SK hynix delivered a blowout third quarter that sent memory stocks sharply higher on Wednesday, but after-hours trading showed the rally is vulnerable to broader AI-hardware sentiment. Micron closed at $983.23, up 5.86%, while Sandisk finished Tuesday at $1,304.84, up 3.92%, and was indicated at $1,354 before Wednesday's open.
SK hynix reported third-quarter revenue of 104.6 trillion won, up 328% year on year and above consensus of about 98.34 trillion won. Operating profit came in at 83.3 trillion won, an 80% margin and a 632% jump, well above the roughly 76.7-77 trillion won expected. Net profit of 39.77 trillion won missed the 59.67 trillion won analyst average, though the operating beat dominated the reaction. The company said NAND average selling prices rose at a mid-20s percentage rate quarter on quarter, helped by a richer enterprise SSD mix, and guided fourth-quarter NAND bit shipments up by a mid-single-digit percentage as its 321-layer process expands. Management also said memory demand is expected to outpace supply through 2030 and that DRAM and HBM volumes are effectively booked through 2029, with about 100 trillion won planned for shareholder returns.
For Sandisk, which reports fiscal Q1 FY27 results Thursday after the close, the read-through is mixed. The NAND pricing strength supports its data center storage ramp, with data center revenue rising from $440 million in fiscal Q2 2026 to $1.47 billion in Q3 and $2.98 billion in Q4. However, SK hynix's plan to raise NAND bit shipments means more enterprise SSD supply is coming. Seagate's after-hours drop on strong results, off roughly 5-8% despite a 61% revenue jump and record EPS, was a warning that a beat alone may not be enough. Sandisk's own guidance calls for non-GAAP EPS of $44-$46 on revenue of $10.3-$10.8 billion; consensus is near $46 EPS and $10.6 billion in revenue. Options imply an 8-14% move on earnings.
Micron's Wednesday gain came despite a weaker Nasdaq tape after Alphabet fell about 10% after hours on a profit miss and negative free cash flow. Alphabet kept 2026 capex at $195-$205 billion and said 2027 would be significantly higher, while Microsoft guided next-quarter capex above $50 billion, supporting memory demand. Micron's after-hours quote slipped to $959.00, down about 2.46%. The stock remains about 22% below its 52-week high of $1,255.00, with a market value near $1.11 trillion. Analysts remain bullish with a 12-month average target of $1,561.91 for Micron and $2,144 for Sandisk.
Key levels to watch: Micron's base case sits at $940-$1,010, with bull case $1,100 and bear case $880. Sandisk's base case is $1,200-$1,410, with bull case $1,480 and bear case $1,150. The next test is Sandisk's earnings after Thursday's close, followed by Amazon and Intel results.
