Key Points
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SK Hynix has already sold 50% of its memory supply for the next two years.
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Micron is a leading memory chip company, and its sales rose 380% in the third quarter.
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Sandisk is a NAND pure play, and its management says it’s already seeing customers begin to commit to orders as far out as 2030.
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Memory stocks have soared over the past several years as companies snatch up as much as they can for data centers and consumer devices. Skyrocketing demand has created a memory shortage, pushing prices higher and delivering impressive margins for memory companies.
Who’s benefiting? Three unstoppable memory stocks right now are SK Hynix (NASDAQ: SKHY), Micron Technology (NASDAQ: MU), and Sandisk (NASDAQ: SNDK). Each has carved out its niche in the memory space and could continue growing through 2027 and beyond as tech companies ramp up AI spending. Here’s how.
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SK Hynix is the memory leader you’ve never heard of
Investors who’ve been following the tech sector for a while will know SK Hynix, but don’t feel bad if you’ve never heard of the company before. The South Korea-based company just went public in the U.S. earlier this year, though it’s been publicly traded on the Korea Exchange for decades.
For the uninitiated, SK Hynix is a key player in the high bandwidth memory (HBM) and dynamic random access memory (DRAM) segments, with 50% and 25% market share, respectively. Both are important for AI data centers, and these memory chips are flying off the shelves.
SK Hynix’s sales increased 328% year over year to $78.9 billion in Q3 2026, and operating profit rose 632% to $62.3 billion (although net profit was down sequentially). The company’s management said rising demand for memory chips likely won’t slow down anytime soon, either, noting that long-term agreements already cover more than half of its 2027 and 2028 production capacity. It also said that its DRAM and HBM volumes through 2029 are effectively sold out (though some negotiations continue).
SK Hynix’s leadership believes the imbalance between memory demand and available supply will persist through 2030, creating a significant opportunity for the company and its peers.
Micron’s sales continue accelerating
Micron is another top memory stock, benefiting from its 24% market share in DRAM and 18% in HBM. In the company’s fourth quarter of 2026, revenue rose 380% to $54.2 billion, and non-GAAP (generally accepted accounting principles) earnings jumped 1,000% to $33.42 per share.
Micron COO Manish Bhatia said on the earnings call that the company doesn’t yet “have line of sight to when supply and demand balances,” adding that based on current sales of its server and device memory, it’s optimistic that increased demand will last at least through 2028.
Tech companies continue to ramp up their AI spending, which is fueling this growth. Bank of America analysts recently said they expect AI infrastructure spending to double over the next two years to more than $2 trillion.
The good news for potential Micron investors is that its shares are still relatively cheap despite its growth. Shares are trading down about 34% from their 52-week high. The company’s stock has a trailing price-to-earnings ratio of just 11 right now, which is far below the tech sector average P/E ratio of 26.
Don’t count out Sandisk
There’s yet another way to play the memory market: focus on NAND memory used in computers, smartphones, and data centers. This memory is in short supply right now, too (driving up costs), which is why you’ve seen Apple and its peers reluctantly raise prices.
Sandisk is a NAND pure play, and the company holds about 11% of the market. That’s less than Micron and SK Hynix have, but don’t count Sandisk out as an underdog. The company’s first-quarter fiscal 2027 revenue increased 378% year over year to $11.1 billion, and non-GAAP earnings per share (EPS) increased 40-fold from the year-ago quarter to $49.51.
Management is highly optimistic about the company benefiting from prolonged memory demand as well, with CEO David Goeckeler saying on the earnings call that the “structural increase in NAND demand, driven particularly by AI and by customer signals, now extending beyond fiscal year 2030.”
For investors looking for memory stocks to own in 2027 and beyond, it’s hard to beat SK Hynix, Micron, and Sandisk. And with these companies all expecting continued demand for memory over the next several years, picking up some shares now could be a smart move.
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Bank of America is an advertising partner of Motley Fool Money. Chris Neiger has positions in Apple. The Motley Fool has positions in and recommends Apple and Micron Technology. The Motley Fool has a disclosure policy.
