Micron, Western Digital, and Sandisk Just Jumped 12% to 14%. Here's the Forecast That Did It.

Memory chip stocks rallied Tuesday after Morgan Stanley forecast memory prices will climb at least 25% from Q2 to Q3, driven by AI data-center demand. Micron (MU) jumped 12.26%, Western Digital (WDC) gained 12.60%, and SanDisk (SNDK) surged 14.27%.

The Morgan Stanley call reversed recent weakness in the sector as investors bet the memory boom tied to artificial intelligence infrastructure will continue through mid-year. The 25% sequential price increase projection signals improving pricing power for chipmakers after months of investor uncertainty about demand sustainability.

All three names had declined in prior sessions before the analyst upgrade triggered renewed buying. The forecast positions memory manufacturers to benefit from data center buildouts required to support generative AI workloads, which demand substantially more memory capacity than traditional computing applications.