Super-hot memory chip plays Micron (MU) and Sandisk (SNDK) could finally be poised for pullbacks.
The technicals on each tell that story, BTIG chief market technician Jonathan Krinsky told Yahoo Finance.
With Micron, the spread between its current stock price and its 200-day moving average exceeds 100% — wider than anything seen during the dot-com bubble, Krinsky said. It’s worse for Sandisk: Its spread compared to the 200-day moving average 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 explained.
Sandisk is a once-forgotten memory chip player founded in 1988 that sells data storage devices and solutions based on NAND flash technology. The company’s stock has skyrocketed 287% in 2026, and is up by more than 2,843% over the past year.
Its fierce rival in the NAND flash memory market, Micron, was founded in 1978. Micron’s stock price is up 60% this year and 561% over the past 12 months.
The AI capital expenditures boom sweeping the US has funneled down to Sandisk and Micron. As hyperscalers such as Amazon (AMZN) build artificial intelligence systems, demand for memory chips has surged. These chips store and move data for AI models, which require large volumes of information to perform at high levels.
Memory has become one of the tightest parts of the AI supply chain, experts say.
Yahoo Finance data shows that Wall Street is looking for outsized financial performance from Sandisk and Micron this year to support their lofty stock valuations.
Analysts estimate that Sandisk will report fiscal 2027 earnings growth of about 133%, compared with 16% for the S&P 500 (^GSPC). For the same period, Micron’s earnings are expected to nearly double year over year.
Earnings estimates for Sandisk for this fiscal year and next have increased more than five times in the past 90 days, according to Yahoo Finance data. As for Micron, its earnings estimates for the current fiscal year have increased about two times in the past 90 days and about three times for fiscal year 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 recent note. “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.”
