<p>The wave of demand for AI-driven storage chips is pushing the entire sector to new heights.</p><p>On Tuesday, U.S. stocks closed with the storage and data storage sector experiencing a significant surge. Micron Technology's market capitalization surpassed $500 billion for the first time at closing, officially ranking it among the 16 most valuable companies in the S&amp;P 500 index. Stocks like SanDisk, Western Digital, and Seagate also reached new highs simultaneously.</p><p>The core catalysts driving this round of increases come from multiple directions. Micron announced after the market closed on Monday that its HBM4 high-bandwidth memory chips for NVIDIA's next-generation Vera Rubin AI platform have entered mass production, dispelling market concerns about its ability to become a supplier for the platform. Meanwhile, SK Hynix Group Chairman Choi Tae-won stated on Monday that the global chip wafer shortage is expected to continue until 2030, with a potential shortfall exceeding 20%, and hinted at a new plan to stabilize DRAM prices, further boosting market sentiment.</p><p>The combination of these messages has benefited the overall storage sector. Western Digital rose over 9%, Seagate Technology increased by more than 5%, Micron gained over 4%, and SanDisk's cumulative increase over the past five trading days reached 19.52%, with a year-to-date increase of 196%. Morgan Stanley's Chief U.S. Equity Strategist Mike Wilson had previously warned that the storage sector &#34;had cooled,&#34; but the current market trend sharply contrasts with this assessment.</p><p><img src="https://imageproxy.pbkrs.com/https://wpimg-wscn.awtmt.com/5b3a1a8b-77bb-405d-b56d-9850f82e78e5.png?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" alt="" original-src="https://imageproxy.pbkrs.com/https://wpimg-wscn.awtmt.com/5b3a1a8b-77bb-405d-b56d-9850f82e78e5.png"/></p><h2>Micron's Market Cap Surpasses $500 Billion for the First Time</h2><p>Micron Technology closed at $461.69 on Tuesday, with a market capitalization of $519.64 billion, according to Dow Jones market data. This marks the company's first time closing above the $500 billion threshold. The previous trading day, Micron briefly touched this milestone during intraday trading but failed to maintain it until the close.</p><p>This achievement makes Micron one of only 16 members of the S&amp;P 500 index with a market capitalization of $500 billion or more. Notably, Micron only surpassed the $400 billion market cap for the first time two months ago, reflecting the rapid expansion driven by the market's highly optimistic expectations for AI storage demand.</p><p>The announcement of HBM4 mass production by Micron on Monday was the direct trigger for this round of increases. Currently, only Micron, South Korea's SK Hynix, and Samsung Electronics can produce HBM4 globally, and as the scale of AI models continues to expand, the demand for this high-end storage product is sharply rising.</p><h2>Supply-Demand Imbalance Supports Upward Logic</h2><p>Multiple analysts believe that the supply-demand imbalance in the storage market will provide sustained pricing power support for companies like Micron. Deutsche Bank analyst Melissa Weathers pointed out in a research report last week that <strong>the supply tightness in the DRAM market is expected to continue until 2027, especially since the silicon wafer usage required for HBM products far exceeds that of traditional DRAM,</strong> which will drive the average selling price, revenue, and profit margins of Micron's overall DRAM business upwardRosenblatt analyst Kevin Cassidy expects that the current upcycle will last at least until the fourth quarter of fiscal year 2026, as &#34;meaningful new wafer capacity&#34; will not be released until mid-next year at the earliest. Micron's newly acquired Taiwan-based Powerchip Semiconductor Manufacturing Corporation (PSMC) P5 facility is expected to start supporting &#34;meaningful&#34; shipment volumes by fiscal year 2028.</p><p>RBC analyst Srini Pajjuri stated in a research report on Sunday that even if there is a demand contraction in the PC and smartphone markets, it is expected to be &#34;significantly offset&#34; by demand from AI and data centers. He pointed out that data centers currently account for more than half of the revenue in the DRAM market, and demand for HBM and DDR memory is expected to continue until 2027.</p><h2>SK Hynix's Statement Strengthens Industry Outlook</h2><p>SK Group Chairman Choi Tae-won’s public statement on Monday provided additional fundamental support for the entire storage sector. <strong>He expects the global chip wafer shortage to last until 2030, with a potential gap exceeding 20%.