Micron vs. Sandisk: 1 Artificial Intelligence (AI) Memory Stock Is Clearly the Better Buy Today
Micron (NASDAQ: MU) and Sandisk(NASDAQ: SNDK) have had an incredible 2026, with Sandisk stock rising more than 520% and Micron increasing by about 225% (as of Aug. 28). That ranks Sandisk as the top-performing S&P 500(SNPINDEX: ^GSPC) stock, and Micron as the fourth-best for 2026. That’s an impressive run, but there are still four months left in 2026 and a lot could happen.
Between the two, is there a better stock to buy? Let’s take a look at which one makes the most sense because I think there’s a clear winner.
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Micron’s business is broader
Micron and Sandisk are both memory chip fabricators. There are two primary types of memory: NAND and DRAM. DRAM memory is utilized by computing units for rapid information access. Micron is the only company of the two that makes DRAM. Both companies make NAND, which is used for long-term data storage. In a data center, the most common use is in solid-state drives (SSDs). Regardless of which type of memory you’re talking about, both companies are beyond sold out.
With little new supply available and rising demand, the prices on memory chips have skyrocketed. This has allowed both Micron and Sandisk to make a fortune on their products, but they are doing their parts to alleviate the shortage. Sandisk recently announced a third fabrication facility, and Micron has several production facilities under construction. However, it’s going to be some time before those facilities are up and running. Most of Micron’s facilities won’t be running until mid-2027 and Sandisk’s facility won’t be online until after that.
This could prolong the memory chip shortage, which may be bad news for consumers and AI hyperscalers, but it’s great news for these two companies. By investing in these stocks, you can also profit from these soaring memory chip prices.
But of the two, Micron is by far the better business. Micron saw the writing on the wall and started building new production facilities a while back. Sandisk only recently decided to start building new facilities. Furthermore, Micron operates on both sides of the memory chip market. So, if one side’s supply shortage is alleviated, it can still benefit from lofty prices on the other one. With Sandisk, it’s a coin flip whether the NAND industry sees the supply constraints alleviated first.
