Memory stocks continued their recovery on Monday after last week’s selloff, when artificial intelligence stocks suffered as Democrats wrestled control of the US House and Senate.
Micron stock MU gained around 6% during the session, while SanDisk shares advanced 7%.
The rebound followed a difficult period for the sector, with Micron having lost nearly 30% of its market value over the past month.
The shares also found support after Taiwan Semiconductor Manufacturing Company (TSMC) played down the prospect of entering the memory-chip market, easing concerns that another major producer could intensify competition.
TSMC plays down memory chip expansion plans
Last week, a report by The Information said TSMC was exploring the production of 3-D dynamic random-access memory (DRAM) at Nvidia’s request.
The possibility of TSMC entering the market raised concerns about additional competition and the potential for memory prices to peak sooner than expected.
However, TSMC told Barron’s on Monday that it does not comment on market rumours and remains focused on its core business of logic chips rather than memory.
“Our mission is to be the trusted technology and capacity provider of the global logic IC [integrated circuit] industry for years to come,” the company said in an emailed statement.
Analysts at Jefferies have suggested that TSMC could move into the memory market by 2035.
However, that would represent a longer-term competitive threat rather than an immediate change to the industry’s supply outlook.
For Micron investors, the more immediate concern remains when memory prices could peak between now and 2030, the period covered by the company’s long-term pricing agreements.
Chinese rivals increase pressure on SanDisk
Competition in the memory market is also intensifying as Chinese manufacturers expand production.
According to Counterpoint Research, SanDisk’s share of global NAND flash memory revenue declined to 11% in the second quarter of 2026 from 13% in the previous quarter.
Chinese rival YMTC, meanwhile, increased its share to 14%, up from 12% in the fourth quarter of 2025.
The shift came despite a 70% quarterly increase in the overall NAND market.
The figures highlight the growing competitive pressure facing established memory producers as Chinese manufacturers expand their presence.
Analysts remain bullish on SanDisk
Despite the competitive concerns, analyst ratings point to a positive outlook for SanDisk.
According to TipRanks data, 14 of the 17 analysts covering the stock have a buy rating.
Their average 12-month price target stands at $2,110.63, implying potential upside of 134% from current levels.
Bernstein also assigned SanDisk a buy rating on November 5, with a price target of $3,000.
Micron’s rebound comes after a sharp decline over the past month, with shares recovering as concerns about TSMC’s potential entry into the memory market eased.
However, the broader outlook remains tied to the AI trade and the timing of a potential peak in memory prices.
While TSMC’s reported plans could represent a future competitive challenge, its current position remains focused on logic chips.
AI disclosure: AI tools assisted with research and drafting of this piece. An Invezz editor reviewed the facts, sources, and wording before publication. Any opinions or analysis are Invezz’s, not those of an automated system.
The post Why are Micron and SanDisk stocks rising today? appeared first on Invezz
