Sandisk, Micron, and Intel led the S&P 500 in the first half of 2026, with Sandisk up about 860% by June 30. A memory chip shortage tied to AI data center spending drove the two memory makers, while Intel’s rally rests largely on future growth still to come.
Sandisk, Micron, and Intel were the three best-performing stocks in the S&P 500 over the first half of 2026, in that order. By the close of the half on June 30, Sandisk was up about 860%, Micron roughly 304%, and Intel 278%. Those six-month returns are already locked in, so the question for investors now is which of the three can keep running through the rest of the year.
Why the three stocks soared
Both Micron and Sandisk operate in the memory chip market, where a shortage has pushed prices higher and lifted revenue and profits at both companies. The cause is the artificial intelligence data center build-out, which several projections point to slowing around 2030. Micron recently reported earnings and told investors it expects the memory chip market to stay “tight” beyond 2027.
Intel plays in the same AI build-out, but to a far smaller degree than Micron and Sandisk. The company fell behind rivals in the chip foundry business, and that side has struggled. But after investments from the U.S. government and others, Intel may have turned a corner: President Donald Trump announced that Apple had reached a deal to use Intel as a second chip supplier, a potentially large customer win.
Valuation splits the trio
Judged on forward price-to-earnings, the picture diverges. Intel looks expensive; even on 2027 projections, it trades at 90 times forward earnings, meaning much of its expected growth is already priced in. Micron and Sandisk, by contrast, trade below the S&P 500 itself, at about 21.5 times forward earnings.
That discount reflects worry about the cyclical nature of memory chips, an industry prone to booms and busts. Yet with tight supply likely to last at least another year and a half, both memory names could push higher. Between the two, the author leans toward Micron, citing Wall Street estimates of more than 200% growth for its current fiscal year, while still calling Sandisk a smart buy.
Source: The Motley Fool
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