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Wall Street Is Selling Memory Stocks - Chipmakers Are Buying Them Back
Yahoo Finance • • business
Key Points:
- SanDisk plans to allocate part of its free cash flow to stock buybacks while focusing on generating durable free cash flow and reducing NAND market cyclicality through long-term customer agreements, according to CEO David Goeckeler.
- Despite strong memory demand, SanDisk's earnings guidance fell short of analysts' expectations, causing its stock to drop nearly 9% in after-hours trading.
- Elon Musk highlighted that memory demand is increasing by over 200% year-over-year, far exceeding the typical 20% growth rate, which supports potential sharp price increases in the sector.
- Memory stocks have recently declined after significant rallies, with Micron and SanDisk experiencing substantial monthly losses, presenting buyback opportunities and signaling confidence in future growth.
- Retail investor sentiment on Stocktwits is extremely bullish for SanDisk (SNDK) and Western Digital (WDC), while neutral for Micron (MU), reflecting mixed market outlooks within the memory sector.
