Micron Technology's (MU -5.99%) CEO, Sanjay Mehrotra, sat down with CNBC's Jim Cramer last week at a construction site in Boise, Idaho, where the memory specialist is building two chip fabrication plants.
He had a lot to talk about: Micron's fiscal third-quarter revenue more than quadrupled year over year to $41.5 billion, and net income hit $28.2 billion, compared with $1.9 billion a year earlier. Guidance points to about $50 billion this quarter.
But the number I keep coming back to wasn't in any earnings release. It's the money customers are putting up upfront -- $22 billion in deposits and related commitments under the first 16 agreements.
"All our customers across our end markets will buy everything that we make," Mehrotra said. And data center customers, he added, want about 50% more supply than Micron can commit to delivering.
The driver, of course, is artificial intelligence (AI). Data centers built for it need enormous amounts of memory, and the industry can't manufacture enough.
But what do the contracts require both sides to do -- and what happens if prices fall?
Image source: Micron.
Binding, both waysAlong with its fiscal third-quarter report in late June (the period ended May 28), Micron said it had signed 16 strategic agreements with data center, consumer, and automotive customers. And Mehrotra told Cramer the company has signed more since then.
They are take-or-pay contracts: the customer commits to buying specific volumes of memory over the term and pays for them, whether they end up wanting them or not. Most last five years -- from calendar year 2026 through late 2030, and automotive agreements generally last three. Fourteen of the first 16 add up to a combined minimum of about $100 billion in contracted revenue. That number assumes minimum volumes and prices, and management expects actual revenue to come in well above that.
Floors and ceilingsThe biggest contracts set a price ceiling for existing products around where memory was trading in the second calendar quarter of 2026, as well as a price floor that holds throughout the term. Micron says that even at the floor, these agreements would produce gross margins "well above our peak quarterly margins in any past cycle."
That claim carries weight against the sector's last downturn. In fiscal 2023, Micron's revenue fell by about half, to $15.5 billion, and the company lost $5.8 billion.
In this cycle, the gross margin hit 84.6% in the fiscal third quarter, compared with 74.4% in the prior quarter and 37.7% a year earlier, and guidance points to around 86% this quarter.
If memory prices fall, the contracted volumes are still bought -- or paid for anyway. After all, selling in a collapsing spot market is what generated that $5.8 billion annual loss, and the contracts exist to keep Micron out of that position.
But the coverage has limits. The 16 signed agreements represent about 20% of Micron's DRAM volume and around a third of its NAND volume (its two main memory chip categories) over the period. Management expects half or more of revenue to fall under these agreements once the full list is signed. Most of the business, for now, still depends on the open market.
Supply remains tight well into 2028But could a wave of new factories flood the market before the contracts prove their worth?
Not soon, according to Mehrotra, who expects 2027 to be even tighter than this year.
Micron's own construction calendar explains why. The first Boise factory isn't expected to produce wafers until mid-calendar year 2027, and the second will follow in late calendar year 2028. The New York site, where Micron broke ground in January, arrives even later. And the company expects industry DRAM and NAND supply to remain tight beyond calendar year 2027.
In short, that demand runs into significant new supply only well into the contracts' window.
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Then there's the stock's price. The growth stock, near $967 as of this writing, has more than tripled in 2026.
Even so, it trades at about 22 times earnings, and about 6 times next year's earnings. A price like that says the market expects these profits to contract.
Ultimately, these agreements help address some of the concerns about how the company can mitigate the risks of a cyclical downturn. Additionally, it stands to reason that customers with $22 billion on the table expect the shortage to last.
But a fifth of DRAM volume under contract is a start, not a transformation. Until more of the business moves to similarly contracted sales, some of the market's caution seems fair to me.
Micron otevřel v Boise 60 000čtverečních stop školicí centrum pro školení pracovníků v polovodičích a posílení přísunu talentů v USA. Spolu s U.S. Department of Commerce a College of Western Idaho na něj poskytl 3 miliony USD.
New 60,000-square-foot training center, delivering hands-on technical training and semiconductor career pathwaysMicron and the U.S. Department of Commerce provide $3 million to the College of Western Idaho for educator pay, equipment and classroom spaceMicron’s registered apprenticeship program welcomes its largest cohort to date and is building toward triple-digit enrollment by the end of fiscal 2027
BOISE, Idaho, Aug. 24, 2026 (GLOBE NEWSWIRE) -- Micron Technology Inc. (Nasdaq: MU), the only U.S.-based manufacturer of memory and storage solutions, today opened a 60,000-square-foot Micron Training Center (MTC) in Boise, a strategic investment to strengthen the skilled talent pipeline, support advanced semiconductor manufacturing and expand education and apprenticeship pathways in Idaho.
Located near Micron’s Boise campus, this unique, collaborative training facility accelerates new-hire readiness through an intensive onboarding boot camp and hands-on training in fab operations and manufacturing systems. The center also serves as a site for community college students and career seekers pursuing semiconductor pathways through the College of Western Idaho (CWI).
The MTC supports Micron’s broader commitment to invest more than $250 billion in U.S. semiconductor manufacturing, building the workforce needed to support high-volume production of advanced memory technologies. Those efforts are expected to create more than 90,000 American jobs.
“Our community invests in our people, and the Micron Training Center is proof of that promise. This center is built to skill up the next generation of Idahoans, whether they’re just starting out or making a career pivot,” said Boise Mayor Lauren McLean. “With strong partners standing beside us, we’re filling today’s jobs and preparing our workforce for the future. That’s what it means to build a city where everyone has the opportunity to grow right here at home.”
Strategic collaboration and unique approach for workforce development
The MTC houses up to 20 semiconductor process tools that replicate a fab environment — the same equipment trainees will use on Micron’s fab floor. Industry partners including Applied Materials, Lam Research, SCREEN, Kokusai Electric, Tokyo Electron and others have supported the installation of equipment that will also be used for hands-on vendor training, helping both their teams and Micron’s ramp up faster on the tools that drive production.
The center also expands Micron’s long-standing partnership with CWI to bring semiconductor training directly into the education pipeline. Starting this fall, CWI will deliver its Advanced Mechatronics Engineering Technology (AMET) and Semiconductor Manufacturing Technology (SMT) programs at the MTC, alongside its Nampa campus offerings. The MTC will serve as the new location for the technical instruction component of Micron’s Registered Apprenticeship Program, while continuing to host CWI coursework for the broader student community.
To support this partnership, Micron and the U.S. Department of Commerce have provided $3 million to CWI for educator pay, equipment and classroom space.
“CWI and Micron have built a training environment where students learn on the same equipment they’ll operate in a world-class fab,” said Gordon Jones, president of the College of Western Idaho. “This is what a decade of partnership looks like — a shared facility, tools, and commitment to building careers that matter for Idaho.”
“A strong semiconductor industry depends on a strong talent pipeline,” said April Arnzen, executive vice president and chief people officer, Micron Technology. “The Micron Training Center is a strategic investment in workforce development, helping build the skilled talent needed to support advanced manufacturing and sustain U.S. leadership in semiconductor innovation. By combining state-of-the-art facilities with degree programs, certifications, apprenticeships and clear career pathways, we are creating opportunities for Idahoans while strengthening the workforce that will power Micron’s growth and the future of the industry.”
“America’s ability to lead the world in semiconductor manufacturing depends on building a highly skilled workforce ready to support the factories and technologies of the future,” said Bill Frauenhofer, executive director of semiconductor investment & innovation at the U.S. Department of Commerce. “Micron’s new Boise training center is an example of what is possible when federal investment, private-sector leadership, and education partners work together to meet that challenge. As Micron executes on its more than $250 billion commitment to U.S. manufacturing and R&D, the CHIPS Program Office is proud to support Micron’s new training center and help build the talent pipeline needed to create meaningful pathways into essential careers, strengthen our domestic talent pipeline, and ensure this country remains at the forefront of innovation and advanced manufacturing.”
“Micron’s training center and their investment in apprenticeships and career pathways are helping keep Idaho’s workforce and economy at the forefront. This exciting announcement builds on the investments we’ve made to strengthen Idaho’s workforce, including Idaho LAUNCH. Together, we’re helping Idahoans gain the skills and training they need to succeed in high-demand careers. We challenged Idaho employers to step up and partner with us, and Micron has answered that call,” Governor Brad Little said.
At today’s event, Micron celebrated Cohort 6 of its registered apprenticeship program — its largest Boise cohort to date and is building toward triple-digit enrollment by the end of fiscal year 2027. Developed with CWI and the Idaho Manufacturing Alliance, the earn-and-learn model directly supports Gov. Brad Little’s goal to double Idaho’s registered apprentices statewide by 2029.
For more information visit: Idaho | Micron Technology Inc.
About Micron Technology, Inc.
Micron Technology, Inc. is a global leader in semiconductor memory and storage, powering AI and compute-intensive applications from cloud to edge. With a relentless focus on our customers, technology and product leadership, and manufacturing and operational excellence, Micron’s comprehensive portfolio of high-performance DRAM, NAND and NOR solutions delivers the speed, efficiency and scale today’s workloads demand, accelerating intelligence to enrich life for all. To learn more about Micron Technology, Inc. (Nasdaq: MU), visit micron.com.
Akcie výrobců paměťových čipů v pondělí prudce klesly kvůli obavám z toho, že Apple by mohl částečně využít čínské čipy CXMT a YMTC. Samsung zároveň zklamal tím, že v roce 2026 očekává vrátit akcionářům mezi 90 a 110 biliony korejských wonů.
Memory stocks fell sharply on Monday as investors weighed concerns over Apple’s potential use of Chinese memory chips, a disappointing capital-return announcement from Samsung and broader profit-taking across semiconductor shares.
Micron Technology MU fell about 7%, while SK Hynix dropped roughly 5%. SanDisk declined around 9%, while Seagate Technology and Western Digital each fell about 7%.
The selling came as investors digested reports that the Trump administration could allow Apple to source DRAM from China's ChangXin Memory Technologies, or CXMT, and NAND flash from Yangtze Memory Technologies, or YMTC.
The reports added to concerns that major US memory suppliers could eventually lose some Apple-related business to Chinese competitors.
However, analysts cautioned that the immediate market reaction may have overstated the threat.
Wccftech reported that the Trump administration could allow Apple to procure memory chips from CXMT and YMTC following Chinese President Xi Jinping's expected US visit in September.
The report suggested that allowing Apple access to Chinese memory suppliers could form part of a broader effort to ease tensions between Washington and Beijing while also helping Apple address supply-chain constraints.
The possibility was enough to pressure memory stocks, particularly Micron, which has been closely associated with Apple's memory supply chain.
But KC Rajkumar of Lynx Equity Research argued that investors may be overestimating CXMT's ability to disrupt the market.
CXMT has reportedly been qualified for only a single, low-volume Mac product, with production still constrained by poor yields. Rajkumar said the company's LPDDR5X yields make it unlikely to supply Apple at meaningful scale.
"CXMT supply is unlikely to dent the shortage Apple is facing in DRAM, nor could CXMT supply improve Apple’s negotiation position at traditional suppliers such as MU," he wrote.
That suggests the immediate threat to Micron may be limited, even if Washington ultimately allows Apple to expand its relationship with Chinese memory manufacturers.
Washington's stance remains uncertainThe latest reports also appear to conflict with recent comments from US Commerce Secretary Howard Lutnick.
The Wall Street Journal reported last week that Lutnick said the Trump administration does not want Apple to use memory chips manufactured in China.
“The Trump administration is not in favor of that,” Lutnick said in an interview after touring an Apple manufacturing facility in Houston, according to the newspaper.
The comments came as Micron lobbied Washington against Apple using Chinese memory chips.
The company has argued that allowing such imports could undermine US semiconductor manufacturing and run counter to the administration's efforts to bring more chip production onto American soil.
The conflicting signals have therefore added another layer of uncertainty for investors trying to assess how US technology policy could affect memory suppliers.
Another catalyst came from South Korea, where Samsung shares fell about 9% after the company announced its 2026 shareholder-return plans.
Samsung said it expects to return between 90 trillion and 110 trillion Korean won to shareholders in 2026.
Investors, however, had hoped for clearer commitments to immediate share buybacks and share cancellations.
JPMorgan analysts viewed the lack of an immediate buyback and the unchanged return framework as potential disappointments after expectations had risen ahead of the announcement.
Samsung is one of the world's largest memory-chip manufacturers, making its share-price decline significant for the broader sector.
Still, the announcement does not fundamentally alter the demand outlook for Micron's high-bandwidth memory or SanDisk's NAND business.
Instead, it may have provided a catalyst for investors to take profits across a sector that has already enjoyed substantial gains.
Memory stocks were also caught in a broader retreat across semiconductor shares ahead of Nvidia's earnings later this week.
Nvidia fell about 3% on Monday, while the Philadelphia Semiconductor Index declined roughly 4%.
That suggests the weakness in Micron and its peers is not entirely the result of company-specific concerns.
Investors appear to be reducing exposure to semiconductor stocks ahead of one of the most closely watched earnings reports of the quarter.
The broader market was also under pressure as the Trump administration prepared new tariffs on Canadian goods and additional economic sanctions against Iran.
Micron spouští Micron Research Labs a do výzkumu pamětí pro AI investuje 10 miliard USD. Firma tvrdí, že paměť už není komodita, ale strategická infrastruktura pro AI.
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Sanjay Mehrotra used a CNBC appearance from Boise last Thursday to unveil Micron Research Labs, a $10 billion investment in basic research aimed at next-generation AI memory. He framed it with a claim investors should take seriously and interrogate carefully: “Memory is no longer a component in a system. Memory is the strategic infrastructure for AI. It’s no longer a commodity. It is a high value.”
That is a large statement from a company whose stock has historically traded as a cyclical. Shares of Micron Technology (NASDAQ:MU | MU Price Prediction) closed at $974.33 on Thursday, up 241.59% year to date and 732.62% over the trailing year. The market has already accepted the reframing.
The question worth asking is whether the reframing survives the next downcycle, because a business that has escaped commodity dynamics does not see margins collapse when supply catches up with demand. Mehrotra is partly right, and the distinction matters enormously for valuation. High bandwidth memory is increasingly a contracted, designed-in product, although commodity DRAM and NAND still clear at cyclical prices.
What Mehrotra Actually Announced in Boise Micron Research Labs will be headquartered in Boise with satellite campuses globally, and Mehrotra drew an explicit parallel to Bell Labs. The pitch is that Micron will convene customers, universities and startups around the memory hierarchy the AI era requires.
