Semiconductor manufacturers Micron Technology (MU) and SanDisk (SNDK) recorded substantial gains on October 28, 2026, rising 5.86% and 7.66% respectively following a multi-year bullish forecast from memory chip giant SK Hynix.
Key Takeaways
- SK Hynix posted Q3 revenue of 104.6 trillion won ($78.9 billion), an increase of 328% year-over-year.
- More than half of SK Hynix's 2027 and 2028 production capacity is already locked into long-term customer agreements.
- TrendForce projects Q4 NAND contract prices to jump 15% to 20%, with DRAM prices rising 10% to 15%.
- SanDisk faces a 9.9% implied option move ahead of quarterly earnings with estimated revenue of $10.64 billion.
SK Hynix Earnings and Multi-Year Memory Demand
The market rally was ignited after SK Hynix posted record third-quarter revenue of 104.6 trillion won ($78.9 billion), up 328% year-over-year, alongside an operating profit surge of 632% to 83.3 trillion won. Management declared that memory demand will outpace supply through 2030, directly countering market concerns of a 2028 cyclical peak. Furthermore, over 50% of its 2027 and 2028 manufacturing capacity is already secured under long-term supply deals.
Bullish sentiment was bolstered on October 26, 2026, when Elon Musk posted that physical robotics and artificial intelligence will drive unprecedented RAM consumption. Near-term pricing power remains firm as TrendForce projects Q4 contract prices to rise 15% to 20% for NAND and 10% to 15% for DRAM.
However, momentum cooled in Thursday premarket trading with both MU and SNDK falling over 3%. The pullback followed quarterly earnings reports where capital expenditures at Microsoft and Alphabet missed consensus estimates, while chip profits at Samsung fell short of forecasts.
Technical Levels for SanDisk and Micron
SanDisk (SNDK) rebounded off its 0.618 Fibonacci retracement level at $1,244.58, a demand zone that held through May and August. Its primary upside targets rest at the 0.5 Fibonacci level of $1,456 and the 0.382 level at $1,668. With the Relative Strength Index (RSI) at 45, Wall Street expects quarterly revenue of $10.64 billion and an EPS near $46, with options pricing a 9.9% swing post-earnings. A close below $1,244 risks a drop toward $943.
Micron (MU) displays a stronger technical setup after reclaiming its 0.382 Fibonacci level at $894.58 with an RSI of 53. Resistance sits at $1,000 and $1,032, while downside support holds at $783. Micron's pullback from its June peak was limited to 32%, compared to a 48% correction for SanDisk.
Why It Matters
The long-term commitment of chip capacity through 2028 demonstrates that hardware bottlenecks in artificial intelligence infrastructure are shifting from processing units to memory supply chains. As technology conglomerates calibrate their capital expenditure programs, memory contract pricing leverage gives manufacturers multi-year earnings visibility. Investors should monitor whether enterprise AI demand can sustain contract price hikes even as hyper-scaler spending experiences short-term quarterly fluctuations.
