Quick Read
Goldman Sachs flagged SK Hynix and Micron breaking summer downtrends, with light hedge fund positioning leaving room for re-entry as volatility compresses.
DRAM rallied 2% as a coordinated sector bid, even as SPY slipped 0.3%, but Kioxia’s CEO warned prices have already risen enough after NAND surged 70% last quarter.
Micron guided fiscal Q4 revenue to a record $50 billion midpoint, with SanDisk projecting the NAND market triples to $300 billion in 2026.
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Memory chip stocks are rising Wednesday morning after Goldman Sachs told clients the worst of the sector’s downturn may be over. SK Hynix (NASDAQ:SKHY) stock is up 4% to $193.53 in early trading, leading the group higher.
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Also rising, Micron Technology (NASDAQ:MU) stock is up 2% to $1,022.16. SanDisk (NASDAQ:SNDK) shares are climbing 3% to $1,784.04, extending a run that has carried the trio meaningfully higher over the past month.
The move caps a strong stretch for the group after weeks of range-bound trading. Volume across the group has picked up notably, and today’s action ties directly to a fresh sell-side call spanning multiple names in the memory complex.
Goldman Says the Worst May Be Over
Goldman Sachs described Micron and SanDisk as breaking out of the summer downtrends that had capped both names, noting hedge fund positioning is still light and semiconductor volatility sits well below its July peak. The firm framed the setup as early signs of investor re-engagement, with the underlying fundamental picture unchanged from the last reporting cycle.
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Goldman also flagged cyclical risk. Memory prices, capacity additions and consumer spending can turn quickly, so a technical breakout still needs earnings behind it. Micron is scheduled to report fiscal Q4 2026 results after the close on September 30, and the release sets up the near-term test for the bull case.
Story Continues
The technical setup Goldman highlighted has been building for weeks. Semiconductor volatility peaked in July and has since compressed, and the memory names had held their consolidation ranges through August, which the firm reads as an early accumulation pattern in a lightly positioned corner of the market.
The positioning read matters because hedge fund exposure to the memory names had lightened during the summer sell-off, leaving room for re-entry as the technical picture improved. Goldman’s constructive turn arrives with sentiment on semiconductor cyclicality still cautious, and the firm’s framing implies the pain trade for underweight funds is now to the upside.
Sector Bid Runs Against the Broad Tape
The rally isn’t gigantic, but it appears to be broad-based across the memory/storage segment, with strength beyond the U.S.-listed leaders. The Roundhill Memory ETF (CBOE:DRAM) is up 1% to $61.65, with Samsung Electronics, SK Hynix and Micron as its three largest holdings and a long tail of storage names including Kioxia, Western Digital and Seagate Technology.
Meanwhile, the SPDR S&P 500 ETF Trust (NYSEARCA:SPY) is down 0.53% to $761.87. The memory group is decisively outperforming during soft broader session, which marks today’s action as a coordinated sector bid.
The bullish call arrives just as Kioxia Chief Executive Officer Hiroo Ota told Bloomberg he has instructed sales teams to hold back on pushing data center operators for substantially higher prices. Ota stated “Prices have already risen enough” and warned the industry could hurt its own growth by pushing too hard. Kioxia’s average NAND price rose 70% in the June quarter versus the prior three months, according to Bloomberg.
Ota also dismissed the likelihood of a manufacturing tie-up with SK Hynix, citing antitrust hurdles and Kioxia’s jointly owned facilities with SanDisk. His comments read as a demand-protection move by a large NAND supplier, and they complicate the pricing story sitting underneath today’s rally.
What to Watch Next
The fundamental backdrop from recent reports still supports the constructive case. Micron guided fiscal Q4 revenue to a record $50 billion at the midpoint, with non-GAAP EPS of $31 and gross margin of 86%, and management said DRAM and NAND supply-demand conditions may remain tight beyond calendar 2027.
SanDisk carried a similar message on its August call, guiding fiscal Q1 2027 revenue to $10.3 billion to $10.8 billion and estimating the NAND market will exceed $300 billion in calendar 2026, up 3x year over year. Chief Executive David Goeckeler stated “Demand from our customers is growing faster than our supply” and that bids are expected to remain on allocation beyond calendar 2027.
SK Hynix has its own catalyst set. The company is the dominant HBM supplier for AI accelerators, and its late-August groundbreaking on an Indiana HBM production base reinforces the U.S. capacity buildout. Any further HBM commentary in the coming weeks may feed directly into the sector narrative Goldman just endorsed.
Investors can watch for whether Micron’s September 30 update confirms the HBM ramp and pricing durability that fueled the Goldman note. Moreover, traders should size their positions to reflect the cyclical nature of memory and the possibility of sharp reversals around earnings, particularly if the tone on calendar 2027 pricing shifts.
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