He backed the framing with a claim about scale, noting that Micron holds over 62,000 patents. The company also announced the lab in a press release that same day, positioning it as an anchor of American semiconductor leadership.
On CNBC, Mehrotra tied the effort directly to system architecture: “Without memory, you cannot make AI smarter. You cannot make AI faster. You cannot scale up AI.” He argued the point applies across the stack, “from high bandwidth memory to DRAM to SSDs.”
The $10 billion figure signals which business Micron intends to be judged on. Basic research is what you fund when differentiation is expected to be technical rather than cost-driven, and Micron is telling investors to price it accordingly. Seeking Alpha reported the labs disclosure the same day Mehrotra sat with Cramer.
Why the “Not a Commodity” Claim Is Partly True Micron has signed 16 Strategic Customer Agreements, most of which run for five years from calendar 2026 through the end of calendar 2030. They are structured as take-or-pay contracts with binding volumes.
Fourteen of those agreements have cumulative revenue at minimum prices of approximately $100 billion over the remaining term of the agreements. Together, the signed deals cover roughly 20% of Micron’s DRAM volume and a third of its NAND volume.
The largest include price bands with floors that Mehrotra said would deliver “a very robust gross margin for Micron, well above our peak quarterly margins in any past cycle.” That is a real structural change if it holds. Fiscal Q3 already showed the direction, with $41.46 billion in revenue and a non-GAAP gross margin of 84.9%, disclosed in the Q3 press release filed with the SEC.
The part that remains commodity is the part not under contract. Even after every planned agreement is executed, only approximately 40% of revenue will be at fixed prices or ceilings near current market levels, leaving a large book of DRAM and NAND exposed to the cycle.
Real Test Comes in the Next Downturn The market is signaling it half-believes the reframing. Micron trades at a trailing PE of 21x but only a forward PE of 6x, which is the multiple you assign a company you expect to earn less next year, not more.
Mehrotra argues the setup is durable, telling investors on the June call that “We expect tight conditions to persist beyond calendar 2027 as a result of AI-driven demand across all segments coupled with structural supply constraints.” He also warned of “a meaningful moderation in the rate of price increases” in the fiscal Q4 gross margin outlook.
Retail chatter on Reddit has flagged that memory prices are pressuring non-AI devices, with June China smartphone shipments down 17% year over year, which is exactly what a demand pull-forward looks like when it starts to bite. Insider filings show Mehrotra himself recorded dispositions across May, June and July at prices ranging from about $907 to $1,192.
A re-rating to a durably higher multiple is justified only if the SCA book proves it can hold floor pricing through a supply-normalization phase Micron has not yet faced. Until then, the $10 billion for Micron Research Labs is a credible bet that the differentiated slice of memory keeps growing faster than the commodity slice shrinks, which is a defensible thesis rather than a settled one.
Contact [email protected] for any questions or corrections.
Acumen Wealth Advisors LLC grew its position in shares of Micron Technology, Inc. (NASDAQ:MU – Free Report) by 165.0% during the 2nd quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The firm owned 8,831 shares of the semiconductor manufacturer’s stock after buying an additional 5,498 shares during the period. Micron Technology makes up 2.2% of Acumen Wealth Advisors LLC’s holdings, making the stock its 13th biggest position. Acumen Wealth Advisors LLC’s holdings in Micron Technology were worth $10,194,000 at the end of the most recent quarter.
A number of other hedge funds and other institutional investors also recently modified their holdings of the company. High Note Wealth LLC increased its holdings in shares of Micron Technology by 65.4% during the fourth quarter. High Note Wealth LLC now owns 86 shares of the semiconductor manufacturer’s stock worth $25,000 after purchasing an additional 34 shares during the period. Kohmann Bosshard Financial Services LLC acquired a new position in Micron Technology in the 1st quarter valued at $27,000. Bayban bought a new stake in shares of Micron Technology during the 4th quarter valued at $29,000. Joseph Group Capital Management bought a new stake in shares of Micron Technology during the 4th quarter valued at $31,000. Finally, Luken Investment Analytics LLC acquired a new stake in shares of Micron Technology during the 4th quarter worth $31,000. Institutional investors and hedge funds own 80.84% of the company’s stock.
Micron Technology Price Performance Shares of MU stock opened at $966.78 on Friday. The company has a quick ratio of 2.98, a current ratio of 3.42 and a debt-to-equity ratio of 0.05. Micron Technology, Inc. has a twelve month low of $114.25 and a twelve month high of $1,255.00. The company has a market cap of $1.09 trillion, a P/E ratio of 21.89 and a beta of 2.18. The business has a fifty day simple moving average of $967.02 and a 200 day simple moving average of $696.28.
Micron Technology (NASDAQ:MU – Get Free Report) last released its earnings results on Wednesday, June 24th. The semiconductor manufacturer reported $25.11 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $21.39 by $3.72. The firm had revenue of $41.46 billion for the quarter, compared to analysts’ expectations of $35.91 billion. Micron Technology had a return on equity of 71.13% and a net margin of 55.91%.The business’s revenue for the quarter was up 345.8% on a year-over-year basis. During the same quarter in the previous year, the business posted $1.91 earnings per share. Micron Technology has set its Q4 2026 guidance at 30.000-32.000 EPS. On average, sell-side analysts forecast that Micron Technology, Inc. will post 72.93 EPS for the current fiscal year. Micron Technology Dividend Announcement The business also recently announced a quarterly dividend, which was paid on Tuesday, July 21st. Shareholders of record on Monday, July 6th were given a $0.15 dividend. The ex-dividend date was Monday, July 6th. This represents a $0.60 dividend on an annualized basis and a yield of 0.1%. Micron Technology’s dividend payout ratio (DPR) is currently 1.36%.
Wall Street Analyst Weigh In A number of research analysts recently commented on MU shares. New Street Research upgraded Micron Technology from a “neutral” rating to a “buy” rating and set a $1,250.00 price target on the stock in a research report on Friday, August 14th. Wolfe Research set a $1,500.00 price objective on shares of Micron Technology in a research report on Thursday, June 25th. Morgan Stanley increased their price objective on shares of Micron Technology from $1,050.00 to $1,200.00 and gave the stock an “overweight” rating in a research note on Thursday, June 25th. Mizuho raised their target price on shares of Micron Technology from $1,150.00 to $1,375.00 and gave the company an “outperform” rating in a report on Thursday, June 25th. Finally, Royal Bank Of Canada boosted their target price on shares of Micron Technology from $1,200.00 to $1,500.00 and gave the company an “outperform” rating in a research report on Thursday, June 25th. Four equities research analysts have rated the stock with a Strong Buy rating, thirty-two have assigned a Buy rating and three have assigned a Hold rating to the company’s stock. According to data from MarketBeat.com, the stock has a consensus rating of “Buy” and an average target price of $1,261.26.
Read Our Latest Report on MU
Insider Activity In other Micron Technology news, CAO Scott R. Allen sold 879 shares of the business’s stock in a transaction on Thursday, July 23rd. The shares were sold at an average price of $1,000.00, for a total transaction of $879,000.00. Following the sale, the chief accounting officer owned 34,958 shares of the company’s stock, valued at approximately $34,958,000. The trade was a 2.45% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, Director Lynn A. Dugle sold 1,300 shares of the company’s stock in a transaction on Tuesday, June 30th. The stock was sold at an average price of $1,150.43, for a total transaction of $1,495,559.00. Following the transaction, the director owned 17,728 shares of the company’s stock, valued at $20,394,823.04. This trade represents a 6.83% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last quarter, insiders have sold 177,179 shares of company stock valued at $181,826,211. 0.24% of the stock is currently owned by insiders.
Micron Technology News Roundup Here are the key news stories impacting Micron Technology this week:
Positive Sentiment: $10 billion research commitment: Micron unveiled Micron Research Labs in Boise, backed by a planned $10 billion investment over the next decade. The facility will focus on memory, advanced packaging, computing systems and future semiconductor manufacturing, potentially strengthening Micron’s position in AI infrastructure. Micron Research Labs announcement Positive Sentiment: Strong AI demand outlook: CEO Sanjay Mehrotra said AI has fundamentally changed the traditional boom-and-bust memory cycle and that AI systems cannot scale without memory. Tight supply and demand for high-bandwidth memory, server DRAM and data-center products remain key bullish catalysts. Micron CEO AI demand comments Positive Sentiment: Upbeat analyst coverage: BMO Capital Markets initiated coverage with an “outperform” rating and a $1,300 price target. Separately, D.A. Davidson analyst Gil Luria reportedly raised his target to $2,000, keeping a Buy rating. These forecasts suggest analysts expect AI-driven memory pricing and earnings to support further gains. Micron price target commentary Positive Sentiment: Positive sector momentum: Strong demand and SK hynix’s $28.6 billion buyback are supporting confidence across memory stocks. Investors are also watching Nvidia’s upcoming earnings for evidence that AI infrastructure spending remains robust. Nvidia and Micron AI outlook Neutral Sentiment: Long-term expansion versus execution risk: Micron’s broader $50 billion Idaho manufacturing buildout should increase U.S. capacity and support future growth, but the scale of the spending raises capital-allocation, construction and execution risks. Negative Sentiment: Valuation and cyclicality concerns: Commentary warns that Micron’s record revenue has been driven primarily by higher memory prices rather than substantial shipment growth. Bears argue that memory remains cyclical and that AI optimism may already be reflected in the stock’s substantial prior rally. Micron memory price analysis Negative Sentiment: Market and analyst pressure: Rising Treasury yields have weighed on growth stocks, while Zacks Research downgraded Micron from “strong buy” to “hold.” Michael Burry’s warning that AI infrastructure may contain excessive leverage adds to broader sector risk. Negative Sentiment: Insider and institutional selling: EVP Sumit Sadana sold 15,000 shares for approximately $14 million, and Stanley Druckenmiller’s fund reportedly exited Micron during the second quarter. Neither transaction necessarily signals deteriorating fundamentals, but both can reinforce profit-taking concerns after the sharp advance. Micron insider sale Negative Sentiment: No near-term buyback: Micron is prioritizing large investments and cannot immediately match rivals’ aggressive repurchases, reducing a potential source of near-term shareholder support. Micron buyback analysis (Free Report)
Micron Technology, Inc is a global semiconductor company that designs and manufactures memory and storage solutions. Its product portfolio includes dynamic random-access memory (DRAM), NAND flash memory, solid-state drives (SSDs), memory modules and embedded memory solutions for a wide range of computing and electronic devices. Micron supplies components used in data centers, enterprise and cloud infrastructure, client computing, mobile devices, automotive systems and industrial applications, and also markets consumer-facing products under the Crucial brand.
Founded in 1978 and headquartered in Boise, Idaho, Micron has grown into an international manufacturer with research, development and production facilities across multiple regions.
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Michael Burry varuje, že výstavba datových center pro AI připomíná excesy před rokem 2008 kvůli kruhovému financování a skrytému zadlužení. Zmínil NVIDIA, Oracle, Nebius Group, Micron Technology a Palantir Technologies. NVIDIA klesla o 0,9 % na 214,87 USD, Micron Technology o 1 % na 961,96 USD, Oracle naopak vzrostl o 3 % na 146,81 USD, Palantir Technologies o 4 % na 180,20 USD a Nebius Group o 0,1 % na 220,28 USD.
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Michael Burry issued a fresh warning Friday that the AI data center boom mirrors the structural excesses that preceded 2008, arguing that circular financing, off-balance-sheet vehicles and captive insurers are quietly building leverage across the ecosystem. The investor behind the Big Short trade reportedly declared in a Substack post that “The shenanigans are apparent today for those that care to look.”
NVIDIA (NASDAQ:NVDA | NVDA Price Prediction) stock is down 0.9% to $214.87 in Friday midday trading, its sixth straight losing session. Notably, Micron Technology (NASDAQ:MU) shares are falling 1% to $961.96, extending a pullback from record levels reached on HBM4 memory shipments.
Meanwhile, Oracle (NYSE:ORCL) stock is rising 3% to $146.81, one of several names Burry called out. Also, Palantir Technologies (NASDAQ:PLTR) shares are climbing 4% to $180.20 in a session shrugging off the Substack, while Nebius Group (NASDAQ:NBIS) stock is up 0.1% to $220.28. That’s just one day of share-price gains, but investors might wonder how Burry is justifying his cautionary tone.
Circular Financing at the Heart of the Warning Burry’s central charge is that a growing share of NVIDIA’s future revenue is “majority financed in a circular arrangement” rather than pulled through by organic end-user demand. He points to special-purpose vehicles, off-balance-sheet financing and captive insurers as mechanisms that can absorb risky debt while making leverage harder to see from the outside.
The pattern shows up at Oracle. In its Q4 FY26 report, Oracle disclosed remaining performance obligations of $638 billion, with $75 billion tied to bring-your-own-hardware or prepaid customer arrangements. Oracle also plans to raise $40 billion in debt and equity in fiscal 2027 to fund a $70 billion capex program, per its 8-K filing.
Nebius Group tells a similar story from the buyer side. The company’s disclosed capital stack (including NVIDIA pre-funded warrants, convertible debt and uncommenced lease obligations) reflects the sort of intertwined arrangements Burry says obscure true leverage.
Data That Sparked the Warning Burry anchored his argument to data from Torsten Slok, Apollo’s chief economist, showing that data-center construction accelerating even after the Federal Reserve began raising rates in 2022 while rate-sensitive segments contracted. Moreover, private non-residential construction excluding data centers fell 7.9% year over year in June.
In the same post, Burry asserted, “GDP growth is really counting on that data center buildout.” Slok reads that resilience as evidence investors expect AI returns to justify the cost of capital, while Burry treats it as a risk indicator worth flagging.
Semiconductors as a group capture the boom he is questioning. The iShares Semiconductor ETF (NASDAQ:SOXX) was up 74% year to date (YTD) through Thursday’s close, and Micron stock was up 242% over the same stretch on HBM4 memory shipments.
Names Burry Has Positioned Against Burry has positioned against several AI infrastructure names, including Micron Technology, Oracle, Nebius Group and Palantir Technologies. PLTR stock trades at a trailing P/E ratio of 148.68x and a price-to-sales ratio of 67.91x, valuations that leave little room for a growth stumble.
Furthermore, Friday’s session argues both ways. Oracle stock and Palantir Technologies stock are rising against his thesis, and NVIDIA stock and Micron shares are falling in line with it. NVIDIA’s slide predates the Substack post, extending a five-session losing streak through Thursday.
