Traders, even those that already maintain positions in Micron Expertise MU) and Sandisk Company SNDK) inventory, could also be questioning if it is nonetheless time to purchase with a purpose to capitalize on their actually unprecedented development eventualities.
Each shares have continued to soar because 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 growth.
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 important reminiscence merchandise, fueling a surprising surge of their gross margins.
Micron’s dynamic random entry reminiscence (DRAM) contract costs have surged greater than 90% in 2026 because of AI server demand. Micron has additionally benefited from the identical flash reminiscence value spikes which can be benefiting Sandisk.
Moreover, Micron’s excessive bandwidth reminiscence (HBM) provide is bought out for a number of quarters forward, giving it superior pricing energy on this regard as nicely. Notably, HBM is taken into account a premium product with considerably greater common promoting costs than commonplace DRAM.
That stated, it is noteworthy that Micron’s shift to superior DRAM nodes utilized in AI servers has allowed it to cost greater costs because of efficiency and effectivity positive factors. On prime of that, Micron’s information middle solid-state drives (SSDs) specificaly goal AI workloads and command premium pricing for his or her means 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% because of tight provide and AI server demand. Plus, Sandisk has shifted its client combine towards premium configurations as nicely, enabling greater pricing on next-generation transportable SSDs and high-end PC/cell storage.
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Unimaginable Progress Trajectories
Based mostly on Zacks estimates, Micron’s annual gross sales at the moment are 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 presently 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 at the moment are anticipated to spike 136% to $17.35 billion from $7.36 billion final yr. Extra intriguing, Sandisk’s prime line is projected to greater than double once more subsequent yr, with FY27 gross sales projections at $36.85 billion (112% development).
Most astonishing, Sandisk’s EPS is presently 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 almost triple to an astronomical $139.60 per share (156% development).
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The Valuation Argument continues to be there
What could also be extra mind-blowing is that though their lofty inventory costs may be intimidating, Micron and Sandisk inventory are nonetheless very fairly valued, particularly by way of 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 inexpensive 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 really perfect time to pay up for Micron and Sandisk inventory, with the latter extra prone to do a inventory break up in some unspecified time in the future.
Based mostly on what has continued to be a blazing development 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) listing, 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 likelihood 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 prime decide is a little-known satellite-based communications agency. Area is projected to turn out to be a trillion greenback trade, and this firm’s buyer base is rising quick. Analysts have forecasted a significant income breakout in 2025. In fact, all our elite picks aren’t winners however this one may 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 Expertise, Inc. (MU) : Free Inventory Evaluation Report
Sandisk Company (SNDK) : Free Inventory Evaluation Report
Western Digital Company (WDC) : Free Inventory Evaluation Report
This text initially printed 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.
