Motley Fool Backs Micron Over Sandisk as $1 Trillion Chip Giant Targets $33.5 Billion Quarter
Updated
Updated · The Motley Fool · Jun 16
Motley Fool Backs Micron Over Sandisk as $1 Trillion Chip Giant Targets $33.5 Billion Quarter
3 articles · Updated · The Motley Fool · Jun 16
Summary
Micron was picked over Sandisk as the stronger AI-memory investment, with the call centered on its broader exposure to DRAM and high-bandwidth memory rather than Sandisk’s narrower flash focus.
HBM output for 2026 is already sold out, and Micron has begun shipping its latest HBM for Nvidia’s Vera Rubin platform, underscoring how AI demand is outstripping memory supply.
Micron posted $23.86 billion in fiscal Q2 revenue with adjusted EPS of $12.20 and a 75% gross margin, then guided to about $33.5 billion for fiscal Q3 even as it plans more than $25 billion in capital spending this year.
Sandisk has also surged on the shortage, with fiscal Q3 revenue up 251% year over year to $5.95 billion, five multiyear supply deals covering more than one-third of fiscal 2027 output, and a $6 billion buyback.
Valuations look close on forward earnings—about 10 times for Micron versus 11 for Sandisk—but the recommendation favors Micron because its larger, more diversified memory business may better withstand a cycle turn.
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2026 AI Memory Supercycle: Micron and Sandisk Earnings, Market Shifts, and Sustainability Risks
Overview
Micron Technology’s upcoming Q3 2026 earnings report is highly anticipated, as it is seen as a key indicator for the AI memory supercycle. The company has become a main proxy for this trend, with its results expected to reveal important insights into the health of the high-bandwidth memory (HBM) market, which is essential for artificial intelligence applications. The strong performance of HBM-focused companies, such as SK Hynix and Samsung Electronics, has driven South Korea’s stock rally to outperform the S&P 500 by a wide margin in 2026, highlighting the growing importance and investor interest in the AI memory sector.