The chipmaker’s own disclosures illustrate the scale in play. NVIDIA reported Q1 FY27 revenue of $82 billion, and total supply commitments and prepaids reached $145 billion. CEO Jensen Huang stated on the call that “Demand has gone parabolic.”
What Investors Can Take Away The question Burry is raising centers on whether the investment boom has built a financial system that now depends on AI demand continuing at its current pace. Nebius, NVIDIA, Oracle’s capex program and Micron Technology’s take-or-pay memory contracts all sit inside that dependency loop. Riding a mania is fine as long as you plan the exit, and we covered both halves in a free bubble survivor’s handbook.
Traders can size AI infrastructure exposure with an eye on financing structure disclosures rather than headline growth alone. Shareholders may want to watch how remaining performance obligations at Oracle and Nebius convert into cash flow over the coming quarters.
Contact [email protected] for any questions or corrections.
Micron uvedl, že od 9. prosince 2026 chce zvýšit návrat kapitálu pro akcionáře, až skončí omezení na velké zpětné odkupy akcií. CEO Sanjay Mehrotra ale neslíbil žádný konkrétní objem ani načasování.
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On a CNBC “Mad Money” special edition filmed at Micron’s Boise, Idaho headquarters, Jim Cramer walked Micron Technology (NASDAQ:MU | MU Price Prediction) Chairman and CEO Sanjay Mehrotra to a specific spot on the 2026 calendar: December 9, 2026, the second anniversary of Micron’s negotiated CHIPS Act funding agreement and the day a company-specific restriction on large-scale share repurchases expires.
Cramer’s framing was blunt. “Okay, now come December 9, your deal with the government, it’ll be two years. I understand that after that you’re allowed to buy back stock. I know you can’t [right now]. Right now your compadres SanDisk, Western Digital, [Kioxia] are buying back huge amounts of stock. You see a situation where you too can buy back a huge amount of stock?” Mehrotra affirmed direction without committing to size, structure, or timing. “We will of course invest, invest first in growing the business… We had $25 billion of net cash positive last quarter. Free cash flow this quarter will even be greater. Of course, excess cash we will return to shareholders, and we are best positioned ever to grow the business as well as provide return to our shareholders at larger levels than before. And yes, we are committed to doing that.” Growth investment came first in his answer, with no buyback figure or schedule named.
What the Dec. 9 Date Represents The general CHIPS Act guardrail prevents award funds from being used for stock buybacks, dividends, or expanding advanced semiconductor manufacturing in countries of concern such as China. Micron’s Dec. 9, 2026 date is specific to the two-year anniversary of Micron’s own negotiated agreement.
Micron finalized a roughly $6.1 billion CHIPS Act funding award in December 2024, disclosed in an SEC Form 8-K filed Dec. 10, 2024 (see the filing index at SEC EDGAR). Under that agreement, Micron is currently limited to only minor buybacks that offset dilution from employee stock compensation. On the fiscal Q3 2026 call, CFO Mark Murphy told analysts, “From December 9, 2026, the second anniversary of the signature of our definitive CHIPS agreements, we intend to increase our capital return.” He added the company expects “Over time, we expect to return 100% of our excess cash to shareholders.”
Why the Restriction Stings Now Micron’s direct memory competitors are returning capital during extraordinary industry profitability. SK Hynix announced a $29 billion buyback program in mid-August 2026, coverage of which ran on our site on Aug. 19, 2026. Kioxia completed a $5 billion buyback earlier in August 2026. Samsung is expected to announce shareholder returns exceeding $78 billion, though that program has not yet been confirmed. SK Hynix, Kioxia, and Samsung are foreign-listed, and Micron cannot yet match them at scale.
Numbers Behind the Wait Micron shares closed Thursday, Aug. 20, 2026 at $974.33, up 3.97% on the session. Year to date the stock is up 241.59%, and over the trailing year it is up 732.62% from $117.02 on Aug. 20, 2025. Cramer characterized the stock as trading at roughly six times next year’s earnings estimates and framed that as cheap given the growth.
Fundamentals underpin the enthusiasm. Fiscal Q3 2026 revenue reached $41.46 billion, non-GAAP EPS came in at $25.11, and free cash flow set a company record at $18.304 billion. Fiscal Q4 guidance calls for revenue of $50.0 billion ± $1.0 billion and non-GAAP EPS of $31.00 ± $1.00. Mehrotra described more than 16 multi-year take-or-pay strategic customer agreements, backed by roughly $22 billion in customer cash deposits and commitments, and said customers are seeking about 50% more memory supply than Micron can currently commit to delivering.
Bullish Scenario and Its Limits UBS analyst Timothy Arcuri has projected Micron could generate roughly $380 billion to $400 billion in cumulative free cash flow through the end of 2028, potentially enabling retirement of as much as 40% of outstanding shares. That is a single approximate analyst estimate; different outlets have reported slightly different figures for the same underlying projection. The share-retirement math depends entirely on that estimate holding. Arcuri also notes the restriction does not impose limits on debt reduction, and Micron reduced debt by $4.4 billion in fiscal Q3.
Skepticism on the Buyback Math Analyst commentary from Barchart citing Jabran Kundi raises two substantive doubts. First, execution risk: free-cash-flow projections depend on sustained high-bandwidth-memory demand and pricing power, which is not guaranteed. Second, a self-defeating dynamic. If Micron performs well enough to generate that much cash, the share price will likely have risen sharply by then, making a large buyback “extremely difficult to execute” at attractive valuations. Pair that with Mehrotra’s answer, which committed to no specific size or timeline.
Why Dec. 9 Is Worth Watching Micron’s capital-return posture changes on Dec. 9, 2026. Management has flagged intent to increase returns. Competitors are already returning capital at scale. The order book supports the cash-generation story. What is missing is a specific commitment on program size or timing. Mehrotra affirmed direction; the specifics are still ahead. Investor materials and calendar updates are posted at Micron Investor Relations.
Contact [email protected] for any questions or corrections.
Šéf Micronu Sanjay Mehrotra řekl, že AI zásadně změnila paměťový byznys a vytvořila trvalejší poptávku po pamětech. Firma podle něj stále nedokáže uspokojit objednávky zákazníků.
Micron CEO Sanjay Mehrotra said on Thursday artificial intelligence has fundamentally changed the memory business, an industry prone to boom-and-bust cycles.
“Today there is no AI without memory. AI systems need more memory. They need higher performance memory. They need lower power memory,” Mehrotra told Jim Cramer on “Mad Money.” “So, the value of memory, that equation has totally changed.”
His comments came in the shadow of a massive semiconductor fabrication site under construction near Micron’s headquarters in Boise, Idaho, part of the company’s planned $250 billion investment in U.S. manufacturing and research. The Boise site alone will eventually include two fabs, each roughly the size of 10 football fields; a single fab will have enough steel rebar to circle Earth twice, according to Mehrotra. The first Boise fab is expected to begin producing wafers in mid-2027. The scale of that investment reflects how dramatically Mehrotra thinks AI has altered the outlook for memory.
Memory has historically been a cyclical business, with periods of strong demand encouraging manufacturers to add capacity, only for excess supply to eventually drive down prices. However, Mehrotra — an engineer by trade who’s worked in the chip industry for over 40 years and previously co-founded SanDisk — said AI is creating a more durable source of demand.
The opportunity extends beyond data centers, he said. Mehrotra said he expects autonomous vehicles, robots, and AI-enabled consumer devices to require increasingly large amounts of memory in the years ahead.
“Memory today is essential,” Mehrotra said. “That’s why I call it the strategic infrastructure of the AI era.”
That demand is also changing the value customers place on memory, according to Mehrotra. Instead of customers simply soliciting bids and buying from whichever supplier offers the lowest price, he said memory must increasingly be designed alongside the processors and systems in which it will operate. Mehrotra said that makes memory essential to the performance of the broader system rather than simply another component.
“We are working closely with them earlier and earlier in their development cycle,” he said. “Our customers recognize the value of memory, because memory is what is enabling them to design products that are driving growth engines for them.”
He said Micron still can’t produce enough to satisfy that demand.
“All our customers across our end markets will buy everything that we make,” Mehrotra said, adding that data-center customers currently want roughly 50% more supply than Micron is able to commit.
The memory maker is gaining greater visibility into that demand through long-term customer agreements, another important shift for a business historically exposed to swings in the spot market. During the company’s most recent earnings call in late June, Micron announced that it had signed five-year strategic agreements with 16 customers. Mehrotra said the company has since inked additional deals.
“They have committed to taking the supply,” Mehrotra said. “So, this gives us assurance of demand.”
Wall Street is still on edge as the third earnings season of 2026 winds down. Walmart (WMT -9.72%) beat on revenue, beat on earnings, and raised its full-year guidance. The stock promptly fell about 10%. Welcome to earnings season in 2026, where beating the numbers doesn't seem to be the point these days.
The S&P 500 (^GSPC -0.70%) is down 0.29% as of 11:44 a.m. ET, the Dow Jones Industrial Average (^DJI -1.17%) has fallen 0.64%, and the Nasdaq Composite (^IXIC -0.99%) is off 0.80%. Twenty of the Dow's 30 components are lower.
^SPX data by YCharts
Walmart's earnings beat comes with a warning Let's start in Arkansas. Retail giant Walmart posted Q2 results on Thursday morning, beating Wall Street's estimates across the board and raising full-year guidance targets. But the stock fell 9.8% anyway, adding up to a 21.3% drop over the last three months. You see, Walmart's domestic comparable sales grew just 2.6%, well short of the roughly 3.7% analysts expected and the slowest pace since Q4 2020. And roughly $2.9 billion of the quarter's earnings surprise came from tariff refunds rather than core operations.
You may hear echoes of Home Depot's (HD -3.02%) market-moving report in this update. U.S. consumer spending is slowing after the spring's generous tax refund boost. Walmart's own management noted shoppers are making trade-offs amid high fuel costs. Walmart's $114 share price makes it one of the lightest weights on the Dow, but today's massive drop still resulted in the second-largest score change on the index. With a $826 billion market cap, it also weighed heavily on the S&P 500 and Nasdaq indexes.
Image source: Getty Images.
The macro trends didn't help, either. Oil prices are up by roughly 3% as the United Arab Emirates suspended all financial transactions with Iran. 30-year Treasury yields are hanging on to yesterday's multi-decade high. Treasury Secretary Scott Bessent went on TV to announce bigger buybacks of long-dated debt while admitting liquidity there is "very poor."
The gloom isn't completely universal, though. Deere (DE +6.88%) rose 9.4% on another beat-and-raise report, and the memory chip bellwethers are up by a few percent today. Micron Technology (MU +2.46%) rose 1.8% while SK Hynix (SKHY +3.77%) gained 3.7%. There's still room for optimism in this anxious market climate.
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A tired consumer meets rising rates Step back and the week has a clear message. Three big retail-adjacent reads (Home Depot, July retail sales, and now Walmart) all say the same thing: Americans are spending more carefully. That's the demand side of the economy losing a step.
That matters because bond yields are simultaneously near their highest levels since before the 2008 financial crisis. The combo of cautious consumer spending and higher financing costs points to a slowing economy. Bessent stepping in with bond buybacks tells you the long-term picture is under real strain.
Anders Bylund has positions in Micron Technology and Walmart. The Motley Fool has positions in and recommends Deere & Company , Home Depot, Micron Technology, and Walmart. The Motley Fool has a disclosure policy.
As a former top lieutenant to George Soros, Stanley Druckenmiller has built a reputation for delivering big long-term returns through disciplined macro analysis. His primary investment vehicle today is the Duquesne Family Office, which manages a portfolio spanning technology, healthcare, and select cyclical themes.
Investors watch his moves closely because his track record and bold willingness to rotate positions decisively have often preceded major market shifts. The firm's latest 13F filing shows one such rotation: During the second quarter, Duquesne fully exited its position in Micron Technology (MU +2.46%) while initiating a new stake in Advanced Micro Devices (AMD -0.48%).
Stanley Druckenmiller. Image source: Getty Images.
Why sell Micron stock now? Micron designs and manufactures advanced memory and storage solutions, including high bandwidth memory (HMB), DRAM, and NAND, that sit at the heart of artificial intelligence (AI) servers. Memory solutions feed data to graphics processing units (GPUs), keeping large language models (LLMs) running efficiently.
Throughout 2026, Micron stock has staged one of the market's most dramatic rallies -- rising 231% and achieving a trillion-dollar market capitalization. Such parabolic ascents often prompt seasoned money managers to take profits. Druckenmiller's complete exit from Micron may signal a view that memory is a more cyclical, capacity-driven segment of the broader AI chip stack.
While HBM demand is real, supply responses could arrive faster relative to next-generation specialized processors designed by AMD. In turn, this could potentially cap further valuation expansion for Micron if growth decelerates. By stepping away after the initial surge, Druckenmiller appears to be treating pure-play memory producers as a trade that is reaching maturity, rather than a multi-year compounder within the AI infrastructure landscape.
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The case for buying AMD stock right now A few years ago, Druckenmiller had built and subsequently fully sold a position in Nvidia. He later acknowledged that the exit was a "big mistake" as he left substantial gains on the table. I think this experience may partially explain the fresh interest in AMD, as the company is Nvidia's closest peer and still scaling the AI adoption curve.
AMD's Instinct accelerators and EPYC server processors are gaining respectable market share as hyperscalers diversify their capex budgets beyond Nvidia's processors. Nevertheless, AMD stock has not yet commanded the same dominant narrative that was once reserved for Nvidia.
During Q2, the company generated revenue of $11.5 billion, up 50% year over year. Meanwhile, AMD's data center segment more than doubled to $6.7 billion and accounted for nearly 60% of total sales. What's most encouraging is that management guided for continued acceleration into the second half of the year as AMD continues to onboard hyperscaler demand.
Should you follow Druckenmiller's lead and buy AMD stock? AMD stock has already delivered an impressive performance this year, advancing more than 120%. At current levels, AMD trades at a forward price-to-earnings multiple (P/E) of around 63. To put that into context, the broader semiconductor industry boasts a forward P/E of around 26.
AMD PE Ratio (Forward) data by YCharts.
AMD's valuation clearly embeds optimistic expectations for aggressive AI-driven growth and profit margin expansion. Whether its premium is justified will depend on management's execution, measured by market share gains against Nvidia, successful product ramps, and capitalizing on the secular tailwinds supported by accelerating AI infrastructure spending.
