AI Demand Drives Surge in Memory-Chip Stocks Like Micron and Sandisk

Strong demand for memory chips used in artificial intelligence hardware has led to rapid growth for companies such as Micron Technology and Sandisk, with both firms highlighted among top AI-related stocks in early 2026.

Micron and Sandisk have experienced substantial increases in revenue and profitability, reflecting the impact of AI infrastructure expansion on the memory-chip sector. Industry observers have noted that constrained supply and rising prices are contributing factors to these gains.

Micron’s revenue expanded by about 59% year-over-year in the most recent quarter, with its gross margin rising from roughly 38.4% to 56%. Sandisk reported a revenue increase of approximately 76% over the same period, and its gross margin grew from around 32.3% to 50.9%.

Stock performance for both companies has mirrored these financial results. Micron’s stock price has more than quadrupled in the past year, while Sandisk’s shares have risen by about 1,500% since its separation from Western Digital in February 2025, both trends attributed to AI data-center demand.

What the numbers show

• Micron’s market capitalization recently reached approximately $408 billion
• Sandisk’s earnings per share increased about 404% to $6.20 last quarter
• Micron posted roughly 56.7% year-over-year revenue growth in fiscal Q1 2026
• Sandisk’s revenue rose to $3.03 billion in the last quarter, up about 61%

Micron has announced plans to acquire a chip fabrication facility in Taiwan from Powerchip Semiconductor Manufacturing Corp. for $1.8 billion. The transaction is scheduled to close in the second half of 2026, with production expected to ramp up in the latter part of 2027.

Sandisk’s partnership with Kioxia has provided cost advantages in sourcing NAND chips, supporting profitability during periods of tight memory supply. This joint venture has been cited as a factor enhancing Sandisk’s financial performance amid industry constraints.

Industry analysts have described the current environment as a memory-chip “supercycle,” with companies like Micron and Sandisk benefiting from strong AI infrastructure demand. Supply limitations and increased pricing have also been identified as contributors to recent growth in this sector.

Analysts have raised their price targets for Sandisk, with Citi setting a target of $490, Bernstein at $580, and RBC initiating coverage at $400. These adjustments reflect the company’s recent financial results and its position within the AI-driven memory market.

* This article is based on publicly available information at the time of writing.