Micron (MU) and SanDisk (SNDK) moved higher Tuesday as investors bought the dip after a sharp sell-off. SanDisk closed about 11% higher, while Micron ended the session around 5% higher. Both stocks also gained roughly 2% in after-hours trading on Tuesday after Bernstein said the recent sell-off has created “attractive entry points” across memory storage stocks. The firm noted that Alphabet’s (GOOGL) TurboQuant is unlikely to hurt HDD demand and may have only a limited impact on NAND.
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Trade SNDK with leverageBoth names had fallen as much as 25% over the past two weeks, hit by market weakness and fears around Alphabet’s new compression method, TurboQuant. However, sentiment improved after reports from several big firms suggested the pullback may be overdone.
Analysts See Buying Opportunity after the Drop
Analysts believe the sell-off has created a “buying opportunity,” as demand for AI memory remains strong.
At Morgan Stanley, five-star analyst Joseph Moore maintained a Buy (Overweight) rating on both stocks. He set a $520 price target for Micron and $690 for SanDisk. Moore noted that memory has become a key bottleneck in AI growth, meaning demand is still higher than supply. He added that the recent decline reflects market concerns but does not change the long-term outlook.
At Bank of America, 5-star analyst Vivek Arya also reiterated a Buy rating. He set a $450 price target for Micron and a $900 target for SanDisk. Arya said the recent 12% to 25% pullback offers a good entry point. He also highlighted strong demand from large cloud companies, which continues to support growth in storage and memory.
Meanwhile, Fox Advisors also defended both stocks. The firm said Micron’s roughly 10% drop and SanDisk’s 7% decline highlight a buying opportunity in the coming weeks.
Which Memory Chip Stock Is the Better Buy, According to Analysts?
Using TipRanks’ Stocks Comparison tool, we compared major memory chip stocks. Among these stocks, MU stock offers the highest upside of 66.7% at a price target of $536.55 with a Strong Buy rating. On the other hand, SNDK offers a modest upside of 22.3%.
