The memory industry remains in focus as investors weigh strong pricing, rapid market growth and shifting competitive positions across major players including Samsung Electronics Co. Ltd. (OTC:SSNLF), SK Hynix Inc. (NASDAQ:SKHY), Micron Technology Inc. (NASDAQ:MU), Kioxia, Sandisk Corp. (NASDAQ:SNDK) and YMTC.
Roundhill Investments chief investment strategist Drew Pettit remains constructive on memory stocks after their recent pullback, arguing that industry fundamentals have improved even as investor sentiment cooled sharply.
Pettit told CNBC on Wednesday that memory stocks have started to stabilize following an aggressive reset across higher-risk technology trades. He believes the correction has created a healthier setup because underlying fundamentals now look stronger than they did when the stocks peaked.
He pointed to continued increases in memory contract prices and rising longer-term estimates. Pettit said industry revenue could reach roughly three times current levels by 2030, supporting his view that investors can still put money to work in the broader secular memory theme.
Pettit Sees Long-Term Growth Supporting Valuations
Pettit cautioned investors against focusing too heavily on traditional price-to-earnings multiples after the sharp moves in stocks such as Sandisk, Micron, Western Digital Corp. (NASDAQ:WDC) and Seagate Technology Holdings PLC (NASDAQ:STX).
Instead, he prefers evaluating the sector based on the long-term growth expectations embedded in current valuations.
Pettit estimates memory stocks currently price in roughly 30% annualized earnings growth over the next five years. He said Wall Street’s fundamental estimates suggest the industry could deliver growth of 35% or more, leaving potential upside if companies meet those projections.
"So, the valuation, forget the P/E, when we think about the DCF, it actually makes a lot of sense right here," Pettit said.
He added that valuation multiples should follow fundamentals as long as memory companies continue delivering the long-term growth investors expect.
Pettit views the recent stock-price reset as an opportunity rather than evidence that the memory growth story has weakened, pointing to higher contract pricing, improving estimates and substantial potential industry expansion through 2030.
Samsung Leads NAND Market As Micron Gains Share
Counterpoint data showed the NAND market grew 70% in the second quarter of 2026, following 90% growth in the first quarter, while prices increased 55% sequentially.
Samsung remained the largest player with a 28% market share, down from 29% in the first quarter. SK Hynix ranked second at 19%, up from 18%.
Micron increased its share to 15% from 13%, moving into third place as higher selling prices supported its position.
Kioxia held a 14% share, while YMTC also reached 14%, up from 13% in the prior quarter and above Counterpoint’s revenue expectations. Sandisk’s share declined to 11% from 13%.
Price Action: Sandisk shares were down 1.31% at $1533.00, Micron Technology shares were down 0.92% at $947.30 and SK hynix shares were down 3.37% at $159.41 during premarket trading on Thursday, according to Benzinga Pro data.
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