US Stock Market Move | Storage concept stocks are generally rising, with Micron Technology, Inc. (MU.US) surging by over 12%.

On Tuesday, concept stocks in the storage industry surged, with Micron Technology, Inc. (MU.US) rising by over 12%, SanDisk (SNDK.US) by over 6%, Western Digital Corporation (WDC.US) by over 5%, and Seagate Technology Holdings PLC (STX.US) by over 2%. On the news front, Sanjay Mehrotra, CEO of Micron, recently warned in a media interview that the global shortage of storage chips may continue until after 2026, as the demand for AI continues to outpace the industry's production capacity. Mehrotra also emphasized that despite the industry actively building new wafer factories, the current supply-demand imbalance is a long-term structural issue, rather than just a traditional cyclical fluctuation. The industry's truly significant new capacity release is not expected until at least 2028. Memory manufacturing involves a very long construction cycle for heavy assets, from breaking ground on the factory to completing equipment debugging, taking much longer than outsiders may imagine. In order to shift more capacity towards AI-related products, Micron has started reducing its consumer-level storage business and halting some brand product lines. Micron also plans to significantly increase capital expenditure in 2026, focusing on investing in high-bandwidth memory (HBM) needed for AI accelerators. Previously, UBS Group AG raised Micron Technology, Inc.'s target price from $535 to a large $1625, the highest level on Wall Street, corresponding to a market value of $1.8 trillion.