassidy noted in the research report that new AI computing platforms are creating opportunities, as NAND flash is transforming from a commodity storage medium into a systemically critical component within AI infrastructure. Unlike traditional consumer electronics and smartphone-driven demand that relied on density gains and falling cost-per-bit, AI systems increasingly prioritize density, performance, endurance, and supply stability over absolute low pricing as model sizes expand and inference data volumes surge. According to FactSet, SanDisk now carries an average analyst rating of Overweight with a mean price target of $2,269.12.
The initiation adds to broader bullish sentiment in the storage sector. Bank of America recently raised DRAM and NAND average selling price forecasts for the next two years, projecting the global memory TAM to reach $2 trillion by 2030 with a 21% CAGR through 2027-2030, pointing to a long-term super cycle.
Comments