For most investors, the prudent path is not simply mimicking Druckenmiller's decisions. Retail investors are best served by weighing AMD's strong fundamentals and competitive momentum against the risk that its elevated valuation leaves little margin for error.
I think building a modest position in AMD alongside a diversified basket of technology stocks, coupled with monitoring the company's quarterly progress, offers a balanced way to participate in the upside rather than simply copying one billionaire's latest filing.
Micron Technology plánuje investovat 10 miliard USD během příští dekády do nového centra v Boise pro výzkum pamětí a AI. Projekt má posílit jeho pozici v AI pamětech.
is expanding its U.S. research operations with plans to invest $10 billion over the next decade in a new facility dedicated to memory and artificial intelligence research, according to a Thursday company statement.
The research center will be built at Micron's Boise, Idaho, campus, with work expected to begin next year. The company plans to use the site to develop memory, computing, packaging and semiconductor manufacturing technologies.
Micron expects the facility to bring together researchers from universities, government agencies, customers and the broader chip industry. The project is part of a wider domestic investment strategy that includes more than $250 billion committed to U.S. manufacturing and research and development.
The announcement received backing from U.S. officials and technology executives, including Nvidia (NVDA) CEO Jensen Huang and Apple (AAPL) CEO Tim Cook. The initiative comes as rising AI infrastructure demand increases the need for advanced memory products.
The research investment may strengthen Micron's long-term position in AI memory, though meaningful financial returns are likely to take time.
Ballentine Partners LLC raised its position in shares of Micron Technology, Inc. (NASDAQ:MU – Free Report) by 2.9% in the second quarter, according to its most recent filing with the SEC. The firm owned 63,727 shares of the semiconductor manufacturer’s stock after purchasing an additional 1,766 shares during the quarter. Micron Technology makes up approximately 0.9% of Ballentine Partners LLC’s investment portfolio, making the stock its 14th largest holding. Ballentine Partners LLC’s holdings in Micron Technology were worth $73,559,000 at the end of the most recent reporting period.
Other hedge funds have also recently made changes to their positions in the company. Vanguard Group Inc. increased its stake in shares of Micron Technology by 1.9% in the 4th quarter. Vanguard Group Inc. now owns 106,608,094 shares of the semiconductor manufacturer’s stock valued at $30,427,016,000 after acquiring an additional 1,954,644 shares in the last quarter. State Street Corp lifted its position in Micron Technology by 2.1% in the 4th quarter. State Street Corp now owns 52,749,817 shares of the semiconductor manufacturer’s stock valued at $15,061,310,000 after acquiring an additional 1,090,644 shares in the last quarter. Norges Bank bought a new position in shares of Micron Technology in the fourth quarter valued at approximately $6,433,456,000. Morgan Stanley boosted its holdings in Micron Technology by 5.1% during the 4th quarter. Morgan Stanley now owns 16,396,655 shares of the semiconductor manufacturer’s stock worth $4,679,771,000 after acquiring an additional 794,289 shares during the last quarter. Finally, Northern Trust Corp boosted its holdings in Micron Technology by 1.9% during the fourth quarter. Northern Trust Corp now owns 10,654,349 shares of the semiconductor manufacturer’s stock worth $3,040,858,000 after purchasing an additional 194,550 shares during the last quarter. 80.84% of the stock is owned by institutional investors.
Analyst Ratings Changes Several research analysts have weighed in on the company. Rosenblatt Securities boosted their price objective on Micron Technology from $1,200.00 to $1,500.00 and gave the stock a “buy” rating in a research report on Thursday, June 25th. Wolfe Research set a $1,500.00 price objective on shares of Micron Technology in a research note on Thursday, June 25th. Mizuho lifted their target price on Micron Technology from $1,150.00 to $1,375.00 and gave the company an “outperform” rating in a report on Thursday, June 25th. The Goldman Sachs Group upped their price target on shares of Micron Technology from $900.00 to $1,100.00 and gave the stock a “neutral” rating in a report on Thursday, June 25th. Finally, ThinkEquity restated a “buy” rating on shares of Micron Technology in a research report on Monday, August 3rd. Three equities research analysts have rated the stock with a Strong Buy rating, thirty-two have given a Buy rating and two have assigned a Hold rating to the company’s stock. According to MarketBeat.com, Micron Technology currently has an average rating of “Buy” and an average target price of $1,259.97.
View Our Latest Research Report on Micron Technology Micron Technology Trading Down 0.4% NASDAQ:MU opened at $937.10 on Thursday. The company has a quick ratio of 2.98, a current ratio of 3.42 and a debt-to-equity ratio of 0.05. The company has a fifty day moving average of $967.75 and a 200 day moving average of $690.43. The firm has a market capitalization of $1.06 trillion, a P/E ratio of 21.22 and a beta of 2.18. Micron Technology, Inc. has a 52 week low of $113.46 and a 52 week high of $1,255.00.
Micron Technology (NASDAQ:MU – Get Free Report) last announced its quarterly earnings results on Wednesday, June 24th. The semiconductor manufacturer reported $25.11 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $21.39 by $3.72. Micron Technology had a return on equity of 71.13% and a net margin of 55.91%.The company had revenue of $41.46 billion for the quarter, compared to the consensus estimate of $35.91 billion. During the same quarter in the previous year, the business earned $1.91 EPS. Micron Technology’s revenue was up 345.8% compared to the same quarter last year. Micron Technology has set its Q4 2026 guidance at 30.000-32.000 EPS. On average, research analysts predict that Micron Technology, Inc. will post 72.93 earnings per share for the current year.
Micron Technology Dividend Announcement The company also recently declared a quarterly dividend, which was paid on Tuesday, July 21st. Investors of record on Monday, July 6th were given a dividend of $0.15 per share. The ex-dividend date was Monday, July 6th. This represents a $0.60 annualized dividend and a dividend yield of 0.1%. Micron Technology’s payout ratio is currently 1.36%.
Insider Buying and Selling at Micron Technology In other news, Director Lynn A. Dugle sold 1,300 shares of the company’s stock in a transaction dated Tuesday, June 30th. The shares were sold at an average price of $1,150.43, for a total value of $1,495,559.00. Following the sale, the director directly owned 17,728 shares of the company’s stock, valued at $20,394,823.04. This represents a 6.83% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. Also, CEO Sanjay Mehrotra sold 31,285 shares of the firm’s stock in a transaction that occurred on Friday, July 24th. The shares were sold at an average price of $926.83, for a total transaction of $28,995,876.55. Following the transaction, the chief executive officer directly owned 313,218 shares of the company’s stock, valued at $290,299,838.94. This represents a 9.08% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last quarter, insiders have sold 162,179 shares of company stock worth $167,811,861. Corporate insiders own 0.24% of the company’s stock.
Trending Headlines about Micron Technology Here are the key news stories impacting Micron Technology this week:
Positive Sentiment: Micron is benefiting from accelerating artificial-intelligence demand for high-bandwidth memory (HBM), server DRAM and data-center storage. The expansion of agentic AI workloads could broaden the company’s memory opportunity and support long-term growth. Will Agentic AI Adoption Expand Micron’s Memory Growth Opportunity? Positive Sentiment: Micron continues to gain NAND market share, while its SSD business surpassed $5 billion in quarterly revenue and NAND revenue reportedly grew sharply year over year. Long-term customer agreements also provide visibility into demand through 2028. Micron Stock Is Under Pressure but the Market Is Missing the Good News Positive Sentiment: SK Hynix’s authorization of an approximately $28.6 billion share-repurchase and cancellation program is lifting sentiment across the memory sector. The move signals management confidence in AI-memory demand and helped Micron rebound earlier in the session. SK Hynix Rises on Buyback as Memory Names Rebound Positive Sentiment: Analysts remain constructive: Bank of America reiterated a Buy rating and a $1,550 price target, while other commentary highlights Micron’s comparatively low forward valuation despite its AI-driven earnings growth. Analyst Issues New Micron Stock Price Target Neutral Sentiment: Micron’s latest reported quarter substantially exceeded expectations, with revenue of $41.46 billion versus a $35.91 billion consensus estimate and EPS of $25.11 versus $21.39 expected. However, investors are now focusing more on the durability of these unusually strong results than on the earnings beat itself. Negative Sentiment: Rising Treasury yields and concerns about higher financing costs for AI infrastructure are pressuring high-growth semiconductor stocks. The weakness has spread across global memory names and reflects profit-taking after Micron’s substantial year-to-date rally. AI Chip Stocks Pull Back as Yields Rise Negative Sentiment: Some investors question whether HBM pricing and demand can remain elevated as memory remains a cyclical industry. Concerns about aggressive semiconductor capacity expansion, concentrated hyperscaler spending and Micron trading well above estimated intrinsic value are adding valuation risk. Micron Trades Above GF Value as Semiconductor Selloff Deepens Micron Technology Company Profile (Free Report)
Micron Technology, Inc is a global semiconductor company that designs and manufactures memory and storage solutions. Its product portfolio includes dynamic random-access memory (DRAM), NAND flash memory, solid-state drives (SSDs), memory modules and embedded memory solutions for a wide range of computing and electronic devices. Micron supplies components used in data centers, enterprise and cloud infrastructure, client computing, mobile devices, automotive systems and industrial applications, and also markets consumer-facing products under the Crucial brand.
Founded in 1978 and headquartered in Boise, Idaho, Micron has grown into an international manufacturer with research, development and production facilities across multiple regions.
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Farther Finance Advisors LLC increased its position in shares of Micron Technology, Inc. (NASDAQ:MU – Free Report) by 8.6% during the 2nd quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The firm owned 57,711 shares of the semiconductor manufacturer’s stock after buying an additional 4,594 shares during the period. Micron Technology comprises approximately 0.5% of Farther Finance Advisors LLC’s holdings, making the stock its 28th biggest holding. Farther Finance Advisors LLC’s holdings in Micron Technology were worth $66,604,000 at the end of the most recent quarter.
Other institutional investors have also recently added to or reduced their stakes in the company. Vanguard Group Inc. increased its position in shares of Micron Technology by 1.9% during the fourth quarter. Vanguard Group Inc. now owns 106,608,094 shares of the semiconductor manufacturer’s stock worth $30,427,016,000 after acquiring an additional 1,954,644 shares during the last quarter. State Street Corp lifted its stake in shares of Micron Technology by 2.1% in the fourth quarter. State Street Corp now owns 52,749,817 shares of the semiconductor manufacturer’s stock worth $15,061,310,000 after acquiring an additional 1,090,644 shares in the last quarter. Norges Bank purchased a new position in Micron Technology in the fourth quarter valued at about $6,433,456,000. Morgan Stanley boosted its holdings in Micron Technology by 5.1% in the fourth quarter. Morgan Stanley now owns 16,396,655 shares of the semiconductor manufacturer’s stock valued at $4,679,771,000 after purchasing an additional 794,289 shares during the last quarter. Finally, Northern Trust Corp grew its stake in Micron Technology by 1.9% during the 4th quarter. Northern Trust Corp now owns 10,654,349 shares of the semiconductor manufacturer’s stock valued at $3,040,858,000 after purchasing an additional 194,550 shares in the last quarter. Institutional investors and hedge funds own 80.84% of the company’s stock.
Micron Technology Stock Performance MU stock opened at $937.10 on Thursday. The company has a 50-day simple moving average of $967.75 and a 200 day simple moving average of $690.43. The company has a market capitalization of $1.06 trillion, a P/E ratio of 21.22 and a beta of 2.18. The company has a quick ratio of 2.98, a current ratio of 3.42 and a debt-to-equity ratio of 0.05. Micron Technology, Inc. has a fifty-two week low of $113.46 and a fifty-two week high of $1,255.00.
Micron Technology (NASDAQ:MU – Get Free Report) last released its earnings results on Wednesday, June 24th. The semiconductor manufacturer reported $25.11 EPS for the quarter, beating the consensus estimate of $21.39 by $3.72. Micron Technology had a net margin of 55.91% and a return on equity of 71.13%. The firm had revenue of $41.46 billion for the quarter, compared to analysts’ expectations of $35.91 billion. During the same quarter last year, the company earned $1.91 EPS. Micron Technology’s quarterly revenue was up 345.8% on a year-over-year basis. Micron Technology has set its Q4 2026 guidance at 30.000-32.000 EPS. Sell-side analysts predict that Micron Technology, Inc. will post 72.93 earnings per share for the current fiscal year. Micron Technology Dividend Announcement The business also recently disclosed a quarterly dividend, which was paid on Tuesday, July 21st. Investors of record on Monday, July 6th were paid a dividend of $0.15 per share. This represents a $0.60 dividend on an annualized basis and a dividend yield of 0.1%. The ex-dividend date was Monday, July 6th. Micron Technology’s dividend payout ratio (DPR) is currently 1.36%.
More Micron Technology News Here are the key news stories impacting Micron Technology this week:
Positive Sentiment: Micron is benefiting from accelerating artificial-intelligence demand for high-bandwidth memory (HBM), server DRAM and data-center storage. The expansion of agentic AI workloads could broaden the company’s memory opportunity and support long-term growth. Will Agentic AI Adoption Expand Micron’s Memory Growth Opportunity? Positive Sentiment: Micron continues to gain NAND market share, while its SSD business surpassed $5 billion in quarterly revenue and NAND revenue reportedly grew sharply year over year. Long-term customer agreements also provide visibility into demand through 2028. Micron Stock Is Under Pressure but the Market Is Missing the Good News Positive Sentiment: SK Hynix’s authorization of an approximately $28.6 billion share-repurchase and cancellation program is lifting sentiment across the memory sector. The move signals management confidence in AI-memory demand and helped Micron rebound earlier in the session. SK Hynix Rises on Buyback as Memory Names Rebound Positive Sentiment: Analysts remain constructive: Bank of America reiterated a Buy rating and a $1,550 price target, while other commentary highlights Micron’s comparatively low forward valuation despite its AI-driven earnings growth. Analyst Issues New Micron Stock Price Target Neutral Sentiment: Micron’s latest reported quarter substantially exceeded expectations, with revenue of $41.46 billion versus a $35.91 billion consensus estimate and EPS of $25.11 versus $21.39 expected. However, investors are now focusing more on the durability of these unusually strong results than on the earnings beat itself. Negative Sentiment: Rising Treasury yields and concerns about higher financing costs for AI infrastructure are pressuring high-growth semiconductor stocks. The weakness has spread across global memory names and reflects profit-taking after Micron’s substantial year-to-date rally. AI Chip Stocks Pull Back as Yields Rise Negative Sentiment: Some investors question whether HBM pricing and demand can remain elevated as memory remains a cyclical industry. Concerns about aggressive semiconductor capacity expansion, concentrated hyperscaler spending and Micron trading well above estimated intrinsic value are adding valuation risk. Micron Trades Above GF Value as Semiconductor Selloff Deepens Insider Transactions at Micron Technology In related news, CEO Sanjay Mehrotra sold 31,285 shares of the business’s stock in a transaction that occurred on Friday, July 24th. The stock was sold at an average price of $926.83, for a total transaction of $28,995,876.55. Following the sale, the chief executive officer owned 313,218 shares of the company’s stock, valued at $290,299,838.94. The trade was a 9.08% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, Director Lynn A. Dugle sold 1,300 shares of the company’s stock in a transaction that occurred on Tuesday, June 30th. The stock was sold at an average price of $1,150.43, for a total value of $1,495,559.00. Following the completion of the sale, the director owned 17,728 shares of the company’s stock, valued at $20,394,823.04. This trade represents a 6.83% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold 162,179 shares of company stock worth $167,811,861 in the last three months. 0.24% of the stock is currently owned by company insiders.
