Better Artificial Intelligence (AI) Memory Buy: Micron Technology vs. Sandisk After the July 2026 Sell-off
Keithen Drury, The Motley Fool
Wed, July 29, 2026 at 8:05 PM GMT+5:30
4 min read
The month of July hasn’t been kind to some of 2026’s biggest winners. It seems there was a widespread notion that investors should take some gains off the table after an incredible first half of the year
Sandisk(NASDAQ: SNDK) and Micron Technology (NASDAQ: MU) were two of the best-performing S&P 500stocks to start the year. Through June 30, Micron’s stock rose 304%, while Sandisk’s increased a jaw-dropping 858%. That’s a lot of money made in a very short amount of time, so taking profits is likely a logical choice
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a “Double Down” signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same “Total Conviction” signal is flashing for a company 1/100th the size of Nvidia. Continue »
However, the sell-off has been incredibly harsh to these two. Since the calendar flipped to July, Micron has fallen 20%, and Sandisk is down over 35%. That’s a significant sell-off, but the question is: Is this the start of an even bigger sell-off, or are these two smart stocks to buy on the dip?
Both companies are seeing a major boost in their business
Both Micron and Sandisk are memory chip fabricators. The memory chip industry has been overwhelmed by demand from the artificial intelligence data center build-out, and doesn’t have the production capacity to fulfill every order. As a result, prices for memory chips have skyrocketed
Micron and Sandisk are beneficiaries of this, as their products’ prices rose dramatically without needing to change input costs. That’s a huge catalyst for both, but which one is better positioned to take advantage of it?
Two primary types of memory used in data centers are DRAM and NAND. DRAM is high-speed memory used in computing units like GPUs. NAND memory is better for long-term information storage and is usually used in a solid-state drive (SSD) to create massive data storage banks for these data centers
Micron makes both NAND and DRAM, while Sandisk only produces NAND. Furthermore, with most AI hyperscalers focusing on computing capacity rather than storage (though they still need a lot of it), exposure to the computing unit side of the business makes Micron a more attractive investment
Sandisk is expected to grow faster
Sandisk’s fiscal 2027 year began in July, and Wall Street analysts expect 151% revenue growth for the coming year. That comes after an already impressive 2026, when Wall Street expects 170% growth. Micron’s fiscal 2026 concludes in August, and Wall Street projects 247% growth during fiscal 2026. However, that figure falls to 84% growth for fiscal 2027
