MU, SNDK, SKHY: Memory Stocks Surge Overnight After Nvidia More Than Doubles Purchases

• Nvidia CEO Jensen Huang said memory availability is now a key constraint on Nvidia’s ability to meet its long-term growth outlook.
• Nvidia maintains long-standing relationships with all three major memory suppliers, SK Hynix, Samsung, and Micron. 
• Micron has rebounded 14% this month and SanDisk 23%, clawing back some of their steep July losses.

Shares of memory chipmakers gained on Wednesday after Nvidia Corp. reported another blowout quarter and signaled a sharp focus on securing memory supplies with billions of dollars in planned investments.

The stance from the world’s biggest chipmaker is another bullish signal for the memory trade, suggesting memory chip sales could remain elevated for years. Semiconductor sales and memory demand tend to move in tandem, and Nvidia’s upbeat report — with revenue more than doubling last quarter and the company forecasting 70% growth in fiscal 2028 — further strengthened the positive sentiment.

Micron and SanDisk stocks each gained 3.2% in late Wednesday overnight trading, while U.S.-listed shares of SK Hynix advanced 4%. 

Nvidia Races To Secure Memory

Nvidia said it continues to make strategic commitments across supply, infrastructure, and partner ecosystems.

“We’ve partnered with our extensive network of suppliers to secure the critical components needed to meet demand for the next several years. Our commitments increased from $119 billion last quarter to $279 billion, primarily related to the procurement of memory,” CFO Colette Kress said in prepared remarks. 

Nvidia’s future commitments. Source: Nvidia’s Q2 report

CEO Jensen Huang stressed that the company’s growth is limited by memory chips and stressed that securing memory supply upstream is critical to enabling the company’s guidance of 70% growth for FY2028. “Even though our demand is much greater than 70%, our supply allows us to confidently deliver 70%,” Huang said in the earnings call.

Nvidia maintains long-standing relationships with all three major memory suppliers, SK Hynix, Samsung, and Micron. 

Nvidia’s second-quarter revenue more than doubled to $96.2 billion, while adjusted net income came in at $2.22 per share. Both metrics topped Wall Street expectations of $92.1 billion in revenue and $2.09 per share in adjusted earnings.

Retail View On Memory Firms

Despite the gains, the retail sentiment remained ‘bearish’ MU and SNDK and ‘extremely bearish’ for SKHY, although Nvidia’s report fueled positive comments for these stocks. 

“Nvidia’s earnings beat is giving the broader market a lift in after-hours trading. Semiconductor stocks, AI infrastructure names, memory stocks DRAM , and even the Nasdaq are moving slightly higher. Names seeing positive movement include: $SNDK $MU $ARM $INTC $AVGO,” said a trader. 

“$MU will be very interesting tomorrow fueled by $NVDA,” wrote a trader, while another forecast the stock reclaiming the $1,000 level. MU stock closed at $938.40 on Wednesday and is down about 24% from its peak in late June.

“$SNDK Based on outside share volume this could easily see new highs. Over $2500 by the end of August,” said another trader.

Micron shares have gained about 14% this month, while SanDisk is up roughly 23%, recovering after both stocks fell in July.

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