I find the recent surge in storage stocks like Micron $Micron Technology(MU)$
What stands out to me is that analysts are now extending their optimism well into 2026–2027. This suggests the market believes the AI demand wave isn't just a short-term hype but part of a structural transformation in computing needs. High-bandwidth memory is becoming the backbone of AI model training and inference, which means companies like Micron and WDC could see multi-year tailwinds if they execute well.
Morgan Stanley's bullish stance on Sandisk is also notable. With a price target of $230 and a bull case of $300, they're essentially signaling confidence that the current AI cycle can drive record profitability. The mention of a potential $30+ EPS underscores just how massive the earnings leverage could be if margins expand as expected. That's nearly 75% above consensus — a powerful sign that Wall Street might still be underestimating this sector's potential.
From my perspective, this rally reflects a rotation of AI enthusiasm — moving from GPUs and compute toward storage and memory, the less glamorous but equally critical parts of the AI ecosystem. As models get larger and data volumes explode, demand for faster, more efficient memory solutions will only grow. This could position these storage players as the next major beneficiaries of AI infrastructure investment.
While short-term volatility is inevitable, I believe the long-term story for storage stocks remains strong. I see these companies as vital enablers of the AI revolution, not just suppliers riding a temporary trend. If this momentum continues, the market could start re-rating them more like strategic tech infrastructure plays — and less like traditional cyclical chipmakers.
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