Considered from one angle, Micron (NASDAQ: MU) and Sandisk (NASDAQ: SNDK) shares appear to be opponents, each making NAND flash memory and battling for market share there, whilst Sandisk makes inroads into Micron’s high-bandwidth reminiscence (HBM) DRAM market by providing its personal “high-bandwidth flash” in its place.
However that is only one angle.
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Considered one other manner, Micron and Sandisk shares appear joined on the hip, as when right now, a brand new partnership and a pair of worth goal hikes for Micron inventory instantly despatched Sandisk top off 4.7% via 11:50 a.m. ET.
Micron’s excellent news
This morning, Micron introduced a “strategic” deal to provide laptop reminiscence to Anthropiccollaborating with the AI chief on reminiscence and storage AI structure design, and even investing in Anthropic immediately.
Might Sandisk discover a strategic accomplice of its personal to match Micron’s transfer? Maybe. Within the meantime, Sandisk can no less than journey Micron’s coattails due to a pair of worth goal hikes that Micron simply obtained on Wall Avenue.
In back-to-back upgrades, first Bernstein SocGen Group analyst Mark Li practically tripled his worth goal on Micron inventory right now to $1,300 per share, citing continued excessive demand for each HBM and solid-state (NAND) drives. Then Needham analyst N. Quinn Bolton posted a worth goal even increased — $1,550 per share — based mostly on what he additionally sees as a “sturdy pricing atmosphere” for reminiscence within the synthetic intelligence markets for coaching and inference.
What this implies for Sandisk
Insatiable demand for DRAM-based HBM will trigger Micron’s income to “rise nearly vertically this 12 months,” predicts Li, and to maintain rising in 2027. Whereas that is most clearly excellent news for Micron, excessive costs will probably encourage reminiscence consumers to hunt options to DRAM.
And Sandisk will probably be proper there ready, promoting “excessive bandwidth flash” as the various.
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