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Micron's Robust Q3 Results Raise Investor Attention on These 3 Stocks
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Key Takeaways
MU's Q3 results underscored strong AI memory demand and ongoing supply constraints through 2028.
SNDK is benefiting from AI-driven NAND demand, premium pricing and its extended Kioxia joint venture.
WDC and STX are seeing AI-led storage demand support growth, products and earnings estimates.
On June 24, Micron Technology Inc. (MU - Free Report) posted blockbuster third-quarter fiscal 2026 results, crushing all estimates. Micron has been benefiting tremendously from the enormous application of artificial intelligence (AI) in day-to-day life, which has pushed up the demand for memory chips. Moreover, the ongoing supply crunch of AI-enabled memory and storage chips has pushed the prices of these products to sky-high levels.
An overwhelming section of industry researchers expressed concerns that this problem is likely to persist till 2028, forcing giant AI semiconductor manufacturers to enter into a long-term contract with AI-enabled memory and storage chip developers.
Micron’s marvelous third-quarter 2026 earnings results were a demonstration of these facts. Aside from Micron, three other stocks from this space have caught the attention of market participants, supported by their innovative products.
The chart below shows the price performance of these four stocks year to date.
Image Source: Zacks Investment Research
Sandisk Corp.
Sandisk — a leading flash and advanced memory technology innovator — is set to maintain its astonishing momentum. SNDK has benefited from the structural shift toward AI computing, which requires significantly more NAND flash storage per deployment compared with traditional workloads.
AI training models and inference applications generate massive data volumes that demand high-performance enterprise solid-state drives, while edge devices need greater storage capacity to support on-device AI features.
This creates a favorable demand environment where SNDK can command premium pricing for its advanced technology products while maintaining disciplined supply allocation. SNDK’s BiCS8 quad-level cell storage product continues to advance through qualification with two major hyperscalers. The extended joint venture agreement with Kioxia Corporation through December 2034 positions Sandisk favorably in the AI memory and storage space.
Strong Revenue and Earnings Estimate Revisions
Sandisk has an expected revenue and earnings growth rate of more than 100% each for the next year (ending June 2027). The Zacks Consensus Estimate for next year’s earnings has improved 3.2% over the past 30 days.
Image Source: Zacks Investment Research
Image Source: Zacks Investment Research
Western Digital Corp.
Western Digital has been witnessing strong execution amid intensified cloud and AI demand. WDC saw strong data center demand and increased adoption of high-capacity hard disk drives (HDDs). This reflects its ability to scale reliable, high-capacity storage solutions to meet the needs of the AI-driven data economy.
As AI and cloud adoption accelerate, demand for higher-density storage continues to rise. WDC is meeting this demand through close collaboration with hyperscalers, delivering reliable, high-capacity drives at scale with strong performance and total cost of ownership.
Solid Revenue and Earnings Estimate Revisions
Western Digital has an expected revenue and earnings growth rate of 38.1% and 79.9%, respectively, for the next year (ending June 2027). The Zacks Consensus Estimate for next year’s earnings has improved 4.9% over the past 30 days.
Image Source: Zacks Investment Research
Image Source: Zacks Investment Research
Seagate Technology Holdings plc
Seagate Technology has been benefiting from AI-led storage demand, a robust technology roadmap anchored in Mozaic and HAMR and disciplined execution focused on converting demand into profitable growth and long-term value creation.
STX highlighted that the company is entering a “new era of structural growth” driven by strong AI-led demand, the rising adoption of Mozaic products and disciplined execution focused on expanding margins, cash flow and long-term value.
HDDs remain significantly more cost-effective for bulk storage—especially critical in hyperscale data centers supporting AI infrastructure. Seagate is well-positioned to capture this expanding opportunity through a technology strategy focused on increasing areal density rather than unit volumes, enabling a more capital- and manufacturing-efficient path to scale while improving cost and power efficiency per terabyte.
This supports STX’s target of mid-20% exabyte growth. Its Mozaic 4+ platform, a second-generation HAMR product, delivers up to 44TB per drive — more than 30% higher capacity than earlier versions — achieved with minimal changes to materials, while integrating advanced laser and photonics technology for precision manufacturing at scale.
Excellent Revenue and Earnings Estimate Revisions
Seagate Technology has an expected revenue and earnings growth rate of 38% and 85%, respectively, for the next year (ending June 2027). The Zacks Consensus Estimate for next year’s earnings has improved 4.6% in the past 30 days.
