Sandisk stock soared for a second straight day, jumping 10.5% by mid-morning Tuesday even as the broader Nasdaq declined. The rally followed a Nikkei Asia report that Taiwan Semiconductor Manufacturing Company will raise contract chip manufacturing prices by up to 10% in 2027, with some chips potentially seeing 20% increases, driven by rising costs and strong AI demand. Investors interpreted TSMC's pricing power as a positive signal for memory chip demand, since AI chips require memory for inference functions, and Sandisk is a major memory chip maker. The logic suggests that if AI chip demand and prices are rising, Sandisk's memory chip prices and stock should benefit as well.
Taiwan Semiconductor Manufacturing Co. Ltd.
Sandisk Corp
Advanced Micro Devices Inc
NVIDIA Corporation