Memory Sector Rally Lifts SanDisk as Micron Reports 346% Revenue Gain
SNDK•SanDisk stock climbed in overnight trading as Micron’s fiscal Q3 revenue surged 346% year-over-year and gross margin hit 84.9%, driven by 16 five-year non-cancellable customer agreements with minimum-pricing provisions. Susquehanna boosted Micron’s price target to $2,000, bolstering sector momentum among memory peers.
1. Micron's Record Q3 and Analyst Upgrades
Micron reported a 346% year-over-year revenue increase and an 84.9% gross margin in fiscal Q3, prompting analysts to hike price targets across the board, with Susquehanna raising its target from $1,750 to $2,000 and another firm lifting its estimate from $530 to $1,870.
2. Memory Sector Rally and SanDisk Share Gains
The strong results triggered a rally in the memory sector, driving SanDisk shares higher in overnight trading alongside peers Western Digital and Seagate as investors priced in sustained growth prospects for NAND flash producers.
3. Strategic Customer Agreements and Margin Outlook
Micron announced 16 non-cancellable five-year strategic customer agreements featuring minimum-pricing provisions designed to keep gross margins above previous-cycle highs, underpinning forecasts of over $110 billion in free cash flow by fiscal 2027.
