July producer prices (PPI) came in flat month-over-month, lower than a 0.2% increase economists had forecast.
The reading pulled the probability of a Fed rate hike in September down significantly, driving the benchmark S&P 500 index to a record close near 7,799 while the Nasdaq gained 0.8%.
Semiconductor and memory chipmakers spearheaded the session’s advance. Among the standouts were SanDisk, Micron, and Marvell Technology.
For capital-intensive memory makers, lower rates reduce borrowing costs and improve valuation multiples for tech growth stocks. Plus, soft inflation supports continued spending on high-margin AI infrastructure and NAND flash memory.
However, each of these three companies offers an entry point anchored in “real supply dynamics” rather than temporary interest-rate relief.
SanDisk (SNDK)
SanDisk stock led semiconductor gainers with a 13.7% surge following the inflation data. But even beyond intraday noise, the flash-memory maker sits on an advantageous supply-demand imbalance.
Spun out from Western Digital in 2024, SNDK supplies solid-state drive components essential to hyperscale data centers.
In fact, NAND industry production growth is trailing demand, creating a structural deficit that Wall Street analysts project will persist into 2027.
In its August 5 earnings report, SanDisk posted a 370% year-on-year increase in revenue, alongside non-GAAP gross margins of nearly 85%.
Crucially, SanDisk has already sold out capacity for fiscal 2027, insulating its near-term earnings from historic sector cyclicality.
Micron (MU)
Micron shares advanced 4.2% on the back of the wholesale inflation data, with the macroeconomic bump highlighting the firm’s role as one of three global manufacturers capable of producing both DRAM and NAND at scale.
MU’s future growth centers on high-bandwidth memory (HBM), a critical component paired with advanced graphics processors from Nvidia and AMD.
Producing HBM requires roughly 3x the silicon wafer allocation of conventional DRAM per bit.
This allocation trade-off restricts total chip output across the entire memory market, lifting average selling prices across standard product lines.
With its specialized capacity fully committed for the current calendar year, Micron’s management projects constrained supply conditions for both DRAM and NAND well beyond 2026.
Marvell (MRVL)
Marvell stock’s story centers on a “narrower” thesis than its peers – custom silicon built for major cloud operators.
The fabless designer builds application-specific chips and the optical interconnects that move data inside cloud computing clusters.
Its expanded integration with Nvidia, including direct capital investment and the embedding of the titan’s NVLink Fusion technology into its custom chip platform, reinforces MRVL’s stature within the global AI buildouts.
Shares added 3.6% on the back of soft PPI data, a comparatively modest move that understates the underlying momentum: the company reported record free cash flow last quarter and grew revenue in the mid-30% range.
Marvell’s addition to the S&P 500 in June 2026 also creates a baseline of mechanical buying from passive funds, offering structural support distinct from short-term interest rate speculation.
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