Should You Forget Micron and Buy These 3 Memory Stocks Instead?

Computer memory and computer data storage products manufacturer Micron Technology (NASDAQ: MU) has been one of the biggest investment stories over the past year. Its memory chips continue to fly off the shelves, and its stock price is up about 350% over that period.

That's a lot of growth over a relatively short period, and some investors wonder whether the gains will continue. I suspect they will, but I also think investors may actually do better with these three memory stocks instead.

Image source: Getty Images.

1. SK Hynix

SK Hynix (NASDAQ: SKHY) is another premier memory chipmaker. Just like Micron, it has also secured multiyear customer agreements. Around 10 key customers reached long-term agreements related to the company's memory chips in the second quarter. That foundation implies that the 257% year-over-year revenue boost SK Hynix saw in Q2 isn't a one-off event.

The company generated revenue similar to Micron's, depending on the currency conversion. The exact number was 79.3 trillion Korean won, and that marked a 51% sequential jump in sales. Micron delivered 31% sequential growth in its most recent quarter, implying that recent growth acceleration favors SK Hynix.

The exchange rate for USD and won at the time SK Hynix reported earnings on July 29 translated into $54.9 billion in Q2 revenue. Both SK Hynix and Micron operate in the same industry and offer similar products. SK Hynix has higher sequential growth, higher revenue, a lower market cap, and a more attractive P/E ratio. That makes SK Hynix more appealing at current levels.

2. Sandisk

Sandisk (NASDAQ: SNDK) is another memory stock that offers faster growth than Micron and a similar valuation when looking at P/E and forward P/E ratios. The NAND flash memory chip provider's share price has surged more than 800% over the past year, and earnings due at the end of October may be the next catalyst for a renewed rally.

Sandisk's fiscal 2026 fourth-quarter results are a teaser of what may be possible when the company reports earnings later this month. That quarter saw 51% sequential growth, higher than Micron's. Furthermore, Sandisk anticipates fiscal 2027 first-quarter revenue will reach $10.8 billion at the high end of its guidance, which implies 20.4% sequential growth. Sandisk has a history of beating the high end of its guidance, and with Micron achieving the feat in its recent results, Sandisk is likely to follow at the end of the month.

Sandisk has long-term deals with key customers to support revenue expansion beyond fiscal 2027. Its finances are optimized for growth, sustainability, and shareholder return through fiscal 2030, according to Sandisk's Investor Day presentation.

3. Astera Labs

Astera Labs (NASDAQ: ALAB) is a relatively smaller memory stock that specializes in rack-scale artificial intelligence (AI) infrastructure. These racks are vital for AI data centers and are filled with memory chips, GPUs, and other components. If you think of each memory chip or GPU as a book, Astera Labs is the bookshelf that keeps them all together. The rack connects key AI components and lets them operate together.

This product explains why Astera Labs more than doubled its sales year over year in the second quarter. Its revenue also jumped by 27% sequentially. While those numbers are lower than Micron's growth rates, Astera Labs is expanding its margins quickly while guiding for accelerated sales momentum in the third quarter. Astera Labs CEO Jitendra Mohan also hinted at the company's growth opportunities expanding in 2027 and beyond.

The company's guidance for its fiscal 2026 third quarter implies a substantial sequential growth rate. Astera Labs is aiming for $550 million in sales at the midpoint, which represents a 40.2% sequential boost. That's a higher projected growth rate than the guidance Micron provided in its recent results.

Astera Labs shares have outperformed the S&P 500, more than doubling year-to-date, but the growth stock has plunged by more than 40% from its high. A strong print for the company's fiscal 2026 third-quarter results can reignite the rally.

Marc Guberti has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Micron Technology. The Motley Fool recommends Astera Labs. The Motley Fool has a disclosure policy.