The key question is whether this is a price spike or a cycle reset.
NAND leaders vs DRAM players in the storage supercycle
NAND-focused players (for example, SanDisk)
NAND is currently the sharper, more visible expression of the AI storage theme.
Enterprise SSD pricing power is real and near-term. Hyperscalers are prioritising capacity, endurance, and latency over cost discipline.
Supply remains structurally constrained after years of underinvestment and capacity rationalisation.
NAND is increasingly tied to AI inference, checkpointing, and fast-recovery workloads, not just bulk storage.
However, NAND cycles historically overshoot. When pricing doubles, customer behaviour eventually adjusts, even in AI-heavy environments. This makes NAND the higher-beta, higher-risk leg of the trade.
DRAM-focused players (for example, Micron Technology, SK Hynix)
DRAM offers a more durable medium-term setup.
High-bandwidth memory (HBM) demand is tightly coupled to AI accelerator shipments.
Barriers to entry are higher, and supply elasticity is lower than NAND.
Contract pricing tends to be steadier once the cycle turns, supporting earnings visibility into 2026.
The trade-off is valuation. DRAM names are already more widely recognised as AI beneficiaries, so upside is steadier rather than explosive.
Preference by horizon
Short to medium term (next 6–9 months): NAND leaders, including SanDisk, benefit most from acute pricing momentum and sentiment.
2026 structural exposure: DRAM-focused players are preferable for risk-adjusted returns and earnings durability.
Best balance: A barbell approach, using NAND for cyclical torque and DRAM for structural AI exposure.
Bottom line
If you are expressing conviction in the supercycle rather than just the spike, DRAM is the higher-quality 2026 play. If you are trading the acceleration phase of AI storage demand, NAND offers more upside but with sharper drawdown risk once pricing momentum peaks.
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