</strong> This assessment aligns closely with predictions from several analysts regarding supply tightness, further reinforcing market confidence in the upward shift of storage prices.</p><p>Choi Tae-won also revealed that SK Hynix is evaluating the possibility of issuing American Depositary Receipts (ADRs) in the U.S. to broaden its global investor base. Additionally, he hinted that the company's CEO is about to announce a new plan aimed at stabilizing DRAM prices, attracting widespread market attention.</p><p>As a core supplier of NVIDIA's HBM chips, SK Hynix is currently at the forefront of the AI chip demand explosion. Choi Tae-won's statements, along with Micron's announcement of HBM4 mass production, constitute a dual catalyst for the current sector rally.</p><h2>Sandisk Leads, Sector Overall Strongly Challenges &#34;Cooling Theory&#34;</h2><p>In the broader storage sector, Sandisk's performance has been particularly outstanding. This flash memory-focused company has seen a cumulative increase of 19.52% over the past five trading days, with an annual increase of approximately 196%, and a staggering cumulative increase of about 1184% over the past 12 months. Western Digital and Seagate Technology have seen increases of approximately 17.17% and 9.92% respectively over the past five days, with both companies recording triple-digit increases over the past year.</p><p>This stands in stark contrast to the recent assessment by Morgan Stanley's Chief U.S. Equity Strategist Mike Wilson. In his latest market commentary, Wilson stated that sectors that previously led the rally, such as storage stocks, have &#34;clearly cooled off recently,&#34; warning investors to prepare for a potential &#34;final drop&#34; or &#34;capitulation shock,&#34; with potential triggers including the Federal Reserve's hawkish stance, inflation concerns, and escalating geopolitical conflicts.</p><p>However, current market data shows that the expected pullback in the storage sector has not occurred, and investors holding positions continue to benefit. Wilson also stated that once the market reaches a clear low point, investors should &#34;be ready to increase risk exposure before the bull market resumes.&#34;</p><h2>Earnings Report Window Approaches, Market Awaits Validation</h2><p>Micron will release its fiscal quarter earnings report on Wednesday (March 18), and market sentiment has already begun to heat up. According to analyst expectations compiled by FactSet, Micron's revenue for the second quarter of fiscal year 2026 is expected to reach $19.8 billion, a year-on-year increase of approximately 145%; adjusted earnings per share are expected to be $9.19, with net profit expected to be around $10.3 billion, a year-on-year increase of approximately 489%Cassidy pointed out that investors will focus on two major issues: <strong>First, whether Micron can maintain the pricing terms in its long-term supply agreements with customers while expanding wafer production capacity; second, whether the high storage prices have begun to trigger a decline in demand, meaning some customers are turning to alternatives or delaying purchases due to excessive costs.</strong></p><p>Micron also announced on Sunday the completion of its acquisition of the P5 plant of Nanya Technology in Taiwan, located in Tongluo, Taiwan, which will expand its cleanroom capacity in Taiwan and provide more space for the manufacturing of DRAM products, including HBM</p>

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<p>Micron Technology's market value closed above $500 billion for the first time, ranking among the top 16 most valuable companies in the S&P 500; SK Hynix warns that the shortage of chip wafers will continue until 2030; Sandisk has seen an increase of nearly 200% this year. Under the influence of multiple catalysts, Morgan Stanley's "storage cooling theory" is being ruthlessly contradicted by market realities</p>

- The demand for AI-driven storage chips has propelled the entire sector to new heights, with Micron Technology's market value surpassing $500 billion for the first time.  
- Core catalysts for this surge include Micron's announcement of HBM4 chip mass production for NVIDIA's AI platform and expectations of ongoing global chip shortages until 2030.  
- As valuations rise, analysts predict that the supply-demand imbalance will sustain pricing power, while upcoming financial reports from Micron are highly anticipated.

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U.S. stocks in the storage sector rose across the board, with Western Digital, Seagate, and Sandisk soaring to new highs, and Micron Tech entering the "500 billion dollar club."