Sandisk and Micron remain undervalued AI plays even as Nasdaq hits all-time highs in April 2025

Sandisk, which spun off from Western Digital in early 2025, has surged 304% year-to-date and 3,142% over the past 12 months by supplying NAND flash memory chips to data centers and AI systems. The company boosted revenue 31% sequentially in its most recent quarter and net income jumped 617% sequentially, with projections for 46% sequential revenue growth in the current quarter.

Both Sandisk and Micron are benefiting from a memory shortage: demand for storage chips used in AI training and data centers has outpaced supply, pushing prices higher. Micron has already sold out its entire 2026 inventory of high-bandwidth memory (HBM) chips — the fastest memory used in AI servers — despite competing against only two other major global suppliers (Samsung and SK Hynix).

For investors worried they missed the rally: both stocks remain relatively cheap on earnings metrics despite massive gains. Sandisk trades at a forward price-to-earnings ratio of 17, while Micron trades at just 9, suggesting room for further upside as AI-driven demand for memory continues.