Memory stocks have reemerged as the biggest beneficiaries of the AI infrastructure boom, with Micron Technology MU) and SanDisk SNDK) delivering extraordinary rallies.
Over the last month, Micron shares are up nearly 20%, with SanDisk stock rising over 25%. Year to date, SNDK has skyrocketed almost 700%, with MU spiking more than 270%, as tight memory supply, rising prices, and booming AI demand have dramatically improved their profitability.
Both stocks have rebounded sharply over the last week as investors returned to AI-related semiconductor names.
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Micron and SanDisk: Similar but Different
Micron and SanDisk both benefit from rising memory and storage demand across data centers, PCs, smartphones, and AI devices, but their product mixes differ considerably.
Micron produces both DRAM and NAND flash memory, with high-bandwidth memory (HBM) becoming increasingly important for AI accelerators. The company is already shipping HBM4, the latest generation of HBM, and expects enhanced HBM4E production in 2027.
SanDisk is more concentrated on NAND flash storage, including enterprise solid-state drives (SSDs), embedded products, and consumer storage. Surging AI data needs helped its Datacenter revenue jump 437% in its fiscal 2026.
Both companies are benefiting from AI infrastructure spending tied to Nvidia NVDA) platforms and major cloud providers such as Microsoft MSFT), Amazon AMZN), and Alphabet GOOGL).
Put simply, Micron has broader exposure to both AI computing memory and data storage, while SanDisk offers a more concentrated play on NAND and AI-driven storage demand.
AI Demand Continues to Fuel Explosive Growth
Micron’s outlook for its current fiscal fourth quarter calls for approximately $50 billion in revenue, an 86% gross margin, and adjusted EPS of roughly $31.
For FY26, the Zacks Consensus Estimate calls for revenue of $129.71 billion, representing a 247% year-over-year increase, while EPS is projected to surge nearly 792% to $73.91.
Momentum is expected to remain strong in FY27, with revenue projected to rise another 93% to $250.19 billion and EPS expected to climb 114% to $158.45. Continued demand for DRAM and HBM used in AI accelerators should remain a major growth catalyst.
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SanDisk’s momentum is equally impressive. Management expects revenue for its current fiscal Q1 2027 of $10.3-$10.8 billion and adjusted EPS of $44-$46.
The Zacks Consensus Estimate calls for FY27 revenue of $49.25 billion, up roughly 143% YoY. More impressive, EPS is projected to surge about 201% to a staggering $213.31 from $70.88 per share in FY26.
Growth is expected to moderate but remain strong in FY28, with revenue forecasted to increase nearly 19% to $58.46 billion and EPS projected to rise over 18% to $252.80.
Continued expansion in enterprise SSDs and NAND flash demand tied to AI data centers should remain important growth drivers.
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The Technical Picture Remains Bullish
The technical charts reinforce the strong momentum in both stocks. Micron is trading comfortably above its 50-day and 200-day moving averages of $932 and $665 a share, respectively, with the 50-day average (green line) being well above the 200-day (red line), signaling a firmly established longer-term uptrend.
After consolidating below its June highs through much of the summer, MU is approaching the upper end of its recent trading range.
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SanDisk shows a similarly bullish but more volatile setup. SNDK remains well above its rising 200-day moving average of $1,121 a share and has recently moved back above its 50-day average of $1,505 a share following a sharp summer correction.
The rebound suggests momentum is improving, although the stock remains well below its June peak and its wider price swings highlight the greater volatility investors have experienced in SanDisk shares.
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Overall, both charts remain technically constructive, with Micron showing the steadier trend and SanDisk experiencing stronger volatility alongside its larger rally.
MU & SNDK Valuation Comparison
Remarkably, neither stock looks expensive based on forward earnings despite their enormous rallies, with MU rebounding to over $1,000 a share and SNDK to over $1,800.
Given their exceptional growth trajectories, Micron shares are trading at just 6X forward earnings, with SanDisk stock at 8X, leaving both at steep discounts to broader technology-sector multiples and the benchmark S&P 500’s 22X.
Still, investors should remember that memory stocks often appear cheapest when industry profitability is near cyclical highs.
The biggest question is whether AI demand, tight supply, and longer-term customer agreements can make this memory cycle more durable than previous ones.
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Bottom Line
Micron offers the more diversified memory portfolio, particularly through its leadership across DRAM, HBM and NAND, while SanDisk provides more concentrated exposure to the rapidly expanding NAND and AI-storage market.
Both companies have tremendous growth momentum and surprisingly modest P/E multiples, but their massive rallies also raise the bar for future results. For now, MU and SNDK both land a Zacks Rank #3 (Hold), suggesting investors may want to await additional earnings revisions following their tremendous rallies.
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Micron Technology, Inc. (MU) : Free Stock Analysis Report
Sandisk Corporation (SNDK) : Free Stock Analysis Report
Amazon.com, Inc. (AMZN) : Free Stock Analysis Report
Microsoft Corporation (MSFT) : Free Stock Analysis Report
NVIDIA Corporation (NVDA) : Free Stock Analysis Report
Alphabet Inc. (GOOGL) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).
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