Morgan Stanley Says Memory Stocks 'Cooling Off'—SanDisk, Micron Keep Defying Gravity

Morgan Stanley's Chief U.S. Equity Strategist Mike Wilson claims the broader equity market correction is nearing its end, but his recent warning that memory stocks have “cooled off” stands in stark contrast to their actual breakneck performance.

Market’s Worst Might Be Behind Us

During his latest market commentary, Wilson explained that Wall Street has been digesting underlying risks for months. He noted that while the market previously saw “concentrated returns” in areas like emerging markets, industrial metals, and memory stocks, the landscape has recently shifted.

“More recently, the dollar has rallied and these same areas have noticeably cooled off,” Wilson stated.

He further cautioned investors to prepare for a “final downdraft” or a “capitulatory shock,” potentially triggered by hawkish Federal Reserve policies, backward-looking inflation concerns, or escalating global conflicts.

Defying The Downdraft

Despite Wilson’s assertion that the memory/storage sector is cooling, current market data tells a radically different and highly lucrative story for shareholders.

SanDisk Corporation is leading the charge. The pure-play flash memory powerhouse boasts a staggering 19.52% gain over just the last five days and an explosive 196.42% year-to-date return. Over the past 12 months, SanDisk has skyrocketed an astonishing 1,183.53%.

Micron Technology firmly mirrors this bullish momentum. Defying any signs of a slowdown, Micron posted a 13.48% five-day leap and remains up over 338% for the trailing one-year period.

A Broader Sector Surge

The aggressive market momentum extends well beyond the two primary frontrunners. Legacy data storage titans are also riding the undeniable wave. Western Digital and Seagate Technology have posted solid five-day returns of 9.22% and 6.53%, respectively.

Furthermore, both companies maintain massive triple-digit one-year gains, completely contradicting the narrative of a sector-wide pullback.

Wilson urged investors to “be ready to add risk in anticipation of the bull market resuming” once the broader market hits its definitive low.

However, for investors closely tracking the memory space, the data suggests the expected pullback never materialized—and the sector is actively rewarding those who are already invested.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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