Should You Forget Micron Technology and Buy This Artificial Intelligence (AI) Stock Instead?

Core Viewpoint - Micron Technology has experienced significant stock growth, but Sandisk is outperforming it in the memory market, making it a potentially better investment choice for AI applications [1][5][14]. Company Performance - Micron Technology's stock has surged by 222% over the last six months, driven by a supply-constrained memory market and increasing demand for compute and storage chips [1][2]. - Sandisk's stock has skyrocketed by 1,220% in the same period, significantly outpacing Micron's gains due to larger earnings increases [5][10]. - In the first quarter of fiscal 2026, Micron reported a 167% year-over-year increase in non-GAAP earnings, while Sandisk's adjusted earnings rose by 404% in the fiscal second quarter [7][10]. Market Dynamics - The memory shortage is expected to persist until at least 2028, benefiting both companies, but Sandisk's focus on non-volatile flash storage positions it for faster growth compared to Micron's DRAM-centric model [2][10]. - NAND flash storage prices are increasing at a much faster rate than DRAM prices, with estimates suggesting a 50% to 55% rise in DRAM prices this quarter, while SSD prices are expected to rise significantly more [10][11]. Valuation Comparison - Despite similar sales and earnings multiples, Sandisk's superior growth trajectory makes it a more attractive investment option compared to Micron [12][14]. - The current market capitalization for Micron is $463 billion, while Sandisk's market cap stands at $92 billion, indicating a substantial difference in company size and market positioning [6][9].