4 hours ago
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Jack Delaney, The Motley Fool
Thu, July 2, 2026 astatine 8:30 AM CDT 6 min read
Outside of energy and processing power, 1 of the biggest bottlenecks controlling the gait of the artificial quality infrastructure build-out is the magnitude of representation chips and information retention solutions available. Demand acold exceeds proviso close now, and that has allowed some Micron Technology (NASDAQ: MU) and Sandisk (NASDAQ: SNDK) to thrive.
Each offers antithetic solutions, but some person been and tin proceed to beryllium beneficiaries of the AI representation boom.
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The caller sell-off
Before weighing these 2 stocks against each other, it's worthy mentioning the caller volatility that AI stocks, peculiarly representation stocks, person experienced. There was nary azygous superior portion of quality that weighed connected the companies; rather, a postulation of quality items apt enactment unit connected Micron and Sandisk.
One wide interest is that higher ostentation volition persist. That imaginable is prompting immoderate investors to rotate retired of high-growth stocks up of anticipated involvement complaint hikes. For industry-specific news, SK Hynix, different representation institution that has done good this year, started selling disconnected connected the Korean Exchange, which whitethorn person sparked the fearfulness that has trickled into U.S. markets. Also, SK Hynix is readying to database connected the Nasdaq with a $29 cardinal banal sale. That provides U.S. investors funny successful the representation abstraction with a competing option, and the funds SK Hynix raises volition assistance it grow its accumulation capacity. Both of those factors whitethorn person contributed to investors' worries implicit the outlooks for Micron and Sandisk.
In addition, determination whitethorn beryllium immoderate interest owed to the cyclicality that the spot assemblage is known for, arsenic good arsenic conscionable a spot of profit-taking that's adding to the volatility. Both person besides recovered somewhat from past week's slide. As of the adjacent of trading connected June 30, Micron banal was up 303% twelvemonth to date, portion shares of Sandisk were up astir 856%.
All of that is worthy monitoring, but nary of those factors preclude either Micron oregon Sandisk from being worthy of information arsenic a semipermanent investment. Micron, for instance, believes the existent representation spot shortage volition persist beyond 2027, and it has locked successful 16 semipermanent contracts for its products. That provides it with stable, recurring revenues, which should assistance offset worries implicit the cyclicality of the representation market. Sandisk is besides locking successful deals, with 3 contracts signed successful its fiscal 2026 3rd 4th providing full contractual gross of $42 billion.
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