Key Points
Micron Technology (NASDAQ: MU) and Sandisk (NASDAQ: SNDK) have seen significant gains of 210% and 503%, respectively, in 2023 due to the rise of artificial intelligence (AI) driving demand for high-speed memory and storage solutions. Both companies specialize in DRAM, NAND flash, and high-bandwidth memory, and they are currently leading the market in these segments, gaining traction in the Nasdaq-100.
However, concerns are growing as Apple (NASDAQ: AAPL) explores memory compression technologies in collaboration with PrismML, aiming to reduce on-device memory needs, potentially impacting memory demand for companies like Micron and Sandisk. In April, Alphabet’s TurboQuant announcement triggered a sell-off in Micron and Sandisk stocks, but both firms have since rebounded as AI adoption continues to surge.
Investors are advised to keep an eye on potential selling pressure following Apple’s earnings report on July 30, especially regarding any updates on their AI capabilities. Despite these fluctuations, the fundamental demand for high-bandwidth memory in AI infrastructure remains strong.
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