On July 21, 2026, the US stock storage chip sector staged a “violent rebound.” The Philadelphia Semiconductor Index surged 5.21% in a single day, recording the largest one-day gain since June 22. Storage leaders all shot up: SanDisk rose more than 14%, SK Hynix rose more than 13%, while Micron Technology and Western Digital both rose more than 12%. Micron’s market cap returned to the $1 trillion level.

🔥 Threefold catalysts ignite the rebound

I. A Morgan Stanley research report “lights the fuse”

In a report released by Joseph Moore, a semiconductor analyst at Morgan Stanley, he said that the shortage of data center storage chips is continuing to worsen, and is expected to last until 2028, with Q2 to Q3 prices rising by at least 25%. This assessment directly sparked bullish sentiment.

II. “Hard-core” fundamental support

Micron’s previously released Q3 earnings were nothing short of “explosive”: revenue was $41.46 billion, up 346% year over year, gross margin reached 85%, and it also provided a strong Q4 revenue outlook of $50 billion. SK Group Chairman Choi Tae-won also said that it is expected that AI semiconductor demand in 2027 will grow by 60% to 100% compared with this year. The share of AI-related DRAM demand has already surpassed 53%.

III. “Space created by the selloff” in technicals

Earlier, the storage sector underwent a brutal pullback—Micron fell about 24% from its June peak, while SanDisk’s decline was as high as 36%. UBS data showed that hedge funds had reduced their long positions in momentum stocks and semiconductor stocks by about 5% of total market value, setting a historical record. A combination of short-covering after extreme oversold conditions and bargain-buying has kicked in.

Middle East tensions have continued to roil the market—an explosion occurred at the headquarters of the US Navy’s Fifth Fleet, and Brent crude has returned above $90. If geopolitical risk escalates further, it could suppress risk appetite. In addition, Tesla and Google will release earnings first on Wednesday, and whether the results can support lofty valuations remains a key variable.

This rebound reflects a triple convergence: resilient fundamentals, extreme oversold conditions, and technical repair. Storage chips have shifted from the “consumer electronics cycle” to a long-cycle “computing power infrastructure” phase, but whether the surge can sustain in the short term still depends on validation from the upcoming earnings season. #夏日创作营