Micron vs. Sandisk: Which AI Memory Stock Has More Room to Run?

Micron Technology (NASDAQ: MU) and Sandisk (NASDAQ: SNDK) have been multibagger investments over the past year, making investors significantly richer owing to the incredible demand for memory in artificial intelligence (AI) data centers.

While Micron stock has surged by an incredible 541% over the past year, Sandisk has clocked phenomenal gains of 1,600%. The good news for investors is that Wall Street expects both stocks to jump higher. Let's take a closer look at their prospects and check which one of these two stocks is likely to deliver bigger gains.

Image source: The Motley Fool.

Micron enjoys an edge over Sandisk

Micron's 12-month median price target of $1,600 points to a 53% jump from current levels, according to 57 analysts covering the stock. Sandisk stock, on the other hand, is projected to jump by 24% over the coming year, based on its median price target of $2,200 as per 32 analysts covering it.

It is easy to see why analysts are forecasting a bigger jump in Micron stock. The company sells both dynamic random-access memory (DRAM) and NAND flash memory, while Sandisk is a pure-play NAND flash manufacturer. What's more, Micron enjoys a bigger market share of 15% in NAND flash compared to Sandisk's share of 11%, according to Counterpoint Research.

Additionally, Micron has been gaining share in the fast-growing DRAM market. Its share of this space increased to 24% in Q2 this year, up from 22% in Q1. So, Micron is in a stronger position to capitalize on the secular growth of the memory market.

Deloitte estimates that DRAM prices will increase by 4x in 2026. Moreover, the strong pricing environment in this market is here to stay as new supply isn't expected to arrive until 2029 or 2030, according to the consulting giant. Sandisk's pure-play NAND flash business model indicates that it is going to miss out on the DRAM market's robust growth.

This probably explains why Micron is anticipated to clock significantly stronger earnings per share (EPS) growth over the long run.

Data by YCharts

Another reason why Micron is a better buy right now

We have already seen that Micron's presence in both the DRAM and NAND flash markets is going to drive stronger growth for the company compared to Sandisk. Additionally, both stocks are almost identically valued, with Micron being slightly cheaper.

Data by YCharts

So, investors looking to choose one of these AI stocks for their portfolio have an easy choice to make. Analysts expect Micron to deliver bigger gains over the coming year, and it is easy to see why that's likely to be the case. Moreover, Micron has the potential to surge significantly by 2030, making it an ideal bet for investors looking to buy a top AI stock trading at a discount right now.

Harsh Chauhan has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Micron Technology. The Motley Fool has a disclosure policy.