"The catalyst is a maturing investor consensus that high bandwidth memory (HBM), enterprise NAND, and high-capacity hard drives are all structurally short of supply. Micron's most recent quarter showed Cloud Memory Business Unit revenue of $5.28 billion at a 66% gross margin, with management guiding fiscal Q2 2026 revenue to $18.7 billion. For more on the broader setup, see our analysis of why memory is shaping up as the trade of 2026."
"SanDisk's latest report was even more dramatic. The company posted Q3 FY2026 revenue of $5.95 billion, up 251% year over year (YoY), with datacenter revenue alone hitting $1.47 billion. CEO David Goeckeler called the quarter "a fundamental inflection point" for SanDisk."
"Western Digital's quarter showed non-GAAP gross margin crossing 50% for the first time, alongside a 20% dividend increase. CEO Irving Tan declared that "virtually every AI workload, from training, inference, agentic AI to physical AI, creates data that is stored persistently and cost-efficiently on HDDs" (hard disk drives)."
"The synchronized move extends a parabolic stretch for the group. Micron stock has climbed 76% over the past month, while SanDisk shares have added 91% over the same window. Western Digital stock is up 40% in the past month. Year to date, the numbers are extreme. MU stock is up 151%, SanDisk stock has surged 528%, and Western Digital stock has gained 176% in 2026 so far."
Memory and storage stocks rose sharply in mid-morning trading as the AI memory supercycle thesis gained broad investor acceptance. Micron, SanDisk, and Western Digital moved higher together, extending strong recent momentum. The rally is tied to expectations that high bandwidth memory, enterprise NAND, and high-capacity hard drives face structural supply shortages. Micron reported Cloud Memory Business Unit revenue of $5.28 billion with a 66% gross margin and guided fiscal Q2 2026 revenue to $18.7 billion. SanDisk posted Q3 FY2026 revenue of $5.95 billion, up 251% year over year, with datacenter revenue at $1.47 billion. Western Digital reported non-GAAP gross margin above 50% and a 20% dividend increase, supported by persistent AI data storage needs.
Read at 24/7 Wall St.
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