Micron, Western Digital, and Sandisk Just Jumped 12% to 14%. Here's the Forecast That Did It.
The memory sell-off ran into a forecast it couldn't argue with.
Overview
Tuesday was the day the memory trade turned back around. Micron Technology (NASDAQ: MU), Western Digital (NASDAQ: WDC), and Sandisk (NASDAQ: SNDK) rose 12%, 12.5%, and 14.3%, respectively, in Tuesday's session. It was a violent reversal for three stocks that entered the day down 31%, 39%, and 41% from their 52-week highs.
The biggest catalyst was a single forecast. In a Monday note, Morgan Stanley reportedly told clients it expects memory prices to rise at least 25% from the second quarter to the third, with artificial intelligence (AI) data-center demand keeping supply tight. The firm's checks reportedly found no sign the shortage is easing, and it said shortages could grow even more severe in 2027 and 2028. The group started climbing on the note Monday. On Tuesday, the buying turned into a surge.
Details
For a group of stocks that had spent two weeks selling off on fears the memory boom was ending, that was the whole argument. If prices are still rising, the boom isn't over. Here's what the forecast means for each of the three.
Source
Originally published at www.fool.com.