The artificial intelligence (AI) data center boom has driven strong demand for memory. As a result, memory chip stocks, most notably Micron Technology (MU 1.97%) and Sandisk (SNDK 4.23%), have both made major moves higher, rising 770% and 4,000%, respectively, over the past year.
Which of these two top-performing tech stocks is the better buy moving forward? Interestingly, there could be a case for owning both of them, due to their unique risk/reward dynamics.
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Micron: The memory chip blue chip
Among these two high-performing memory chip stocks, Micron is arguably the name that more strongly qualifies as a blue chip tech stock.
NASDAQ: MU
Key Data Points
Yes, Micron, like other memory stocks, is subject to the boom-and-bust dynamics of the industry. However, given its diversified product line of NAND, DRAM, and SSD chips, the company could experience a soft landing in the event the AI data center boom slows down sooner than expected. Better yet, Micron Technology stock already trades as if a slowdown is just around the corner, at only 13 times forward earnings.
Sandisk: A more concentrated wager on NAND chips
While Micron is the slow and steady blue chip among this duo, Sandisk has greater risk, but greater opportunity. As the aforementioned trend has had a greater impact on Sandisk's growth, it's no wonder that the stock has posted four-figure-percentage gains, versus the three-digit gains posted by Micron over the past six months.
NASDAQ: SNDK
Key Data Points
That said, don't assume that the train has already left the station. Trading for 24 times forward earnings, Sandisk is not a cheap stock. Still, with sell-side analysts calling for sales to rise by triple digits yet again in 2027, and with forecast earnings growth of over 160%, even if it rallies in tandem with earnings growth, Sandisk stock has the potential to post another year of strong returns.
