Memory and semiconductor stocks demonstrated resilience on Wednesday, rising as much as 5% after Goldman Sachs provided a constructive outlook on the sector. The investment bank told clients that the worst of the memory chip downturn may be over, sending SK Hynix, Micron Technology, and SanDisk higher even as the broader market stumbles. According to Goldman Sachs, the firm described Micron and SanDisk as breaking out of summer downtrends that had capped both names, noting that hedge fund positioning remains light and semiconductor volatility sits well below its July peak. The investment bank framed the setup as early signs of investor re-engagement, with the underlying fundamental picture unchanged from the last reporting cycle.
SK Hynix led the rally with shares climbing 4.45% to $193.53 during early trading on Wednesday. SanDisk followed with gains of 3% to $1,784.04, extending a run that has carried the trio meaningfully higher over the past month. Micron Technology advanced 2% to $1,022.16. These gains occurred even as the broader market remained under pressure, demonstrating sector-specific strength in memory and semiconductor stocks. The Roundhill Memory ETF (CBOE:DRAM) also participated in the rally, rising 1% to $61.65, with notable volume increases across the group.
The memory chip stocks' performance came as Goldman Sachs provided positive sector commentary, suggesting that the semiconductor downturn may be nearing an end. According to reports, this analyst perspective contributed to the sector's resilience against the broader market decline. The divergence between semiconductor strength and overall market weakness highlights investor focus on specific sector opportunities despite general market uncertainty. The technical setup has been building for weeks, with semiconductor volatility peaking in July and compressing since then, while memory names held consolidation ranges through August.
The rally faces complications from supply chain developments, as Kioxia CEO Hiroo Ota warned against pushing for substantially higher prices, stating "Prices have already risen enough" and warning the industry could hurt its own growth by pushing too hard. Kioxia's average NAND price rose 70% in the June quarter versus the prior three months, according to Bloomberg. Ota also dismissed the likelihood of a manufacturing tie-up with SK Hynix, citing antitrust hurdles and Kioxia's jointly owned facilities with SanDisk. These comments from a major NAND supplier complicate the pricing story underlying today's rally.
Despite pricing concerns, the fundamental backdrop supports the constructive case for memory chips. Micron guided fiscal Q4 revenue to a record $50 billion at the midpoint, with non-GAAP EPS of $31 and gross margin of 86%, and management indicated DRAM and NAND supply-demand conditions may remain tight beyond calendar 2027. SanDisk carried a similar message, guiding fiscal Q1 2027 revenue to $10.3 billion to $10.8 billion and estimating the NAND market will exceed $300 billion in calendar 2026, up 3x year over year. SK Hynix has its own catalyst set as the dominant HBM supplier for AI accelerators, with its late-August groundbreaking on an Indiana HBM production base reinforcing U.S. capacity buildout.
