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Memory stocks are moving higher in overnight trading, with Micron (NASDAQ:MU) gaining 2.8%, Sandisk (NASDAQ:SNDK) climbing 2.5%, and SK hynix (NASDAQ:SKHY) rising 4%. The gains follow CoreWeave's (NASDAQ:CRWV) latest earnings report, which offered reassurance that demand for AI infrastructure remains strong despite growing concerns about the industry's mounting costs.

CoreWeave reported third-quarter revenue of $3.66 billion, representing 168% annual growth, while its contracted backlog reached $132.5 billion. The company also raised its full-year sales forecast to between $13 billion and $13.3 billion, indicating continued appetite for computing capacity.

Such performance could benefit AI memory makers, whose prospects depend partly on continued data-center expansion and demand for advanced computing hardware. AI servers require high-bandwidth memory (HBM), conventional DRAM, and extensive storage resources. Continued infrastructure investment could therefore support Micron and SK hynix through additional chip orders, while benefiting Sandisk's flash-storage products.

Micron Faces New Risks Despite Strong Memory Demand

Micron's investment outlook has become more complicated following November's midterm elections, which raised concerns about tighter restrictions on data-center construction. Proposed rules covering electricity consumption, water usage, and environmental permits could delay infrastructure projects, potentially affecting orders for advanced memory chips. These fears contributed to last week's semiconductor sell-off, although Morgan Stanley and UBS subsequently argued that investors had overreacted to the political risks.

The concerns come as Micron benefits from a tight memory market, with customers already committing to much of its future production. Long-term supply agreements now cover more than 75% of planned 2027 output, providing greater visibility into future revenue. However, the possibility of delayed computing projects has left investors weighing strong customer commitments against uncertainty surrounding infrastructure expansion.

Overall, Wall Street remains bullish despite the recent weakness, with 28 Buy recommendations and just one Hold supporting Micron's Strong Buy consensus rating. The average 12-month price target of $1,624.42 implies about 124% upside from Tuesday's closing price. (See MU stock forecast)

Sandisk's Upcoming Stock Split Adds Another Consideration

Sandisk gave investors several developments to consider following its October 29 earnings announcement, including plans for an eight-for-one forward stock split. The transaction will become effective on November 19, with split-adjusted trading scheduled to begin the following morning. Meanwhile, the storage maker repurchased $5 billion worth of shares during its latest quarter, demonstrating its commitment to returning capital to investors.

Financial performance has also remained strong, with data-center revenue climbing 61% sequentially to $4.8 billion during the latest reporting period. However, Japanese competitor Kioxia recently warned that NAND flash price increases were slowing, raising concerns about future profitability. Its commentary unsettled investors, leaving Sandisk facing uncertainty over whether favorable storage pricing can continue supporting earnings growth.

Analysts nevertheless anticipate strong upside, with 14 Buy recommendations and 3 Holds giving Sandisk a Strong Buy consensus rating. The average price target of $2,118 suggests about 146% appreciation over the coming year. (See SNDK stock forecast)

SK Hynix Sees Memory Shortages Continuing

SK hynix offered investors an encouraging outlook during its October 28 earnings announcement, predicting that memory shortages could persist through 2030. The South Korean manufacturer has secured long-term agreements with 14 customers, covering more than half its expected production capacity for 2027 and 2028. Those commitments provide greater revenue visibility while supporting plans to expand manufacturing operations.

Another important development involves HBM4, which SK hynix expects to become its mainstream high-bandwidth memory product beginning in the fourth quarter. The company plans to increase production at its M15X facility while expanding manufacturing capabilities for premium server products. Meanwhile, executives announced plans to return around 100 trillion won to investors during 2026 through dividends and share repurchases, supported partly by gains from its Kioxia investment.

Wall Street analysts may disagree about how far SK hynix shares can climb, but their recommendations point in the same direction; all 8 covering the stock rate it a Buy, resulting in a Strong Buy consensus rating. The average price target implies a 107% upside from Tuesday's closing price. (See SKHY stock forecast)