NVIDIA CEO Has Good News for Micron and SanDisk Investors: “The Memory Shortage to Continue for Several Years”
NVIDIA (NASDAQ:NVDA | NVDA Price Prediction) CEO Jensen Huang, speaking from South Korea tonight after Friday’s brutal chip sell-off, told investors that “AI-related stocks are very cheap right now.” More importantly for memory bulls, he framed the AI supply crunch as a multi-year condition, an unmistakably positive read-through for Micron Technology (NASDAQ:MU) and SanDisk (NASDAQ:SNDK), which trades under SNDK following its separation from Western Digital.
More on What Huang Said Tonight
Huang said, “Demand is enormous. From wafers to silicon photonics and cable connectors, everything across the entire industry supply chain is in short supply.” NVIDIA also disclosed a multi-year partnership with SK Hynix to co-develop next-generation memory tailored to its roadmap, including the upcoming Vera Rubin systems. While that agreement is with a rival to companies like Micron and SanDisk, it locks demand visibility further out for the entire memory complex.
Korean Stocks Drop Overnight
The KOSPI is down overnight. Korean stocks are down 4.8%, as of 12:20 a.m. ET. That’s notable, because the Korean index is dominated by memory stocks like Samsung and SK Hynix. However, therir drop may not tell the story for where U.S. stocks will open tomorrow morning.
Micron is currently up 3.5% in overnight trading. SanDisk is up 2.3%. Nasdaq futures are up .5%, as of 12:12 a.m. ET. Where U.S. stocks open tomorrow will likely depend on geopolitical issues. Iran and Israel exchanged fire overnight, which led to fears the Middle East conflict could be extended.
The Bigger Picture
Friday’s pullback hit memory hard, with MU down 11.02% on the week and SNDK off 8%. Huang’s tone tonight reframes that drawdown as a supply-driven episode. Watch order-book commentary into the next earnings cycle: Micron has talked about visibility extending into 2027, and SanDisk has signed five New Business Model multi-year customer agreements with firm financial commitments. If the multi-year shortage Huang outlined tonight holds, the recent pullback in MU and SNDK looks like a setup rather than a peak signal.