View the Zacks #1 Rank List
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Micron's Robust Q3 Results Raise Investor Attention on These 3 Stocks
Key Takeaways
On June 24, Micron Technology Inc. (MU - Free Report) posted blockbuster third-quarter fiscal 2026 results, crushing all estimates. Micron has been benefiting tremendously from the enormous application of artificial intelligence (AI) in day-to-day life, which has pushed up the demand for memory chips. Moreover, the ongoing supply crunch of AI-enabled memory and storage chips has pushed the prices of these products to sky-high levels.
An overwhelming section of industry researchers expressed concerns that this problem is likely to persist till 2028, forcing giant AI semiconductor manufacturers to enter into a long-term contract with AI-enabled memory and storage chip developers.
Micron’s marvelous third-quarter 2026 earnings results were a demonstration of these facts. Aside from Micron, three other stocks from this space have caught the attention of market participants, supported by their innovative products.
The companies are: Sandisk Corp. (SNDK - Free Report) , Western Digital Corp. (WDC - Free Report) and Seagate Technology Holdings plc (STX - Free Report) . Each of these four abovementioned stocks currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The chart below shows the price performance of these four stocks year to date.
Image Source: Zacks Investment Research
Sandisk Corp.
Sandisk — a leading flash and advanced memory technology innovator — is set to maintain its astonishing momentum. SNDK has benefited from the structural shift toward AI computing, which requires significantly more NAND flash storage per deployment compared with traditional workloads.
AI training models and inference applications generate massive data volumes that demand high-performance enterprise solid-state drives, while edge devices need greater storage capacity to support on-device AI features.
This creates a favorable demand environment where SNDK can command premium pricing for its advanced technology products while maintaining disciplined supply allocation. SNDK’s BiCS8 quad-level cell storage product continues to advance through qualification with two major hyperscalers. The extended joint venture agreement with Kioxia Corporation through December 2034 positions Sandisk favorably in the AI memory and storage space.
Strong Revenue and Earnings Estimate Revisions
Sandisk has an expected revenue and earnings growth rate of more than 100% each for the next year (ending June 2027). The Zacks Consensus Estimate for next year’s earnings has improved 3.2% over the past 30 days.
Image Source: Zacks Investment Research
Image Source: Zacks Investment Research
Western Digital Corp.
Western Digital has been witnessing strong execution amid intensified cloud and AI demand. WDC saw strong data center demand and increased adoption of high-capacity hard disk drives (HDDs). This reflects its ability to scale reliable, high-capacity storage solutions to meet the needs of the AI-driven data economy.
As AI and cloud adoption accelerate, demand for higher-density storage continues to rise. WDC is meeting this demand through close collaboration with hyperscalers, delivering reliable, high-capacity drives at scale with strong performance and total cost of ownership.
Solid Revenue and Earnings Estimate Revisions
Western Digital has an expected revenue and earnings growth rate of 38.1% and 79.9%, respectively, for the next year (ending June 2027). The Zacks Consensus Estimate for next year’s earnings has improved 4.9% over the past 30 days.
Image Source: Zacks Investment Research
Image Source: Zacks Investment Research
Seagate Technology Holdings plc
Seagate Technology has been benefiting from AI-led storage demand, a robust technology roadmap anchored in Mozaic and HAMR and disciplined execution focused on converting demand into profitable growth and long-term value creation.
STX highlighted that the company is entering a “new era of structural growth” driven by strong AI-led demand, the rising adoption of Mozaic products and disciplined execution focused on expanding margins, cash flow and long-term value.
HDDs remain significantly more cost-effective for bulk storage—especially critical in hyperscale data centers supporting AI infrastructure. Seagate is well-positioned to capture this expanding opportunity through a technology strategy focused on increasing areal density rather than unit volumes, enabling a more capital- and manufacturing-efficient path to scale while improving cost and power efficiency per terabyte.
This supports STX’s target of mid-20% exabyte growth. Its Mozaic 4+ platform, a second-generation HAMR product, delivers up to 44TB per drive — more than 30% higher capacity than earlier versions — achieved with minimal changes to materials, while integrating advanced laser and photonics technology for precision manufacturing at scale.
Excellent Revenue and Earnings Estimate Revisions
Seagate Technology has an expected revenue and earnings growth rate of 38% and 85%, respectively, for the next year (ending June 2027). The Zacks Consensus Estimate for next year’s earnings has improved 4.6% in the past 30 days.
Image Source: Zacks Investment Research
Image Source: Zacks Investment Research