AI Memory Stocks Micron and Sandisk Are Up 200% in the Last 3 Months. History Says This Will Happen Next.
Yahoo Finance ·
Memory chipmakers Micron Technology ( MU +0.90% ) and Sandisk ( SNDK 1.93% ) have been big winners from the artificial intelligence infrastructure boom. In the last three months alone, Micron shares have added 203%, and Sandisk shares have added 217%. Today, most Wall Street analysts think Micron remains undervalued, but the consensus says Sandisk is too expensive. The target prices below come from The Wall Street Journal . Micron's median target price of $1,585 per share implies 46% upside from the current share price of $1,085. Sandisk's median target price of $1,750 per share implies 12% downside from its current share price of $1,980 per share. Unfortunately, history offers a much less optimistic perspective. Memory chipmakers have traditionally been prone to boom-and-bust cycles. Assuming the trend is still intact, we are moving toward the next collapse, and it could drag shares of Micron and Sandisk much lower. Here are the important details. Central processing units (CPUs) and graphics processing units (GPUs) are essential parts of the artificial intelligence hardware stack. CPUs are the brains that run applications, and GPUs speed up complex tasks by offloading repetitive mathematical calculations. Both types of chips require memory.
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