Micron Rallies 7% on Sandisk Outlook Upgrade, Gains from Helium Shortage
MU•Micron shares jumped about 7% on Monday following Sandisk’s stronger-than-expected results, extending Friday’s nearly 5% gain as analysts raised price targets and forecast faster NAND price growth versus DRAM. A 30% global helium shortage underscores Micron’s advantage through diversified sourcing, U.S. production and a 41.5% net margin over more exposed peers.
1. Stock Rally Driven by Peer Upgrades
Micron shares climbed about 7% in morning trading after Bernstein and Fox Advisors lifted price targets on Sandisk, fueling optimism in memory-chip pricing. The rally followed a nearly 5% gain on Friday and reflects growing confidence that NAND prices will outpace DRAM in the near term.
2. Helium Shortage Benefits Micron’s Production
An Iranian missile strike has disrupted 30% of global helium supply, posing risks for semiconductor manufacturers reliant on Qatari exports. Micron’s diversified helium sourcing network, U.S. fabrication sites and stronger balance sheet position the company to navigate the shortage more effectively than Samsung and SK Hynix.
3. Strong Profitability and Valuation Appeal
Micron reported a 41.5% net margin and has captured significant market share in AI memory segments. Trading at roughly 25 times forward earnings—below Sandisk’s 40 times trailing profit—Micron’s valuation gap may attract investors seeking a combination of growth and relative stability.