Analysts Set New Price Targets Several research firms have issued reports on MU. Susquehanna lifted their price objective on Micron Technology from $1,750.00 to $2,000.00 and gave the stock a “positive” rating in a report on Thursday, June 25th. Mizuho increased their target price on Micron Technology from $1,150.00 to $1,375.00 and gave the company an “outperform” rating in a research note on Thursday, June 25th. Erste Group Bank raised shares of Micron Technology from a “hold” rating to a “buy” rating in a research report on Thursday, June 25th. DA Davidson lifted their price target on shares of Micron Technology from $1,500.00 to $2,000.00 and gave the stock a “buy” rating in a research note on Thursday, June 25th. Finally, Melius Research initiated coverage on shares of Micron Technology in a report on Monday, April 27th. They issued a “buy” rating and a $700.00 price target on the stock. Three analysts have rated the stock with a Strong Buy rating, thirty-two have assigned a Buy rating and two have given a Hold rating to the company. According to MarketBeat.com, the company presently has an average rating of “Buy” and an average price target of $1,259.97.
View Our Latest Stock Report on Micron Technology
Micron Technology Company Profile (Free Report)
Micron Technology, Inc is a global semiconductor company that designs and manufactures memory and storage solutions. Its product portfolio includes dynamic random-access memory (DRAM), NAND flash memory, solid-state drives (SSDs), memory modules and embedded memory solutions for a wide range of computing and electronic devices. Micron supplies components used in data centers, enterprise and cloud infrastructure, client computing, mobile devices, automotive systems and industrial applications, and also markets consumer-facing products under the Crucial brand.
Founded in 1978 and headquartered in Boise, Idaho, Micron has grown into an international manufacturer with research, development and production facilities across multiple regions.
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Micron rozšiřuje v Boise závod za 50 miliard USD a plánuje dvě nové továrny, které mají vytvořit více než 17 000 pracovních míst. Akcie firmy letos prudce vzrostly a v Boise spustily boom v bydlení, obchodu i službách.
Dave Petso has been a wealth manager in Boise, Idaho since the 1980s. His business has survived multiple recessions, the bursting of the dot-com bubble and the 2008 financial crisis.
For most of Petso's 45-year career, Micron, the hometown maker of computer memory, has been a boring enterprise tech company and, in his words, a "terrible investment."
But almost four years into the artificial intelligence craze, the sleepy semiconductor company is one of the hottest names on the planet, turning many of Petso's clients into sudden millionaires. A big part of Petso's job has become helping Micron employees diversify after a more than tenfold increase in the stock since the end of 2024 lifted the company's market cap past $1 trillion.
"You've got a boatload of money now, and it's all tied up in one company," Petso said in an interview. Where clients had been figuring out what to do with some $20,000 worth of stock, "now we're talking about hundreds of thousands or millions of dollars," he said.
Micron vs. S&P 500 over past five years
Across Boise, a Mountain West city of about 250,000 residents that's best known for outdoor adventures and the blue turf football field at Boise State University, the Micron boom is showing up in the form of job growth, new construction projects, a bustling dining scene and an influx in new residents.
Micron has broken ground on two new chip manufacturing facilities that are expected to create more than 17,000 new jobs in the area. That includes 3,500 at Micron, which currently employs about 7,000 people in and around Boise.
With the city's rapid expansion comes plenty of annoyances. Residents complain of frequent traffic jams around town or on Interstate 84, rising housing costs and a rush of people from California and elsewhere altering the local culture and landscape. Average rental prices in Boise have climbed 4.3% in the past year, while average prices nationwide have dropped, according to Zillow.
"One of Boise's competitive advantages was our low cost of living," said Jason Crawforth, a lifelong resident of Boise who's been building tech companies in the area for almost 35 years. But Crawforth said that while he's seeing his net worth go up from an investment in Micron, "there's a large demographic of our community that doesn't have a direct benefit from that."
CNBC spoke to residents, business owners, real estate agents and others in the Boise area about the recent boom, its impact on the city and what could still be coming as Micron embarks on a $50 billion expansion plan. They collectively portray the city as an unexpected winner in the global AI buildout, one that's trying to hang onto its identity while not becoming overreliant on a technology with a long history of boom-and-bust cycles.
While the trajectory still points up and to the right, Micron shares plunged 29% in July, their worst month since 2002. Shareholders hope it was just a corrective blip, and not a sign of things to come. The stock is up 14% so far in August.
Boise and the global memory raceMicron was founded in Boise nearly 50 years ago in the basement of a dental office. By 1981 its first chip fabrication plant was up and running there, pumping out general-purpose memory chips known as DRAM. In its latest quarter, DRAM accounted for 76% of Micron's total revenue.
DRAM is also the type of chips that are stacked to make high-bandwidth memory, or HBM, which is then added to the powerful processors used for AI.
As HBM gobbles up the world's supply of DRAM, it's caused a global shortage and skyrocketing memory costs, leading to higher prices across the board, even for consumer electronics like Apple's MacBooks and iPads.
All three of the world's top HBM suppliers — market leader SK Hynix, Samsung and Micron — are building huge new plants to try and meet demand. SK Hynix and Samsung are constructing mega-fabs in their home country of South Korea.
They've all been handsomely rewarded by the stock market despite the July pullback. Micron leads the pack, up almost 670% in the past year, followed by SK Hynix at about 470% and Samsung at over 250%.
The rally turned Micron CEO Sanjay Mehrotra, a nine-year veteran of the company, into a billionaire earlier this year, though last month's selloff pushed him below that mark.
For Mehrotra, Boise represents a big opportunity to help turn his company into a hotbed for U.S. manufacturing. The first of Micron's two new Boise fabs is scheduled to come online in 2027. It will be the country's first front-end factory for manufacturing leading-edge memory. Most of Micron's top-end memory is currently produced in Taiwan, Japan and Singapore.
The site also includes utility and water-treatment buildings to support the resource-intensive process of making chips. Local utility Idaho Power told CNBC in a statement that it "does not expect large-load growth, including Micron's expansion, to increase electric bills for other customers."
Additional AI-driven growth in the area is coming from Meta, which is building an $800 million data center 20 miles southwest, in Kuna, Idaho, that it says will create about 100 operational jobs. There's a flurry of new offices from Micron suppliers like Lam Research and cleanroom builder Exyte, plus contractors coming in for lucrative jobs helping to build Micron's fabs.
With Boise, and an even bigger memory fab campus coming to Clay, New York, Micron's long-term goal is to produce 40% of its DRAM in the U.S. It plans to spend $250 billion through 2035 to get there, with the help of up to $6.2 billion of CHIPS Act funds, which were granted under the Biden administration.
Micron is part of the fabric of Boise's economy, alongside other local legends like the Albertsons grocery chain and the potato empire of J.R. Simplot, who was one of Micron's first investors.
Today, the memory maker is among Ada County's leading employers, after Boise State and the region's health system.
"It's always been something that we've been around, but of course recently, with Boise, Idaho being a very small market, it's probably one of our largest success stories that we've ever had," said JT Belnap, founder of Treasure Valley Financial Planning, which is now almost exclusively focused on managing Micron employees' wealth.
Belnap told CNBC that his firm's phones are "continuing to ring" with requests from Micron employees who are close to retirement.
Because of the stock appreciation, some are moving up their timelines to exit the workforce from three or four years to one or two, Belnap said. To take advantage of tax benefits, others are donating stock to charities. And plenty are taking some profit for a dream purchase, like one of Belnap's clients who recently bought an $80,000 truck he'd always wanted.
"What I've learned doing financial planning for as long as I have is when anyone comes into some real wealth that's kind of a sudden thing, you need to allow them to have a little bit of fun," Belnap said.
Selling stock to buy jewelry, homesAbout 9 miles east of Belnap's office, a very different kind of business is noticing a similar trend. Lisa Zimowsky, owner of jewelry boutique The Diamond Girls, said her sales are up 60% for the year.
"I do know of several people that have sold some stock and bought with us," Zimowsky said. "Usually it's the people that got a quarterly bonus when the stock was $150," or less than one-sixth its current price.
"The Boise economy is super strong," Zimowsky added. "I think Micron's been a big part of that."
Then there's the real estate market.
Sheila Smith, an agent in the area, said she's seen more prospective buyers and fewer listings for homes in the southeast part of the city, near Micron's headquarters. Smith said there's so much construction that some Micron contractors involved with the new fabs are purchasing homes.
"Typically if somebody knows they're only going to be here temporarily, for an interim-type job, such as the engineers, they don't look to buy," Smith said in an interview. "They are coming here and they are buying."
Mortgage broker Gerald Robinson said that over about a month-long stretch, he consulted with four Micron clients who were looking to buy homes.
"We're seeing a lot of stock options being executed right now, and people [are] purchasing," said Robinson, CEO of 1st Choice Mortgage.
One of the two clients who ended up buying a house did so as an investment to run an Airbnb-style property, Robinson said. The other was a first-time homebuyer in her early 20s.
Two of the prospects didn't end up needing Robinson's help, as they opted to sell stock and buy properties in cash, Robinson said.
Micron told CNBC that stock offerings are a key part of the company's strategy to recruit and retain talent. Through the first three quarters of this fiscal year, Micron had recorded $954 million in stock-based compensation, up more than 100% from three years ago.
"We do lean into stock awards very heavily," said April Arnzen, Micron's chief people officer and an Idaho native who's worked at the company for 27 years. "We want our team members to be owners in the company and share in the success of the company."
It's not just employees who have gotten in on the action.
As a longtime part of the Boise tech community, Crawforth bought Micron shares when they traded around $16 each, and said he still owns north of 1,500 to this day. That's a stake worth over $1.4 million.
But the growth led to an accidental imbalance in the family.
"I made a mistake – I bought some for my niece, but not for my nephew," Crawforth said. "All of a sudden, my niece's investment to help her put a down payment on a house when she's old enough is significantly higher than my nephew."
Crawforth said he's got a "moral dilemma" as he figures out "how to rectify that situation."
His partner also bought, but at a higher price, and was able to pay off a portion of car debt after recently cashing in her position at around $1,200 a share.
A city's new chapter With so much new wealth and with demand rising for homes, concerns are spreading that Boise is becoming unaffordable for those not boosted by the Micron effect. Median home sale prices in Boise are up 2.9% over the past year as of June, compared to a 1.2% average increase nationwide, according to Redfin.
"Now we're just seeing the lower incomes maybe getting a little bit more and more priced out, because wages may not be keeping up with home prices," Robinson said.
Ada County has swelled by around 19% since 2020, adding close to 95,000 people, according to estimates from Compass Idaho. Statewide, Idaho's growth is the fastest in the nation over a similar period. People have flocked there from California, Washington and Oregon, taking advantage of Boise's lower cost of living, relatively mild winters, and lively outdoor scene.
The demographics are noticeably changing, Zimowsky said.
"Five years ago, nobody had a designer purse here, nobody cared, nobody even knew what Louis Vuitton was," she said. "Now everybody's carrying them."
For food lovers and concert goers, Boise's growth has taken the city up a notch. Boise State's Albertsons Stadium, home to the iconic blue turf, hosted performances from Post Malone and Jelly Roll last year, while Jason Aldean and the Alabama Shakes came through town more recently.
"The amenities here have changed a lot," said Clark Krause, executive director of the Boise Valley Economic Partnership. Residents now have "access to things that someone living in a city would enjoy."
Long before he became the first Idaho chef to win a James Beard award, Kris Komori decided Boise was where he wanted to raise his growing family. When he moved to Boise from Portland, Oregon, in 2013, there weren't very many hotels and high-rise buildings dotting the landscape, and the dining scene was much quieter.
"Everyone was like, 'What are you going to do out in Idaho?'" said Komori, the co-owner and executive chef at KIN Boise, which is located downtown. Now, "you can't go a block without there being some sort of construction going on."
KIN Boise, where a seasonal prix fixe meal runs $130 per person, is one of the top dining destinations in town, and a hot spot for Micron employees, especially when they're taking out clients, Komori said.
"They just frequent us much more now," Komori said. "That's a compliment to us because they want to kind of show off Boise, and we're on the list for that."
Komori said that every month, more restaurants − small businesses and chains alike − are opening downtown, and he's increasingly seeing more outside the city center.
Scaling challengesPetso, who moved to Boise in 1980 when the city had about one-third its current population, said he appreciates the vibrancy despite some of the drawbacks.
"It's so expensive to go out to dinner, but they're all packed," Petso said, of the restaurants. "You just walk downtown in Boise and just go, 'This is amazing.'"
Micron is well aware of the pressure created by such rapid expansion, which will only intensify with the thousands of new people the company is still planning to hire.
"When you're scaling that many people in a short amount of time, there certainly are challenges such as transportation, such as housing," Arnzen said. She added that the company has been partnering with the state and county and at the "local level on solutions to make sure we're staying a step ahead."
Arnzen said the company has made commitments around housing and is looking at "a lot of different roadway investment opportunities." The company also built a childcare center for employees in partnership with the YMCA, and is planning to spend $75 million on workforce, education and community development across the state over the next decade.
Additionally, Micron has a chip camp for middle school students, a Micron-sponsored training fab at Boise State, and an apprenticeship program at the College of Western Idaho in nearby Nampa.
"There are at least five buildings with the Micron name on those two campuses," Arnzen said. "Micron has been investing in those education institutions for years, and of course we're not going to stop. We need more talent."
