Micron Technology, SanDisk and SK Hynix rose in premarket trading on Wednesday after CoreWeave’s latest earnings strengthened confidence in demand for artificial intelligence computing, even as financing costs mount.
Micron gained approximately 6.7%, while SanDisk climbed 6.8% and US-listed SK Hynix shares jumped 8.5%.
CoreWeave reported a 168% jump in quarterly revenue to $3.66 billion and a record $132.5 billion revenue backlog.
CoreWeave’s $132.5 billion backlog points to sustained AI demand
CoreWeave, which rents Nvidia-powered computing capacity to AI developers, raised its 2026 revenue forecast to $13 billion–$13.3 billion. Its backlog grew from about $104 billion at the end of June.
Management said demand for its computing services was roughly ten times the capacity available through 2027. Adjusted operating income reached $379 million, exceeding its earlier guidance.
The significance for memory manufacturers extends beyond a single quarter. Building more AI servers requires high-bandwidth memory, conventional DRAM and large amounts of storage.
However, CoreWeave’s backlog represents contracted future service revenue, subject to delivery and service availability.
Why Micron, Sandisk and SK Hynix stand to benefit
The connections are commercial as well as financial. CoreWeave has signed long-term supply agreements with Micron and SanDisk, while a separate deal with SK Hynix subsidiary Solidigm gives it priority access to enterprise solid-state drives.
Micron supplies DRAM, high-bandwidth memory and storage products. Its fiscal fourth-quarter revenue reached $54.23 billion. SanDisk’s data-centre revenue climbed 61% quarter on quarter to approximately $4.8 billion.
SK Hynix expects HBM4 to become its main high-bandwidth memory product this quarter and has agreements covering more than half its expected production capacity for 2027 and 2028.
KeyBanc analyst John Vinh cited improving server demand and stronger DRAM prices when maintaining his $1,750 Micron target.
Baird’s Tristan Gerra also argued that memory shortages could persist into 2027.
Heavy borrowing still threatens the chip-stock recovery
CoreWeave’s expansion comes with substantial financial strain.
The company reported a $709 million quarterly net loss, $846 million in net interest expenses and $46.9 billion in debt.
Capital expenditure reached $14.5 billion during the quarter, and management expects spending of $37 billion–$39 billion for 2026.
It anticipates approximately $9 billion in customer prepayments and deposits over the next three months, which could ease its funding burden.
Investor David Desjardins warned in a TipRanks assessment that SanDisk could prove a valuation trap if additional NAND production comes online as AI infrastructure spending slows.
His concern is longer term, rather than a response to CoreWeave’s earnings.
AI disclosure: AI tools assisted with research and drafting of this piece. An Invezz editor reviewed the facts, sources and wording before publication. Any opinions or analysis are Invezz’s, not those of an automated system.
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