Memory chip market is booming due to AI demand for fast, reliable memory. HBM DRAM is critical for GPUs and AI accelerators, while NAND flash provides cost-effective storage. Strong demand is outpacing supply, creating shortages and making it a seller’s market for companies and cloud providers racing to secure necessary memory.

Micron and SanDisk are reaping rewards as semiconductor memory specialists with soaring sales and stock gains. Micron’s memory cycles have been volatile, but the current boom driven by AI infrastructure is different, with HBM fully booked through 2026. Recent fiscal results exceeded expectations, with massive price increases and strong guidance for future quarters.

SanDisk, acquired by Western Digital in 2016 and spun off in 2025, focuses on NAND flash products. The company’s stock has seen astonishing 1,491% gains in the past year. Recent FQ2 results showed significant revenue growth and earnings beat, with strong guidance for FQ3. Analysts are optimistic about SanDisk’s disciplined capital allocation and supply planning, expecting continued growth driven by AI data centers and enterprise SSD demand.

Analysts like UBS’s Timothy Arcuri see continued success for Micron, with strengthening pricing dynamics in core DRAM and NAND. Micron is expected to see significant EPS growth, with a Buy rating and $450 price target offering 21% upside. SanDisk also receives positive analyst reviews, with a Buy rating and $750 price target suggesting 36% upside.

Read more at Yahoo Finance: Analysts Pound the Table on These 2 Top Semiconductor Stocks