Memory and Storage Stocks Face Sharp Declines; Analyst Recommends Buying Two
Micron Technology, Sandisk, Western Digital, and Seagate have all seen significant declines in their stock prices due to a broader downturn in the memory sector. Micron's shares are down about 35% from its high amid surging revenue and profits, while Sandisk has dropped over 50%, despite strong earnings driven by rising NAND flash prices. Western Digital is also trading nearly 42% below its peak with robust demand for hard drives in cloud data centers. Micron's recent fiscal third-quarter results showed a more than fourfold increase in revenue to $41.5 billion and net income of $28.2 billion, yet the stock continues to fall. The company forecasts even stronger performance ahead but trades at just six times earnings estimates. Sandisk has also seen dramatic swings due to its reliance on volatile NAND pricing, though it has secured long-term supply agreements that may help stabilize future results. Western Digital's recent gains include a $2.7 billion pre-tax paper profit from its stake in Sandisk rather than core business performance. Despite strong demand for hard drives and 45% year-over-year revenue growth, the stock trades at about 30 times earnings—higher than peers.
Topics: DRAM hard drives memory stocks Micron Technology NAND flash