Chip Stocks Surge on Soft PPI Data and Structural Demand Dynamics

The release of July's producer prices (PPI) data showed a flat month-over-month reading, which is lower than the 0.2% increase economists had forecast.

This news 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%.

Among the standouts were semiconductor and memory chipmakers SanDisk (SNDK), Micron (MU), and Marvell Technology.

SanDisk stock led the way 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 due to NAND industry production growth trailing demand, creating a structural deficit that Wall Street analysts project will persist into 2027.

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.