Micron Technology and SanDisk have both recorded stunning gains over the past year, driven largely by favorable conditions in the memory market, where demand is significantly outpacing supply. Brokers from Vaulltier dive into this topic, noting that Micron stock has jumped 728% over that stretch, while SanDisk’s gains have been even more phenomenal, surging over 3,200%.

Both stocks have pulled back sharply in recent weeks, though. Micron is down 24% over the past month, while SanDisk has taken an even bigger hit, sliding 38% from its highs.

A Supply Crunch With No End in Sight

Both companies’ explosive earnings and revenue growth stem primarily from AI-fueled demand for memory chips in data centers. Morgan Stanley notes that memory chip prices have jumped 6x over the past year as demand has significantly exceeded available supply.

That imbalance doesn’t appear to be easing anytime soon, either. Memory manufacturer SK Hynix corroborated these concerns earlier this month, pointing out that memory demand is expected to outstrip supply beyond 2030, suggesting the current pricing environment has real staying power.

Micron’s Order Book Is Exploding

Micron Technology revealed a dramatic surge in long-term demand visibility during its June earnings call, underscoring just how tight the memory market has become. The company reported signing 16 strategic customer agreements, a move that significantly expanded its remaining performance obligations (RPO), a key indicator of contracted future revenue.

The scale of that increase is striking. Micron’s RPO stood at just $5 billion at the end of fiscal Q3 in May, but soared to $100 billion by the end of June, representing a massive jump in secured future business within a single month. This kind of expansion highlights how aggressively customers are moving to lock in supply amid ongoing shortages, particularly as AI-driven demand continues to accelerate.

The momentum likely hasn’t stopped there. With additional agreements announced with automotive customers, the RPO figure has likely continued climbing, reinforcing the idea that long-term supply constraints remain firmly in place. Altogether, this surge points to exceptionally strong forward demand, giving Micron enhanced revenue visibility and a clearer path to sustained growth in the years ahead.

SanDisk’s New Business Model Is Paying Off

SanDisk is also leaning into long-term supply agreements, reflecting a broader strategic shift toward greater revenue visibility and stability. In just the first four months of the year, the company signed five multi-year deals, signalling strong and sustained demand across its customer base.

Notably, three of those agreements alone carry a combined minimum revenue commitment of $42 billion, an amount that dwarfs the company’s historical annual revenue levels. While the financial details of the remaining two agreements weren’t disclosed, they likely add further upside to already substantial contracted demand.

This shift could have a transformational impact on SanDisk’s growth trajectory. The company generated $13.2 billion in revenue over the past year, and based on forward expectations tied to these agreements, that figure is projected to climb sharply toward $19.8 billion on a forward basis. The scale of these commitments suggests multi-year growth is increasingly locked in, rather than dependent on short-term market fluctuations.

Taken together, these deals position SanDisk to benefit from more predictable revenue streams, stronger customer relationships, and enhanced long-term growth visibility, particularly as demand for memory continues to rise alongside AI and data infrastructure expansion.

Both Stocks Still Look Like Bargains

Despite their enormous rallies, both companies currently trade at attractive forward earnings multiples relative to the broader market. For comparison, the S&P 500 carries a forward price-to-earnings multiple of 21.5, while both Micron and SanDisk trade below that level despite their considerably faster growth rates.

That combination of value-like valuations and red-hot growth potential is relatively rare, particularly for companies riding one of the strongest structural demand cycles in the semiconductor industry.

The Verdict for Memory Investors

Given the durability of the current supply crunch and the long-term contracts both companies are securing with major customers, strong revenue growth is likely to continue flowing through to earnings. 

That operating leverage is key, as it suggests top-line expansion should increasingly translate into bottom-line gains, particularly in a tight supply environment where pricing power remains favourable. Reflecting this backdrop, analysts are projecting meaningful long-term earnings upside for both Micron Technology and SanDisk.

Importantly, investors don’t necessarily need to choose between them. Both companies are well positioned to benefit from the same structural tailwinds, namely rising demand for memory driven by AI workloads and data centre expansion. As these trends continue to play out, each has the potential to deliver substantial long-term upside.

In that context, owning one or both stocks can be a reasonable strategy for investors seeking exposure to the ongoing AI-driven memory boom. The combination of favourable industry dynamics, constrained supply, and accelerating demand creates a supportive environment for sustained growth across the sector.