Banking on the artificial intelligence (AI) boom, Sanjay Mehrotra-led Micron Technology MU has delivered returns that have surpassed those of industry behemoths such as NVIDIA Corporation NVDA 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 (“HBMâ€) 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, 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 –
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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%.
