Micron Technology and SanDisk are experiencing significant valuation increases as demand for AI infrastructure drives growth in the memory sector. Melius Research analyst Ben Reitzes has issued "Buy" ratings for both companies, with two-year price targets set at $700 for Micron and $1,350 for SanDisk. This surge is attributed to the rising need for High Bandwidth Memory (HBM) and NAND flash memory in AI data centers, reshaping the semiconductor industry's profit model. Unlike traditional SaaS companies, memory manufacturers are benefiting from long-term procurement agreements, securing revenue and margins over three to five years. This shift is likened to a "reverse SaaS" model. The adoption of HBM solutions by NVIDIA and AMD GPUs is driving global DRAM capacity towards AI applications, leading to tighter supply and price increases for general-purpose memory. Micron's market cap has reached $600 billion, while SanDisk's has surged over 3,000% in the past year to exceed $157 billion. Analysts suggest further upside potential if AI demand continues to grow.