AI Memory Stocks Micron and Sandisk Are Up 200% in the Last 3 Months. History Says This Will Happen Next.
Historically, memory chip stocks like Micron and Sandisk have crashed following periods of peak demand.
Overview
Memory chipmakers Micron Technology (NASDAQ: MU) and Sandisk (NASDAQ: SNDK) have been big winners from the artificial intelligence infrastructure boom. In the last three months alone, Micron shares have added 203%, and Sandisk shares have added 217%.
Today, most Wall Street analysts think Micron remains undervalued, but the consensus says Sandisk is too expensive. The target prices below come from The Wall Street Journal.
Details
Unfortunately, history offers a much less optimistic perspective. Memory chipmakers have traditionally been prone to boom-and-bust cycles. Assuming the trend is still intact, we are moving toward the next collapse, and it could drag shares of Micron and Sandisk much lower. Here are the important details.
Source
Originally published at www.fool.com.