Memory Stocks Rally After Samsung Warns Of Shortage

Memory stocks rallied on July 30, 2026, following Samsung Electronics’ strong second-quarter results and its warning that shortages will persist in the second half. The rebound was supported by Seagate’s solid quarter and bullish signals from SK Hynix, reinforcing expectations of tighter DRAM and NAND markets.

Samsung’s Shortage Warning and Market Outlook

Samsung reported consolidated revenue of KRW 171.5 trillion and operating profit of KRW 89.5 trillion for Q2, with its Device Solutions unit—the memory business—generating KRW 127.5 trillion in revenue and KRW 89.2 trillion in operating profit. The company highlighted strong demand for high-bandwidth memory (HBM), server DRAM, and enterprise SSDs used in AI cloud data centers.

Samsung’s report warned that memory shortages will persist through the second half of 2026 despite increased production, as demand remains strong for server DRAMs, enterprise SSDs, and HBM. The filing included TrendForce and IDC forecasts projecting DRAM contract prices to rise 58–63% and NAND flash prices to increase 70–75% in the third quarter. IDC expects the memory market to remain structurally tight into 2027.

Sector Rally and Recent Volatility

On July 30, memory stocks posted sharp gains, recovering from a steep multi-day selloff. SanDisk climbed about 18%, Micron Technology rose 11%, Seagate added 14%, Western Digital gained 15%, SK Hynix advanced 10%, and a sector DRAM ETF jumped 11%.

SK Hynix reported a 557% year-over-year surge in quarterly operating profit to a record level, driven by demand for advanced memory chips used in AI data centers. The company plans to increase 2026 capital expenditure by about 50% to at least US$31 billion.

Micron posted a record fiscal third quarter with revenue of US$41.46 billion and earnings of US$25.11 per share. The company disclosed that customers had committed roughly US$22 billion to secure memory supply.

SanDisk’s fiscal third quarter showed revenue of US$5.95 billion, non-GAAP earnings per share of US$23.41, and a gross margin of 78.4%, indicating a fundamental margin shift.

Seagate’s recent quarterly beat and growth guidance also contributed to the more positive tone among large-cap storage and memory names.

These gains followed a sharp selloff triggered by South Korea’s Kospi index plunging 5.7% and heightened volatility after ChangXin Memory Technologies’ STAR Market debut surged more than 500%, reaching an implied valuation near US$540 billion. This event raised concerns about rapidly rising Chinese competition.

Traders noted the swift sentiment shift as fresh supply and pricing information emerged. Samsung’s outlook, SK Hynix’s profit and capital expenditure signals, and recent earnings beats prompted investors to reprice near-term contract expectations and lift stocks hardest hit in the selloff.

“Samsung predicts memory shortage will persist in the second half of the year despite increased production, as demand continues to keep a strong pace for server DRAMs, enterprise SSDs, and HBM,” the company said in its Q2 release.