The Memory Crash Has 4 Big Stocks Down 30% or More From Their Highs. I'd Buy 2 of Them.

Key Points:

• Memory and storage stocks—including Micron, Sandisk, Western Digital, and Seagate—have experienced significant declines recently, with share prices falling 35% to 53% below their 52-week highs despite limited company-specific news.
• Micron, offering a broad range of memory products including DRAM, NAND flash, and high-bandwidth memory, reported a strong fiscal Q3 with revenue quadrupling year-over-year and forecasts indicating continued growth, yet its stock trades at a low multiple amid market skepticism about sustainability.
• Sandisk, focused on NAND flash, showed dramatic earnings improvement due to rising prices and secured multi-year supply agreements, but its earnings remain vulnerable to price fluctuations, prompting caution ahead of upcoming results.
• Western Digital, primarily a hard drive maker for cloud data centers, posted solid revenue growth but trades at a high valuation partly inflated by investment gains from its stake in Sandisk, making it less attractive compared to peers.
• Seagate reported strong recent quarterly results with record free cash flow and robust guidance, supported by near-term contract commitments, and trades at a reasonable earnings multiple with a dividend, making it a favorable buy alongside Micron, while Sandisk and Western Digital are advised to be avoided for now.