Memory stocks gained again on Tuesday as renewed optimism around artificial intelligence continued to provide a fresh tailwind for semiconductor shares, while a sharp decline in oil prices helped ease broader inflation concerns.
Additionally, fresh bullish calls added to the optimism, even as some recent reports around OpenAI and Anthropic’s plans seemed to have eased concerns over AI spending.
Micron Technology (NASDAQ:MU) and SK Hynix (NASDAQ:SKHY) were up more than 3% each, while SanDisk (NASDAQ:SNDK) gained more than 6% during the session.
The Nasdaq Composite hit its all-time high of 27,250 after the market opened, before giving up some gains.
Meta’s Muse AI assistant inject enthusiasm in chip stocks
The move extended a broader technology rally that began Monday, when the viral popularity of Meta Platforms’ Muse AI assistant sent Meta shares sharply higher and revived enthusiasm for the AI trade following a period of caution around the pace of AI development.
Meta shares jumped more than 11% on Monday, their biggest one-day percentage gain since April 2024, while the renewed optimism spread across the semiconductor sector.
AMD crossed the $1 trillion market-capitalisation threshold, while Intel and Arm Holdings gained 12.2% and 17%, respectively.
“This suggests that demand for costly AI tools is robust and worth the hundreds of billions of capex spent by the hyperscalers,” said Kathleen Brooks, research director at XTB.
“If there is widespread adoption of Muse, it could add to demand for other AI tools, which could lift the AI sector, after a rough few months.”
The rally came after a volatile period for AI-related stocks, following warnings from some technology executives that the pace of AI development and spending should be moderated.
Falling oil and Treasury yields add support
The improved risk appetite was also helped by lower oil prices and Treasury yields.
Oil prices fell to two-week lows on Tuesday, with Brent crude dropping to around $97.6 a barrel after an Iranian official told Reuters that Tehran could reopen the Strait of Hormuz within seven days if the United States eases military pressure and lifts its blockade on Iranian ports.
Saudi Arabia also resumed operations at its East-West Pipeline, adding to expectations of improved supply.
The decline in crude prices provided some relief on the inflation front, while the US 10-year Treasury yield fell three basis points to 4.93%, moving further below the psychologically important 5% level.
Lower yields also reduced support for the dollar after it had earlier touched a seven-week high against a basket of currencies.
However, expectations for additional interest-rate increases from major central banks could limit how far bond yields fall, leaving markets sensitive to incoming inflation and monetary-policy signals.
SanDisk gets $2,400 Rosenblatt target
Against that backdrop, SanDisk received a fresh bullish signal from Rosenblatt, which initiated coverage of the NAND flash maker with a Buy rating and a $2,400 price target.
The target represents more than 35% upside from SanDisk’s Monday close of $1,766.64.
The stock has already gained more than 540% in 2026 and more than 1,600% over the past year.
Rosenblatt analyst Kevin Cassidy argued that AI could fundamentally change the role of NAND flash memory by turning it from a largely commodity storage product into a more strategically important component of AI infrastructure.
“Historically, consumer, PC, and smartphone NAND demand was driven primarily by rising density and falling cost per bit. In AI systems, however, expanding model sizes and data-intensive inference increasingly prioritise density, performance, endurance, and supply certainty over the lowest absolute price,” Cassidy said.
“We believe positioning NAND closer to compute engines can increase its value to the overall system. SanDisk’s technology roadmap supports this opportunity,” the analyst’s note said.
Rosenblatt pointed to SanDisk’s technology roadmap and the growing importance of high-performance memory as AI systems become more data-intensive.
Micron faces tight supply, rising HBM prices
Micron has also received fresh support from analysts.
Stifel reiterated a Buy rating and $1,500 price target on Micron, saying it expects the company to report results and guidance above consensus for its fiscal fourth quarter ended in August and its fiscal first quarter ending in November.
The firm expects the magnitude of upside to be more measured than in recent quarters because of supply agreements with collar-based pricing and near-term bit shipment constraints.
Stifel forecasts DRAM bit shipments to grow 15%-20% in calendar 2027, down from mid-to-high-20% growth in 2026.
The slowdown reflects the timing of new cleanroom availability and tighter equipment supplies.
At the same time, Stifel estimates DRAM bit supply would need to grow 40%-50% or more in 2027 to eliminate the current supply deficit.
The firm also expects HBM4 pricing per bit to potentially double, with negotiations for 2027 supplies nearing completion.
Such pricing could provide an additional margin boost for Micron in its fiscal second quarter ending in February.
OpenAI, Anthropic developments ease concerns over AI spending
Monday’s rally was also attributed in part to a Financial Times report that OpenAI expects to burn through $278 billion in cash between 2026 and 2030 as it increases spending on computing power and infrastructure.
OpenAI expects its revenue to rise tenfold over the same period, from $36 billion this year to $350 billion in 2030, according to the report.
The company also expects to generate cumulative revenue of $840 billion through the end of the decade.
The spending projections suggest that demand for computing infrastructure could remain substantial even as investors debate whether the current AI boom can sustain its pace.
Anthropic is also considering launching a new AI model to counter OpenAI’s momentum following the release of GPT-6 Astra, Reuters reported, citing three sources.
The potential release comes as Anthropic prepares for an expected initial public offering and after Amodei’s call for a slower pace of development of increasingly powerful AI systems.
The New York Times separately reported that Anthropic could reach as much as $100 billion in annualized revenue by year-end.
Mizuho analyst Daniel O’Regan said in a note to clients that the latest developments around the two AI startups “reinforce expectations for sustained AI infrastructure spending.”
Whether this rally has further room to run is the question now facing anyone tracking the sector through investment platforms.
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