Investors, even those who already hold positions in Micron Technology MU) and Sandisk Corporation SNDK) stock, may be wondering if it's still time to buy in order to capitalize on their truly unprecedented growth scenarios.
Both stocks have continued to soar due to explosive AI-driven demand for memory products and solutions, which has led to tight supply conditions. In the process, Micron and Sandisk have experienced massive revenue and margin expansion.
This has led many to believe that their monstrous gains over the last year are just the tip of the iceberg, with Micron stock soaring nearly 700% to over $600 a share and Sandisk stock skyrocketing 4,000% to over $1,400 a share.
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The New Kings of Pricing Power
Amid severe supply shortages, Micron and Sandisk have raised prices dramatically on critical memory products, fueling a stunning surge in their gross margins.
Micron’s dynamic random access memory (DRAM) contract prices have surged more than 90% in 2026 due to AI server demand. Micron has also benefited from the same flash memory price spikes that are benefiting Sandisk.
Furthermore, Micron’s high bandwidth memory (HBM) supply is sold out for multiple quarters ahead, giving it superior pricing power in this regard as well. Notably, HBM is considered a premium product with significantly higher average selling prices than standard DRAM.
That said, it's noteworthy that Micron’s shift to advanced DRAM nodes used in AI servers has allowed it to charge higher prices due to performance and efficiency gains. On top of that, Micron’s data center solid-state drives (SSDs) specificaly target AI workloads and command premium pricing for their ability to store immense amounts of data.
As for Sandisk, which was spun off from Western Digital WDC) in 2025, the company is experiencing a Supercycle in its core NAND flash memory business in correlation with AI data centers requiring enormous amounts of high-performance SSD storage.
Sandisk’s NAND flash contract prices have risen over 50% due to tight supply and AI server demand. Plus, Sandisk has shifted its consumer mix toward premium configurations as well, enabling higher pricing on next-generation portable SSDs and high-end PC/mobile storage.
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Incredible Growth Trajectories
Based on Zacks estimates, Micron’s annual sales are now expected to increase 194% to a whopping $110.07 billion compared to $37.38 billion last year. Better still, FY27 sales are projected to soar another 59% to $175.76 billion.
On the bottom line, Micron’s annual earnings are currently slated to skyrocket over 600% this year to $58.37 per share, versus EPS of $8.29 in 2025. Even better, FY27 EPS is projected to climb another 66% to $97.08.
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Pivoting to Sandisk, FY26 sales are now expected to spike 136% to $17.35 billion from $7.36 billion last year. More intriguing, Sandisk’s top line is projected to more than double again next year, with FY27 sales projections at $36.85 billion (112% growth).
Most astonishing, Sandisk’s EPS is currently slated to increase by over 1,700% to $54.39 from $2.99 per share in 2025. And next year, Sandisk’s annual earnings are expected to nearly triple to an astronomical $139.60 per share (156% growth).
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The Valuation Argument is still there
What may be more mind-blowing is that although their lofty stock prices might be intimidating, Micron and Sandisk stock are still very reasonably valued, especially in terms of price to forward earnings.
In this regard, Micron certainly stands out, trading at less than 10X forward earnings, with Sandisk still at a reasonable 23X and roughly on par with the benchmark S&P 500.
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Bottom Line
Even after their exhilarating rallies, it may still be an ideal time to pay up for Micron and Sandisk stock, with the latter more likely to do a stock split at some point.
Based on what has continued to be a blazing trend of rising EPS revisions, Micron and Sandisk stock have boasted a Zacks Rank #1 (Strong Buy) since August of 2025 and January of 2026, respectively.
Notably, they are the longest-standing stocks on the coveted Zacks Rank #1 (Strong Buy) list, and within these timeframes, Micron stock has soared 447%, with Sandisk shares ripping 2,768% higher.
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This article originally published on Zacks Investment Research (zacks.com).
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
