Memory Chip Stocks Rally on Supply Outlook Through 2030

Shares of Micron Technology (MU) and SanDisk (SNDK) climbed on Wednesday, with gains of 5.86% and 7.66%, respectively. The move was triggered by SK Hynix's prediction that memory demand would exceed supply through 2030.

The advance came as Nvidia and Apple posted declines. Both memory names were down over 3% in premarket trading on Thursday, with SanDisk set to report earnings after the market close.

SK Hynix Forecasts Memory Demand to Outstrip Supply Through 2030

SK Hynix reported a record third-quarter revenue of 104.6 trillion won ($78.9 billion), a 328% surge year over year. Operating profit climbed 632% to 83.3 trillion won, exceeding analyst expectations.

The company's management anticipates demand will outrun supply through 2030. Over half of its 2027 and 2028 capacity is already locked in under long-term agreements. This projection challenges recent concerns that the memory cycle might top out in 2028.

Elon Musk added to the optimistic sentiment on October 26, suggesting that robots will drive memory demand.

Silly analysis.

Robot RAM needs will exceed everything else on Earth, as you need the robots to be on physical substates in order to shape atoms.

Super intelligence needs will vastly exceed that, but ~100% of SI will be deep space compute. Obviously.

— Elon Musk (@elonmusk) October 26, 2026

Robotics demand remains a longer-term narrative. In the near term, however, TrendForce projects NAND contract prices will rise 15% to 20% in the fourth quarter, while DRAM is expected to increase 10% to 15%.

The rally lost steam on Thursday. Microsoft and Alphabet each reported quarterly capital spending that fell short of analyst projections, and Samsung's chip profit missed forecasts.

SanDisk Stock Rebounds From Key Support Ahead of Earnings

SNDK had trended downward for several weeks during the broader chip selloff before hitting the 0.618 Fibonacci retracement at $1,244.58. That level coincides with a demand zone that also held in May and early August.

Wednesday's bounce now aims at the 0.5 Fibonacci level at $1,456. A move above that could lead to a retest of the 0.382 level at $1,668, where sellers have repeatedly intervened.

Trading volume is shrinking, indicating a consolidation phase. Meanwhile, the Relative Strength Index (RSI) has rebounded to neutral territory, sitting near 45.

Earnings could determine the next direction. Analysts project approximately $10.64 billion in revenue and earnings per share (EPS) near $46. Options pricing suggests a swing of roughly 9.9% in either direction.

A daily close below $1,244 would weaken the outlook and open the door to the 0.786 level near $943.

Micron Shows the Strongest Chart Among Semiconductor Stocks

MU briefly dipped below the 0.382 Fibonacci retracement at $894.58 before reclaiming it with Wednesday's gain. Volume is also testing a descending trendline that has limited activity since late June.

The stock recorded its first lower low since July, though that came after a higher high on October 2. The RSI has risen to about 53, above its midpoint.

A break above $1,000 and the 0.236 Fibonacci level at $1,032 could confirm the recovery. However, losing $894 again could push MU toward the 0.5 level at $783.

Micron's correction from its June peak reached roughly 32%, versus about 48% for SanDisk. That shallower pullback leaves MU with a firmer structure.

Because Micron tends to track its memory peers closely, SanDisk's results could set the direction for both stocks.