TradingKey - Memory sector stocks rally across the board in pre-market trading, with Micron, SanDisk, and SK Hynix all rising over 2%.
On October 9 Eastern Time, memory concept stocks surged collectively in pre-market trading, reversing yesterday's broad decline. Among them, SK Hynix (SKHY) rose 2.35%, Micron Technology (MU) gained 2.14%, SanDisk (SNDK) advanced 2.08%, Western Digital (WDC) rose 1.73%, and Seagate Technology (STX) climbed 1.46%.
SK Hynix stock price chart, Source: TradingView
Recently, news of Toshiba's capacity expansion triggered market fears of legacy DRAM / NAND oversupply, leading to a collective sharp drop and cascading liquidations in the memory sector, with the three memory giants—Micron, SanDisk, and SK Hynix—all falling over 4%, while Western Digital dropped nearly 3%.
As market over-panic regarding oversupply from Toshiba/Kioxia's capacity expansion plans gradually dissipated, alongside clarifications issued by Wall Street institutions, capital flowed back into the memory sector. Multiple brokerages, including Cantor Fitzgerald and Mirae Asset, released reports stating that market fears over capacity excess and HBM price cuts were clearly overblown.
Although short-term performance faced disruptions from capacity expansion rumors and sentiment, structural demand for high-capacity DDR5, enterprise SSDs, and HBM driven by global AI computing buildouts remains robust. However, investors should remain cautious of positioning shakeouts, as memory stocks have posted massive gains year-to-date, and their high-beta nature makes them vulnerable to synchronized sharp swings triggered by short-term news flow.