Wall Street Likes SanDisk More Than Micron. Should You?

Micron Technology's (NASDAQ: MU) shares person soared much than 330% implicit the past 12 months. However, that summation pales successful examination to SanDisk's (NASDAQ: SNDK) sizzling 12x return. It's not astonishing that Wall Street likes SanDisk much than Micron. Should you?

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At archetypal glance, you mightiness deliberation that Wall Street really prefers Micron implicit SanDisk. An investigation of analysts' banal recommendations suggests that's the case.

S&P Global (NYSE: SPGI) surveyed 20 analysts this period who screen SanDisk. Fourteen of them (70%) rated SanDisk a "buy" oregon "strong buy," portion the remaining six recommended holding the stock. However, 37 of the 43 analysts surveyed by S&P Global (86%) who screen Micron rated it arsenic a "buy" oregon better.

Is my connection that Wall Street likes SanDisk much than Micron wrong? I don't deliberation so. Analysts' 12-month terms targets are a amended indicator of their sentiment than their ratings, successful my opinion.

The statement Wall Street 12-month terms people for SanDisk reflects a imaginable upside of 19%. What's the statement presumption for Micron? The mean expert terms people for the banal is somewhat beneath the existent stock price. I deliberation that's a wide motion that Wall Street favors SanDisk implicit Micron.

While some Micron and SanDisk are semiconductor stocks targeting representation chips, their businesses are rather different. Micron's products see dynamic random-access representation (DRAM), NAND flash memory, and high-bandwidth representation (HBM). SanDisk lone focuses connected NAND memory.

Both companies are delivering robust growth. Micron's gross jumped astir 57% twelvemonth implicit twelvemonth successful its latest quarter. SanDisk's gross accrued by 31%.

Micron and SanDisk are besides enjoying akin pricing powerfulness owed to important proviso request imbalances for their respective products. Micron wholly sold retired its HBM proviso for 2026. CEO Sanjay Mehrotra noted a "tight proviso environment" that volition "persist beyond calendar 2026" during the company's first-quarter net call. That echoes SanDisk CEO David Goeckeler's connection successful his company's caller quarterly telephone that SanDisk foresees "customer request good supra proviso beyond calendar twelvemonth 2026."