We're in a momentum market in the tech sector. Stocks that have positive momentum continue to climb, while segments of the market that are struggling, like software-as-a-service (SaaS) stocks, continue a downward spiral. As such, the smart move appears to be to buy the stocks that have momentum, and there is no hotter place in the tech sector than the memory market.
Let's look at two memory stocks to buy right now.
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Sandisk: No flash in the pan
Sandisk (SNDK 4.64%) is a maker of NAND (flash memory). The company just recently returned to the market after being spun off from Western Digital back in February 2025. Meanwhile, since the start of the new year, the stock has been on fire.
The reason for Sandisk's hot stock is simple. NAND flash is in short supply, and the artificial intelligence (AI) buildout is only increasing demand, given the need for massive, high-performance solid-state drives (SSDs) that use flash memory. However, after NAND prices crashed just a few years ago and companies redirected their resources toward DRAM (dynamic random access memory) and, in particular, high-bandwidth memory (HBM), most big memory makers have been reluctant to push NAND production.
NASDAQ: SNDK
Key Data Points
As such, this has become an ideal environment for Sandisk, which is the only pure-play publicly traded U.S. flash memory maker. The current environment is causing its revenue to soar and gross margins to expand rapidly. While the company is increasing capacity, expect the NAND market to remain tight for the foreseeable future, with pricing being the main driver of the company's growth.
Micron Technology: An HBM leader
NAND flash isn't the only memory market seeing strong price increases, with the DRAM market also seeing prices spike due to a dearth of supply. One of the best companies to play this dynamic is Micron Technology (MU 2.52%), which derives around 80% of its revenue from DRAM and the rest mostly from NAND.
NASDAQ: MU
Key Data Points
Micron is benefiting from surging demand for HBM, which is needed for graphics processing units (GPUs) and other AI chips to perform their best. The company sees HBM demand growing at a 40% annual clip over the next few years, and it is working to try to increase capacity to meet this growing demand. However, manufacturing HBM is much more complex, requiring upwards of three times the wafer capacity as regular DRAM, which is causing a DRAM industry shortage and pushing up prices.
Similar to Sandisk, Micron is seeing its revenue soar and gross margins balloon. Given the rapid growth of AI infrastructure, Micron remains extremely well positioned to keep benefiting from this current super-cycle for years to come.
