- Memory and semiconductor stocks rose despite broader market weakness on Wall Street
- SK Hynix led gains, climbing 4.45% to $193.80 during early trading on Wednesday
- AMD shares rose 3.49% to $523.38 amid the sector rally in the same session
Memory and semiconductor stocks rose despite broader weakness on Wall Street on Wednesday, with SK Hynix, SanDisk, Micron Technology and AMD gaining as much as 5%.
SK Hynix led the rally, climbing 4.45% to $193.80, while AMD rose 3.49% to $523.38. Micron Technology gained 2.15% to $1,021.75, and SanDisk advanced 1.77% to $1,768.73, according to market data at 12:12-12:13 p.m. ET.
The gains came even as the broader market remained under pressure, with the SPDR S&P 500 ETF down about 0.6% in early trading.
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The immediate trigger for the memory-stock rally was a bullish assessment from Goldman Sachs, which said the worst of the sector's downturn may be over. The investment bank pointed to improving technical trends in Micron and SanDisk, alongside relatively light hedge-fund positioning, as signs that investors could be preparing to return to the sector.
Goldman said both Micron and SanDisk have broken out of the downtrends that had constrained their shares through the summer. Semiconductor volatility has also eased significantly from its July peak, suggesting the sector may be entering a more favourable phase for investors.
The rally comes against a backdrop of strengthening memory-chip prices. DRAM prices rose about 2%, adding to optimism around the sector's earnings outlook.
However, the recovery is not without risks. Kioxia's chief executive has warned that NAND prices may have already risen sufficiently, after NAND prices surged roughly 70% in the previous quarter.
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Micron has also offered an upbeat outlook. The company has guided for record fiscal fourth-quarter revenue, with the midpoint of its guidance around $50 billion, according to the report.
SanDisk, meanwhile, has projected a sharp expansion in the NAND market, estimating that it could reach around $300 billion in 2026.
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