Will Sandisk or Micron Perform a Stock Split Next Year?

Sandisk (NASDAQ: SNDK) and Micron Technology (NASDAQ: MU) have been some of the biggest winners of the year as momentum built in the memory chip sector. And their prolonged rallies may lead both companies to start considering stock splits.

Sandisk started the year trading below $250 per share and is now trading just below $2,000 per share. Micron recently broke past $1,000 per share again after starting the year at under $300 per share.

Companies usually engage in stock splits when their price per share gets high enough to make retail investors uncomfortable, and both memory chipmakers' shares are in that position. Here's what investors should know when considering the likelihood of these companies announcing stock splits next year.

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Both companies are still growing

Memory chips are vital components in AI infrastructure, and as that technology evolves, even more of them are needed in data center servers. Recent quarterly results from the memory-chip makers indicate that sales growth in the space is continuing. Micron more than quadrupled its revenues year over year in its fiscal 2026 third quarter, while Sandisk grew even faster in its fiscal 2026 fourth quarter. Both companies also offered guidance for high sequential growth.

Memory chip demand remains well in excess of what the industry can supply, a situation that has given the chipmakers tremendous pricing power and surging profits. This growth is important when considering a potential stock split.

If both companies maintain their market shares in this supply-constrained and vital industry, their revenues and net incomes should continue to trend upward for as long as the memory shortage persists. They also have forward P/E ratios in the mid-single-digit range, so valuation isn't a problem for either stock.

This context implies that Sandisk and Micron shares have room for their rallies to continue. Wall Street analysts are bullish on both, with average 12-month share price targets that point to meaningful returns.

Analyzing recent hyperscaler splits

CrowdStrike conducted a 4-for-1 stock split earlier this year when its stock traded at close to $800 per share. Booking Holdings did a 25-for-1 stock split this year when its stock traded above $4,000.

These recent splits show that the points at which management teams may decide that it's time for a stock split can fall in a pretty wide zone. One way to get a clearer indication of where the line might be for the memory leaders could be to look at what milestones led hyperscalers and chipmakers to schedule their most recent splits.

Amazon performed a 20-for-1 stock split in 2022 after its shares traded above $2,000; Sandisk touched that level earlier this year. Alphabet did a 20-for-1 stock split a little more than one month after Amazon. It also traded above $2,000 ahead of its split.

More recently, Nvidia initiated a 10-for-1 stock split in June 2024, when the stock traded a little above $1,200 per share. Micron briefly traded above that level earlier this year.

More time at these levels can trigger stock splits

Sandisk and Micron climbed quite rapidly to price ranges high enough to warrant stock split speculation. While there may not be much discussion about the possibility of such moves this year, split consideration could gain momentum in 2027, assuming that Sandisk and Micron show they can sustain their current share prices or keep building on them.

A 20-for-1 split may be in the cards for Sandisk if it follows in the path of Amazon and Alphabet, while Micron would make a good candidate for a 10-for-1 split, based on the Nvidia comparison. Or, if these two growth stocks continue to rally, management may need to conduct even larger stock splits down the road.

Based on the recent history of tech giant splits, Sandisk and Micron could decide to split their stocks at around the same time. Amazon and Alphabet had a little more than one month between their splits, while Nvidia and Broadcom both conducted their 10-for-1 stock splits a little more than one month apart as well.

Marc Guberti has positions in Broadcom. The Motley Fool has positions in and recommends Alphabet, Amazon, Booking Holdings, Broadcom, CrowdStrike, Micron Technology, and Nvidia. The Motley Fool has a disclosure policy.