AI Boom Drives Micron and Sandisk Stock Surges
Micron Technology and Sandisk report massive revenue growth and stock price increases driven by surging demand for AI infrastructure memory chips.
An artificial intelligence infrastructure boom has triggered massive financial gains for memory chip suppliers. Micron Technology saw its stock price surge 460% over the past year, reporting September quarter revenue of $54 billion, a 379% increase. Sandisk experienced an even sharper rise, with its stock climbing 1,190% and July quarter revenue reaching $9 billion, up 372%.
This growth follows a sharp increase in component costs, as NAND and DRAM memory chip prices rose by 70% and 160% respectively since January 2025. The surge is tied to the critical role memory chips play alongside CPUs and GPUs in AI systems.
Despite current gains and optimistic analyst target prices, market warnings highlight the cyclical nature of the industry. Historical data from the pandemic era indicates that memory stocks often suffer sharp losses when production capacity expands and oversupply leads to price crashes. Current indicators suggest a potential downturn may be approaching, as NAND and DRAM prices have already begun to retreat from their yearly peaks.