Beyond the sprawl of cranes, bumper-to-bumper traffic on I-84 and Micron's community initiatives, there's growing concern about the sustainability of the memory boom.
Read more CNBC tech newsMarvell pops on AI chip deal that lets Google buy up to $12.2 billion in sharesNvidia plays matchmaker in Nordics, sources tell CNBC, as AI data center deals boom in regionThe U.S. banned Nvidia's best chips from going to China. Now it's trying to close a crucial loopholeAmazon to expand drone service to nearly 500 cities after targeting 1 million deliveries this yearCrawforth got a taste of the risk when the stock unwound in July.
"That's probably 600 grand for me personally in net worth that I've seen go away," Crawforth said, speaking of last month's stock drop. He was quick to note that over a three-month stretch it was up 50%, so "it's still a win."
For Petso, the moment has clear parallels to the last time Micron millionaires were showing up at his office. It was the dot-com bubble of 1999, and tech mania was everywhere. Micron shares jumped more than 50% that year after almost doubling the year prior.
Some of Petso's clients refused to sell even a portion of their holdings. The stock lost three-quarters of its value over the next three years, a crash that Petso said left "deep scars" for everyone involved.
It was a painful lesson, and one that he'd rather not have his existing client base learn the hard way.
"Trying to get people to trim and get out is really the discussions we're having now," Petso said. "You guys are killing it out there, but I've been around a long time. You were killing it in 1999 too."
Micron má podle článku silnou šanci na odraz, protože vedení očekává ve 4. čtvrtletí tržby 50 miliard USD a marže se zlepšují. Akcie se navíc drží nad 50denním EMA a RSI stoupá.
Buy MU. The setup is a valuation reset plus accelerating fundamentals: forward P/E ~12.8 vs tech ~23, PEG ~0.07, and Rule-of-40 >140%. Catalysts are already in motion—management guides Q4 revenue to $50B (likely >$55B) and margins are expanding (gross ~85%, net ~56%). Technicals confirm timing: holding above the 50-day EMA, RSI >50 rising, and an inverted head-and-shoulders targeting ~$1,256.
Key Risk: Memory demand breaks again and revenue/margins miss guidance, forcing the market to reprice MU back to “cyclical bust” multiples.
Memory basket (Hynix/Samsung)
Buy SK Hynix (or Samsung Electronics ADR) alongside MU. The article cites strong competitor results and major customers (Apple/Google/Microsoft) signaling continued spend. If MU’s rebound is real, it lifts the whole memory complex through shared end-demand and supply discipline expectations, and investors rotate into the group after MU’s valuation rerates.
Key Risk: A sector-wide supply/demand shock (pricing collapse or sudden inventory build) hits all memory names, not just MU.
Micron stock price has slumped into a bear market, moving from the year-to-date high of $1,255 in June to the current $940. This retreat has mirrored the performance of other memory companies in the United States, South Korea, and Japan. Still, there are some potential reasons why the stock may rebound in the near term.
One main reason why the Micron stock may restart its bull run is that most analysts tracking the company are bullish on it. New Street Research upgraded the stock target to $1,250, up by nearly 35% from the current level.
DA Davidson boosted its target from $1,500 to $2,000, while Needham analysts hiked its target from $1,550 to $1,650. Wolfe Research, Raymond James, and Royal Bank of Canada have targets of $1,500. In total, the consensus target for the MU stock is $1,260, up substantially from the current $940.
There are reasons why the stock has more upside in the coming months. One of the most bullish cases is that its growth is accelerating. Its recent results showed that the company’s revenue jumped to $41.5 billion, up by 74% from the previous quarter and 346% from the same period last year.
Most notably, the management expects the growth to continue, with the fourth-quarter revenue coming in at $50 billion. Historically, the company’s revenue tends to be better than estimates, meaning that the real figure will come in at over $55 billion. Its gross and net profit margins have jumped to 85% and 56%, respectively.
A good example of this is that its top competitors, including SK Hynix and Samsung Electronics, published strong financial results. Also, the top clients like Apple, Google, and Microsoft published strong numbers and hinted that they will continue spending. In total, the top companies in the US plan to spend over $700 billion this year.
A company that is seeing strong revenue and profit growth should have a higher valuation multiple than the broader market. In this case, the S&P 500 Index has a forward price-to-earnings ratio of 20.
Micron, on the other hand, has a forward multiple of 12.8, which is much lower than the technology sector’s average of 23. The metric is also much lower than the five-year average of 73.
The company also has a forward PEG ratio of 0.07, which also lower than the sector median of 0.70. Meanwhile, by adding its revenue growth and profit margin, the company has a Rule-of-40 metric of over 140%.
These numbers are a sign that investors are concerned about the cyclical nature of the memory industry. In the past, moments of booms are normally followed by periods of busts, such as in 2023 when its revenue plunged by nearly half.
MU stock chart | Source: TradingView
Technicals suggest that the MU stock has more upside to go in the coming days. It has held steady above the 50-day Exponential Moving Average (EMA).
A closer look at the chart shows that it has formed an inverted head-and-shoulders pattern, a common bullish reversal sign. It is now in the process of forming the right shoulder section.
The Relative Strength Index (RSI) has moved above the neutral level of 50 and is pointing upwards. Therefore, the most likely scenario is that the stock continues rising as bulls target the year-to-date high of $1,256.
SK hynix vede trh s AI paměťmi, ale stále se obchoduje za výrazně nižší násobky než Micron: trailing P/E 9,7x vs. 21,3x. Firma zároveň oznámila rekordní zpětný odkup akcií za 40 bilionů wonů.
SK hynix Inc. (NASDAQ:SKHY) has established itself as the market leader in AI memory, but its valuation still looks surprisingly modest compared with rival Micron Technology, Inc. (NASDAQ:MU).
That’s the disconnect investors may want to consider, as the AI boom turns high-bandwidth memory (HBM) into one of the semiconductor industry‘s most valuable assets.
According to Benzinga Pro, SK Hynix trades at a trailing price-to-earnings ratio of 9.7x, compared with 21.3x for Micron. The gap is equally notable on an EV-to-EBITDA basis, where SK Hynix trades at 8.2x versus Micron’s 15.3x.
SK Hynix Leads the AI Memory Race, but the Valuation Says OtherwiseAs Nvidia Corp’s (NASDAQ:NVDA) leading supplier of high-bandwidth memory for its latest AI accelerators, SK Hynix continues to expand production capacity to meet surging demand. Management has repeatedly highlighted robust AI-driven demand, and this week announced a record 40 trillion won ($28.6 billion) share buyback alongside an enhanced shareholder return policy, citing confidence in its long-term cash generation.
Despite those advantages, the stock continues to trade at a substantially lower trailing multiple than Micron.
Forward valuations tell a different story. SK Hynix trades at roughly 6.0x forward earnings, almost identical to Micron’s 6.1x.
That suggests investors expect strong earnings growth from both companies over the coming year, even though the market currently assigns a much richer trailing multiple to Micron.
Read Next
The Valuation Gap May Reflect More Than AI FundamentalsThe disparity does not necessarily mean one stock is mispriced.
Micron and SK Hynix operate in the same industry but are listed in different markets, face different investor bases and are subject to different geopolitical and governance considerations. Those factors can influence valuation multiples independently of operating performance.
Our inference is that the market may also be assigning a persistent “Korea discount” to SK Hynix—a phenomenon long discussed by investors in South Korean equities due to governance structures, capital allocation practices, and geopolitical risk.
SK Hynix itself appears intent on narrowing that perception through more aggressive shareholder returns, including its newly announced buyback and commitment to return more than 50% of cumulative free cash flow generated between 2025 and 2027.
Technical Momentum Is Turning Positive for SK Hynix StockThe valuation story is unfolding alongside improving price action.
Chart created using Benzinga Pro
According to Benzinga Pro, SK Hynix shares have reclaimed both their 8-day and 20-day moving averages, while the shorter-term average has crossed above the longer-term average. Momentum indicators have also strengthened, with the Moving Average Convergence Divergence (MACD) indicator turning positive and the Relative Strength Index (RSI) hovering around 52, suggesting the recent rally is gaining momentum without yet entering overbought territory.
Technical indicators do not predict future performance, but they suggest investors have begun rewarding the company’s improving fundamentals following its latest capital allocation announcement.
What Investors Should Watch NextThe more important comparison may not be today’s valuation multiple but whether SK Hynix can sustain its leadership in the AI memory market.
If demand for HBM remains robust, capacity expansions stay on track, and the company continues to pair strong earnings growth with shareholder-friendly capital allocation, investors may begin to question why the industry’s AI memory leader still trades at such a meaningful discount to one of its closest peers.
Whether that gap narrows—or persists—could become one of the more closely watched valuation stories in semiconductors over the coming year.
Micron po růstu tržeb a zisku stále obchoduje jen za asi 7násobek odhadu zisku na příští rok, výrazně pod Nvidií s asi 18násobkem forward P/E. Investoři ale zůstávají opatrní kvůli cykličnosti paměťového trhu.
Shares of Micron Technology (MU -7.02%) have soared over the past year as memory shortages fueled explosive growth in revenue and profits. With the stock up by more than 700%, the company's market cap recently crossed $1 trillion, yet the stock still trades at a cheap-looking valuation of about 7 times next year's consensus earnings estimate.
That valuation sits well below Nvidia's roughly 18 forward price-to-earnings (P/E) multiple. So why the discount on Micron -- and is it warranted?
Image source: The Motley Fool.
Investors are cautious despite booming demand In its fiscal 2026 third quarter, Micron delivered a 346% year-over-year revenue jump, and analysts expect a similar increase in fiscal Q4. But investors aren't ready to start ignoring the memory market's boom-and-bust history.
Over the past 10 years, Micron has at times seen its revenue drop by as much as 50% in a single year. That matches the occasional downward swings in memory chip selling prices. That type of volatility explains why investors tend to pay a low multiple for the stock even during good times -- because they expect the next memory market downturn will eventually arrive.
Trailing-12-month earnings have hit a record $44 per share and just doubled year over year in the most recent quarter. But Micron's results were choppy before fiscal 2025. From fiscal 2017 through fiscal 2025, earnings rose 72% in total, which isn't much over eight years.
The current memory boom might last for another year or two. On the June earnings call, management said it has no clear line of sight for when memory supply will fully catch up to demand. This statement supports expectations for higher prices and profit growth in the near term.
The question is what happens after 2028. That's when the gap between supply and demand is expected to shrink as Micron and its competitors gradually bring expanded manufacturing capacity online. SK Hynix expects to add some production capacity as early as next year, which keeps investors cautious about how long memory prices can stay this elevated as supply catches up to demand.
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The market rewards consistency Nvidia faces a similar cyclical risk, but it's more tied to the broader semiconductor industry's demand cycles. The market is willing to award the GPU leader a higher forward earnings multiple because its business typically doesn't experience the same extreme degree of cyclicality that Micron faces.
Nvidia has posted occasional dips in earnings, yet from 2012 through 2022 -- before the AI boom even began -- its earnings grew almost 1,000% total. Investors generally award higher multiples to companies with steadier earnings growth than to those with sharper swings.
The key variable to watch is Micron's new strategic customer agreements -- deals that lock in prices and volumes for much longer than was previously common in the memory space. Management expects these deals to be transformative for the business, with 16 contracts signed so far, each lasting five years. In time, management expects strategic customer agreements to account for more than half of its revenue, making its future revenue more stable.
If these agreements lead to more durable revenue and a firmer pricing floor for memory, investors could start to assign Micron a higher earnings multiple, narrowing its valuation gap with Nvidia.
Buy Micron Technology (MU). The selloff is being driven by momentum/algorithmic unwinds and higher Treasury yields, not a collapse in AI-server memory demand. TrendForce and supplier data point to continued NAND support, and Macquarie’s “worst memory crunch in history” view implies supply constraints persist for years—so the 7% down move is likely an overreaction.
Key Risk: A real demand break: hyperscalers cut AI capex or data-center orders, turning the memory crunch into a surplus.
KOSPI memory hedge-sell (short Samsung/SK Hynix)
Sell (short) Samsung Electronics (005930.KS) and SK Hynix (000660.KS) on rallies. They’re high-beta, crowded AI/memory positions that amplify global chip risk-off moves; the article shows they drove 71% of KOSPI losses in July and that prior declines were largely forced unwinds, not fundamentals. Until yields cool and US semis stabilize, these names can keep overshooting lower.
Key Risk: Yields fall fast and the US semiconductor complex rebounds, forcing a crowded-covering rally in Korean memory stocks.
Samsung Electronics and SK Hynix shares fell sharply Wednesday as Tuesday’s US semiconductor rout spread across the Pacific, dragging South Korea’s market lower.
SK Hynix dropped as much as 9.63% in early trading and Samsung fell 7.64%, while the KOSPI triggered a sell-off after opening nearly 5% lower.
By 11:20 AM local time, SK Hynix was down 8.36% and Samsung 7.08%.
The move followed a Wall Street session. Micron Technology sank 7% to $940.76, SanDisk lost 9% and US-listed SK Hynix fell 9.2%.
The Philadelphia Semiconductor Index dropped 5% as rising bond yields and tensions in the Middle East pushed investors out of technology shares.
The transmission from Wall Street to Seoul was unusually direct.
Micron entered Tuesday after rising almost 18% over the previous five sessions, but the rebound reversed as investors cut exposure to chip stocks.
Nvidia fell 2.3%, while other semiconductor and data-storage names sold off.
Mizuho Securities trading desk analyst Jordan Klein attributed part of the US decline to machine-driven trading amid thin mid-August volumes.
That matters because memory shares have become high-momentum trades, where algorithmic selling and rapid shifts in positioning can exaggerate market moves.
Higher Treasury yields added another pressure point. The US 30-year yield reached its highest level since 2007 on Tuesday as elevated oil prices revived inflation concerns.
Jefferies analyst Jeffrey Favuzza told MarketWatch that high Treasury yields were among the factors weighing on semiconductor shares.
Samsung and SK Hynix have an outsized influence on South Korea’s market, making any global semiconductor retreat particularly painful for the KOSPI.
Macquarie analysis showed the two companies accounted for 71% of the KOSPI’s losses during July’s rout. Together they fell 48%, compared with 26% for the rest of the market.
That episode showed how positioning can magnify fundamental concerns.
During the July selloff, KB Securities’ Peter Kim told Reuters that the decline was “not driven by fundamental deterioration,” but by liquidity, sentiment and forced unwinding of leveraged single-stock ETFs.
