2 Cheap Storage and Memory Stocks to Own in 2027

Investors are concerned that AI development will slow.

We believe the memory and storage bottleneck is much worse than Wall Street realizes.

Here are 2 cheap storage and memory stocks to own in 2027.

There’s a vicious cycle. Bigger AI models require faster memory…which eats into capacity, further crunching supply:

Powerful GPUs require faster HBM (High Bandwidth Memory).

And as AI creates data, storage needs explode.

Our belief is that unwavering demand for memory and storage underpins the massive opportunity in chip stocks for years to come.

Data center buildout isn’t slowing.

Earnings aren’t slowing.

Now, as the AI trade is hammered, is the time to buy the dip.

And the evidence points to a couple of stocks that are undervalued…and primed for gains in 2027.

2 Cheap Storage and Memory Stocks to Own in 2027

Let’s start off with the storage landscape…a theme we’ve loved since 2025.

Our first cheap storage and memory stock to own is SanDisk (SNDK). The $230 billion storage player develops NAND flash technology.

As AI generates videos, models, and datasets…this information must live somewhere. This is where SanDisk comes into play:

SNDK shares have been a big winner in 2026, jumping 540%.

However, recently the stock has pulled back 35% from highs to $1520 per share.

This has sent the valuation to a rock bottom PE of 6.8 times:

While AI leaders like Anthropic, OpenAI, and Grok have suggested a need for an AI development slowdown, the storage bottleneck is in full swing.

Wall Street analysts haven’t budged on their earnings forecast for SanDisk. If anything, the estimates are increasing.

FY 2027 EPS has lifted to $212.62.

FY 2028 has jumped to $261.77:

This is a cheap stock that I believe is undervalued.

All that’s left to do is reference how institutional investors feel about SanDisk.

Using our portal, we see an incredible narrative of huge inflows powering SNDK shares higher the past year.

That’s the signal that leads to alpha.

Verify any thesis with money flows:

The lone outflows line up with the Situational Awareness liquidation. This presents an opportunity for dip buyers.

Let’s do another.

The 2^nd cheap storage and memory stock to own is Silicon Motion (SIMO). The $8 billion market cap firm specializes in NAND flash controllers.

Think of them as the traffic cop for AI storage:

As AI generates more data, managing the traffic becomes increasingly vital.

What makes Silicon Motion interesting is the 30% slide in share price from highs.

SIMO trades at a last price of $241 with a lowly forward PE of 17 times:

While it’s important to acknowledge the smaller size of SIMO, which equates to more potential volatility – the forward earnings estimates are on an upward trajectory.

After their monster beat and raise for Q2, analysts abruptly revised their earnings estimates higher.

FY 2027 targets EPS of $15.35.

FY 2028 targets EPS of nearly $20.

Keep in mind that just 3 months ago, these numbers were much lower:

Improving fundamentals coupled with healthy institutional support is the winning ticket.

Note the powerful green bars lifting SIMO shares higher last year.

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If you’re a serious investor or money manager, this is unmatched research!

AND don’t miss my deep dive conversation with Jason Bodner on 3 cheap memory and storage stocks to consider buying.

You can learn our process. Enjoy!

***Lastly, join co-founder Jason Bodner LIVE, October 5-7, 2026, at the MoneyShow TradersEXPO in Orlando. 

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