A historic memory business growth fueled by artificial intelligence has lifted both Sandisk and Micron Technology. Sandisk shares rose about 560 percent this year, while Micron gained more than 180 percent. Both companies recently posted quarterly results with record revenue and significant margin expansion. Consequently, this memory business growth reflects surging demand for chips that power AI models. However, the two companies sit in different corners of the memory market. Micron sells high-bandwidth memory (HBM) paired with Nvidia’s AI chips. It also sells conventional DRAM and NAND storage chips. SanDisk focuses entirely on NAND flash storage after separating from Western Digital.
Sandisk’s fiscal third quarter of 2026 demonstrated extraordinary memory business growth. Revenue rocketed to $5.95 billion, up 97 percent sequentially and 251 percent year over year. Adjusted gross margin expanded to 78.4 percent from 51.1 percent in the previous quarter. Adjusted earnings per share reached $23.41, far exceeding management’s guidance of $12 to $14. The data center end market grew 233 percent sequentially to roughly $1.5 billion. Therefore, memory business growth now makes data centers about a quarter of Sandisk’s total revenue. Management has signed five multi-year supply agreements with hyperscale customers. Those deals include over $11 billion in financial guarantees and lock in approximately $42 billion in contractual revenue.
Sandisk also carries no debt and ended the quarter with $3.7 billion in cash. The company authorized its first stand-alone share buyback, a $6 billion program. Fiscal fourth-quarter guidance calls for adjusted earnings per share of $30 to $33. Meanwhile, Micron’s fiscal second quarter of 2026 also showed strong memory business growth. Revenue jumped 75 percent sequentially and 196 percent year over year to $23.86 billion. Adjusted earnings per share came in at $12.20. DRAM accounted for roughly 79 percent of revenue, fueled by HBM demand for Nvidia’s Blackwell platform. Management has committed all of its calendar 2026 HBM supply.
Micron faces more capital-intensive demands than Sandisk. The company now expects fiscal 2026 capital expenditures to exceed $25 billion, up from a prior $20 billion plan. Construction-related spending alone could rise by more than $10 billion in fiscal 2027. New fabrication plants are ramping up in the United States and Asia. This heavy spending locks Micron into a higher fixed-cost base. Nevertheless, both companies benefit from the same AI tailwinds. Sandisk’s leverage to AI inference workloads may prove more durable than peak HBM pricing. The memory market has historically been highly cyclical. Therefore, investors should recognize that supply could eventually catch up with demand. For now, the memory business growth continues to drive exceptional financial performance for both companies.
