Memory chip makers are back in favor after Japanese NAND specialist Kioxia issued robust guidance and highlighted sustained AI fueled demand. The company projected full year operating income and sales above analyst expectations, signaling that pricing power in the memory market remains strong.
Investors responded by pushing memory names higher in early trading.
Customers Lock In Supply Years Ahead
Kioxia management said some customers are now seeking to secure supply as far out as 2027 and 2028. That shift from traditional 12 month contracts underscores how tight the market remains, especially as AI workloads drive massive storage needs.
The company also pointed to a sharp increase in selling prices, reflecting a persistent supply demand imbalance in NAND flash memory.
NAND and DRAM Names Climb
Sandisk $SNDK ( ▼ 0.59% ) , which recently extended its joint venture with Kioxia, led gains in the memory space. Micron $MU ( ▼ 0.56% ) , Western Digital $WDC ( ▼ 0.89% ) , and Seagate $STX ( ▼ 1.2% ) also moved higher as investors extrapolated stronger pricing and demand trends across the sector.
The rally adds to recent positive momentum from Micron’s update that shipments of its next generation high bandwidth memory chips have begun ahead of schedule.
A Sector Finds Its Footing Again
Memory stocks had cooled off earlier in the year as crowded momentum trades unwound and investors rotated into beaten down software names. Now, fresh evidence of durable AI driven demand is shifting sentiment back toward the group.
If long term supply contracts and rising prices persist, memory companies could remain central beneficiaries of the ongoing AI infrastructure buildout.