Memory and chip manufacturers staged a strong comeback on Thursday following Samsung's commentary on memory supply shortage till 2028. The gains will likely spill over to the last trading session of July too.
Futures tied to AI-linked chipmakers Micron Technology Inc., Korean giant SK Hynix, Advanced Micro Devices Inc. and Sandisk Corp extended their rally up to 7%.
The bounce back came after Samsung Electronics flagged that the on-going memory shortfall (RAM, DRAM and NAND) may persist till 2028 on robust demand from hyperscalers.
In its second quarter earnings report, Samsung said that DRAM and NAND sales remained at record highs in the second quarter, with profit that exceeded early estimates riding on the AI boom.
ALSO READ: SanDisk, Micron, AMD, Intel Shares Rocket Up To 23% After Samsung Flags Memory Shortage Till 2028
"In H2 2026, the Memory Business expects robust demand centered on servers stemming from continued AI infrastructure capex and broader adoption of agentic AI. Meanwhile, growth in demand for server DRAM, eSSDs, and HBM is expected to accelerate. This is projected to keep the market undersupplied, despite partial demand moderation in mobile and PCs," the market leader said.
During pre-market trade MU traded 5% higher at $916, AMD was up 4.4% to $506.93, SK Hynix jumped nearly 7% to $158.97; Sandisk Corp., which closed 26% higher on Thursday, traded 6.24% to $1,358.25, and Intel Corp. climbed 5.5% to $96.10. Jensen Huang-led Nvidia Corp. traded 1.3% higher at $197.57
It is important to note that the gains may have a short shelf life in a highly-sensitive and volatile market, which has gotten progressively less forgiving of slip ups in recent months when it comes to AI trade.
"The shortage thesis is no longer a discovery, it is the consensus, and consensus trades of this size produce violent shakeouts on any wobble, as this week's whiplash previewed," said Harshal Dasani business head at INVAsset, a portfolio management services firm.
Traders rotated back into AI-linked chip stocks and semiconductors, after days of harsh dumping made valuations more breathable.
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