Sports · Asia Post
Micron Technology ( MU +6.10% ) and Sandisk Corporation ( SNDK +11.90% ) are both leading memory chip companies benefiting from the rise in memory demand fueled by AI services. Memory supplies are strained as tech companies ramp up data center infrastructure, pushing memory prices higher and resulting in skyrocketing profits for both companies. Counterpoint Research estimates memory shortages will continue through 2027.
Sandisk's latest fourth-quarter fiscal 2026 results show a 372% sales increase to $8.9 billion, with non-GAAP earnings soaring from $0.29 to $39.25 per share. Sandisk CEO David Goeckeler noted a robust demand environment, with NAND memory market revenue expected to exceed $300 billion this year, a 3x increase from 2025, and potentially reaching $500 billion in 2027. Most analysts rate Sandisk as a buy, with an average price target of $2,125, representing 37% upside.
Micron’s sales surged 345% in the fiscal 2026 third quarter to nearly $41.5 billion, with data center revenue at $100 billion annually. Micron’s data center margins reached 87%, up from 38% the previous year, and non-GAAP earnings jumped over 1,300% to $24.67 per share. CEO Sanjay Mehrotra highlighted the structural transformation of the memory industry by AI, stating it is still in the early stages of innovation. Most analysts rate Micron as a buy with an average price target of $1,513, a 62% increase from its current price.
While both stocks are attractive, Micron offers a slight advantage due to its dual product line (DRAM and NAND flash memory), allowing broader market participation. Sandisk’s P/E ratio of 20 is slightly lower than Micron’s 21, but both are below the tech sector average of 35. Despite this, Micron’s broader product offering and stronger earnings growth make it the preferred choice for investors.
Source: The Motley Fool
