Micron Technology and Sandisk have emerged as major beneficiaries of the artificial intelligence boom, with their stock prices soaring 571% and 3,350% over the past year, respectively. Analyst CJ Muse at Cantor Fitzgerald believes both stocks remain undervalued, setting target prices of $700 for Micron (29% upside) and $1,800 for Sandisk (52% upside). This growth is driven by unprecedented demand for memory chips, particularly in data centers optimized for AI, where DRAM and NAND prices have surged sevenfold.

Micron, a leader in DRAM and NAND memory, reported a staggering 196% revenue increase to $23.8 billion in its latest quarter, while Sandisk’s revenue jumped 251% to $5.9 billion, fueled by strong demand for data center storage. Both companies are gaining market share, with Micron’s high-bandwidth memory and Sandisk’s innovative NAND solutions positioning them well for sustained growth.

For market professionals, the key takeaway is that while both stocks present compelling upside, Sandisk may offer a more attractive entry point given its current valuation and growth trajectory. Investors should consider the cyclical nature of the memory market and remain cautious about timing their investments.

Source: fool.com