SanDisk and Micron unveil long-term margin targets near 85%, backed by $38.5B in customer commitments, driving sector recovery.
SanDisk and Micron Technology announced gross margin targets for 2028-2030, nearing 85%, supported by $16.5B and $22B in long-term customer commitments. The move followed a weekend of negative social media sentiment but reignited investor confidence in the sector’s profitability outlook.
Prior to the announcement, concerns over NVIDIA’s reduced HBM content in its Rubin platform due to supply constraints, not demand weakness, had weighed on memory stocks. Micron’s CEO indicated tight supply conditions would persist beyond 2027, reinforcing structural support for pricing and margins.
The sector’s rebound was immediate, with memory stocks rallying after the margin targets were disclosed. Semtech, paired as an optical hedge, also saw data center revenue rise 39% year-over-year, further bolstering sentiment.