Nvidia CEO Jensen Huang said in August that artificial intelligence is generating profitable tokens, adding the company could sell more chips if greater compute capacity existed. This supply constraint directly impacts the entire AI chain, including memory and storage stocks.
Nvidia trades at 15 times fiscal 2028 earnings per share estimates of $15.70. That estimate rose from $12.71 just 90 days ago. A $350 target values Nvidia at 22 times fiscal 2028 EPS, in line with the S&P 500's typical 21-23 multiple for a company guiding to roughly 70 percent revenue growth. Nvidia posted its fifth straight beat in August, reporting EPS of $2.22 against a $2.09 consensus.
Micron Technology trades at 6 times fiscal 2027 EPS estimates of $176.69, up from $150.01 90 days ago. A $1,750 price would place Micron at 10 times fiscal 2027 EPS. The company reported Q4 EPS of $33.42, exceeding the $31.35 estimate for its eighth consecutive beat.
SanDisk trades at 8 times fiscal 2027 EPS estimates of $213.90, an increase from $193.72 90 days ago. A $2,500 price target implies a 12 times multiple, below the broader market average. SanDisk's Q4 EPS of $39.25 beat the $33.28 estimate, marking its fifth straight beat.
Consensus targets suggest 38 percent upside for Nvidia, 52 percent for Micron and 34 percent for SanDisk. Year-to-date gains—Micron up 255 percent, SanDisk up 585 percent, Nvidia up 28 percent—suggest momentum may accelerate if earnings estimates continue rising.
Headwinds exist. Memory pricing remains cyclical, and a recently approved union strike at a Micron facility in Taiwan could disrupt supply. Nvidia's outlook excludes China data center compute, removing a segment of potential demand.
But rising earnings estimates, consistent beats and persistent sold-out supply create a clear path to these targets. Current market pricing does not fully reflect sustained AI infrastructure demand.
