Memory and storage shares climbed sharply Thursday as Sandisk’s strong earnings were followed by a bullish multiyear outlook that reinforced optimism about AI-driven demand for memory and storage hardware. Sandisk surged 16% to $1,565, while SK Hynix rose 8.13% to $166.96, Micron Technology gained about 6%, Western Digital climbed about 8% and Seagate Technology advanced nearly 5%. The broader market was also higher, with the Nasdaq up 1.31% and the S&P 500 gaining 0.64%. The rally built on a run of strong results across the sector and widened after Sandisk told investors it is targeting an adjusted gross margin of about 80% and an adjusted free cash flow margin of roughly 50%, while planning to return 100% of excess cash to shareholders after business investment. Sentiment was further supported by comments from Intel’s CEO, who said on a podcast that the company is exploring "some of the new memory architecture," calling it one of his "pet projects." Analysts remain constructive on SK Hynix. The stock has a Buy consensus rating and an average price forecast of $245.50. Wolfe Research and RBC Capital initiated coverage on Aug. 4 with Outperform ratings and $200 price forecasts, while Cantor Fitzgerald began coverage the same day with an Overweight rating and a $300 price forecast. The gains also underscored how targeted memory exposure can behave differently from broader chip funds, particularly between DRAM-heavy and NAND-tilted portfolios. Investors are also watching Micron’s fiscal Q4 2026 results and the HBM4E ramp into calendar 2027 as the next major catalysts.