Better Artificial Intelligence (AI) Buy: Micron Technology vs. Sandisk
Keithen Drury, The Motley Fool
Sat, July 25, 2026 at 9:50 AM GMT+5:30
4 min read
- MU
-6.99% - SNDK
-10.79% - NVDA
-0.92%
Micron (NASDAQ: MU) and Sandisk(NASDAQ: SNDK) are two of the most popular investment options in the market right now. They both rocketed higher in the first half of 2026 but have since given back some of those gains and are now each down significantly from their all-time highs
With Micron down 20% and Sandisk down over 30%, now could be your time to get in on these two memory chip giants before they rocket higher. But if you could only buy one of these, which one makes the most sense? Let’s take a look
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Micron operates in both segments of the memory chip market
While memory chips are a broad description, there are really two primary types of memory utilized in data centers (the reason for the boom in memory chip demand). DRAM memory is used alongside computing units for rapid data access, while NAND memory is used for long-term storage in devices like solid-state drives (SSDs). Micron makes both NAND and DRAM memory, while Sandisk only makes NAND
Demand for each of these types of memory chips has been stable over the past year, and companies in both industries have struggled to meet demand from artificial intelligence (AI) hyperscalers. With increased data center expansion coming over the next few years, this bodes well for Micron’s and Sandisk’s futures
There isn’t a ton to separate one memory chip producer from another, so the product acts more like a commodity. When a commodity has a limited supply and high demand, the price skyrockets, and that’s exactly what we’re seeing with these two
That also opens up a different fear for investors: cyclicity. Eventually, memory chip demand will fall, or supply will rise to a more reasonable level, leading to lower prices. If that occurs, all the revenue and profits Sandisk and Micron investors have come accustomed to could plummet, taking the stocks with them
As a result, the market may be a bit overcautious with these two, as nobody knows when the cycle will turn. However, Micron informed investors that they see memory chip market tightness persisting beyond 2027 — leaving at least a year and a half of strong growth for these two. That makes them
Each is rapidly growing
Both companies have seen their revenue and profits skyrocket over the past year, with Micron’s growing at a faster pace overall than Sandisk’s
