Data storage and memory stocks jumped sharply on Tuesday after comments from Nvidia CEO Jensen Huang reinforced the scale of future demand coming from AI workloads.
Sandisk $SNDK ( ▼ 5.38% ) led the group, surging more than 20% in early trading, alongside other major data storage and memory names that were already top performers last year. Western Digital $WDC ( ▼ 6.1% ) , Micron $MU ( ▼ 3.69% ) , and Seagate Technology $STX ( ▼ 7.72% ) all traded significantly higher.
Despite no company-specific news from Sandisk, trading activity was intense. By shortly before 10 a.m. ET, roughly 4.1 million shares had changed hands, more than three times the normal volume for that point in the session.
Huang’s CES comments spark renewed AI storage optimism
The rally followed closely watched remarks from Jensen Huang at the Consumer Electronics Show in Las Vegas, where he highlighted how critical data storage will be as AI systems scale.
Huang told analysts that AI storage could become the largest storage market in the world, effectively holding the “working memory of the world’s AIs,” adding that it is “a completely unserved market today.” His comments reinforced expectations that AI-driven demand will continue pushing storage and memory prices higher in 2026.
Wall Street expects sharp price increases for memory
Morgan Stanley analysts echoed that outlook in a note published Tuesday. The bank expects DRAM prices, a key product for Micron, to rise between 40% and 70% quarter over quarter in the first quarter of 2026.
NAND flash memory prices, which underpin Sandisk’s core business, are also forecast to climb sharply. Morgan Stanley estimates NAND prices could increase 30% to 35% in Q1 2026, citing industry data and tightening supply conditions.
Together, the analyst outlook and Huang’s CES remarks helped reignite enthusiasm across the data storage and memory space as investors position for sustained AI-driven demand.