Micron and SanDisk stocks now have P/E ratios of 4. Is this a golden buying opportunity?

Memory stocks Micron (NASDAQ: MU) and SanDisk (NASDAQ: SNDK) look incredibly cheap at the moment. Currently, both have forward-looking price-to-earnings (P/E) ratios of just four.

Is this a golden buying opportunity? Or are the low P/E ratios telling us that these stocks have some fundamental problems?

Huge gains in the first half of 2026…

Earlier in the year, these two names were unstoppable. As it became clear that generative AI was going to increase demand for memory, these stocks surged. After starting the year at $285, Micron hit $1,255 in late June. As for SanDisk, it hit $2,355 in June after beginning the year at $237.

… then the trend reversed

It’s been a very different story in recent months however. Since late June, both stocks have tanked, with Micron falling to $733 and SanDisk hitting $887.

It seems investors have lost conviction in the memory story. That said, they haven’t given up on the theme completely as both names are still well up for the year.

Bargains today?

So are we looking at two tech sector bargains today? That’s hard to know, to be honest. On one hand, these companies are still seeing prolific growth due to the insatiable demand for memory. Looking at analysts’ forecasts, Micron’s expected to see top-line growth of 107% this year while SanDisk is expected to see 145%.

Meanwhile, both have locked in long-term agreements with customers, improving their revenue visibility. Micron’s now signed more than 25 multi-year Strategic Customer Agreements (SCAs) while SanDisk has locked in New Business Model (NBM) agreements with eight different data centre and cloud customers.

On the other hand, there’s talk of a slowdown in the US data centre buildout given that the Democrats secured victory in the US midterm elections. A slowdown could reduce demand for memory chips.

There’s also talk of ‘peak’ data centre spending occurring sooner. In other words, the good times for the memory companies may not last as long as previously expected.

My take

My gut feeling however, is that these stocks are cheap at the moment. With their P/E ratios sitting at four, I think they’re worth a closer look.

Personally, I reckon demand for memory will remain elevated for years, because new technologies such as agentic AI and humanoid robots rely on it.

It’s worth noting here that memory rival SK Hynix just told investors that demand’s likely to outstrip supply through 2030. If it’s right, Micron and SanDisk could see a few more years of prolific growth.

Another reason I’m bullish is that both companies are buying back a ton of stock. Recently, there’s been talk that Micron could buy back $100bn worth of stock (about 12% of its current market-cap).

Now, I could be wrong, of course. In the years ahead, we could see demand for memory, and the share prices of Micron and SanDisk, tank.

With the P/E ratios sitting at four however, I think a small position in these memory names is worth considering.

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Edward Sheldon owns shares in Micron.