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Jim Cramer argues that memory stocks like SanDisk and Micron still have room to rise despite significant year-to-date gains.

Jim Cramer stated on Monday that memory stocks remain a strong investment opportunity despite having already posted dramatic year-to-date gains. While Cramer typically avoids buying stocks that have risen several hundred percent, he argues that the current memory chip cycle represents a structural regime change. This shift is driven by persistent demand from AI data centers and a new discipline in manufacturing, where companies are locking in revenue through multi-year, take-or-pay contracts rather than simply chasing volume. Cramer highlighted SanDisk and Micron as key examples, noting that SanDisk has risen over 590% year-to-date. He specifically favors Micron for its growth potential, suggesting it could double again. The argument rests on the fact that memory manufacturers are now building to suit specific customer needs, which helps protect margins and prevents the historical cycle of overbuilding and price collapses. However, Cramer acknowledged that high interest rates and potential capacity surges from competitors like Samsung could pose risks to the high--multiple structural story.

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