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Sandisk Is One of the Biggest Winners After Micron's Blowout Earnings
The Motley Fool • • business
Key Points:
- Micron Technology reported strong fiscal 2026 third-quarter earnings with over 20% expected sequential growth in the next quarter, confirming the ongoing memory boom driven by AI infrastructure demand.
- Sandisk, which also supplies NAND flash memory chips critical for AI workloads, has outpaced Micron in recent revenue growth rates, showing 251% year-over-year and 97% sequential growth in its fiscal 2026 Q3.
- Despite a significant stock price increase of over 600% year-to-date, Sandisk's rising valuation is supported by strong fundamentals, currently trading at a 32.3 forward P/E ratio compared to 19.3 a year ago.
- Micron's recent strategic multi-year customer agreements suggest increased revenue visibility and challenge the notion of a cyclical memory market, raising expectations that Sandisk may announce similar deals in its upcoming August earnings report.
- Investors are advised to watch Sandisk's August earnings closely, as continued AI-driven growth could sustain its rally and potentially outperform Micron despite recent gains.
