Memory chip makers Micron and SanDisk are delivering outsized earnings growth as artificial intelligence deployment drives massive data center spending. The global memory market is projected to reach $476 billion（約76兆円） by 2030, and a current shortage has allowed both companies to raise prices sharply. Wall Street analysts have boosted price targets for both stocks substantially, though investors should remain alert to the traditionally cyclical nature of memory demand.
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Micron's fiscal 2026 third-quarter sales jumped 345% to nearly $41.5 billion（約6.6兆円）, with non-GAAP earnings soaring over 1,300% year over year to $24.67 per share. SanDisk's sales increased 97% year over year to $5.9 billion（約9400億円） in the same quarter, with non-GAAP earnings spiking 278% to $23.41 per share. Both companies are benefiting from surging demand for memory chips as tech companies build AI data center capacity.
Why it matters
The memory market is expected to reach $476 billion（約76兆円） by 2030 as AI deployment drives massive data center spending. A memory shortage has allowed both Micron and SanDisk to raise prices sharply, expanding profit margins significantly. Micron's data center segment alone now has an annual revenue run rate of $100 billion（約16兆円）, highlighting the scale of this opportunity for memory suppliers.
What to watch
Analysts have raised price targets substantially—three analysts boosted Micron's target to $1,500 or more (51% upside from current price), while Bernstein set SanDisk's at $3,000 and Cantor Fitzgerald at $2,900 (at least 56% upside). However, memory stocks are traditionally cyclical; investors should monitor for any slowdown in AI spending, memory contracts, or data center expansion, though such a pullback is not expected in the near term.
The sharp earnings growth at Micron and SanDisk reflects a structural shift in how capital is allocated across the technology sector. With hyperscalers committing $750 billion（約120兆円） to data center expansion this year alone, and several explicitly stating they will increase spending further next year, memory has become a critical chokepoint in AI infrastructure deployment. The current undersupply of memory chips—evidenced by both companies' ability to raise prices substantially—has created an unusual window of margin expansion, with Micron's data center segment reaching a $100 billion（約16兆円） annual revenue run rate.
However, the article flags an important caveat: memory markets are historically cyclical, and the assumption that "this time is different" because of AI has proven false in past cycles. Analyst price targets, while bullish (51% upside for Micron, 56% minimum for SanDisk), implicitly embed a belief that the current spending surge will sustain. The real risk to these valuations lies not in near-term demand—which appears robust through at least 2025—but in the longer-term question of whether data center capital intensity will plateau or whether memory supply will catch up fast enough to erode pricing power. For now, the tailwind from AI-driven hyperscaler spending appears genuine, but the cyclical history of memory markets makes this a story worth monitoring closely.
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