Memory chip makers post record profit growth but shares slump amid AI spending concerns
Micron Technology, SanDisk and SK Hynix reported extraordinary revenue increases in fiscal 2026, with Micron posting $133.2 billion, SanDisk $11.03 billion and SK Hynix 104.62 trillion won, all far above prior‑year levels. Despite the earnings surge, their stocks fell 23% to 60% below 2026 peaks as investors worry about the durability of AI‑driven demand and possible oversupply. Analysts kept buy ratings and high price targets, but market sentiment turned negative after weaker outlooks from other tech giants.
Why it matters
The sharp disconnect means investors may continue to discount memory makers despite strong cash flow, keeping valuations below recent highs (the company notes shares are 23%‑60% below 2026 peaks). Analysts maintain bullish price targets, so the gap could present a valuation opportunity if demand holds.
Key facts
- 1Micron's fiscal 2026 revenue was $133.2 billion, a 256% increase from $37.4 billion in fiscal 2025. finance.biggo.com
- 2SanDisk reported first‑quarter fiscal revenue of $11.03 billion, up 378% year over year. finance.biggo.com
- 3SK Hynix's third‑quarter revenue was 104.62 trillion won, a 328% rise from the prior year. finance.biggo.com
- 4Micron closed on Oct. 29 about 23% below its 2026 high. finance.biggo.com
- 5SanDisk's shares were 43% below its 2026 peak at the same time. finance.biggo.com
- 6Micron shares fell about 4% on Friday, trading at $897, down $37.27. ibtimes.com.au
Summary written by AlphAI AI Desk from 2 of 2 sources. Not investment advice. Figures are as stated by the linked sources.