Micron vs. Sandisk: 1 Artificial Intelligence (AI) Memory Winner Is Down 20% and Clearly the Superior Buy Today
- MU
- NVDA
- SNDK
Memory chip stocks have been some of the biggest winners in 2026, but have given back some of their gains recently. Both Micron (NASDAQ: MU) and Sandisk(NASDAQ: SNDK) are down about 20% from their all-time high, but I think one of them is clearly the better buy.
Which one of these two makes the most sense to invest in right now? Let’s take a look.
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Micron has a wider net than Sandisk
There are two primary types of memory chips: NAND and DRAM. DRAM memory is used in computing units for quick information access and is only manufactured by Micron. NAND is used for long-term data storage, and both Sandisk and Micron make it. Each type of memory is in short supply, which is causing prices to skyrocket.
There really isn’t much difference between the NAND memory that Micron and Sandisk produce. As a result, it’s a commoditized product, as an AI hyperscaler could easily swap out a storage device with Sandisk or Micron memory in it without losing performance. Economic laws govern commoditized products, and when demand is high and supply is low, prices skyrocket.
That’s exactly what has happened in 2026, as the <a href="https://www.fool.com/investing/stock-market/market-sectors/information-technology/ai-stocks/?utm_source=yahoo-host-full&utm_medium=feed&utm_campaign=article&referring_guid=bfe59009-1cef-4263-aca7-4822aaf142f4″ rel=”nofollow noopener” target=”_blank”>AI hyperscalersconsumed all available memory capacity across both types of memory. In fact, Sandisk attributed two-thirds of its revenue gains in its recent quarter to price hikes versus one-third to increased production capacity. That’s unlikely to change in the near future, as it takes some time for new production capacity to come online.
Micron informed investors during its last earnings event that the “tightness” in the memory chip market will persist beyond 2027, leaving plenty of time for both of these two businesses to make a fortune.
But of these two, I prefer Micron’s business model. With exposure to both types of memory, it can thrive on one segment of its business if the other gains enough production capacity to solve the demand shortfall. Sandisk is all or nothing on the NAND side of memory as being in short supply, which makes it more of a boom-or-bust investment.
As a result, I’m giving this category to Micron.
Winner: Micron.
Both companies are growing too fast to declare a winner
In their most recent quarters, the growth rates these two produced are nothing short of incredible.
We’ll get more information regarding Micron’s current growth rate on Sept. 30, when it reports results, but as of right now, Sandisk has a slight lead. This is splitting hairs, though, as both growth rates are downright incredible.
