SK Hynix and SanDisk Climb 8%, Western Digital Gains 4% as Memory Shortage Deepens

Memory and storage stocks are rallying sharply Wednesday morning as fresh catalysts stack on top of an already tight supply picture. SK Hynix (NASDAQ:SKHY) stock is up 8% to $153. Meanwhile, SanDisk (NASDAQ:SNDK | SNDK Price Prediction) shares are climbing 8% to $1,382 and Western Digital (NASDAQ:WDC) stock is gaining 4% to $457.

The rally is broader than those three names. Micron Technology (NASDAQ:MU) stock is also up 6% to $919, and the Roundhill Memory ETF (CBOE:DRAM) is rising 8% to $55, a remarkable move for a sector ETF.

What stands out is how modest valuations remain despite the run. Each name trades at a trailing 12-month P/E ratio in the high-teens to low-20s. That’s an unusually restrained profile for stocks with this kind of momentum in 2026.

Temasek Report and Micron’s Tightness Call Fuel the Move

Three catalysts are driving today’s action. First, a report that Singapore’s sovereign wealth fund Temasek is planning direct investments in Samsung Electronics and SK Hynix lifted the KOSPI overnight and rippled into U.S.-listed memory names. Temasek reportedly views the AI-semiconductor segment as undervalued.

Second, Micron Chief Business Officer Sumit Sadana told investors at KeyBanc’s tech conference that 2027 will likely be “even tighter” than 2026, with structural supply constraints extending beyond next year as AI demand outpaces new capacity. That commentary reinforced pricing power expectations across DRAM, NAND, and HDD.

Third, Intel (NASDAQ:INTC) CEO Lip-Bu Tan floated memory-CPU stacking and new memory architecture as the shortage deepens, noting that memory makers are reportedly sold out for the next two years. AI server demand appears to be adding a sympathy lift across the storage ecosystem, as well.

Valuations Stay Modest Despite the Rally

Here’s the tension. Even after huge 2026 runs, memory names trade cheaper than most AI-adjacent semiconductor peers. SK Hynix stock carries a 19.51x P/E ratio, while SanDisk shares sit at 18.57x.

Western Digital stock trades at 19.03x, and Micron stock at 20.69x. The Roundhill Memory ETF, more richly priced given its weightings, sits at 24.92x.

Those multiples reflect how much trailing earnings have expanded. Micron’s fiscal Q3 2026 revenue jumped 345.7% year over year (YoY). SanDisk’s Q4 FY2026 revenue rose 371.6% YoY. Western Digital’s Q4 FY2026 revenue advanced 43.8% YoY.

The margin picture tells the same story. Western Digital’s non-GAAP gross margin reached 54.4% last quarter, and SanDisk’s GAAP gross margin hit 84.6%. When earnings scale like that, headline P/E ratios can lag the price action for months.

ETF Concentration and What to Watch

The Roundhill Memory ETF offers investors direct exposure to the theme, but the fund is highly concentrated. Samsung Electronics, SK Hynix, and Micron collectively account for 72% of the fund’s holdings. The ETF launched earlier this year, so it lacks meaningful trading history, and its narrow sector focus is worth flagging for anyone using it as a diversified proxy rather than a targeted memory bet.

Investors can watch for follow-through into the close, particularly whether SK Hynix stock holds above $150 and whether Micron stock can reclaim recent highs after a July slip. The next scheduled catalyst is Micron’s fiscal Q4 2026 report, which management has guided to $50 billion plus or minus $1 billion in revenue and non-GAAP EPS of $31 plus or minus $1.

If Sadana’s “even tighter” 2027 view proves accurate, today’s move may prove more than a one-day reaction. It could mark an early re-rating for a group the market has been slow to reprice against its earnings power.

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