Memory and data storage stocks rise amid optimism about demand for artificial intelligence

Memory and data storage stocks led the technology sector higher on Monday amid optimism about growing demand driven by artificial intelligence.

Shares of memory chip maker Micron Technology (MU) were up 7% at about $254 in afternoon trading, making it one of the best-performing stocks in the S&P 500, along with hard disk makers Western Digital (WDC) and Seagate Technology (STX). The gains helped push major indexes higher, as hopes for an end to the record US government shutdown may be close to boosting sentiment.

Upbeat analysts at Mizuho told clients in a note Monday that they see the demand outlook for Micron’s high-bandwidth memory chips remaining strong through next year and 2027, with margin likely to rise due to strong pricing. That could mean more upside room for stocks of suppliers Nvidia (NVDA) and Advanced Micro Devices (AMD), they said, and reiterated a price target of $265.

Wall Street analysts are overwhelmingly bullish on Micron stock, with nine of the 10 analysts with current ratings compiled by Visible Alpha calling it a “buy,” even though it has already surpassed their average target with its recent gains on surging demand for AI hardware. Analysts are also more bullish than bearish on Western Digital and Seagate shares.

With Monday’s gains, Micron shares nearly tripled in value in 2025. Western Digital shares nearly quadrupled, and Seagate rose about 240%, making all three stocks among the best-performing stocks in the S&P 500 for 2025.