TLDR
- Cramer identified four memory stocks—Micron, Western Digital, Seagate, and SanDisk—as still attractive despite major year-to-date rallies
- AI data center expansion has created sustained memory supply constraints, according to the Mad Money host
- Memory manufacturers have adopted build-to-order strategies instead of speculative capacity expansion
- Substantial share repurchase programs are channeling capital back to investors rather than into new production facilities
- Among the four, Cramer expressed strongest conviction in Micron, which his Charitable Trust recently added to its portfolio
During Monday’s broadcast of CNBC’s “Mad Money,” Jim Cramer made the case that four memory sector stocks haven’t exhausted their upside potential, despite posting some of 2026’s most impressive percentage gains.
The stocks Cramer highlighted were SanDisk, Seagate, Micron, and Western Digital. Performance numbers for these companies have been remarkable this year: SanDisk has surged 653%, Seagate has climbed 261%, Micron has risen 254%, and Western Digital has advanced 211%.
The core of Cramer’s thesis centers on fundamental supply-demand dynamics. Artificial intelligence infrastructure requires massive memory capacity, while production hasn’t scaled sufficiently to meet that demand. Cramer referenced statements from Elon Musk on X platform identifying memory availability as the primary constraint limiting data center buildout.
Industry Adopts Disciplined Production Approach
According to Cramer, these memory companies have fundamentally altered their business approach. Rather than expanding production capacity aggressively to capture market share, they’re manufacturing exclusively against confirmed orders backed by extended contracts. This strategic pivot, Cramer suggested, could prevent the cyclical oversupply crashes that have historically plagued the semiconductor memory sector.
“They are basically building only to suit,” Cramer explained. He noted that constructing new semiconductor fabrication plants requires multiple years, eliminating the possibility of quick supply increases in the immediate future.
Capital allocation through buybacks reinforces his investment thesis. SanDisk maintains authorization for $15.5 billion in share repurchases, Seagate is executing a $5 billion program initiated in the previous year, and Western Digital expanded its repurchase authorization by $4 billion earlier in 2026.
Cramer Singles Out Micron as Strongest Opportunity
Among these four companies, Cramer expressed particular enthusiasm for Micron. The CNBC Investing Club’s Charitable Trust, which serves as Cramer’s model portfolio, established a position in Micron the previous week following a price decline that coincided with weakness in South Korean chip manufacturers.
“I think Micron can double again before the boom comes to an end,” Cramer stated, though he acknowledged that weakening data center demand would undermine this projection.
The decline extended into Tuesday’s session. Micron shares decreased 4.7% during premarket trading to $963.79, falling back under the $1,000 threshold the stock had surpassed one day earlier. SK Hynix declined 5.1% in U.S. premarket activity, while SanDisk dropped 5.5%.
The selloff reflected broader pressure from climbing bond yields, which weighed on semiconductor stocks generally amid geopolitical uncertainty stemming from Middle Eastern developments.
Tuesday’s weakness notwithstanding, equity analysts maintain an average Micron price objective of $1,549, based on FactSet data. The shares have appreciated more than 700% during the trailing twelve months.
Cramer acknowledged potential headwinds. Decelerating data center investment or substantial new production from competitors such as Samsung could terminate the rally. While recognizing he’s not entering these positions early, Cramer expressed confidence he isn’t too late either.
“Sometimes the opportunity is too great and you can’t afford not to take it,” he concluded.
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