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Micron (NASDAQ:MU), Sandisk (NASDAQ:SNDK), and SK hynix (NASDAQ:SKHY) are continuing their climb after Tuesday's closing bell, following a solid regular session that saw their shares rise 2.6%, 4.8%, and 2.1%, respectively. With AMD and Super Micro Computer delivering encouraging earnings after trading ended, investors have another reason to believe AI infrastructure spending remains healthy.

AMD reported a 97% jump in data-center revenue to $8.5 billion, while Super Micro's quarterly sales nearly quadrupled to $19.95 billion. The server manufacturer also raised its annual revenue outlook to as much as $82 billion, suggesting customers aren't slowing purchases of computing equipment. Such developments offer encouragement for memory manufacturers supplying essential components to these systems.

Micron's Memory Boom Has Wall Street Looking Much Higher

Micron is working to protect itself against the unpredictable pricing cycles that have historically troubled memory-chip manufacturers. The company has expanded its portfolio of long-term customer agreements to 26, up from 16 just three months earlier, with contracts now covering more than 35% of projected revenue through 2030. Many include minimum pricing commitments, while newer deals reflect higher market prices, potentially helping Micron maintain stronger profit margins even when the industry eventually cools.

Meanwhile, Micron's next-generation HBM4 production continues expanding, with the manufacturer already securing agreements for the vast majority of its planned 2027 high-bandwidth memory supply at significantly higher prices. The company is also working with Nvidia on customized HBM4E technology for future AI processors, potentially strengthening its position in a market where customers are competing for limited production capacity.

And the shortage could last longer than investors previously expected, with Micron anticipating tighter DRAM and NAND supply conditions during 2027 and 2028. More than 75% of its output for next year has already been committed, while customers are discussing purchases extending into 2031. That gives the manufacturer greater visibility into future sales, although expanding production capacity will require heavy investment.

Wall Street appears to believe Micron stock has much further to go, and the numbers leave little doubt about analysts' confidence. Of the 29 analysts covering the stock, 28 recommend buying, with just one sitting on the sidelines, resulting in a Strong Buy consensus rating. The average price target of $1,621.67 points to ~90% upside from Tuesday's closing price. (See MU stock forecast)

Sandisk's Explosive Growth Comes With a Warning

Sandisk has experienced an eventful month, with its latest earnings demonstrating the profitability of today's NAND flash memory market. Fiscal first-quarter revenue reached $11.03 billion, representing 378% annual growth, while adjusted earnings climbed to $49.51 per share.

Data-center customers contributed heavily to those results, with segment revenue jumping 61% sequentially to $4.8 billion. The manufacturer subsequently projected second-quarter sales between $12.2 billion and $12.6 billion, alongside announcing an eight-for-one stock split scheduled for later this month.

Still, strong financial performance hasn't prevented investors from worrying about whether soaring NAND prices can remain sustainable. Disappointing guidance from Japanese competitor Kioxia added to those concerns, contributing to selling earlier this week despite Sandisk's encouraging outlook.

Yet, Wall Street sees significant room for further appreciation, with 15 Buys and 3 Holds giving Sandisk a Strong Buy consensus rating. Its average analyst price target of $2,080.59 suggests ~85% upside from Tuesday's closing price. (See SNDK stock forecast)

SK hynix Expects Memory Shortages to Continue for Years

SK hynix recently reported record third-quarter revenue of 104.62 trillion won, accompanied by operating profit reaching 83.33 trillion won. Strong demand for advanced memory used in AI systems supported those results, reinforcing expectations for continued industry growth.

More importantly, the South Korean manufacturer anticipates supply shortages lasting through 2030, suggesting customers could face limited availability for several years. Long-term agreements already cover more than half its planned production capacity for 2027 and 2028, providing visibility into future sales.

Meanwhile, SK hynix continues expanding HBM4 output, expecting this newer technology to surpass HBM3E in both shipments and revenue during the fourth quarter. That transition should strengthen its position among suppliers serving developers of advanced processors and high-performance computing systems.

Wall Street isn't leaving much room for disagreement here; every one of the 10 analysts covering the stock recommends buying it, giving the company a unanimous Strong Buy consensus rating. The average price target of $265.33 suggests shares could climb another 76% from Tuesday's closing price. (See SKHY stock forecast)