Jim Cramer is doubling down on memory chip stocks. He said Micron, SanDisk, Seagate and Western Digital all have room to climb despite being among 2026's biggest gainers, arguing that an AI-driven shortage makes this rally different. The call comes three weeks after he compared the AI trade to the dot-com bust.
The shortage argument
Cramer sees a fundamental shift. AI data centers have created a persistent memory chip shortage, and Elon Musk has called memory the key bottleneck to data center growth. That's not a typical cycle, Cramer argues. Multiyear supply agreements underpin the margins at these companies. BeInCrypto previously reported customer agreements worth $93.9 billion across eight clients, including three US hyperscale data center operators, and Evercore ISI cited those deals as the basis for a bullish SanDisk rating.
Micron's pullback buy
Cramer's Charitable Trust bought Micron last week during a pullback tied to a selloff in South Korean peers. Micron stock has gained 242% this year, and gross margin jumped from 39% to 85% year over year. Shares trade near seven times fiscal 2027 earnings estimates. Cramer said Micron could double again if data center demand holds. He also plans to visit the company's Idaho research facility to interview CEO Sanjay Mehrotra.
The buyback gap
SanDisk has climbed 631% in 2026, authorized a $15.5 billion buyback, and posted an 85% gross margin, up from 26% a year earlier. Seagate is up 252%, authorized a $5 billion buyback, and hit a record 52% gross margin, up from 37%. Western Digital gained 202%, approved a $4 billion buyback, and lifted gross margin to 54% from 41%. Only Micron has skipped a buyback so far — a gap Cramer called curious given the other three's payouts. SanDisk trades near eight times fiscal 2027 earnings, Seagate around 17 times fiscal 2028, and Western Digital near 16 times fiscal 2028.
The Samsung risk
Cramer said the biggest risk is Samsung ramping new capacity to flood the market. He doesn't expect that to happen soon, though, since new fabs take years to build. That gives the current suppliers room to keep pricing power. For now, Cramer is betting the shortage outlasts the skepticism.
