Micron Technology, Inc.

NASDAQ Global Select
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Very Bullish +85

Memory Stocks Jump on Tuesday: SanDisk, Micron See Strong Gains Again

🚀 SanDisk (SNDK) and Micron (MU) stocks surged 5-6% on Tuesday following a major partnership announcement and strong earnings reports.

🤝 Micron and Applied Materials announced a collaboration to co-develop next-gen DRAM, HBM, and NAND storage for energy-efficient AI systems.

💰 SanDisk reported Q2 fiscal 2026 revenue of $3.03 billion (up 61% YoY) with EPS of $6.20, beating the consensus estimate of $3.54.

📈 Micron posted Q1 fiscal 2026 revenue of $13.64 billion (up 56.6% YoY) and guided Q2 revenue to approximately $18.70 billion.

🔮 SanDisk guidance for Q3 fiscal 2026 projects revenue between $4.4B-$4.8B with adjusted EPS of $12-$14.

🏭 The new partnership utilizes Applied Materials' $5 billion EPIC Center in Silicon Valley and Micron's R&D hub in Boise, Idaho.

📊 Analysts project SanDisk's March quarter EPS could reach $10-$12 with price targets between $750 and $1,000.

⚠️ The memory sector faces a structural supply constraint for HBM expected to persist until 2028, driving strong demand.

📉 Micron shares have gained 374.4% over the past year, trading at $411 with next earnings expected around March 18.

🧠 Morgan Stanley raised Applied Materials' price target to $432 and named it a 'Top Pick' in U.S. semiconductor equipment.

💼 CEO Sanjay Mehrotra stated Micron anticipates business performance continuing to strengthen through fiscal 2026.

🔗 Cantor Fitzgerald projects SanDisk's March quarter EPS could reach $10-$12, reflecting high growth expectations.

Bullish Signals
  • Micron and Applied Materials announced a strategic partnership to co-develop next-generation memory technologies specifically for energy-efficient AI systems.
  • SanDisk reported Q2 fiscal 2026 revenue of $3.03 billion, representing a significant 61% year-over-year increase.
  • SanDisk's EPS of $6.20 substantially exceeded the consensus estimate of $3.54 for the quarter.
  • Micron delivered Q1 fiscal 2026 revenue of $13.64 billion, up 56.6% year over year, demonstrating strong growth momentum.
  • SanDisk provided robust guidance for Q3 fiscal 2026 with revenue expected between $4.4 billion and $4.8 billion.
  • Micron's CEO confirmed substantial records across revenue, gross margin, EPS, and free cash flow for the quarter.
  • The memory sector benefits from a structural supply constraint in HBM that is not expected to ease until 2028.
  • Morgan Stanley upgraded Applied Materials to a 'Top Pick' with a price target of $432, validating the sector's growth thesis.
  • SanDisk stock trades well below analyst price targets of $750-$1,000 despite a year-to-date gain of 162.4%.
  • Micron has committed its entire 2026 HBM production through multi-year contracts, providing unusually strong revenue visibility.
Full Analysis
Memory stocks SanDisk (SNDK) and Micron Technology (MU) surged 5-6% on Tuesday, driven by a new strategic partnership between Micron and Applied Materials. This collaboration focuses on co-developing next-generation DRAM, high-bandwidth memory (HBM), and NAND storage specifically for energy-efficient AI systems. The joint effort leverages Applied Materials' $5 billion EPIC Center in Silicon Valley and Micron's R&D hub in Boise, Idaho, targeting materials engineering and advanced packaging to meet future AI workload demands. SanDisk reported exceptional financial results for its Q2 fiscal 2026, posting revenue of $3.03 billion, a 61% year-over-year increase, with EPS of $6.20 against a consensus estimate of $3.54. The company provided strong guidance for Q3 fiscal 2026, projecting revenue between $4.4 billion and $4.8 billion with adjusted EPS of $12 to $14. Analysts project March quarter EPS could reach $10 to $12, with price targets ranging from $750 to $1,000, suggesting significant upside potential despite recent gains. Micron Technology delivered robust performance in Q1 fiscal 2026 with revenue of $13.64 billion, up 56.6% year over year, and guided Q2 revenue to approximately $18.70 billion. CEO Sanjay Mehrotra highlighted substantial records across revenue, gross margin, EPS, and free cash flow, anticipating continued strengthening through fiscal 2026. The sector is benefiting from a structural supply constraint in HBM expected to persist until 2028, creating strong revenue visibility as hyperscalers accelerate enterprise SSD deployments. Market sentiment remains overwhelmingly positive for the memory sector, with Goldman Sachs citing a 'great memory crunch' and Morgan Stanley upgrading Applied Materials to a 'Top Pick.' Micron shares have gained over 374% in the past year, trading at $411 midday. The rally is supported by the thesis that memory demand rises directly with NVIDIA GPU sales and the expansion of AI data centers, positioning both companies as critical second-order plays in the AI infrastructure boom.