Traders, even those that already maintain positions in Micron Know-how MU) and Sandisk Company SNDK) inventory, could also be questioning if it is nonetheless time to purchase with a view to capitalize on their really unprecedented progress situations.
Each shares have continued to soar as a result of explosive AI-driven demand for reminiscence merchandise and options, which has led to tight provide situations. Within the course of, Micron and Sandisk have skilled large income and margin enlargement.
This has led many to consider that their monstrous positive factors during the last yr are simply the tip of the iceberg, with Micron inventory hovering practically 700% to over $600 a share and Sandisk inventory skyrocketing 4,000% to over $1,400 a share.
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The New Kings of Pricing Energy
Amid extreme provide shortages, Micron and Sandisk have raised costs dramatically on crucial reminiscence merchandise, fueling a shocking surge of their gross margins.
Micron’s dynamic random entry reminiscence (DRAM) contract costs have surged greater than 90% in 2026 as a result of AI server demand. Micron has additionally benefited from the identical flash reminiscence value spikes which might be benefiting Sandisk.
Moreover, Micron’s excessive bandwidth reminiscence (HBM) provide is offered out for a number of quarters forward, giving it superior pricing energy on this regard as properly. Notably, HBM is taken into account a premium product with considerably greater common promoting costs than normal DRAM.
That mentioned, it is noteworthy that Micron’s shift to superior DRAM nodes utilized in AI servers has allowed it to cost greater costs as a result of efficiency and effectivity positive factors. On high of that, Micron’s information heart solid-state drives (SSDs) specificaly goal AI workloads and command premium pricing for his or her capacity to retailer immense quantities of information.
As for Sandisk, which was spun off from Western Digital WDC) in 2025, the corporate is experiencing a Supercycle in its core NAND flash reminiscence enterprise in correlation with AI information facilities requiring huge quantities of high-performance SSD storage.
Sandisk’s NAND flash contract costs have risen over 50% as a result of tight provide and AI server demand. Plus, Sandisk has shifted its client combine towards premium configurations as properly, enabling greater pricing on next-generation moveable SSDs and high-end PC/cellular storage.
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Unbelievable Progress Trajectories
Primarily based on Zacks estimates, Micron’s annual gross sales are actually anticipated to extend 194% to a whopping $110.07 billion in comparison with $37.38 billion final yr. Higher nonetheless, FY27 gross sales are projected to soar one other 59% to $175.76 billion.
On the underside line, Micron’s annual earnings are at the moment slated to skyrocket over 600% this yr to $58.37 per share, versus EPS of $8.29 in 2025. Even higher, FY27 EPS is projected to climb one other 66% to $97.08.
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Pivoting to Sandisk, FY26 gross sales are actually anticipated to spike 136% to $17.35 billion from $7.36 billion final yr. Extra intriguing, Sandisk’s high line is projected to greater than double once more subsequent yr, with FY27 gross sales projections at $36.85 billion (112% progress).
Most astonishing, Sandisk’s EPS is at the moment slated to extend by over 1,700% to $54.39 from $2.99 per share in 2025. And subsequent yr, Sandisk’s annual earnings are anticipated to just about triple to an astronomical $139.60 per share (156% progress).
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The Valuation Argument remains to be there
What could also be extra mind-blowing is that though their lofty inventory costs is perhaps intimidating, Micron and Sandisk inventory are nonetheless very fairly valued, particularly when it comes to value to ahead earnings.
On this regard, Micron definitely stands out, buying and selling at lower than 10X ahead earnings, with Sandisk nonetheless at an affordable 23X and roughly on par with the benchmark S&P 500.
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Backside Line
Even after their exhilarating rallies, it could nonetheless be a perfect time to pay up for Micron and Sandisk inventory, with the latter extra prone to do a inventory break up sooner or later.
Primarily based on what has continued to be a blazing pattern of rising EPS revisions, Micron and Sandisk inventory have boasted a Zacks Rank #1 (Robust Purchase) since August of 2025 and January of 2026, respectively.
Notably, they’re the longest-standing shares on the coveted Zacks Rank #1 (Robust Purchase) record, and inside these timeframes, Micron inventory has soared 447%, with Sandisk shares ripping 2,768% greater.
Zacks’ Analysis Chief Names “Inventory Most More likely to Double”
Our crew of consultants has simply launched the 5 shares with the best chance of gaining +100% or extra within the coming months. Of these 5, Director of Analysis Sheraz Mian highlights the one inventory set to climb highest.
This high choose is a little-known satellite-based communications agency. House is projected to develop into a trillion greenback trade, and this firm’s buyer base is rising quick. Analysts have forecasted a significant income breakout in 2025. After all, all our elite picks aren’t winners however this one might far surpass earlier Zacks’ Shares Set to Double like Hims & Hers Well being, which shot up +209%.
Free: See Our High Inventory And 4 Runners Up
Micron Know-how, Inc. (MU) : Free Inventory Evaluation Report
Sandisk Company (SNDK) : Free Inventory Evaluation Report
Western Digital Company (WDC) : Free Inventory Evaluation Report
This text initially revealed on Zacks Funding Analysis (zacks.com).
The views and opinions expressed herein are the views and opinions of the writer and don’t essentially mirror these of Nasdaq, Inc.
