Memory names are ripping higher in early Monday trading. SanDisk (NASDAQ:SNDK | SNDK Price Prediction) stock is up 5% to $1,836, Western Digital (NASDAQ:WDC) shares are up 5% to $565.33, and Micron Technology (NASDAQ:MU) stock is up 3% to $1,008.77.
The bounce comes after a brutal Thursday session, when SanDisk shares fell 14%, Western Digital shares dropped 10%, and Micron stock slid 5.5%. Friday was a market holiday, making today’s session the first chance for buyers to respond to a wave of bullish analyst notes.
Analyst Upgrades Reset the Narrative
UBS analyst Nicolas Gaudois lifted Double Data Rate (DDR) contract-pricing forecasts to +32% quarter over quarter in Q3 2026 (from +17%) and +18% in Q4 (from +12%). UBS sees the DRAM market undersupplied “until at least 2Q28” and framed the pullback as “likely temporary.”
Citi added Micron to its 90-day upside catalyst-watch and raised average selling price growth estimates, citing stronger AI demand. Bank of America analyst Vivek Arya reiterated a Buy on Micron stock with a $1,550 price target, arguing memory is now 35-40% of cloud AI capex “yet memory stocks trade at sub-par 10x forward PE.” Arya called Thursday’s move “a healthy reset, not a structural change in AI demand.”
Thursday’s selloff followed a report from The Information that AI startup Anthropic was in talks with Samsung to design and manufacture custom AI chips, which traders read as a potential setback for U.S. memory makers. The report described only preliminary talks.
SanDisk and Seagate Join the Rebound
The move is spreading across storage and memory. Seagate Technology (NASDAQ:STX) shares are also higher, participating in the bounce after Thursday’s decline. The Roundhill Memory ETF (CBOE:DRAM) is likewise rebounding.
That ETF, which counts Samsung Electronics (25%), SK hynix (24%), and Micron (24%) as its top holdings, has become a favored sector proxy. The fundamentals across the U.S. group remain strong. Micron’s Q3 FY2026 revenue landed at $41.456 billion, with non-GAAP EPS of $25.11 and Q4 guided to $50 billion ± $1 billion.
Western Digital and the Bear Case
Not everyone is buying the reset thesis. Competition from Samsung and SK Hynix is intensifying, and valuations are stretched after a record first-half rally. “Big Short” investor Michael Burry recently disclosed a short position in Micron on a bubble/valuation thesis, sitting directly opposite Bank of America’s healthy-reset view.
Micron trades at a P/E ratio of 22x with a forward multiple of 7x, while SanDisk carries a trailing P/E ratio of 60x. Reddit chatter reflects the tug-of-war, with a WallStreetBets thread titled “I’m more confused by yesterday’s sell-off than the earnings” drawing hundreds of comments.
What to Watch
Two catalysts loom this week. Samsung reports Q3 results on Tuesday, a critical read on high-bandwidth memory pricing and demand. SK Hynix is set to list on the NASDAQ on July 10, and some traders expect volatility, along with possible rotation out of Micron into the lower-priced HBM leader.
These are high-beta names that just whipsawed double digits in a single session. Investors may want to keep their position sizes modest and watch for whether Samsung’s earnings report validates the UBS pricing thesis or hands the bears fresh ammunition.
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