Société Générale’s Frank Benzimra made a similar point, telling Reuters at the time that Korean AI equities had become “a very crowded trade which is being unwound.”
The contradiction is that industry data have not suddenly turned bearish.
TrendForce said on Tuesday that strong AI-server demand should continue supporting NAND flash growth in the third quarter.
Data-centre purchases kept the market undersupplied in the second quarter, while combined revenue for the five largest NAND suppliers jumped 77% sequentially to $68.87 billion.
Samsung remained the largest supplier by revenue, followed by SK Hynix and Micron.
Macquarie has gone further, telling Business Insider that the industry faces the “worst memory crunch in history” and that supply constraints may not ease for three years.
It described AI inference-driven memory demand as “off the charts.”
Micron klesl asi o 7 %, protože investoři po silném růstu přehodnocují drahé AI akcie. Firma přitom dál roste: tržby ve fiskálním 3. čtvrtletí vyskočily na 41,46 miliardy USD.
, the memory-chip powerhouse at the center of the AI infrastructure boom, dropped approximately 7% to $940.89 Tuesday morning as investors slammed the brakes on high-flying AI stocks. Rising Treasury yields triggered a broad risk-off move across semiconductors, with the Nasdaq and chip names taking the hit as investors questioned whether the AI trade had moved too far, too fast.
But here is the key point: Micron's business is not slowing down. The stock is falling because expectations are sky-high, not because the AI memory story is broken. Micron's fiscal third-quarter revenue surged to $41.46 billion, compared with $23.86 billion in the previous quarter and just $9.3 billion a year earlier. Operating cash flow jumped to $25.39 billion, while GAAP net income reached $28.24 billion. The numbers show a company riding one of the strongest memory cycles in its history.
The real battle is valuation. Micron shares have exploded more than 700% over the past year, according to Barron's, creating a stock that now demands near-perfect execution.
The GF Value chart tells the story: Micron trades at $941.49, roughly 60.62% above its GF Value estimate of $586.15. The market is already pricing in a massive AI-driven future. Micron may still have one of the best AI memory stories in the market, but after a historic rally, even great companies can face brutal pullbacks when investors decide the price has run ahead of reality.
Micron ve 3Q FY26 dosáhl tržeb 41,46 miliardy USD a non-GAAP EPS 25,11 USD, obojí výrazně nad odhady. Ve 4Q vyhlíží rekordní tržby 50 miliard USD a EPS 31 USD.
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Micron Technology (NASDAQ:MU | MU Price Prediction) closed the most recent session at $1,011.75, capping a 254.71% year-to-date run driven by an AI memory cycle that CEO Sanjay Mehrotra called a structural transformation of the industry.
Our 24/7 Wall St. price target for Micron is $964.63, implying -0.72% from here, and our recommendation is hold with high conviction.
24/7 Wall St. Price Target Summary Metric Value Current Price $1,011.75 24/7 Wall St. Price Target $964.63 Upside/Downside -0.72% Recommendation HOLD Confidence Level 90% Why We Could Be Wrong Our 24/7 Wall St. price target of $964.63 sits just below current levels. Real upside could come from 16 Strategic Customer Agreements locking in roughly $100 billion of minimum-priced revenue, or from HBM4 ramping twice as fast as HBM3E. Consensus analyst targets sit far higher.
A 254% YTD Run, Then a Cooldown Micron has climbed 738.41% over one year and 17.51% in the past week, but shares sit about 20% below the 52-week high of $1,254.81.
Q3 FY26 results showed memory’s AI leverage: revenue of $41.46 billion beat consensus by 17.60%, non-GAAP EPS of $25.11 beat by 23.79%, and GAAP gross margin expanded to 84.6% from 37.7% a year earlier. Q4 guidance calls for record revenue of $50 billion and EPS of $31.
The Case for $1,500+ Bulls have real ammunition. The average analyst price target sits at $1,501.98, backed by 9 strong buy and 31 buy ratings against zero sells. The forward P/E on trailing consensus is just 6, a valuation that assumes memory profits collapse rather than compound.
Mehrotra told analysts floor prices in SCAs deliver “a very robust gross margin for Micron, well above our peak quarterly margins in any past cycle.”
Data center revenue already exceeds $25 billion quarterly, Micron has shipped over $1 billion in HBM4 revenue, and management sees tight supply persisting beyond calendar 2027. Our bull-case scenario points to $1,334.11 over 12 months.
What Could Go Wrong Memory cycles are memory cycles. CapEx of $7.83 billion in a single quarter and full-year fiscal 2026 spending near $27 billion leave little margin for demand slippage. Beta of 2.213 means a broad AI de-rate cuts deeper here than most names.
Our bear scenario targets $705.83. Counterfactual: much of that CapEx funds the Idaho and New York fabs plus $18 billion in customer cash deposits that offset the spend.
How Micron Compares to Western Digital and Sandisk Western Digital (NASDAQ:WDC) is the cleanest HDD-only peer, riding the same hyperscaler storage buildout. WDC trades at a trailing P/E of 15 and forward P/E of 18, with Q4 revenue of $2.6B up 9% YoY.
SanDisk (NASDAQ:SNDK) is the pure-play NAND comparable. Sandisk trades at a forward P/E of 26 with an analyst target of $2,107.70. Micron’s forward P/E of 6 is a fraction of both, which explains the analyst-versus-model gap. The peer group makes our 24/7 Wall St. price target look conservative on multiples but appropriate given cycle risk.
Company Forward P/E Trailing P/E Micron 6 22 Western Digital 18 15 Sandisk 26 22 Micron Price Prediction 2026-2030 The 24/7 Wall St. price target is $964.63, recommendation hold, confidence 90%. A pullback toward $850 would look more attractive if HBM4 yields and SCA cash deposits keep landing on schedule. The setup weakens if hyperscaler CapEx guides soften into 2027.
Year 24/7 Wall St. Price Target 2026 $965 2027 $1,050 2028 $1,120 2029 $1,180 2030 $1,250 These projections assume Micron executes on its SCA-backed pricing framework and HBM roadmap. Meaningful upside toward the bull scenario of $2,058.69 by 2031 depends on tight supply persisting.
Contact [email protected] for any questions or corrections.
Nvidia podle BofA testuje u Rubin Ultra nižší paměťové konfigurace 192 GB až 288 GB kvůli omezené nabídce HBM4e. To může krátkodobě snížit poptávku po HBM od Micron.
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The artificial-intelligence buildout is creating an unusual problem for semiconductor investors: demand is arriving faster than the supply chain can deliver the most advanced components. High-bandwidth memory, or HBM, is at the center of that squeeze because AI accelerators need enormous amounts of fast memory to keep their processors fed with data.
That has been a major tailwind for Micron Technology (NASDAQ:MU | MU Price Prediction) and SK hynix (NASDAQ:SKHY), whose HBM businesses are expanding alongside AI infrastructure spending. Now, however, a new wrinkle has appeared: Nvidia (NASDAQ:NVDA) is reportedly testing lower-memory configurations for its next-generation Rubin Ultra accelerators. That has raised concerns about “despec” risk.
What Does Despec Mean For Micron? Despec simply means reducing the amount or performance of a component from its original specification.
For Micron shareholders, that matters because every AI accelerator equipped with less HBM represents fewer memory bits sold. If Nvidia moves Rubin Ultra from a planned 1 terabyte of HBM to configurations as low as 192GB, the potential hit to memory demand could be meaningful.
The concern is not theoretical. According to BofA Global Research note, Nvidia is evaluating Rubin Ultra configurations ranging from 192GB to 288GB because of HBM supply constraints and HBM4e qualification delays.
But there is an important catch: Less memory comes with a performance penalty.
Supply chains are buckling under the AI boom, forcing a high-stakes engineering compromise. See why Nvidia’s shift to lower-memory specs is putting Micron shareholders on high alert. The Numbers Point Toward A Bottleneck, Not A New Normal BofA’s analysis says performance falls sharply below 500GB, making a return to much higher memory capacities more likely as supply improves. Nvidia’s own July technical documentation shows its standard Rubin GPU already supports up to 288GB of HBM4 and 22 terabytes (TB) per second of memory bandwidth.
That makes the current despec look more like an engineering compromise than a change in what AI systems ultimately need.
Ironically, the broader HBM supply chain is moving in the opposite direction. BofA says upcoming HBM4e and HBM5 generations are already being designed around 12-high and 16-high stacks, supporting roughly 500GB to 1TB of memory per accelerator. In other words, the industry is building more memory capacity into future products at the same time Nvidia is testing lower-capacity Rubin Ultra configurations.
BofA also argues that roughly 1TB ultimately becomes a “must-have” for Rubin Ultra, particularly as physical AI workloads demand larger memory pools.
What This Means For Micron Investors Nvidia’s testing of 192GB and 288GB configurations could reduce HBM content per Rubin Ultra accelerator during the initial ramp. That could create a temporary volume headwind for Micron and SK hynix if constrained HBM4e availability forces Nvidia to ship lower-memory versions.
But the bigger trend remains intact: AI workloads are becoming more memory-intensive, not less. Nvidia says Vera Rubin is designed for agentic AI and massive long-context workloads, with the platform already ramping into production. Those workloads make memory capacity increasingly important, while physical AI adds another demand driver.
Granted, investors should watch Rubin Ultra’s final configuration closely. A prolonged shift toward lower-memory accelerators would change the HBM growth story.
Key Takeaway For Micron shareholders, “despec” risk is worth monitoring but doesn’t yet undermine the investment thesis. The 192 GB to 288 GB configurations appear tied to near-term HBM4e supply and qualification constraints, while performance deteriorates below 500GB and the industry is already moving toward 500GB-to-1TB accelerators.
In the end, that looks more like a temporary supply bottleneck than a collapse in HBM content. The momentum behind Micron and SK hynix remains intact as AI accelerators demand more memory, not less.
Contact [email protected] for any questions or corrections.
BTC Capital Management Inc. ve druhém čtvrtletí koupila nový podíl v Micron Technology za přibližně 17,033 mil. USD. Drží 14 756 akcií a Micron tvoří asi 1 % jejího portfolia.
BTC Capital Management Inc. purchased a new stake in Micron Technology, Inc. (NASDAQ:MU – Free Report) in the 2nd quarter, according to its most recent filing with the SEC. The institutional investor purchased 14,756 shares of the semiconductor manufacturer’s stock, valued at approximately $17,033,000. Micron Technology makes up about 1.0% of BTC Capital Management Inc.’s investment portfolio, making the stock its 19th largest holding.
Several other hedge funds also recently added to or reduced their stakes in MU. High Note Wealth LLC grew its stake in shares of Micron Technology by 65.4% in the fourth quarter. High Note Wealth LLC now owns 86 shares of the semiconductor manufacturer’s stock valued at $25,000 after buying an additional 34 shares in the last quarter. Kohmann Bosshard Financial Services LLC purchased a new stake in shares of Micron Technology during the 1st quarter valued at about $27,000. Bayban acquired a new position in Micron Technology during the 4th quarter worth approximately $29,000. GHP Investment Advisors Inc. lifted its position in Micron Technology by 91.2% during the 4th quarter. GHP Investment Advisors Inc. now owns 109 shares of the semiconductor manufacturer’s stock worth $31,000 after acquiring an additional 52 shares in the last quarter. Finally, Joseph Group Capital Management purchased a new position in Micron Technology in the 4th quarter worth approximately $31,000. 80.84% of the stock is owned by hedge funds and other institutional investors.
Analyst Upgrades and Downgrades A number of analysts have recently issued reports on the stock. TD Cowen reiterated a “buy” rating on shares of Micron Technology in a research note on Friday, July 10th. Wolfe Research set a $1,500.00 target price on shares of Micron Technology in a research note on Thursday, June 25th. Bank of America raised their price target on shares of Micron Technology from $950.00 to $1,500.00 and gave the company a “buy” rating in a report on Tuesday, June 23rd. Wedbush lifted their price target on shares of Micron Technology from $1,300.00 to $1,400.00 and gave the stock an “outperform” rating in a research note on Thursday, June 25th. Finally, Erste Group Bank upgraded shares of Micron Technology from a “hold” rating to a “buy” rating in a report on Thursday, June 25th. Four analysts have rated the stock with a Strong Buy rating, thirty-two have assigned a Buy rating and two have assigned a Hold rating to the company. According to MarketBeat.com, the stock presently has a consensus rating of “Buy” and an average target price of $1,259.97.
Read Our Latest Research Report on MU Insider Transactions at Micron Technology In other news, EVP April S. Arnzen sold 40,000 shares of Micron Technology stock in a transaction that occurred on Wednesday, July 1st. The stock was sold at an average price of $1,083.94, for a total value of $43,357,600.00. Following the completion of the transaction, the executive vice president owned 85,737 shares in the company, valued at approximately $92,933,763.78. This trade represents a 31.81% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, CAO Scott R. Allen sold 879 shares of the company’s stock in a transaction that occurred on Thursday, July 23rd. The shares were sold at an average price of $1,000.00, for a total value of $879,000.00. Following the sale, the chief accounting officer directly owned 34,958 shares in the company, valued at approximately $34,958,000. This represents a 2.45% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 162,179 shares of company stock valued at $167,811,861 over the last ninety days. 0.24% of the stock is currently owned by company insiders.
