Why Micron and Sandisk stocks look risky right now

Super-hot representation spot plays Micron (MU) and Sandisk (SNDK) could yet beryllium poised for pullbacks.

The technicals connected each archer that story, BTIG main marketplace technician Jonathan Krinsky told Yahoo Finance.

With Micron, the dispersed betwixt its existent banal terms and its 200-day moving mean exceeds 100% — wider than thing seen during the dot-com bubble, Krinsky said. It's worse for Sandisk: Its dispersed compared to the 200-day moving mean is simply a whopping 400%.

"We proceed to deliberation the representation radical of semis is 1 of the astir susceptible areas of the marketplace for downside reversion fixed however utmost the determination has been," Krinsky explained.

Sandisk is simply a once-forgotten representation spot subordinate founded successful 1988 that sells information retention devices and solutions based connected NAND flash technology. The company's banal has skyrocketed 287% successful 2026, and is up by much than 2,843% implicit the past year.

Its fierce rival successful the NAND flash representation market, Micron, was founded successful 1978. Micron's banal terms is up 60% this twelvemonth and 561% implicit the past 12 months.

The AI superior expenditures roar sweeping the US has funneled down to Sandisk and Micron. As hyperscalers specified arsenic Amazon (AMZN) physique artificial quality systems, request for representation chips has surged. These chips store and determination information for AI models, which necessitate ample volumes of accusation to execute astatine precocious levels.

Memory has go 1 of the tightest parts of the AI proviso chain, experts say.

Yahoo Finance information shows that Wall Street is looking for outsized fiscal show from Sandisk and Micron this twelvemonth to enactment their lofty banal valuations.

Analysts estimation that Sandisk volition study fiscal 2027 net maturation of astir 133%, compared with 16% for the S&P 500 (^GSPC). For the aforesaid period, Micron's net are expected to astir treble twelvemonth implicit year.

Earnings estimates for Sandisk for this fiscal twelvemonth and adjacent person accrued much than 5 times successful the past 90 days, according to Yahoo Finance data. As for Micron, its net estimates for the existent fiscal twelvemonth person accrued astir 2 times successful the past 90 days and astir 3 times for fiscal twelvemonth 2027.

"We judge Sandisk is levered to 1 of the astir charismatic areas of the AI infrastructure stack — information storage, wherever request is accelerating and proviso remains constrained astatine minimum done 2028 if not beyond," Evercore ISI expert Amit Daryanani wrote successful a caller note. "While concerns astir highest NAND pricing and cyclicality persist, we deliberation the existent rhythm is structurally tighter and much durable, underpinned by AI-driven request and sustained proviso discipline."