Storage Chip Sector Revelry: SanDisk and Micron Soar Over 15%

On May 8th, Eastern Time, the storage chip sector ignited a new round of frenzy.

SanDisk soared by over 16%, Micron Technology jumped by over 15%, and Seagate Technology increased by more than 2%, all setting new historical highs. The Philadelphia Semiconductor Index skyrocketed by 5.5% overall, also reaching a historical peak.

Micron's nearly 38% increase this week, market value surging by $230.7 billion in a single week

The surge on Friday was just the latest chapter in Micron Technology's remarkable week.

This week, Micron Technology accumulated an increase of nearly 38%, with a market value exceeding $840 billion, and the weekly market value increment reaching a staggering $230.7 billion. This marks its strongest week since December 2008, with a cumulative increase of nearly 84% over the past month.

Since the end of April, both Micron and San Disk have seen cumulative increases of more than 40%, becoming the most dazzling components in the Philadelphia Semiconductor Index.

Supporting this round of the market is a financial outlook that has sent market confidence skyrocketing: Micron's revenue for the first quarter of fiscal year 2026 was $13.64 billion, a year-on-year increase of 57%, net profit of $5.24 billion, a year-on-year surge of 169%, and expects a gross margin of up to 67% for the next quarter, with盈利ability reaching a new high in recent years.

Institutions have followed suit, with Citi's latest report raising the target price for Micron from $180 to $200, maintaining a buy rating, and believing that the memory chip price increase cycle can last at least until the end of 2026.

San Disk: The most underestimated memory winner in the AI era

If Micron is considered the "benchmark" of the storage sector, SanDisk is the biggest dark horse in this round of the market.

SanDisk's revenue for the second quarter of fiscal year 2026 grew by 61% year-over-year, net profit soared by 672% year-over-year, and the gross margin jumped to 50.9%, with data center business revenue growing by 76% year-over-year. Its CEO, David Glueck said, "By 2026, data centers will become the company's largest market."

The market institution's attitude is equally aggressive, with Bernstein significantly raising the target stock price for SanDisk to $580.

The three structural drivers propelling the "super cycle"

Behind this round of memory market movements are three driving forces:

First is the "arms race" in AI computing power construction. Global tech giants such as Meta, Google, and Microsoft have recently raised their AI capital expenditure expectations, with Bank of America Securities estimating that global hyperscale cloud providers' capital expenditures will exceed $800 billion by 2026.

TrendForce data shows that up to 70% of the global memory production in 2026 will be consumed by data centers, with production capacity already booked out through 2028.

Secondly, the structural supply tension is driven by the squeeze on HBM production capacity. The three major global memory chip manufacturers, Micron, Samsung, and SK Hynix, have all shifted substantial DRAM production capacity to high-bandwidth memory, directly leading to a shortage and price surge in general-purpose memory supply.

The spot prices of DRAM and NAND flash memory chips have risen by about 25% and 18% respectively. Institutions are also optimistic about the subsequent price increase cycle, with Citi expecting the average selling price of DRAM to rise by 88% in 2026 and the average selling price of NAND flash memory to rise by 74%.

The third factor is the scramble by tech giants to secure long-term supply. Both SK Hynix and Micron have revealed that large internet technology companies are increasingly inclined to sign long-term supply agreements, with contract periods extending up to three or even five years. Chip design company Broadcom has secured all its memory chip supplies before 2028.

SK Group Chairman Chey Tae-won recently said that the tight supply of memory chips will continue until 2030.

Global resonance, A-share memory sector同步 carnival

The restlessness of the memory market is not limited to US stocks. On May 6th, South Korea's memory duopoly, SK Hynix and Samsung Electronics, continued to set new historical highs, and in the A