Memory surges: Micron up 11.9% and SanDisk up 13.7% as CoreWeave's beat revives the AI trade
Micron rose 11.89% to $811.30 and SanDisk 13.69% to $977.69 — pre-split prices — as CoreWeave's earnings beat and a Morgan Stanley note calling the pullback a buying opportunity revived the AI trade, with SK hynix's US shares up 9.71% and Seagate and Western Digital also sharply higher.
📊 Scorecard: our Bullish call on $MU is scored from $811.30, the last close before it ran. Its first result comes after the next close.
The News
US memory stocks ripped higher on Wednesday, led by SanDisk at $977.69, up $117.70 or 13.69%, and Micron at $811.30, up $86.19 or 11.89%. SK hynix's US shares rose 9.71% to $142.25, Seagate gained 9.94% and Western Digital 7.50%. The $977.69 SanDisk close is a pre-split price: the record date for its 8-for-1 split was November 9, extra shares arrive after the close on November 19, and split-adjusted trading starts November 20.
Two drivers converged. CoreWeave's third-quarter beat — $3.66 billion of revenue, up 168% year over year, with a record $132.5 billion backlog, according to its November 10 earnings release — and its raised 2026 guidance of $13–13.3 billion eased fears that AI infrastructure spending is slowing. And Morgan Stanley's November 9 note, written by analyst Joseph Moore, named memory its second-most-preferred semiconductor sub-sector, saying the valuation pullback had significantly improved the risk-reward and recommending playing offense through Micron and SanDisk. The bank still holds a range-bound base case — fundamentals support the floor, while sentiment and construction constraints cap the recovery — but the market read the note as a buy signal after a month-long pullback.
Micron's own line stands: over 75% of its fiscal 2027 output is already committed, CEO Sanjay Mehrotra said on the September 30 earnings call, and its December fiscal first-quarter report is the next test of whether pricing holds. SanDisk led the S&P 500's gainers on the day, and the rally came even as a bear case lingered in the background — Kioxia's flat December-quarter guidance from October 30 — operating profit guided at about ¥1,995 billion, flat on its record quarter — implies NAND price gains are slowing — which the market simply ignored on Wednesday.
Memory went from the market's worry to its loudest answer in a single session.
Why It Matters
Memory is the AI bottleneck. Every AI system needs vast amounts of high-bandwidth memory and storage, and supply is tight — which is why Micron can say over 75% of its fiscal 2027 output is already committed before the year has even begun. When a market that tight gets a demand signal like CoreWeave's 168% growth, prices and shares move fast, because there is no spare capacity to absorb the surprise.
The Morgan Stanley note matters because it reframes the pullback. After a month of falling memory shares, the bank said the valuation drop had significantly improved the risk-reward and told clients to play offense through Micron and SanDisk. That is not a cheerful forecast — the bank still sees a range-bound base case — but it is a professional judgment that the downside is now limited, and Wednesday's market treated it as a green light.
The rally's breadth is the signal. It was not one stock: SanDisk, Micron, SK hynix, Seagate and Western Digital all rose sharply on the same day. That is the market pricing in a memory cycle that lasts longer than one quarter — even while Kioxia's flat guidance warns that NAND price gains may be slowing. The December Micron report will settle which of those two stories is right.
The CoreWeave numbers behind the rally deserve a second look, because they are the demand evidence. A customer growing revenue 168% and raising full-year guidance to $13–13.3 billion, with a record $132.5 billion backlog of signed orders, is buying memory in volumes that only make sense if AI infrastructure spending keeps growing. SanDisk leading the S&P 500's gainers on the day says the market read the same numbers the same way: the memory shortage is a demand story first, and a pricing story second.
Analyst's Take
Our call is Bullish. The two drivers behind Wednesday's move are both fundamental, not just mood: a customer reporting 168% revenue growth and raising guidance, and a major bank saying the pullback has made the risk-reward worth playing offense on. Micron's line that over 75% of fiscal 2027 output is already committed gives the rally a floor — this is demand customers have already signed for, not hope.
What to watch: Micron's December fiscal first-quarter report, the next test of whether memory pricing holds. If prices stay firm, the rally has a fundamental leg and the Morgan Stanley call looks early rather than wrong. If pricing softens — the Kioxia warning in the background — Wednesday's gains will look like a sentiment bounce, and the range-bound base case wins.
Are you bullish or bearish on this story?
By The Numbers
FAQ
Why did memory stocks jump so much?
Two drivers converged on Wednesday. CoreWeave reported third-quarter revenue of $3.66 billion, up 168% year over year, and raised its full-year guidance — easing fears that spending on AI infrastructure is slowing. And Morgan Stanley's November 9 note called memory its second-most-preferred semiconductor sub-sector, saying the valuation pullback had significantly improved the risk-reward and recommending playing offense through Micron and SanDisk.
What is SanDisk's stock split?
SanDisk is doing an 8-for-1 stock split: each share becomes eight, so the price per share will be roughly one-eighth of today's level, while the total value of an investor's holding does not change. The record date was November 9, extra shares arrive after the close on November 19, and split-adjusted trading starts November 20. The $977.69 close quoted here is the pre-split price — do not divide it by eight.
What did Morgan Stanley actually say?
The bank's November 9 note, written by analyst Joseph Moore, named memory its second-most-preferred semiconductor sub-sector and said the pullback had significantly improved risk-reward, recommending playing offense through Micron and SanDisk. It still holds a range-bound base case — fundamentals support the floor, while sentiment and construction constraints cap the recovery — but the market read the note as a buy signal after a month-long pullback.
What is Micron's next test?
Micron says over 75% of its fiscal 2027 output is already committed — sold in advance — and its December fiscal first-quarter report is the next test of whether memory pricing holds. If prices stay firm, the rally has a fundamental leg to stand on; if they soften, Wednesday's gains look like a sentiment bounce.
What are Micron and SanDisk?
Micron makes memory chips — the DRAM and flash storage that AI systems need in huge quantities — and SanDisk makes flash memory, the storage chips inside phones, cameras and data centres. Both sit at the centre of the AI memory shortage, which is why their shares move so sharply on any change in AI spending sentiment.
👁
Source: TradingKey