Sandisk and Micron Dominated the First Half of 2026. Which Is the Best Buy Now?

If you purchased shares of Micron Technology (NASDAQ: MU) and Sandisk (NASDAQ: SNDK) stock at the beginning of the year, you look like an absolute genius right now. The stocks have performed remarkably well, with Micron rising 325%, and Sandisk delivering nearly 900% gains. Most investors see those returns over decades, not months.

But there's a growing question investors must answer: Is there room for more, and if there is, which stock is the better one to buy? Let's take a look at these two and see if the roller-coaster ride is peaking or just getting started.

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The AI build-out is driving massive growth for these two

Both Micron and Sandisk are memory chip makers. Micron operates on both sides of the market, producing both DRAM and NAND memory, while Sandisk is solely on the NAND side.

NAND memory is non-volatile and can hold information even if it loses power, making it great for long-term data storage. It's utilized in devices like solid-state drives (SSDs), and those are in high demand as data centers are built out across the nation.

DRAM memory is tailored for high-speed, rapid recall purposes and gets deployed alongside powerful computing chips. So, whenever you hear about how many more chips are being sold by companies like Advanced Micro Devices or Nvidia, you can immediately assume that Micron is benefiting as well.

Demand for memory chips has reached unprecedented levels, spurred on by the AI build-out. However, it's unlikely demand will subside anytime soon, as multiple projections indicate that 2026's elevated spending on data is just the start. In fact, Nvidia believes that global data center capital expenditures will rise to $3 trillion to $4 trillion annually by 2030.

That bodes well for the futures of Micron and Sandisk, and even if they can increase production capacity, it doesn't mean that it will be enough to meet demand. As a result, I don't think Micron and Sandisk are in a bubble, and their valuations back that up.

Sandisk and Micron are each strong picks

Both Micron and Sandisk operate on odd fiscal years. Sandisk's ends in June, while Micron's ends in August. As a result, I think looking at next year's fiscal year (FY) projections is a smart idea. Wall Street believes that Micron's growth will be 78% next year, while Sandisk's will total 122%. There's clearly more growth ahead for these two, yet their stocks aren't priced at a premium level.

MU PE Ratio (Forward 1y) data by YCharts

With Micron trading at 8 times forward earnings and Sandisk at 13, there is still plenty of room for upside, as most tech companies trade in the mid-20s forward price-to-earnings ratio. If both of these two can rise to that level over the next year, then Sandisk stock has the potential to double, and Micron can triple. That's explosive returns that any investor would love to see, and even though it's not the same as the growth each stock has delivered so far in 2026, it's still a great return to achieve in just a year.

As a result, I think each of them is a smart buy, but which one takes the cake? Although the upside may be higher for Micron if the above prediction comes true, I'm more of a fan of Sandisk stock because it's only focused on one segment of the memory chip market and is doing quite well in it. Micron has more to worry about, which still doesn't make it a bad investment, but opens it up to more execution errors if it stumbles in one area.

The memory chip crunch is far from over, and investors can still take advantage of these two stocks.

Keithen Drury has positions in Nvidia. The Motley Fool has positions in and recommends Advanced Micro Devices, Micron Technology, and Nvidia. The Motley Fool has a disclosure policy.