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Why Micron and Sandisk stocks look risky right now
Super-hot memory chip plays Micron (MU) and Sandisk (SNDK) could finally be poised for pullbacks.
The technicals on each tell that story, BTIG chief market technician Jonathan Krinsky told Yahoo Finance.
With Micron, the spread between its current stock price and its 200-day moving average exceeds 100% — wider than anything seen during the dot-com bubble, Krinsky said. It's worse for Sandisk: Its spread compared to the 200-day moving average is a whopping 400%.
"We continue to think the memory group of semis is one of the most vulnerable areas of the market for downside reversion given how extreme the move has been," Krinsky explained.
Can Sandisk Catch Micron?
Sandisk (SNDK 1.24%) spun off from Western Digital and returned to the stock market as an independent company back in early 2025. The pure-play flash memory company had a spectacular year, finishing as the top performer in the S&P 500, rising 559%. Rival Micron Technology (MU 3.03%) also surged, as demand for artificial intelligence (AI) memory continued to accelerate.
Micron is one of the three most powerful memory companies in the world, with approximately a quarter of the market share in both dynamic random access memory (DRAM) and high-bandwidth memory (HBM). Sandisk has a long way to go before it catches Micron in both market share and market capitalization, but the company has real momentum.
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Analyst Warns of Potential Pullbacks for Micron and Sandisk Stocks
Market analysts are warning of a potential downward reversal for memory chip manufacturers Micron and Sandisk in 2026, as reported by Detik Finance. Both companies have seen their stock valuations surge well beyond historical averages due to the ongoing artificial intelligence infrastructure boom.
Technical data indicates that the spread between Micron's current price and its 200-day moving average has exceeded 100 percent, a gap wider than those recorded during the dot-com bubble. Sandisk faces an even more extreme technical disparity, with its price-to-moving-average spread reaching 400 percent.
"We continue to think the memory group of semis is one of the most vulnerable areas of the market for downside reversion given how extreme the move has been," explained Jonathan Krinsky, BTIG chief market technician.
For more detailed information, explore updates concerning Why Micron and.
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