Micron and SanDisk retreat after sharp year-to-date rallies, while Western Digital rises on NAND pricing insulation.
Micron Technology (MU) and SanDisk (SNDK) shares fell 5% and 7%, respectively, in early trading Monday, reversing part of their massive year-to-date gains. Micron is up 265% YTD, while SanDisk has surged 713%, driven by memory-market optimism but now facing valuation concerns and supply-glut fears.
Western Digital (WDC) bucked the trend, climbing 6% as its planned February 2025 SanDisk divestiture shields it from NAND pricing volatility. The divergence reflects a structural shift, with memory and storage stocks no longer moving in lockstep. Morgan Stanley maintains overweight ratings on Micron and SanDisk, framing the selloff as rotation rather than a fundamental downturn.
The split highlights investor repositioning amid differing outlooks for memory and storage segments, with Western Digital emerging as a beneficiary of capital reallocation.