Micron (MU) and SanDisk (SNDK) Stocks Flash "Overbought" Signals Amid Strong AI Demand

Micron Technology (MU) and SanDisk (SNDK) stocks are exhibiting significant "overbought" signals on technical charts, raising concerns about their rapid ascent despite robust demand fueled by artificial intelligence (AI). Both companies have seen their shares surge dramatically in 2026, driven by the ongoing AI infrastructure buildout. Micron's stock has climbed 223.62% year-to-date and 751.77% over the past year, pushing its 14-month Relative Strength Index (RSI) to 90.98, its highest since September 1995. SanDisk's shares have soared 623.57% year-to-date and 4,404.75% over 12 months, with its 14-month RSI reaching 98.96, indicating an extremely overbought condition. An RSI above 70 typically suggests a stock may be overvalued. However, analysts suggest AI-driven demand for high-bandwidth memory (HBM) and storage is fundamentally altering the memory sector's cyclical nature. Both Micron and SanDisk have sold out their 2026 capacity through long-term contracts. Micron is set to release its third-quarter earnings on June 24, 2026, with investors watching for further insights into AI memory demand.