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Micron Gets the Headlines, But Sandisk Could Offer More Upside
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Key Takeaways
Micron expects fiscal Q3 2026 revenues of $33.5B and gross margin near 81%.
SNDK forecasts fiscal Q4 2026 revenues of $7.75B-$8.25B after strong Q3 growth.
Sandisk projects 2096.7% earnings growth this year, exceeding Micron's 626.5%.
Banking on the artificial intelligence (AI) boom, Sanjay Mehrotra-led Micron Technology (MU - Free Report) has delivered returns that have surpassed those of industry behemoths such as NVIDIA Corporation (NVDA - Free Report) over the past year. The company recently entered the trillion-dollar market-cap league and evolved from a cyclical chipmaker to a critical supplier powering the AI infrastructure ecosystem.
Micron maintains a robust long-term growth outlook, fueled by the relentless demand for its state-of-the-art high-bandwidth memory (“HBM”) chips as hyperscalers ramp up their investment in AI infrastructure. The persistent supply constraints and the resulting demand-supply gap in HBM chips provideMicron with considerable pricing power, reinforcing a strong long-term growth trajectory.
Supply constraints in Micron’s NAND flash chips are also expected to persist through the middle of next year, providing a further boost to growth. Micron expects revenues of $33.5 billion for the fiscal third quarter of 2026, up from $23.86 billion reported in the fiscal second quarter, according to investors.micron.com. The company’s projection of around 81% in gross margin for the fiscal third quarter reflects strong financial momentum.
However, even though Micron is grabbing all the limelight, another AI memory stock, Sandisk Corporation (SNDK - Free Report) , has outperformed it over the past year, delivering returns of 4625.9% compared with Micron’s 835.3%. Sandisk appears well-positioned to continue delivering stronger returns in the near term. Let’s see why –
Image Source: Zacks Investment Research
Sandisk Builds Growth Momentum on AI Data Center Demand
For the fiscal fourth quarter of 2026, Sandisk expects revenues of $7.75 billion to $8.25 billion, up from $5.95 billion reported in the fiscal third quarter, which was up 97% quarter over quarter and above its own guidance, according to investor.sandisk.com.
Sandisk expects solid top-line growth driven by its strategic emphasis on high-value customers in the rapidly expanding data center market. Strong demand for the company’s memory products used in AI-powered data centers, along with tight supply conditions, is enhancing Sandisk’s pricing power and bolstering its growth prospects.
After reporting a non-GAAP earnings per share (EPS) of $23.41 in the fiscal third quarter of 2026, Sandisk is now guiding for $30 to $33 in non-GAAP EPS for the fiscal fourth quarter, showcasing continued sequential growth momentum.
Additionally, Sandisk’s multi-year, high-value contracts through its New Business Model agreements have improved revenue visibility, strengthened its customer relationships, and increased the potential for sustained long-term returns. As a result, Sandisk’s expected earnings growth rate for the current year is an exceptional 2096.7%, far exceeding Micron’s expected growth of 626.5%.
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Micron Gets the Headlines, But Sandisk Could Offer More Upside
Key Takeaways
Banking on the artificial intelligence (AI) boom, Sanjay Mehrotra-led Micron Technology (MU - Free Report) has delivered returns that have surpassed those of industry behemoths such as NVIDIA Corporation (NVDA - Free Report) over the past year. The company recently entered the trillion-dollar market-cap league and evolved from a cyclical chipmaker to a critical supplier powering the AI infrastructure ecosystem.
Micron maintains a robust long-term growth outlook, fueled by the relentless demand for its state-of-the-art high-bandwidth memory (“HBM”) chips as hyperscalers ramp up their investment in AI infrastructure. The persistent supply constraints and the resulting demand-supply gap in HBM chips provideMicron with considerable pricing power, reinforcing a strong long-term growth trajectory.
Supply constraints in Micron’s NAND flash chips are also expected to persist through the middle of next year, providing a further boost to growth. Micron expects revenues of $33.5 billion for the fiscal third quarter of 2026, up from $23.86 billion reported in the fiscal second quarter, according to investors.micron.com. The company’s projection of around 81% in gross margin for the fiscal third quarter reflects strong financial momentum.
However, even though Micron is grabbing all the limelight, another AI memory stock, Sandisk Corporation (SNDK - Free Report) , has outperformed it over the past year, delivering returns of 4625.9% compared with Micron’s 835.3%. Sandisk appears well-positioned to continue delivering stronger returns in the near term. Let’s see why –
Image Source: Zacks Investment Research
Sandisk Builds Growth Momentum on AI Data Center Demand
For the fiscal fourth quarter of 2026, Sandisk expects revenues of $7.75 billion to $8.25 billion, up from $5.95 billion reported in the fiscal third quarter, which was up 97% quarter over quarter and above its own guidance, according to investor.sandisk.com.
Sandisk expects solid top-line growth driven by its strategic emphasis on high-value customers in the rapidly expanding data center market. Strong demand for the company’s memory products used in AI-powered data centers, along with tight supply conditions, is enhancing Sandisk’s pricing power and bolstering its growth prospects.
After reporting a non-GAAP earnings per share (EPS) of $23.41 in the fiscal third quarter of 2026, Sandisk is now guiding for $30 to $33 in non-GAAP EPS for the fiscal fourth quarter, showcasing continued sequential growth momentum.
Additionally, Sandisk’s multi-year, high-value contracts through its New Business Model agreements have improved revenue visibility, strengthened its customer relationships, and increased the potential for sustained long-term returns. As a result, Sandisk’s expected earnings growth rate for the current year is an exceptional 2096.7%, far exceeding Micron’s expected growth of 626.5%.
Sandisk currently has a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.