SanDisk Rallies 8%, Western Digital Rises 6%, Micron Gains 5% as Elon Musk Flags a Memory Bottleneck

Micron Technology plans to invest $10 billion over the next decade in a new U.S. research facility focused on memory and AI technologies. The project, backed by U.S. officials and tech executives, aims to advance semiconductor manufacturing and computing technologies. Micron expects the facility to enhance its long-term position in AI memory, though financial returns may take time.

Micron Technology (MU) is investing $50 billion in two new fabs in Boise, Idaho, creating 17,000 jobs, with the first fab operational in 2027. The expansion aims to meet AI-driven demand for high-bandwidth memory. Micron plans to spend $250 billion by 2035 to produce 40% of its DRAM in the U.S. The company's stock has more than doubled since late 2024.

SK Hynix and Samsung announced large shareholder return plans, with SK Hynix approving a $28.6B buyback and Samsung preparing a $72B return package. Micron, despite strong cash generation, has not followed suit, with minimal capital return. Micron's financials show significant cash reserves and flexibility, but structural differences and cyclical caution may delay any major shareholder returns.

Sandisk (SNDK) rose 7% to $1,630 after announcing a $14B buyback and $93.9B in new contracts. Western Digital (WDC) gained 4%, Micron (MU) climbed 3%, and SK Hynix (SKHY) increased 2%. The rally follows South Korea's Kospi entering a bull market, lifting global memory stocks. Analysts raised price targets for Sandisk, with JPMorgan setting a $2,250 target and Susquehanna at $3,250.

SanDisk (SNDK) rose 3.37% after a 9.01% drop, trading near $1,650, up 591% YTD. Investor Day set revenue growth targets of mid to high teens (2028-2030) and 80% gross margins. AI demand drives growth, but risks include NAND cyclicality and competition. Wells Fargo raised its target to $1,550 (Equal Weight).

Micron reported Q3 FY2026 revenue of $41.46B, up 345.7% YOY, beating estimates. DRAM and NAND sales drove growth, with data center and cloud units seeing significant increases. Non-GAAP EPS rose to $25.11. Analysts expect continued earnings growth, with projections of $72.93 for FY2026 and $158 for FY2027. Price targets vary, with Citi lowering its target to $1,150 and KeyBanc maintaining an $1,750 target.