Micron, Sandisk Face 27%-54% 2029 Earnings Drop as Memory Boom Nears Peak
Updated
Updated · The Motley Fool · Jun 30
Micron, Sandisk Face 27%-54% 2029 Earnings Drop as Memory Boom Nears Peak
3 articles · Updated · The Motley Fool · Jun 30
Summary
Wall Street projects Micron’s adjusted earnings will fall 27% in fiscal 2029 and Sandisk’s 54%, after memory-chip sales are expected to peak in 2028.
AI-driven shortages have pushed NAND prices up 200% and DRAM 300% in the past year, fueling explosive results that may reverse once supply catches up.
Micron’s May-quarter sales jumped 345%, while Sandisk’s March-quarter sales rose 251%; current-quarter guidance still points to triple-digit growth for both.
History shows how hard the downturn can hit: Micron and Western Digital—then Sandisk’s parent—fell 50% and 60% from 2022 levels during the last memory bust.
Valuation leaves little room for a cycle turn, with Micron trading at 24 times earnings and Sandisk at 67 times despite the projected 2029 profit slide.
One company makes AI's hottest memory chip; its rival doesn't. Why are both stocks soaring?
Has the AI boom broken the chip industry's historic boom-bust cycle, or just inflated a much larger bubble?
The AI Memory Chip Boom: Record Prices, Supply Shortages, and the New Era of Semiconductor Growth (2026–2027)
Overview
The global memory chip market is in an unprecedented supercycle, driven by soaring demand from artificial intelligence applications. This surge has led to dramatic price increases—up to 90% in some segments—while suppliers strategically manage shipments, reducing supply to PC manufacturers even as overall demand for PCs softens. As a result, memory costs remain high, boosting the financial performance of leading companies in the sector. The combination of AI-driven demand and supply discipline is reshaping the industry, causing ripple effects across consumer electronics, data centers, and the broader technology ecosystem.