US memory pulls back: Micron down 1.6% and SanDisk down 4.1% after Wednesday's surge
Micron fell 1.58% to $798.44 and SanDisk 4.12% to $937.46 — a pre-split price — on Thursday, a day after SanDisk jumped 13.69% and Micron 11.89%, with SK hynix's US shares down 3.19% to $137.71, Seagate 1.19% to $545.14 and Western Digital 0.67% to $311.21.
The News
US memory stocks pulled back on Thursday after Wednesday's double-digit surge, in a weak tape with the S&P 500 down 0.35%. Micron fell 1.58% to $798.44 and SanDisk 4.12% to $937.46; SK hynix's US shares fell 3.19% to $137.71, Seagate 1.19% to $545.14 and Western Digital 0.67% to $311.21. The SanDisk price is pre-split: 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 — so do not divide the $937.46 price by eight.
The move reads partly as profit-taking after SanDisk's 13.69% and Micron's 11.89% jumps the day before — but Thursday also brought a real shock: Nvidia CEO Jensen Huang resigned effective immediately, and Micron, whose high-bandwidth memory sits next to Nvidia's AI chips, fell almost 5% intraday before recovering to a 1.58% loss. Profit-taking is simple — investors who bought before the surge sell some shares to lock in the gain, and that selling pushes the price down for a day. It is a normal pause after a sharp rise, not a verdict that the rally was wrong.
The year-to-date picture is intact. SanDisk is up roughly 295% and Micron roughly 180% in 2026, both among the S&P 500's top five performers, and both trade at forward earnings multiples of about 4x or less against roughly 19x for the index. Micron has locked in approximately 35% of its revenue through 2030 under long-term contracts, and DRAM is about 73% of its revenue. The December fiscal first-quarter report remains the next test of whether pricing holds.
A down day after a double-digit surge is profit-taking, not a broken story.
Why It Matters
A pullback after a surge is how markets breathe. When a stock jumps 13.69% in a day, as SanDisk did on Wednesday, some holders will always sell to bank the gain — and when enough of them do it on the same day, the price dips. Thursday's declines of 1.58% for Micron and 4.12% for SanDisk are small next to Wednesday's gains, and they came with no new bad news about the companies. That is the textbook shape of profit-taking, and it is very different from a sell-off driven by a broken story.
The valuation numbers explain why investors are willing to buy the dips. A forward earnings multiple compares a company's share price with the profit analysts expect it to make over the next year — a multiple of 4x means the price is about four times one year of expected earnings. Memory stocks trade at about 4x or less, against roughly 19x for the index as a whole, which means the market is pricing memory profits as if they will not last. If the AI memory shortage persists, that gap is the bull case.
Micron's locked-in revenue is the other leg of the story. Having approximately 35% of its revenue covered through 2030 under long-term strategic customer agreements means a third of its future sales are already agreed with customers, which steadies the business when spot prices swing — though only about 12% of next year's expected revenue is a disclosed hard minimum, so the protection is real but partial. And DRAM — the fast memory inside servers and AI systems — is about 73% of Micron's revenue, so the company's fortunes rise and fall with DRAM pricing more than with any other single product.
The December fiscal first-quarter report is the next moment of truth. Memory rallies live or die on pricing: if Micron reports that prices are holding and customers are still signing long-term deals, Thursday's pullback will look like a healthy pause in a longer run. If pricing softens, the doubters who point to slowing NAND gains will have their evidence, and the cheap-looking 4x multiple will start to look like a fair price for a cyclical business at its peak.
Analyst's Take
Our call is Mixed. Thursday's pullback is the healthy kind — profit-taking after a double-digit surge, with the Nvidia resignation, not a memory-specific problem, driving the session, year-to-date gains of roughly 295% for SanDisk and 180% for Micron still intact, and both stocks still trading at about 4x forward earnings against roughly 19x for the index. But a Mixed call is honest about the other side: the gains were fast, the pullback shows how quickly sentiment can turn, and nothing in Thursday's session proved pricing will hold.
What to watch: Micron's December fiscal first-quarter report, the next test of whether memory pricing holds, and whether the pullback extends into a second day or buyers step back in. If the December numbers confirm firm pricing and locked-in demand, the surge resumes its logic; if they soften, Thursday was the first sign that the memory trade is cooling.
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By The Numbers
FAQ
What is profit-taking?
Profit-taking is when investors sell shares after a sharp rise to lock in their gains. After SanDisk jumped 13.69% and Micron 11.89% on Wednesday, some holders sold on Thursday, and that selling pushed prices down 4.12% and 1.58%. It is a normal pause, not a sign the underlying story broke.
What is a forward earnings multiple?
It compares a company's share price with the profit analysts expect it to make over the next year. A multiple of about 4x means the price is roughly four times one year of expected earnings. Memory stocks trade at about 4x or less, against roughly 19x for the index as a whole.
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 $937.46 close quoted here is the pre-split price — do not divide it by eight.
What does 35% of revenue locked through 2030 mean?
Micron has long-term contracts covering approximately 35% of its revenue through 2030, meaning about a third of its future sales are already agreed with customers. That steadies the business when memory prices swing, because those sales do not depend on the day-to-day market.
When is Micron's next test?
Micron's 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, Thursday's pullback may be the start of a cooler stretch.
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Source: Motley Fool