The Memory Crash Has 4 Big Stocks Down 30% or More From Their Highs. I'd Buy 2 of Them. - The Motley Fool

What the report says

The Motley Fool reported that a sharp pullback has hit four memory and storage stocks — Micron Technology, Sandisk, Western Digital and Seagate Technology — even though the companies operate in different parts of the market. According to the article, Micron and Seagate were each about 35% below their 52-week highs, Western Digital about 42% lower and Sandisk about 53% lower at the time of writing.

Motley Fool contributor Daniel Sparks argued that investors should not treat the group as a single trade. He identified Micron and Seagate as the two he would buy, citing Micron’s wider exposure across DRAM, NAND flash and high-bandwidth memory used near AI accelerators, as well as Seagate’s recent results and data-center hard-drive demand. The article said Micron’s fiscal third-quarter revenue rose sharply year over year, while Seagate reported fiscal fourth-quarter revenue of $3.6 billion and adjusted earnings per share of $5.71.

The article was more cautious on Sandisk and Western Digital. Sandisk was described as a more concentrated NAND flash bet whose recent rebound depends heavily on pricing staying strong, despite multi-year supply agreements and no debt. Western Digital’s cloud hard-drive demand was portrayed as healthy, but the article noted that much of its recent net income came from a paper gain tied to its retained Sandisk stake after the companies separated in 2025.

The significance for investors is that AI data-center demand is supporting parts of the memory and storage industry, but these remain cyclical businesses. Motley Fool’s view was that Micron and Seagate offer clearer near-term earnings support, while Sandisk and Western Digital require more caution.