WARSAW, August 16, 2026, 20:22 CEST — US and European cash markets remain shut on Sunday, as memory and storage stocks approach the week with significant momentum. Sandisk NASDAQ:SNDK soared almost 35% over the past week, while the Nasdaq edged up just 0.1%.
The difference is significant. Companies able to command higher prices for limited AI parts are being favoured by investors. Conversely, there is less appetite for simply gaining general market exposure.
The selectiveness appeared on Friday. Shares of Applied Materials NASDAQ:AMAT slipped 5.1% even after issuing a positive outlook. Broadcom NASDAQ:AVGO lost 5.9%. Elevated expectations caused solid results to trigger selling.
| Asset or stock | Latest move | Investor read-through |
|---|---|---|
| S&P 500 | +0.4% for the week | Marks a third consecutive week in positive territory |
| Nasdaq Composite | +0.1% for the week | Gains from AI were balanced out by end-of-week profit-taking |
| Sandisk NASDAQ:SNDK | About +35% for the week | NAND prices and locking in longer deals drove action |
| Seagate Technology NASDAQ:STX | +19.8% for the week | Expanded storage appetite fueled memory-related names |
| SK Hynix KRX:000660 | +20.6% for the week | Limited HBM supply kept the rally going |
| Applied Materials NASDAQ:AMAT | -5.1% Friday | While guidance was upbeat, it did not clear sky-high expectations |
Sandisk shares jumped 6.5% on Friday, adding to previous gains, after the company announced robust long-term margin goals and an increased focus on contracts during its investor day.
Shares of Micron Technology NASDAQ:MU advanced 4.2% on Thursday. The demand for AI inference requires high-speed memory and substantial storage capacity, driving a value chain that extends past just graphics processors.
Operating metrics back up that perspective. China’s SMIC SHA:688981 increased wafer pricing as utilization hit 93.7%. CoreWeave NASDAQ:CRWV posted a backlog of $104.2 billion. The key limitation is capacity rather than insufficient demand.
| AI supply-chain signal | Latest verified figure | What it tests |
|---|---|---|
| SMIC utilization | 93.7% | Power to set prices at foundries |
| SMIC Q2 wafer shipments | 2.9 million, up 14% | Appetite for chips in China’s home market |
| CoreWeave backlog | $104.2 billion | AI compute leasing pipeline outlook |
| Applied Materials Q3 revenue | $9.12 billion, up 25% | How equipment demand measures up to valuation |
| Super Micro NASDAQ:SMCI Q4 gross margin | 17.5% | Performance and pricing in server market |
“Many current market catalysts are tied to different aspects of AI,” GLOBALT portfolio manager Thomas Martin told Reuters. He pointed out that Applied Materials shares declined even following a “beat and raise.” Martin described this as the valuation warning for the week.
Brokers continue to hold generally positive outlooks. However, recommendations tend to prioritize firms demonstrating clear pricing strength or reliable revenue streams. Targets are not assured, particularly following substantial recent gains.
| Company | Broker | Recommendation | Price target |
|---|---|---|---|
| Sandisk NASDAQ:SNDK | J.P. Morgan | Overweight | $2,250 |
| Sandisk NASDAQ:SNDK | Citi | Buy | $2,100 |
| Jabil NYSE:JBL | UBS | Buy | $430 |
| Applied Materials NASDAQ:AMAT | J.P. Morgan | Positive | $660 |
| Applied Materials NASDAQ:AMAT | Jefferies | Positive | $770 |
J.P. Morgan stated that Sandisk’s updated contract approach could enhance clarity on demand. UBS forecasts that Jabil’s revenue tied to AI will climb by over 50% in fiscal 2027. Analysts at Applied Materials remained positive despite a drop on Friday.
Analog Devices NASDAQ:ADI, a supplier of chips for industrial, automotive and data center applications, will provide the next key gauge of widening demand when it reports on Wednesday. Financial results are due at 07:00 EDT, with a results call scheduled for 10:00 EDT.
| When | Catalyst | Key figure or question |
|---|---|---|
| Monday, August 17 | US market resumes trading | Will memory sector gains last following a 20%-35% jump last week? |
| Tuesday, August 18 | Reddit NYSE:RDDT enters the S&P 500 | Technology flows driven by the index |
| Wednesday, August 19 | Analog Devices reports earnings | Market expects revenue around $3.9 billion |
| Thursday, August 20 | US weekly jobless claims | Impact of rates on valuations of high-multiple tech stocks |
| All week | Middle East and oil developments | Increased yields may pressure AI stock valuations |
Nvidia NASDAQ:NVDA continues to lead the industry. Its funding collaborations target over $500 billion for AI infrastructure investment. The partnership highlights persistent demand, while bringing new focus to credit exposure and project profitability.
Risks: Another oil shock could push yields higher and weigh on long-duration tech stocks. Memory prices might fall back if supply grows more quickly than anticipated. Following strong weekly advances, even robust outlooks might fall short of expectations.
Pricing power has become the key indicator. Should memory and storage sustain their advances and Analog Devices validate broader demand, the AI trade could expand. Otherwise, investors might concentrate on the limited companies facing the strictest capacity constraints.
