AI computing power demand triggers memory industry boom, Micron and SanDisk enter "valuation re-evaluation cycle"

BlockBeats News, April 28 — As AI infrastructure continues to expand, global memory manufacturers are becoming one of the biggest beneficiaries of this AI wave. Melius Research analyst Ben Reitzes has given Micron Technology and SanDisk a “Buy” rating for the first time, with two-year target prices of $700 and $1,350, respectively.

Analysis suggests that the explosive demand for HBM (High Bandwidth Memory) and NAND flash in AI data centers is reshaping the profitability model of the semiconductor industry. Unlike traditional SaaS software companies facing usage-based billing pressures, memory manufacturers are locking in revenue and gross margins through 3 to 5-year long-term procurement agreements, forming a new business model similar to “reverse SaaS.”

Currently, NVIDIA and Advanced Micro Devices’ GPUs are widely adopting HBM solutions, driving a continuous shift of global DRAM resources toward AI. Samsung Electronics, SK Hynix, and Micron have all shifted significant DRAM capacity to HBM production, leading to tighter general memory supply and rapid price increases.

At present, Micron’s market value has approached $600 billion; SanDisk’s stock has surged over 3,000% in the past year, with a market cap exceeding $157 billion. Analysts believe that if Agent AI and physical AI demand continue to expand, the valuation of the memory industry may still have further upside.