Memory chip makers Micron (MU) and SanDisk (SNDK) have been among the biggest winners of the AI rally, driven by booming demand for DRAM, NAND flash, and AI-related storage solutions. Both stocks continue to carry Strong Buy ratings on Wall Street. However, after their massive rallies, analyst targets now suggest that SanDisk may still have room to climb, while Micron appears to be trading above consensus expectations. Using TipRanks’ Stock Comparison tool, we take a closer look at which AI memory stock currently offers the better risk-reward setup.
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Is Micron Stock a Buy Now?
Micron stock has gained nearly 127% year-to-date and more than 659% over the past year, driven by the robust demand for memory solutions, mainly high-bandwidth memory (HBM), amid the ongoing AI boom. Moreover, the company is benefiting from high memory pricing due to tight industry supply.
Wall Street remains highly bullish on the company’s long-term outlook, especially as AI servers require significantly more memory capacity. Recently, top Mizuho analyst Vijay Rakesh raised his Micron price target to $740 from $545, citing strong growth across DRAM and NAND markets along with rising HBM demand. The analyst expects Micron’s Fiscal 2027 revenue and earnings to grow 66% and 80%, respectively, driven by continued AI-related memory demand. He also projects the HBM market to surpass $100 billion by 2028 as AI adoption continues to accelerate.
However, despite the bullish sentiment, Micron’s stock has climbed far above the broader Wall Street consensus target. According to TipRanks data, the average analyst price target for Micron stands at $581.89, implying roughly 10% downside from current levels. That suggests the stock’s recent rally may have outpaced analyst expectations for now.
Is SNDK Stock a Buy, Sell, or Hold?
SanDisk has seen an even stronger rally, with shares soaring more than 464% year-to-date and over 3,555% during the past year.
The company has benefited from growing enterprise SSD demand tied to AI data centers and improving NAND pricing trends. Like Micron, SanDisk also received bullish analyst commentary recently, with Mizuho’s Vijay Rakesh raising his price target on the stock to $1,625 from $1,220, implying 15% upside from current levels. The analyst said growing AI-driven NAND demand and improving pricing trends should continue supporting strong margins and earnings growth over the next few years.
Unlike Micron, however, SanDisk’s current share price remains much closer to the average Wall Street target. The average analyst price target for SanDisk stands at $1,409.06, implying 5% upside from current levels.
Conclusion
Based on current analyst targets, SanDisk appears to offer the better near-term setup compared to Micron.
While both companies remain major beneficiaries of the AI boom and still carry Strong Buy ratings, Micron is trading above its average Wall Street price target and currently implies downside risk based on consensus estimates. Meanwhile, SanDisk still offers some upside from current levels, suggesting Wall Street believes the stock’s rally is more in line with analyst expectations.
For long-term investors, both stocks remain important players in the growing AI memory and storage market.