Memory stocks soar as AI supporting cast repairs damage from steep November declines
Memory stocks, including Micron, Seagate, Western Digital, and Sandisk, are rebounding after steep declines in November due to AI credit risk and speculative momentum downturns. Micron, Western Digital, and Seagate are close to reclaiming all-time highs, while Sandisk lags behind. The demand for memory chips in data centers supports this recovery.
Not much rhyme or reason to it, but memory stocks are ending the week with a stellar showing.
Shares of Micron, the high-bandwidth memory specialist, hard disk drive sellers Seagate Technology Holdings and Western Digital, and flash memory company Sandisk are all rising today.
Three of these stocks dropped about 20% as credit risk seeping into AI and a downturn in speculative momentum stocks weighed on the theme in November, with Sandisk faring the worst.
Micron, Western Digital, and Seagate have all since rebounded strongly and are about 5% or less from reclaiming all-time highs, while Sandisk has made up the least ground.
While GPUs (and, more recently, TPUs) get most of the headlines, data centers also need a boatload of memory chips that store information and feed it to those processors.
