Intel is reconsidering a return to advanced memory architectures at a time when AI-driven demand has turned memory from a commodity into a critical computing bottleneck. CEO Lip-Bu Tan said on the TechSurge: Deep Tech podcast that Intel is exploring new memory approaches, including bringing memory and processors closer together. He acknowledged he once viewed memory as a commodity business not worth investing in, but believes the economics have changed.
The comments arrive during persistent shortages and rising prices. KeyBanc analyst John Vinh said “memory shortages remain persistent” after supply-chain checks in Asia. The firm expects tight conditions through 2027, with DRAM prices rising another 15%–20% sequentially in the third quarter and 15% in the fourth. NAND prices could jump 30%–40% in the third quarter before another 15% increase.
Micron Technology shares were up about 3% in premarket trading Monday, putting the stock on course to cross the $1,000 mark after closing at $971.66 on Aug. 14. SK Hynix rose more than 4% and SanDisk gained about 6%. The rally followed new catalysts including commentary from US Commerce Secretary Howard Lutnick, who said the Trump administration does not want Apple to use memory chips manufactured in China. “The Trump administration is not in favor of that,” Lutnick said in an interview after touring an Apple manufacturing facility in Houston. He said there have to be “other solutions to the memory issue, but it’s not great American companies using Chinese memory.”
The comments come as Micron has lobbied the Trump administration against Apple using Chinese memory chips, arguing such a move could undermine US semiconductor production. Apple has been testing memory chips from Chinese manufacturers CXMT and Yangtze Memory Technologies, according to The Wall Street Journal. Apple COO Sabih Khan said amid a supply shortage, “we have to look at all options.”
New Street upgraded Micron to Buy from Neutral and assigned a $1,250 price target, implying roughly 29% upside. The brokerage argued AI could transform Micron into a $2 trillion to $3 trillion company by the end of the decade, with AI applications becoming the dominant source of memory demand. It forecasts Micron could generate more than $150 billion in annual free cash flow by 2030 and accumulate more than $600 billion in cash at peak levels.
SanDisk also joined the memory-stock rally. The stock jumped more than 7% on Friday after the company presented a long-term outlook targeting annual revenue growth in the mid-to-high double-digit range between fiscal 2028 and fiscal 2030. It also cited $93.9 billion in contracts associated with its newer business models. JPMorgan initiated coverage with an Overweight rating and a $2,250 price target, saying SanDisk is uniquely positioned to capture structural NAND demand growth from AI inference.
For Micron, the immediate competitive threat from Intel still looks limited. Oppenheimer analysts said a serious Intel return to memory would require fresh capital, significant R&D and time. Meanwhile, Micron benefits from tightening high-bandwidth memory supply. UBS expects HBM average selling prices to rise about 79% year on year, and Micron’s June agreement with Anthropic spans memory and storage architecture design, supply and AI infrastructure development.
