SanDisk, Micron lead AI storage rebound as Nasdaq futures gain 1%

AI memory and storage stocks rebounded sharply in US pre-market trading Monday, with SanDisk surging more than 5 percent, as investors returned to the semiconductor sector ahead of key earnings from Samsung Electronics.

AI memory and storage stocks rebounded in US pre-market trading Monday, with SanDisk surging more than 5 percent, as investors returned to the sector ahead of Samsung's earnings report. Nasdaq 100 futures rose 1 percent, while S&P 500 futures added 0.4 percent.

"Semiconductor and other hot tech themes with speculative positioning are likely to continue being trimmed," Roberto Scholtes, head of strategy at Singular Bank, said. "The key question is whether this triggers rotation into lagging sectors or a broader market correction."

Western Digital and Seagate each gained more than 5 percent, and Micron Technology climbed over 3 percent. The rebound follows a 25 percent pullback in SanDisk from its June high of $2,335, with the stock now trading near $1,810 — still up 3,905 percent over the past 12 months. SanDisk carries $42 billion in backlog from recently signed deals and $11 billion in financial guarantees, according to its latest earnings report.

The moves come as Samsung Electronics, up 165 percent this year, reports earnings Tuesday, and SK Hynix prepares a $29 billion US listing — events that will test whether the AI trade retains momentum after a volatile quarter. Hon Hai Precision, Nvidia's server assembly partner, reported quarterly sales up 40 percent year over year, signaling AI demand remains strong despite recent sector turbulence.

Cross-asset headwinds test the AI thesis

While tech stocks rebounded, macro conditions introduced competing pressures. Japan's 10-year government bond yield rose to 2.815 percent, the highest since 1996, with the 20-year yield reaching 3.785 percent and the 30-year at 4.055 percent. The dollar strengthened broadly, with Goldman Sachs raising its 12-month USD/JPY forecast to 165 from 155, citing carry trade dynamics. The yen traded near 161.54.

The rising yields in Japan create a potential headwind for carry trades that have funded risk appetite globally, including in tech equities. Meanwhile, the US 10-year yield eased two basis points to 4.46 percent, and Brent crude fell 0.6 percent to about $71.70 a barrel, partly easing inflation concerns.

Samsung is expected to report strong memory pricing power. The company has told customers it plans to raise third-quarter DRAM average selling prices by about 20 percent quarter over quarter, according to reports. Samsung Foundry competes directly with TSMC on advanced nodes, and its memory division benefits from the same AI-driven HBM (high-bandwidth memory) demand that has propelled SanDisk and Micron.

Valuation and the path forward

SanDisk trades at 61 times trailing earnings and 31 times forward earnings, with analysts expecting 124 percent revenue growth and 183 percent earnings growth next fiscal year. About 79 percent of Wall Street analysts rate the stock a buy. CEO David Goeckeler said at a May investor conference that the flash memory market will remain "undersupplied for a long period of time," with some analysts projecting the supply-demand imbalance could persist into 2030.

For investors, the question is whether the recent 25 percent drawdown from SanDisk's June peak represents a buying opportunity or the start of a deeper correction. The SK Hynix IPO, expected to be the largest US listing by a Korean company, will provide a fresh benchmark for memory valuations. Samsung's earnings Tuesday will offer the next data point on whether AI-driven memory demand can sustain the pricing power that has driven the sector's unprecedented rally.

This article is for informational purposes only and does not constitute investment advice.