Super-hot reminiscence chip performs Micron (MU) and Sandisk (SNDK) may lastly be poised for pullbacks.
The technicals on every inform that story, BTIG chief market technician Jonathan Krinsky instructed Yahoo Finance.
With Micron, the unfold between its present inventory value and its 200-day shifting common exceeds 100% — wider than something seen throughout the dot-com bubble, Krinsky mentioned. It’s worse for Sandisk: Its unfold in comparison with the 200-day shifting common is a whopping 400%.
“We continue to think the memory group of semis is one of the most vulnerable areas of the market for downside reversion given how extreme the move has been,” Krinsky defined.
Sandisk is a once-forgotten reminiscence chip participant based in 1988 that sells knowledge storage units and options primarily based on NAND flash expertise. The firm’s inventory has skyrocketed 287% in 2026, and is up by greater than 2,843% over the previous yr.
Its fierce rival within the NAND flash reminiscence market, Micron, was based in 1978. Micron’s inventory value is up 60% this yr and 561% over the previous 12 months.
The AI capital expenditures growth sweeping the US has funneled all the way down to Sandisk and Micron. As hyperscalers akin to Amazon (AMZN) construct synthetic intelligence techniques, demand for reminiscence chips has surged. These chips retailer and transfer knowledge for AI fashions, which require massive volumes of data to carry out at excessive ranges.
Memory has turn into one of many tightest components of the AI provide chain, specialists say.
Yahoo Finance data shows that Wall Street is on the lookout for outsized monetary efficiency from Sandisk and Micron this yr to help their lofty inventory valuations.
Analysts estimate that Sandisk will report fiscal 2027 earnings development of about 133%, in contrast with 16% for the S&P 500 (^GSPC). For the identical interval, Micron’s earnings are anticipated to just about double yr over yr.
Earnings estimates for Sandisk for this fiscal yr and subsequent have elevated greater than 5 occasions previously 90 days, in keeping with Yahoo Finance knowledge. As for Micron, its earnings estimates for the present fiscal yr have elevated about two occasions previously 90 days and about thrice for fiscal yr 2027.
“We believe Sandisk is levered to one of the most attractive areas of the AI infrastructure stack — data storage, where demand is accelerating and supply remains constrained at minimum through 2028 if not beyond,” Evercore ISI analyst Amit Daryanani wrote in a latest word. “While concerns around peak NAND pricing and cyclicality persist, we think the current cycle is structurally tighter and more durable, underpinned by AI-driven demand and sustained supply discipline.”
