SanDisk vs. Micron: Which AI Memory Stock Offers More Upside?

Sandisk SNDK and Micron Technology MU are two leading U.S. NAND flash memory companies sitting squarely at the intersection of AI and semiconductor storage. While SNDK is a pure-play NAND developer and manufacturer, MU is a diversified memory giant with significant exposure to both DRAM and NAND. Both companies are benefiting from AI-driven data center demand and a tightening supply environment that is pushing NAND pricing to structurally higher levels.

SNDK and MU have become increasingly important to the AI infrastructure buildout, drawing investor attention to their business models, product mix and growth outlook. Let’s break down how each company is performing and which one looks like the better investment right now.

The Case for SNDK

Sandisk develops, manufactures and sells NAND flash-based data storage devices and solutions across data center, edge and consumer end markets. Its portfolio spans enterprise solid-state drives, embedded storage, removable cards and consumer flash solutions, serving cloud hyperscalers, AI infrastructure builders, OEMs and retail end markets. As AI workloads scale, demand for Sandisk's NAND-based storage has shifted from cyclical to structural, with the company embedded in the qualification pipelines of virtually all major hyperscalers and AI platform operators.

SNDK's enterprise SSD business has entered a phase of sharp acceleration. Its PCIe Gen5 TLC drives, built on the proprietary BiCS8 NAND node, are ramping strongly. Qualification has been completed at a second major hyperscaler, with additional completions expected over the coming quarters. Data center revenues surged 76% year over year to $440 million in the fiscal second quarter. As the BiCS8 transition progresses, it is simultaneously driving revenue growth and margin expansion.

The BiCS8 QLC enterprise SSD, codenamed Stargate, is advancing through qualification at two major hyperscalers and is expected to begin shipping for revenues within the next several quarters. High-bandwidth flash is in active development with customer co-design engagements underway, targeting an entirely new addressable market within the AI compute architecture. With fiscal third quarter revenues expected between $4.4 billion and $4.8 billion, suggesting yearly growth of 171% at the midpoint and non-GAAP gross margin projected between 65% and 67%, the company is building a trajectory of sustained acceleration.

The Zacks Consensus Estimate for SNDK’s fiscal 2026 EPS is pegged at $27.2, up 57.2% over the past 30 days. The figure indicates an increase of 809.7% year over year.

Sandisk Corporation Price and Consensus

Sandisk Corporation price-consensus-chart | Sandisk Corporation Quote

The Case for MU

Micron designs, manufactures and sells memory and storage solutions spanning DRAM, NAND and High Bandwidth Memory across data center, client, mobile and automotive end markets. Its offerings include server DRAM, enterprise solid-state drives, HBM stacks and embedded storage, serving cloud hyperscalers, AI compute platform builders and OEMs. As AI infrastructure buildouts accelerate, demand for Micron's products has shifted from cyclical to structural, with the company present across the supply chains of major hyperscalers and enterprise customers. 

Micron's data center business has become the largest contributor to revenue growth. Its G9 NAND node is ramping across data center and client SSD segments, with its PCIe Gen6 enterprise SSD gaining qualification traction at hyperscalers. Data center NAND revenues exceeded $1 billion in the fiscal first quarter. Micron participates in the enterprise SSD space, though its NAND portfolio remains one part of a broader memory business, whereas Sandisk's dedicated NAND focus and BiCS8 qualification progress reflect a more advanced position in this segment currently. 

Micron's broader data center strength is anchored by its HBM franchise, with volume and pricing agreements for 2026 fully secured. The HBM total addressable market is projected to witness a 40% CAGR, reaching $100 billion by 2028. With second-quarter fiscal 2026 revenues expected at $18.7 billion, indicating yearly growth of 132%, and non-GAAP gross margin at approximately 68%, Micron is compounding growth across both franchises simultaneously. 

The Zacks Consensus Estimate for MU's fiscal 2026 EPS is pegged at $33.79, up 2.71% over the past 30 days, indicating year-over-year growth of 307.6%.

Micron Technology, Inc. Price and Consensus

Micron Technology, Inc. price-consensus-chart | Micron Technology, Inc. Quote

Price Performance and Valuation of SNDK and MU

Over the past three months, shares of SNDK and MU have surged 200.4% and 79.8%, respectively. Accelerating AI infrastructure spending and a tightening NAND supply environment have driven strong momentum across both stocks, with SNDK's pure-play NAND exposure drawing relatively stronger investor interest during this period.

SNDK vs. MU Price Performance

SNDK trades at 4.42x price-to-sales versus MU at 5.49x, offering exposure to accelerating AI-driven enterprise SSD growth at a relative valuation discount.

SNDK vs. MU Valuation

Conclusion

SNDK and MU are well-positioned beneficiaries of the AI-driven NAND upcycle, with strong revenue growth and expanding margins across their respective franchises. However, SNDK's pure-play NAND focus, accelerating hyperscaler qualification traction and relative valuation discount make it the more compelling buy at this point in the cycle

Both SNDK and MU currently sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here.

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This article originally published on Zacks Investment Research (zacks.com).

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