These 2 Potential Stock Splits Look Like Screaming Deals Right Now

Stock splits usually occur for one reason: the stock price has become too high to use as currency for paying employees. This is typically indicative of a stock that has done well over time, as there's only one way to get to a point where the stock is too expensive to use as currency: It has risen to around $1,000 per share. Rarely do you find stocks that trade at this level that are screaming deals, but I think that both Micron Technology (NASDAQ: MU) and Sandisk (NASDAQ: SNDK) qualify.

Each of these stocks is well off its all-time high, but is priced in the range where a stock split could make sense. Whether either of these companies announces a stock split or not, I think that they're both in a great spot to benefit from current market conditions.

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Micron and Sandisk have skyrocketed in 2026

At the start of the year, neither Micron nor Sandisk was on the stock split watch list. However, after an incredible performance, they are now. Each stock started the year at less than $300 per share. Now, Sandisk is worth over $1,600, and Micron is priced at about $970. Those are some impressive gains, but the reality is that Micron is down 20% from its all-time high, while Sandisk is down around 30%.

The market started taking gains after the calendar flipped to July. Then, as the selling pressure subsided, the stocks started to rally again. I think that trend could continue for a while, as each of these stocks still has a long way to go before being valued at a spot that seems right.

Micron and Sandisk are experiencing huge growth

These companies operate in the memory chip space. Micron makes both NAND and DRAM memory, while Sandisk only makes NAND. Both memory types are in high demand due to unprecedented spending in the data center sector. The memory chip industry wasn't ready for this wave of demand and does not have the necessary production capacity to meet it. When supply is low and demand is high, simple economics dictates that prices rise, and that's exactly what has happened over the past year.

In fact, during Sandisk's latest quarterly results, it informed investors that two-thirds of its growth came from increasing prices, while a third came from increased output. That's an incredible statistic and shows that these two are primed for more gains, as supply relief isn't coming for some time.

It takes time to build new production facilities, and most new facilities aren't expected to be up and running until late 2027 or 2028. That leaves several quarters of strong growth before the industry could be disrupted from within. Micron's management team backs this up, believing the "tightness" in the memory chip market will persist into 2028.

So, will all of this culminate in a stock split? I think it eventually will. I think the rally these two are experiencing is sustainable and will likely lead to new all-time highs before the end of the year. Sandisk is a recently spun-off company, so there is no historical data for stock splits. Micron last split its stock in 2000. I think it's more than past due for a stock split, and it could come soon. Micron's fourth-quarter results are coming up, and it could be announced then.

Time will tell whether either company decides to enact a stock split, but I think there's a strong enough investment thesis in the underlying business to warrant buying each stock now, regardless of whether they split.

Keithen Drury 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.