Micron, Sandisk Jump Over 200% as AI Memory Shortage Drives 200%-300% Price Surge
Updated
Updated · The Motley Fool · Jun 30
Micron, Sandisk Jump Over 200% as AI Memory Shortage Drives 200%-300% Price Surge
3 articles · Updated · The Motley Fool · Jun 30
Summary
Micron shares have climbed 203% and Sandisk 217% in three months as AI infrastructure demand created a severe memory-chip shortage.
NAND prices are up 200% and DRAM prices 300% over the past year because hyperscalers building AI systems need more memory for CPUs and GPUs.
Micron’s May-quarter sales rose 345% and non-GAAP net income more than 1,200%, while Sandisk’s March-quarter sales rose 251% and swung from a loss to $23.41 per diluted share.
Wall Street still sees 46% upside to Micron’s $1,585 median target price, but Sandisk’s $1,750 median target implies 12% downside from its current level.
History points to a harsher outlook: memory booms have repeatedly reversed, and analysts expect earnings to fall 27% for Micron and 54% for Sandisk in fiscal 2029 after sales peak in 2028.
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.