Micron vs. Sandisk: Which AI Memory Stock Is the Better Buy?

Micron Technology (NASDAQ: MU) and Sandisk Corporation (NASDAQ: SNDK) are both leading memory chip companies that are benefiting from the rise in memory demand. Memory supplies are strained right now as tech companies ramp up data center infrastructure to fuel their artificial intelligence (AI) services.

That's led to a memory crunch that's pushed memory prices higher and resulted in skyrocketing profits for Micron and Sandisk. And the memory shortage isn't over just yet. Counterpoint research estimates that memory will be in short supply at least through 2027.

So, with profits rising and memory demands likely to remain elevated for at least a couple of years, should you buy Micron or Sandisk stock right now? Here's why both companies are a good buy right now -- and why Micron has the slight advantage.

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Sandisk has a massive memory opportunity

You only have to look at Sandisk's latest results for the fourth quarter of fiscal 2026 (which ended June 30) to get a sense for how well the company is tapping into rising memory demand. Sandisk's sales jumped 372% to $8.9 billion, and the company's non-GAAP earnings soared from $0.29 per share in the year-ago quarter to $39.25 per share.

And management is very bullish that memory demand won't let up any time soon. Sandisk CEO David Goeckeler said on the Q4 earnings call that many of its NAND memory customers say they need more memory than they needed just three months earlier. "It's a very, very robust demand environment," Goeckeler said.

The company estimated the NAND memory market will exceed $300 billion this year, a 3 times increase from 2025. And Sandisk CFO Luis Visoso said on the call,

"Looking further ahead, we estimate that the NAND market will approach $500 billion in revenue in calendar year 2027."

And while analysts' price targets are all over the map for Sandisk stock, the vast majority agree the stock is a buy right now. The price target average is $2,125 -- representing 37% upside from its current price.

Micron's memory processors are in high demand

Like Sandisk, Micron's customers can't get enough of the company's processors. Micron's sales popped 345% in the fiscal 2026 third quarter to nearly $41.5 billion. Data center revenue accounts for the bulk of the company's sales, and management recently said the segment's annual revenue run rate is now $100 billion.

The upswing in memory demand has pushed Micron's margins higher, reaching 87% for its data center segment -- up from just 38% in the year-ago quarter. And that jump caused Micron's adjusted non-GAAP earnings to spike more than 1,300% to $24.67 per share in the third quarter.

And management believes Micron is still in the early stages of AI growth. CEO Sanjay Mehrotra said on the recent earnings call:

"The memory industry has been structurally transformed by the proliferation of AI. We are only in the early innings of the significant innovation and productivity that can be unleashed in every part of the global economy over time."

Analysts think there's plenty more runway for Micron, too. Most have a buy rating on the stock and an average price target of $1,513, which is a 62% increase from its current price.

Both stocks look like a buy right now, but Micron has the advantage

I think both stocks are worth buying right now, not just because of demand in the memory market but also because they're relatively good deals. Micron stock has a price-to-earnings ratio of 21, and Sandisk shares have a P/E ratio of 20 -- both far below the tech sector average of about 35.

But, if I had to pick just one to buy, it would probably be Micron. The company sells both DRAM memory and NAND flash memory, giving it more opportunity to benefit from the expanding memory market than Sandisk, which only sells NAND memory.

Still, both stocks look like good long-term buys right now.

Chris Neiger 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.