Memory chip stocks, namely Micron (MU), Western Digital (WDC), SanDisk (SNDK), and Seagate Technology (STX), jumped in pre-market trading on Wednesday as investors grew more optimistic about AI memory demand, tighter global chip supply, and improving semiconductor trade conditions ahead of President Donald Trump’s China visit alongside Nvidia (NVDA) CEO Jensen Huang.
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New trading tool for STX bullsFor context, MU stock gained more than 5%, while SNDK, WDC, and STX rose between 2% and 5% in trading. Meanwhile, South Korean memory giants Samsung Electronics (SSNLF) and SK Hynix also moved higher.
AI Demand and China Talks Lift Chip Stocks
The rally also spread across the broader semiconductor sector. Nvidia (NVDA), Qualcomm (QCOM), Intel (INTC), and Advanced Micro Devices (AMD) all traded higher as investors reacted positively to President Donald Trump’s visit to China.
Markets are closely watching the summit between Trump and Chinese President Xi Jinping, especially after Nvidia CEO Jensen Huang joined the U.S. delegation. Investors hope the talks could ease trade tensions and improve semiconductor sales into China, one of the world’s biggest chip markets.
At the same time, continued spending on AI data centers and cloud infrastructure is driving strong demand for memory chips used in AI servers.
Bank of America also recently raised its forecast for the AI data center market to about $1.7 trillion by 2030, up from its earlier $1.4 trillion estimate. The bank expects AI spending to continue accelerating over the next several years, helping drive demand for memory, networking, and AI chips.
As part of the update, BofA raised its price target on Micron to $950 from $500, citing stronger long-term demand for AI memory and HBM chips.
Tight Supply Adds to the Rally
Another major reason behind the rally is growing concern around memory chip supply.
Labor talks at Samsung Electronics recently broke down, raising fears of possible production disruptions at a time when the global memory market is already tight.
That has strengthened expectations that memory prices could remain elevated through 2026, benefiting companies tied to AI memory and storage demand, including Micron and SanDisk.
Which Is the Better AI Chip Stock, According to Analysts?
Using TipRanks’ Stock Comparison Tool, we compared these four stocks to see which one offers the higher upside potential based on Wall Street analyst forecasts. Among the four, Western Digital (WDC) appears to offer the highest upside potential, while Micron (MU), SanDisk (SNDK), and Seagate (STX) are trading above their average analyst price targets after their strong rallies.
Investors can dig deeper to decide which AI chip stock best fits their strategy. Below is a screenshot for reference.
