American memory companies saw their stock prices soar across the board today.
On Monday, the New York Stock Exchange witnessed significant gains: SanDisk, a leader in NAND memory, surged 6.35%; Micron, the largest U.S. dynamic random access memory (DRAM) manufacturer, rose 3.68%; and Western Digital climbed 5.11%.
SanDisk’s stock price jumped to an impressive 703.63 USD, marking a 6.35% increase.
The catalyst for SanDisk’s surge was Meta’s major contract with Nebius, an artificial intelligence (AI) cloud provider.
The five-year agreement will see Meta pay Nebius 27 billion USD for access to its data centers.
This deal underscores the continued strong demand for AI data centers.
These facilities require substantial amounts of memory chips, contributing to SanDisk’s stock rally.
In response to this news, investment banks have raised their target prices for SanDisk.
Today’s jump caps off an impressive run for SanDisk, with the stock up 20% in the past five days, 200% year-to-date, and a staggering 1,183% over the past year.
The positive sentiment spilled over to Western Digital, which closed up 5.11% at $286.21.
Micron also benefited, rising 3.68% to 441.80 USD on news of plans to build a new factory in Taiwan.
Micron announced its intention to establish a second manufacturing facility in Taiwan.
This expansion comes as the AI boom continues to drive up demand for memory chips.
Micron’s stock has reflected this trend, jumping 14% in the last five days, 54% since the start of the year, and 338% over the past 12 months.