MU, SNDK, SKHY Stocks Jump: Google's AI Hunger, Elon Musk's Micron Shoutout Send Memory Bulls Charging
Yahoo Finance ·
Micron led the gains, rising 2.5% in the overnight session, while shares of SanDisk, Western Digital and SK Hynix were up about 2% each.Alphabet increased its 2026 capital expenditures forecast by $15 billion.Stocktwits sentiment was ‘neutral’ for MU and SNDK, and ‘bearish’ for SKHY and DRAM as of late Wednesday.Top memory stocks jumped in overnight trading late Wednesday after Google parent Alphabet, Inc. reported a sharp increase in quarterly capital expenditures and raised the forecast for the full year.The robust pace of Alphabet’s investment is a positive signal for its vendors and partners, particularly chipmakers. Much of the spending is expected to fund AI infrastructure and new data centers, with the latest outlook suggesting the tech investment cycle has further room to run and that other hyperscalers could report similar spending trends next week.Micron led the gains, rising 2.5% in the overnight session, while shares of SanDisk, Western Digital and SK Hynix were up about 2% each. The Roundhill Memory ETF (DRAM) was up 2.6% as of the last reading.Memory chips remain in short supply and are among the biggest bottlenecks in the rapid buildout of AI data centers. Cloud and technology companies are racing to secure supply, often prioritizing memory spending and locking in long-term contracts to guarantee access to the scarce resource. Stocks of other Alphabet suppliers rose as well. Nvidia and Broadcom rose nearly 1%, while Marvell Technology jumped nearly 3%.GOOGL’s CapEx UpdateAlphabet on Wednesday said its June quarter CapEx doubled from a year ago to $44.92 billion, bringing the investment so far in 2026 to $78.6 billion. The Search and cloud giant then updated its full-year CapEx guidance range to $195 billion to $205 billion, up from the previous estimate of $180 billion to $190 billion.“The increase in the range is primarily due to an acceleration in the delivery of capacity to meet growing demand. As we previously shared, we continue to expect our CapEx to increase significantly in 2027 and will provide more details at a later date,” Alphabet CFO Anat Ashkenazi said on the earnings call.As such, Alphabet reported negative free cash flow of $5.9 billion for the quarter, marking the first time the company posted negative quarterly free cash flow since going public in 2004.GOOGL fell 2.3% overnight, with the heavy investment outlook overshadowing the company’s better-than-expected second-quarter sales and profit and a record 82% growth in its cloud unit.Tesla CEO Elon Musk Praises MicronDuring Tesla’s earnings call, which ran parallel to Alphabet’s, CEO Elon Musk praised Micron for prioritizing memory chip allocation to the electric vehicle company. “I actually I'd also like to thank Micron for giving us the memory allocation. They're going to make some very tough decisions on memory allocation, and we really appreciate Micron making room for Tesla in the years to come and giving us actually a very significant allocation on reasonable terms given the pretty insane pricing of memory these days,” he said.Musk has a long-term “terafab” vision in which his own companies, Tesla and SpaceX, manufacture AI chips at an unprecedented scale. Until that takes off, they will still be dependent on third-party chipmakers such as Micron and Nvidia.MU, SNDK, SKHY: Retail’s View On Memory StocksOn Stocktwits, the retail sentiment was ‘neutral’ for MU and SNDK, and ‘bearish’ for SKHY and DRAM.“So Micron is not only benefiting from an increase in DRAM pricing but at the same a further surge in Demand and CAPEX Spend! Only a complete fool would be bearish here! Just be patient and wait for the ripcity action soon,” a trader posted.”$MU It looks like MU will break $1000 when the market opens tomorrow morning,” a trader said. The stock has been trading below that level since July 6.For updates and corrections, email newsroom[at]stocktwits[dot]com.
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