Why Now Is the Right Time to Buy This 4-Name Basket of Memory Stocks

On Tuesday night, admittedly after the closing bell, I bought for the Sarge-folio a basket of not necessarily semiconductor stocks, but memory/storage stocks.

The trade has worked quite well, even if I did not get in at "before the bell" prices. The positions are small individually, but medium-sized in aggregate. I have taken a little something off, as trading discipline 101 demands some profit taking, but I think I may leave a little something on, too.

Permanently? For now, and maybe trade around news events like I did on Tuesday night and Wednesday morning. I mean, let's face it: the memory/storage trade does not appear to be going anywhere.

What was once a "boom and bust" type of industry has a supply problem, as in it is having difficulty meeting persistently insatiable demand. The stocks that I placed in this basket were the usual suspects that most of you probably would have expected. I'm talking about Micron Technology (MU) , Seagate Technology (STX) , Western Digital (WDC) and SanDisk (SNDK) .

Memory on the March

All four of these stocks have been on the march since mid-2025. They really have not, at any point, gone truly parabolic, though it seems like they might have. The onslaught has been more or less as methodic as it has been relentless. The Sarge-folio enjoyed a portion of that almost year-long ride in Micron and to a lesser degree in Western Digital, but until Tuesday night, had not been in Seagate for years and had never been in SanDisk, which is a semi-recent (2024) WDC spinoff.

The four companies go about providing memory and storage differently. Micron is one of the largest semiconductor designers in the world, specializing in DRAM, NAND flash and NOR flash. SanDisk designs and manufactures NAND flash chips and related products. Seagate and Western Digital are more data storage and computer hardware companies than they are chip designers. That said, these names are all providing what is in huge demand right now and that is memory and storage for the hyperscalers and for data centers, as anything artificial intelligence related has just exploded.

Tuesday Night...

Seagate, which was an old (really old) Sarge-folio fave — if one goes back to the days of the videos and roundtables that I used to do with Jim Cramer, Peter Tchir and several others — reported the firm's fiscal third quarter financial results. STX posted an adjusted EPS of $4.10 on revenue of $3.11 billion. That beat Wall Street's expectations for both the top- and bottom-line prints while that revenue number was good for annual growth of 44%.

For the current quarter, Seagate projected revenue at the mid-point of $3.45 billion and an adjusted EPS of $5.20. This absolutely crushed Wall Street consensus for $3.97 on $3.15 billion. That's why STX is up so sharply on Wednesday morning. That's why anyone else (accounted for in my basket) providing anything similar is rising alongside STX.

Western Digital and SanDisk will report after the closing bell on Thursday. Micron does not step up to the plate until late in June. Does anyone think that these names won't produce similarly successful quarters or not issue equally impressive guidance?

My Thoughts

As mentioned above, be sure to take some profits. I did. I am not, however, exiting the trade. This is not some short-term phenomenon. This is representative of a medium- to perhaps long-term change in the way corporate America is prioritizing capex spending.

There will be volatility. We'll deal with it. The carriage turns into a pumpkin at midnight. It's 11 a.m.

At the time of publication, Guilfoyle was long MU, STX, WDC and SNDK equity.