SNDK, MU Rise Overnight: Analyst Target Hikes, KOSPI Rebound Power Surge

SanDisk issued bullish targets for 2030 last week, prompting analysts to raise their price targets on the memory chipmaker’s shares.

• Memory stocks, which dipped from their records in June, are seeing fresh momentum as the second-quarter earnings season nears close.
• SNDK rose 6% in overnight trading ahead of Monday, while MU advanced 3.6%.
• South Korea’s KOSPI rose 2.4% on Monday.

Memory stocks are starting the week with another burst of momentum. Shares of SanDisk Corp. and Micron Technology rose sharply in overnight trading ahead of Monday’s session, signaling that the stocks’ rebound could persist for some time.

SNDK stock was up 6% without a clear trigger. Shares gained 35.4% in the past week after the company unveiled an ambitious growth outlook through fiscal 2030 at its investor day event, which attracted several price target hikes from analysts.

MU stock rose 3.6% after gaining nearly 11% in the past week, while the Roundhill Memory ETF (DRAM) rose 4.6%. 

South Korea’s KOSPI, heavily weighted toward chipmakers Samsung Electronics and SK Hynix and influencing trading in U.S. memory stocks, rose 2.4% on Monday.

Fresh Strength In Memory Stocks

Memory stocks, which dipped from the records in June, are seeing fresh momentum as the second-quarter earnings season nears close. Among other catalysts, Big Tech firms reported strong growth in their cloud businesses and signaled that their data center buildout and record capital spending will continue.

Firms such as Amazon, Nvidia, Alphabet and Meta Platforms are among the biggest buyers and users of memory chips.

Memory chipmakers and analysts have maintained that memory demand will remain elevated for several years, but much of that outlook is already priced into the stocks, creating resistance to further gains.

SNDK, MU: Analysts Rain PT Hikes

Still, fresh signals from analysts are a welcome development.

Last week, SanDisk said it expects mid-to-high-teens revenue growth and elevated margins, supported by BiCS10 QLC and High Bandwidth Flash technology aimed at AI workloads. It also pledged to return excess cash to shareholders through buybacks and dividends.

In response, RBC Capital Markets raised its price target on the stock to $1,600, while Wells Fargo lifted the target to $1,550. Both firms retained ‘neutral’ ratings, citing stronger long-term growth and margin targets, confidence in the company’s new business model pricing, and a favorable outlook.

Meanwhile, New Street upgraded Micron’s rating to ‘Buy’ from ‘Neutral’ with a $1,250 price target. 

The research firm said Micron's cost of goods sold improvement shows the improving economics of the industry with strengthening profitability and through-cycle cash generation. It forecasted that Micron will have over $600 billion in cash and more than $150 billion in annual free cash flow, with memory demand ramping up even further in the coming years.

Retail View On Memory Stocks

At the time of writing, SNDK and MU were among the top 10 trending stocks on Stocktwits. 

“$MU A re rating was overdue. Don’t be surprised by this move. The stock was severely undervalued and applied a cyclical PE ratio. It is now being re-rated to the correct PE ratio… The runway is long: Inference, Agentic, Robotics,” a trader wrote.

“$SNDK setup looks extremely bullish, strong upside loading,” said another trader. Year to date, SNDK is 591%, while MU has gained 241%.

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