Micron Rises 7%, Western Digital Climbs and SanDisk Climb 4% as Memory Stocks Extend Parabolic Run
Micron Rises 7%, Western Digital Climbs and SanDisk Climb 4% as Memory Stocks Extend Parabolic Run
David Moadel Mon, June 1, 2026 at 6:39 PM UTC
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Micron (MU) reported Q1 FY2026 revenue of $13.64B, up 57% YoY with non-GAAP EPS of $4.78 beating estimates, while guidance for Q2 calls for $18.7B revenue and $8.42 EPS.
Western Digital (WDC) posted Q3 FY2026 revenue of $3.34B, up 46% YoY with non-GAAP EPS of $2.72 beating estimates and gross margin reaching 51%.
SanDisk (SNDK) delivered Q3 FY2026 revenue of $5.95B, up 251% YoY with EPS of $23.41 crushing the $14.66 estimate and Datacenter segment surging 645% YoY.
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Memory and storage stocks are catching another strong bid at midday Monday as the AI memory supercycle extends one of the most extraordinary runs in semiconductors. Micron Technology (NASDAQ:MU) stock is up 7% to around $1,041, Western Digital (NASDAQ:WDC) stock is gaining 4% to $554, and SanDisk (NASDAQ:SNDK) stock is adding 4% to around $1,758 in afternoon trading.
The trio is already deeply extended. Micron stock has gained 265% year to date (YTD) and 1,002% over the past year, Western Digital stock has climbed 226% YTD and 988% over 12 months, and SanDisk stock has risen 643% YTD and 4,560% over the past year.
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Today's move reads as a continuation of an established supercycle rather than a fresh entry point. NVIDIA's (NASDAQ:NVDA) Computex 2026 reveals are layering on another demand signal for memory and storage.
Micron Leads on DRAM and HBM Demand
Micron is the day's standout in dollar terms, riding surging high-bandwidth memory and DRAM demand from hyperscalers. Q1 FY2026 revenue came in at $13.64 billion, up 57% year over year (YoY), with non-GAAP EPS of $4.78 beating the $3.94 estimate. The Cloud Memory Business Unit nearly doubled to $5.28 billion.
CEO Sanjay Mehrotra described "record revenue and significant margin expansion" with Micron positioned as "an essential AI enabler." Micron's Q2 FY2026 guidance calls for revenue of $18.7 billion plus or minus $400 million and non-GAAP EPS of $8.42 plus or minus $0.20, with order books reportedly stretching into 2027.
Morgan Stanley keeps Micron stock at Overweight, calling the strength "more durable than the market perceives." Reddit sentiment for MU sits at 88 (very bullish), fueled by viral LEAPS gain posts on WallStreetBets.
Western Digital Rides the HDD Capacity Squeeze
Western Digital stock is being pulled higher by structural hard drive demand from cloud providers building AI training and inference infrastructure. Q3 FY2026 revenue reached $3.34 billion, up 46% YoY, and non-GAAP EPS of $2.72 topped the $2.39 estimate. Moreover, Western Digital's non-GAAP gross margin crossed 50% for the first time, reaching 51%.
Western Digital CEO Irving Tan stated that "Virtually every AI workload, from training, inference, agentic AI to physical AI, creates data that is stored persistently and cost-efficiently on HDDs." The company lifted its dividend by 20% to $0.15 per share and is targeting 50%+ gross margins and $20+ EPS.
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Wells Fargo carries a $335 price target on Western Digital stock, and management has highlighted hyperscaler contracts extending through 2028. The combination of analyst conviction and multi-year hyperscaler commitments underscores the durability of the HDD demand backdrop.
SanDisk Adds to a Blockbuster Year
SanDisk's headline numbers are difficult to overstate. Q3 FY2026 revenue hit $5.95 billion, up 251% YoY, EPS came in at $23.41 versus the $14.66 estimate, and the Datacenter segment grew 645% YoY to $1.47 billion. Furthermore, SanDisk's gross margin expanded to 78%.
CEO David Goeckeler called the quarter "a fundamental inflection point" for SanDisk's mix shift toward Datacenter. The company retired $650 million of debt, joined the NASDAQ 100 on April 20, and extended its Kioxia joint venture through 2034 for stable NAND supply.
SanDisk's Q4 FY2026 guidance calls for revenue of $7.75 billion to $8.25 billion and non-GAAP EPS of $30 to $33. Clearly, SanDisk and its shareholders are riding a bullish wave of sentiment in early June.
NVIDIA Computex Adds Fresh AI Tailwinds
NVIDIA's Computex announcements today, including the RTX Spark superchip with MediaTek and Vera Rubin chips entering full production, point to more AI infrastructure spend ahead. More compute capacity ultimately requires more DRAM, HBM, NAND, and HDD capacity. NAND flash prices have surged 60% to 75% in recent quarters per IndexBox reporting, and the Roundhill Memory ETF (DRAM) reached $1 billion in AUM in under two weeks.
However, the cyclicality of memory shouldn't be overlooked, and these are premium-valued stocks after extraordinary runs. The $1,150 mini-tender offer for SanDisk that holders rejected in May illustrates how dislocated valuations have become. Recent insider activity at SanDisk, including a director's $870K sale on May 8, looks compensation-related rather than a bearish signal, but is worth noting.
What to Watch
Polymarket traders assign a 99% probability that Micron stock closes higher today and a 64% probability of a close above $880 by month-end. Watch for whether the group's gains hold into the close.
The next anticipated catalysts are NAND pricing data, hyperscaler capex commentary, Micron's Q2 FY2026 earnings, and SanDisk's Q4 FY2026 report. Given how extended these names are, prudent investors may want to size their positions cautiously rather than chase the move.
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