MU and SNDK: Analysts Pound the Table on These 2 Top Semiconductor Stocks

The representation spot marketplace is going done a monolithic roar phase, acknowledgment successful ample portion to the skyrocketing request from AI, which needs immense amounts of fast, reliable representation to tally analyzable models. HBM (High Bandwidth Memory) DRAM is successful precocious request for its ultra-fast speeds successful GPUs and AI accelerators, portion NAND flash provides large, cost-effective retention for each that data.

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The appetite for these precocious memories is truthful beardown that it’s outpacing supply, starring to wide shortages and making it a seller’s market. As a result, companies and unreality providers are racing to unafraid the representation they request to support up with progressively blase AI workloads.

Semiconductor representation specialists specified arsenic Micron (NASDAQ:MU) and SanDisk (NASDAQ:SNDK) person been reaping the rewards, with shares of some piling connected the gains implicit the past twelvemonth arsenic income person gone done the roof. However, fixed AI’s insatiable request for memory, Street analysts spot much bully times up for these names. So, let’s spot what inactive makes these 2 representation stalwarts a unsocial proposition successful 2026.

Micron

First up, representation elephantine Micron, a institution heavy associated with the boom-and-bust dynamics of the representation industry. It’s a elemental rhythm really: erstwhile request surges – often from user electronics similar smartphones, PCs, oregon gaming consoles – prices spike and manufacturers ramp up production. But erstwhile proviso catches up oregon request slows, prices tin illness conscionable arsenic quickly, leaving producers with excess inventory and shrinking profits. These cycles person made representation 1 of the astir volatile sectors successful tech, with fortunes rising and falling successful tandem with short-term shifts successful proviso and demand.

You could reason that with Micron shares up by 300% implicit the past year, it has intelligibly enjoyed an up cycle, but the happening is, this rhythm is antithetic from others. Because, dissimilar past waves, the existent representation roar is powered by AI infrastructure, and AI workloads necessitate massive, ongoing representation capableness for information centers, GPUs, and accelerators.

In fact, Micron has said that its each its HBM is fundamentally afloat booked done 2026, arsenic aggravated AI information halfway request has absorbed disposable supply. Meanwhile, the demand/supply imbalance has besides resulted successful monolithic terms increases.

These developments were connected show successful the company’s fiscal archetypal 4th (November quarter) readout. Revenue reached $13.64 billion, topping estimates by $760 million, portion adj. EPS reached $4.78, exceeding expectations by $0.82. The FQ2 usher was adjacent much impressive. Micron guided for F2Q gross of $18.7 cardinal astatine the midpoint and adj. EPS of $8.42 astatine the midpoint. The Street was lone expecting $14.23 cardinal and $4.49, respectively.