MU, SNDK, SKHY Stocks Decline on Toshiba Storage Fears: Researcher Points to Cantor Note Calling the Pullback a 'Buying Opportunity'

Shares of Micron Technology Inc. (NASDAQ:MU), SanDisk Corp. (NASDAQ:SNDK), and SK Hynix Inc. ADR (NASDAQ:SKHY) declined on Tuesday, Oct. 6, with MU falling 1.73%, SNDK dropping 2.56%, and SKHY sliding 6.39%.

Institutional researcher Nicholas Mugalli cited an equity research note from Cantor Fitzgerald equity research note arguing that the sell-off in storage stocks was overdone and presented the pullback as a potential buying opportunity for investors.

Cantor Fitzgerald Report Dismisses Capacity Concerns

The sell-off in storage stocks followed reports that Toshiba plans to roughly double its nearline hard-drive production capacity by fiscal 2027 from fiscal 2025 levels, raising concerns about future supply and pricing in the data-center HDD market. A subsequent report from Nikkei Asia raised market concerns regarding potential pressure on pricing power across AI memory market.

In an equity research report dated Oct. 5, 2026, Cantor Fitzgerald analysts C.J. Muse, Matthew Prisco, Jamison Phillips-Crone, and Galahad Caer characterized the magnitude of the sell-off as unwarranted. The analysts emphasized that this is a situation “where the headline is worse than reality.” Cantor highlighted several core factors supporting its perspective:

• Toshiba’s growth stems largely from EB growth rather than unit growth, with demand continuing to outstrip supply.
• Toshiba’s technology remains behind market competition.
• Long-Term Agreements (LTAs) for Nearline capacity support demand stability and pricing expansion.
• External supplier reliance and internal sourcing dynamics favor competing manufacturers.

Cantor added that Toshiba holds a “low-teens% EB market share” and noted its two-year horizon leads to “only a ~41% EB CAGR,” which “barely moves the needle” for industry growth. Cantor also questioned Toshiba’s execution credibility, citing failed HDD expansion plans from early 2022.

Industry Demand Drivers and Market Outlook

Posting on X, Mugalli highlighted the Cantor update as a “must read report” for investors confused by the sector pullback. Mugalli noted that while Toshiba’s capacity growth supposedly “impact” pricing power, the market reaction creates a “buying opportunity,” concluding his post with “LIMIT UP!”

Cantor reaffirmed its long-term thesis through calendar year 2030 and beyond in these memory stocks, driven by accelerating data center data generation and AI workloads, maintaining its position that the pullback offers an opportunity to add to positions.

How Have These Stocks Performed?

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

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