Memory-chip and storage stocks were seen gaining during premarket trading on Monday while Micron flirted with the key $1000-level mark before the bell, as investors parsed through some fresh signals that could boost the sector.
Micron Technology shares were up about 3% in premarket trading Monday, putting the stock on course to cross the $1,000 mark if the gains hold through the session.
SK Hynix rose more than 4%, while SanDisk gained about 6% in premarket trading.
Micron closed at $971.66 on Aug. 14 and has gained roughly 13% over the past five trading sessions.
The stock had fallen below $1,000 on July 2 after reaching a record high in June, as investors questioned whether massive spending by technology companies on AI infrastructure would generate sufficient returns.
The July selloff hit semiconductor stocks broadly, with investors also increasingly focused on competition from Chinese chipmakers and the possibility that AI-related capital expenditure could eventually slow.
Don’t want Apple to use Chinese memory chips: Lutnick
A fresh catalyst for Micron could have come from US Commerce Secretary Howard Lutnick, who said the Trump administration does not want Apple to use memory chips manufactured in China.
“The Trump administration is not in favor of that,” Lutnick said in an interview after touring an Apple manufacturing facility in Houston, according to The Wall Street Journal.
There have to be “other solutions to the memory issue, but it’s not great American companies using Chinese memory,” he said.
Asked whether he had communicated that position to Apple, Lutnick replied “plainly.”
The comments come as Micron has lobbied the Trump administration against Apple using Chinese memory chips, arguing that such a move could undermine US semiconductor production and conflict with Washington’s efforts to bring more chip manufacturing onshore.
Micron’s substantial investment commitments in the US have strengthened its position in discussions with policymakers, placing the company at the center of a debate over Apple’s supply chain.
Apple has been testing memory chips from Chinese manufacturers CXMT and Yangtze Memory Technologies, potentially opening the door for their use in devices sold in China, according to people familiar with the matter cited by the Journal.
US rules require American companies to obtain a licence before sharing product information with CXMT and YMTC.
However, Apple can purchase off-the-shelf memory chips from the Chinese companies without necessarily requiring the same level of cooperation.
Apple Chief Operating Officer Sabih Khan declined to confirm whether the company was testing Chinese memory chips.
But amid a supply shortage, he said, “we have to look at all options,” including efforts to expand production with existing suppliers.
For Micron, restrictions on Chinese memory could provide additional support for pricing and demand while protecting its position in one of the world’s largest technology supply chains.
New Street sees major upside for Micron
Additionally, New Street upgraded the company to Buy from Neutral last week and assigned a $1,250 price target, implying roughly 29% upside from recent levels.
The brokerage argued that artificial intelligence could transform Micron into a $2 trillion to $3 trillion company by the end of the decade.
New Street expects AI applications to become the dominant source of memory demand, accounting for about two-thirds of total demand in the coming years.
It forecasts annual memory demand growth of around 15% beyond 2030, compared with a historical average of roughly 10% over the past two decades.
The brokerage also believes high-bandwidth memory, or HBM, deserves a premium over commodity DRAM because demand is increasingly being driven by long-term AI infrastructure investment rather than traditional semiconductor cycles.
New Street forecasts Micron could generate more than $150 billion in annual free cash flow by 2030 and accumulate more than $600 billion in cash at peak levels.
SanDisk joins the memory-stock rally
SanDisk has also been in focus since late last week.
The stock jumped more than 7% on Friday after the company presented its long-term outlook at an investor day.
Management forecast annual revenue growth in the mid-to-high double-digit range between fiscal 2028 and fiscal 2030.
SanDisk is targeting non-GAAP gross margins of approximately 80% and adjusted free cash flow margins of around 50%, pointing to significant operating leverage as the company expands.
The company also cited $93.9 billion in contracts associated with its newer business models, giving investors greater visibility into future demand.
JPMorgan initiated coverage of SanDisk with an Overweight rating and a $2,250 price target.
Analyst Harlan Sur said SanDisk is “uniquely positioned to capture the ongoing structural inflection in NAND demand driven by rapid growth in AI inference,” highlighting the potential for AI workloads to reshape the NAND market.
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