Two Semiconductor Giants That Are Poised to Skyrocket in 2026

The Market Setup: Why These Stocks That Are Going to Skyrocket Have Room to Run

The broader equities market is firing on all cylinders. Since October 2022, the S&P 500 has surged approximately 93%, and major Wall Street institutions are betting the momentum won’t stop in 2026. Deutsche Bank projects the index climbing to 8,000 points—a 14% gain from current levels—while Wells Fargo and Morgan Stanley also forecast continued strength. This tailwind creates an ideal environment for well-positioned growth companies to accelerate higher.

Within this bullish backdrop, semiconductor stocks stand out as particularly promising. Two names in particular—Micron Technology (NASDAQ: MU) and SanDisk (NASDAQ: SNDK)—are among the stocks that are going to skyrocket thanks to structural tailwinds in memory chip demand driven by the artificial intelligence revolution.

Micron Technology: The Memory Play That’s Just Getting Started

Micron Technology has already delivered stunning returns, climbing 220% over the past year. Yet despite this phenomenal surge, the stock remains remarkably cheap. Trading at a forward earnings multiple of just 11x and a price-to-sales ratio of 9x, Micron offers tremendous upside potential relative to its earnings expansion prospects.

The catalyst is straightforward: demand for high-bandwidth memory (HBM) chips used in AI accelerators has exploded. These specialized chips power GPU and ASIC infrastructure that underpins modern AI systems. Micron has been completely sold out of its HBM capacity for the past three years, a dynamic that management expects to continue well into 2026.

During the company’s December 2025 earnings call, CEO Sanjay Mehrotra confirmed that “our HBM for 2026 is sold out in terms of volume,” with pricing negotiations already locked in. More importantly, HBM chips command superior profit margins compared to standard memory used in smartphones and PCs. With the global HBM market projected to expand at a 30% compound annual growth rate through 2030, Micron’s earnings are positioned to accelerate substantially.

Analyst consensus has already begun reflecting this growth trajectory, with significant upward revisions to earnings estimates in recent weeks. If Micron eventually trades closer to the Nasdaq-100’s 32x earnings multiple—a reasonable benchmark for leading tech companies—the stock’s current valuation suggests dramatic appreciation potential ahead.

SanDisk: The Flash Storage Winner in an AI Data Center Boom

SanDisk, spun off from Western Digital just over a year ago, represents an even more explosive opportunity. Since its February 2025 debut as an independent company, shares have rocketed 871%—and the fundamental case for further gains remains compelling.

SanDisk manufactures flash memory storage products deployed across PCs, smartphones, data centers, automotive systems, industrial applications, and IoT devices. The real story, however, centers on enterprise data centers. The proliferation of generative AI has triggered an explosion in solid-state drive (SSD) demand, as companies build infrastructure for AI training and inference workloads.

McKinsey research suggests enterprise SSD usage could surge from just 181 exabytes in 2024 to 1,078 exabytes by 2030—driven almost entirely by AI applications. This is creating acute supply constraints. Market research firm TrendForce documented contract prices for flash memory climbing 20% to 60% in November 2025 alone, a trend likely to persist given the exponential demand trajectory.

SanDisk reported a 23% year-over-year revenue increase to $2.3 billion in its first quarter of fiscal 2026. More significantly, the company is currently engaging with five hyperscale customers for data center storage products. As these tech giants accelerate AI buildouts, SanDisk is positioned to capture a meaningful share of their procurement.

Wall Street consensus expects earnings to explode 343% this fiscal year to $13.25 per share, with substantial additional growth projected for the following year. At just 26x forward earnings, SanDisk trades at a genuine discount relative to its growth potential. Combined with accelerating demand, attractive valuation, and positive market momentum, these are the stocks that are going to skyrocket as the AI data center cycle intensifies.

The Bottom Line: Riding the AI Semiconductor Wave

Both Micron Technology and SanDisk demonstrate the hallmarks of stocks that are going to skyrocket: massive secular tailwinds from AI infrastructure investment, constrained supply creating pricing power, earnings growth far outpacing valuation multiples, and management visibility extending well into 2026. For investors seeking exposure to the semiconductor industry’s most profitable segments, these two names merit serious consideration before the market fully reprices their earnings potential.