Micron Technology News Summary Here are the key news stories impacting Micron Technology this week:
Positive Sentiment: AI-driven memory shortage: Demand for high-bandwidth memory (HBM) used in AI data centers continues to absorb manufacturing capacity. HBM requires substantially more wafer capacity than conventional DRAM, supporting tight supply, higher pricing and stronger margins for Micron. Industry growth targets and fully allocated HBM production suggest the shortage could persist. Why This Memory Chip Boom May Have More Staying Power Than History Suggests Positive Sentiment: U.S. policy reduces Chinese competition: Reports that the White House is discouraging U.S. technology companies from sourcing conventional memory chips from Chinese suppliers, including Apple’s potential suppliers, improved sentiment toward Micron and other Western memory producers. The policy could strengthen Micron’s negotiating position and support longer-term domestic demand. Micron Shares Rise as White House Pushes Apple Away From Chinese Memory Chips Positive Sentiment: Upbeat analyst outlook: Bank of America maintained a Buy rating and a $1,550 price target, arguing that concerns about a cyclical peak are overstated. The firm projects Micron’s earnings could exceed $230 per share by fiscal 2030, while recent quarterly results showed $41.46 billion in revenue and $25.11 in EPS, both well ahead of estimates. BofA Sees Micron EPS Topping $230 by FY30 Positive Sentiment: Broader AI enthusiasm: Comments from Elon Musk emphasizing the importance of memory and storage for agentic AI helped lift Micron alongside SanDisk and other memory stocks. Comparisons with AMD and NVIDIA also highlighted Micron’s rapid earnings growth and relatively lower valuation. Elon Musk Just Uttered Massively Bullish Words for Micron Neutral Sentiment: Institutional profit-taking: Appaloosa Management reduced its Micron position by 41%, while Stanley Druckenmiller’s Duquesne Family Office exited the stock. The selling may reflect profit-taking after the enormous rally, although Micron remains a major holding for some investors. Hedge Fund Heavyweights Are Dumping Micron Negative Sentiment: Risks remain elevated: Micron’s sharp advance leaves the stock vulnerable to valuation compression, profit-taking, a broader technology pullback and any eventual increase in memory supply. Intel is also exploring new memory architectures, potentially creating a longer-term competitive threat. Intel Eyes a Memory Comeback Micron Technology Stock Up 4.1% Shares of NASDAQ:MU opened at $1,011.75 on Tuesday. The firm has a market cap of $1.14 trillion, a PE ratio of 22.91 and a beta of 2.19. The company has a fifty day simple moving average of $966.74 and a 200 day simple moving average of $683.34. The company has a current ratio of 3.42, a quick ratio of 2.98 and a debt-to-equity ratio of 0.05. Micron Technology, Inc. has a 12-month low of $113.46 and a 12-month high of $1,255.00.
Micron Technology (NASDAQ:MU – Get Free Report) last announced its quarterly earnings data on Wednesday, June 24th. The semiconductor manufacturer reported $25.11 earnings per share for the quarter, topping the consensus estimate of $21.39 by $3.72. The company had revenue of $41.46 billion during the quarter, compared to analyst estimates of $35.91 billion. Micron Technology had a net margin of 55.91% and a return on equity of 71.13%. The firm’s revenue for the quarter was up 345.8% compared to the same quarter last year. During the same period last year, the business earned $1.91 EPS. Micron Technology has set its Q4 2026 guidance at 30.000-32.000 EPS. On average, equities research analysts anticipate that Micron Technology, Inc. will post 72.93 EPS for the current fiscal year.
Micron Technology Dividend Announcement The company also recently declared a quarterly dividend, which was paid on Tuesday, July 21st. Investors of record on Monday, July 6th were paid a $0.15 dividend. This represents a $0.60 dividend on an annualized basis and a yield of 0.1%. The ex-dividend date was Monday, July 6th. Micron Technology’s dividend payout ratio (DPR) is 1.36%.
Micron Technology Profile (Free Report)
Micron Technology, Inc is a global semiconductor company that designs and manufactures memory and storage solutions. Its product portfolio includes dynamic random-access memory (DRAM), NAND flash memory, solid-state drives (SSDs), memory modules and embedded memory solutions for a wide range of computing and electronic devices. Micron supplies components used in data centers, enterprise and cloud infrastructure, client computing, mobile devices, automotive systems and industrial applications, and also markets consumer-facing products under the Crucial brand.
Founded in 1978 and headquartered in Boise, Idaho, Micron has grown into an international manufacturer with research, development and production facilities across multiple regions.
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Integrated Financial Solutions Inc. ve druhém čtvrtletí navýšila podíl v Micron Technology o 339,2 % na 2 798 akcií. Hodnota pozice činila 3,23 milionu USD.
Integrated Financial Solutions Inc. raised its stake in Micron Technology, Inc. (NASDAQ:MU – Free Report) by 339.2% during the 2nd quarter, according to its most recent filing with the Securities and Exchange Commission. The fund owned 2,798 shares of the semiconductor manufacturer’s stock after purchasing an additional 2,161 shares during the quarter. Micron Technology accounts for 1.7% of Integrated Financial Solutions Inc.’s investment portfolio, making the stock its 14th biggest holding. Integrated Financial Solutions Inc.’s holdings in Micron Technology were worth $3,230,000 as of its most recent filing with the Securities and Exchange Commission.
A number of other institutional investors have also modified their holdings of MU. Ledyard National Bank purchased a new stake in shares of Micron Technology during the second quarter worth approximately $1,723,000. Patriot Financial Group Insurance Agency LLC grew its position in Micron Technology by 91.4% in the 2nd quarter. Patriot Financial Group Insurance Agency LLC now owns 10,384 shares of the semiconductor manufacturer’s stock valued at $11,987,000 after buying an additional 4,958 shares during the last quarter. Riversedge Advisors LLC grew its position in Micron Technology by 4.2% in the 2nd quarter. Riversedge Advisors LLC now owns 2,399 shares of the semiconductor manufacturer’s stock valued at $2,769,000 after buying an additional 96 shares during the last quarter. Ramiah Investment Group acquired a new position in Micron Technology in the 2nd quarter valued at $420,000. Finally, Penobscot Wealth Management purchased a new stake in shares of Micron Technology in the second quarter valued at about $522,000. Institutional investors and hedge funds own 80.84% of the company’s stock.
Micron Technology Stock Performance Shares of MU opened at $1,011.75 on Tuesday. The company has a current ratio of 3.42, a quick ratio of 2.98 and a debt-to-equity ratio of 0.05. The stock has a market cap of $1.14 trillion, a P/E ratio of 22.91 and a beta of 2.19. The company has a 50-day moving average of $966.74 and a two-hundred day moving average of $683.34. Micron Technology, Inc. has a 12-month low of $113.46 and a 12-month high of $1,255.00.
Micron Technology (NASDAQ:MU – Get Free Report) last released its quarterly earnings results on Wednesday, June 24th. The semiconductor manufacturer reported $25.11 EPS for the quarter, beating the consensus estimate of $21.39 by $3.72. The business had revenue of $41.46 billion for the quarter, compared to analyst estimates of $35.91 billion. Micron Technology had a net margin of 55.91% and a return on equity of 71.13%. The company’s quarterly revenue was up 345.8% on a year-over-year basis. During the same period in the prior year, the business earned $1.91 earnings per share. Micron Technology has set its Q4 2026 guidance at 30.000-32.000 EPS. As a group, research analysts predict that Micron Technology, Inc. will post 72.93 EPS for the current fiscal year. Micron Technology Announces Dividend The company also recently announced a quarterly dividend, which was paid on Tuesday, July 21st. Investors of record on Monday, July 6th were paid a $0.15 dividend. The ex-dividend date of this dividend was Monday, July 6th. This represents a $0.60 annualized dividend and a yield of 0.1%. Micron Technology’s payout ratio is presently 1.36%.
Wall Street Analysts Forecast Growth MU has been the topic of a number of analyst reports. Raymond James Financial lifted their price objective on Micron Technology from $1,100.00 to $1,500.00 and gave the company an “outperform” rating in a report on Thursday, June 25th. The Goldman Sachs Group raised their price target on Micron Technology from $900.00 to $1,100.00 and gave the company a “neutral” rating in a report on Thursday, June 25th. Mizuho upped their price objective on Micron Technology from $1,150.00 to $1,375.00 and gave the stock an “outperform” rating in a report on Thursday, June 25th. UBS Group reiterated a “buy” rating on shares of Micron Technology in a research report on Monday, August 10th. Finally, Barclays raised their target price on Micron Technology from $1,175.00 to $2,000.00 and gave the company an “overweight” rating in a report on Thursday, June 25th. Four equities research analysts have rated the stock with a Strong Buy rating, thirty-two have issued a Buy rating and two have assigned a Hold rating to the company. Based on data from MarketBeat, the stock has an average rating of “Buy” and a consensus target price of $1,259.97.
Check Out Our Latest Research Report on Micron Technology
Insider Activity In other news, CAO Scott R. Allen sold 879 shares of the firm’s stock in a transaction on Thursday, July 23rd. The stock was sold at an average price of $1,000.00, for a total transaction of $879,000.00. Following the sale, the chief accounting officer owned 34,958 shares in the company, valued at $34,958,000. This trade represents a 2.45% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, CEO Sanjay Mehrotra sold 37,439 shares of Micron Technology stock in a transaction on Friday, May 29th. The shares were sold at an average price of $960.38, for a total value of $35,955,666.82. Following the completion of the sale, the chief executive officer directly owned 387,064 shares of the company’s stock, valued at approximately $371,728,524.32. This represents a 8.82% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 162,179 shares of company stock valued at $167,811,861 in the last 90 days. Company insiders own 0.24% of the company’s stock.
Key Micron Technology News Here are the key news stories impacting Micron Technology this week:
Positive Sentiment: AI-driven memory shortage: Demand for high-bandwidth memory (HBM) used in AI data centers continues to absorb manufacturing capacity. HBM requires substantially more wafer capacity than conventional DRAM, supporting tight supply, higher pricing and stronger margins for Micron. Industry growth targets and fully allocated HBM production suggest the shortage could persist. Why This Memory Chip Boom May Have More Staying Power Than History Suggests Positive Sentiment: U.S. policy reduces Chinese competition: Reports that the White House is discouraging U.S. technology companies from sourcing conventional memory chips from Chinese suppliers, including Apple’s potential suppliers, improved sentiment toward Micron and other Western memory producers. The policy could strengthen Micron’s negotiating position and support longer-term domestic demand. Micron Shares Rise as White House Pushes Apple Away From Chinese Memory Chips Positive Sentiment: Upbeat analyst outlook: Bank of America maintained a Buy rating and a $1,550 price target, arguing that concerns about a cyclical peak are overstated. The firm projects Micron’s earnings could exceed $230 per share by fiscal 2030, while recent quarterly results showed $41.46 billion in revenue and $25.11 in EPS, both well ahead of estimates. BofA Sees Micron EPS Topping $230 by FY30 Positive Sentiment: Broader AI enthusiasm: Comments from Elon Musk emphasizing the importance of memory and storage for agentic AI helped lift Micron alongside SanDisk and other memory stocks. Comparisons with AMD and NVIDIA also highlighted Micron’s rapid earnings growth and relatively lower valuation. Elon Musk Just Uttered Massively Bullish Words for Micron Neutral Sentiment: Institutional profit-taking: Appaloosa Management reduced its Micron position by 41%, while Stanley Druckenmiller’s Duquesne Family Office exited the stock. The selling may reflect profit-taking after the enormous rally, although Micron remains a major holding for some investors. Hedge Fund Heavyweights Are Dumping Micron Negative Sentiment: Risks remain elevated: Micron’s sharp advance leaves the stock vulnerable to valuation compression, profit-taking, a broader technology pullback and any eventual increase in memory supply. Intel is also exploring new memory architectures, potentially creating a longer-term competitive threat. Intel Eyes a Memory Comeback Micron Technology Profile (Free Report)
Micron Technology, Inc is a global semiconductor company that designs and manufactures memory and storage solutions. Its product portfolio includes dynamic random-access memory (DRAM), NAND flash memory, solid-state drives (SSDs), memory modules and embedded memory solutions for a wide range of computing and electronic devices. Micron supplies components used in data centers, enterprise and cloud infrastructure, client computing, mobile devices, automotive systems and industrial applications, and also markets consumer-facing products under the Crucial brand.
Founded in 1978 and headquartered in Boise, Idaho, Micron has grown into an international manufacturer with research, development and production facilities across multiple regions.
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Micron oznámil ve fiskálním 3. čtvrtletí tržby ve výši 41.456 miliardy USD, meziročně o 345,7 % vyšší, a hrubou marži podle GAAP 84,6 %. Firma také uvedla, že z HBM4 už dodala přes 1 miliardu USD tržeb.
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Micron Technology (NASDAQ: MU | MU Price Prediction) just delivered a fiscal Q3 that redefined what an AI memory cycle looks like, while SK Hynix (NASDAQ:SKHY) posted its own record quarter in Korean won and made its NASDAQ debut in July 2026 through a $26.5 billion foreign offering. With both HBM leaders now trading on the same exchange, US investors can finally weigh them side by side.
HBM4 Ramps Meet a Korean Giant Reintroducing Itself Micron’s June quarter was a step-change. Revenue hit $41.456 billion, up 345.7% year over year, with GAAP gross margin expanding to 84.6%. Cloud Memory alone contributed $13.769 billion, and Sanjay Mehrotra told analysts that “HBM4 12 high volume ramp is tracking twice as fast as HBM3E 12 high and we have already shipped over $1 billion in HBM4 revenue.” That is Micron chipping directly at SK Hynix’s flagship business.
SK Hynix answered with its own record: Q2 2026 revenue of 79.3 trillion won and operating profit of 60.5 trillion won, driven by HBM sales. A modest earnings miss triggered an initial 10% selloff in the ADR, yet analysts kept unanimous Buy ratings with 12-month targets averaging $245. Micron carries a heftier crowd: 40 Buys, 5 Holds, and a $1,501.98 average target.
One Locks In Customers. The Other Locks In Capacity. Lens Micron SK Hynix HBM Positioning HBM4 12-high shipping to lead AI accelerator customer Incumbent HBM3E supplier, HBM4 in qualification Capacity Bet Idaho, New York, Taiwan greenfield fabs $720 billion capacity-expansion plan Revenue Lock-in 16 SCAs, ~$100 billion cumulative floor-price revenue Traditional purchase orders, buyback catalyst pending Mehrotra’s take-or-pay agreements are the real weapon here. He said “even at the floor price… we expect the margins to be significantly above prior peak margins”, and those contracts will eventually cover roughly half of company revenue. SK Hynix leans on scale and its Nvidia relationship, which is a formidable moat but a less contractually rigid one.
The Next Test Is HBM4E and Supply Discipline Micron expects fiscal Q4 revenue of $50.0 billion with ~86% gross margin, and Mehrotra flagged that tight conditions should persist beyond calendar 2027. The variables to watch are whether SK Hynix keeps HBM4 qualification on pace at Nvidia and whether Micron’s HBM4E on 1-gamma DRAM stays on track for volume production in calendar 2027. Any slippage swaps the leader.
Why Micron Leads, but the Newcomer Warrants Respect Micron’s SCAs make the earnings stream harder to break than the market appreciates. A forward P/E of 6 against that contract book is a rare combination. That said, SK Hynix is now accessible, cheaper on some measures, and still the HBM incumbent. For Micron holders, the NASDAQ listing offers exposure to the same thesis through a second name. The single variable holding this cycle together is AI capex guidance from hyperscalers; a rollover there would reset the setup for both stocks.
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Investors analyzing what's driving semiconductor stocks should look at how two forces—trade policy and the demands of artificial intelligence—are reshaping institutional portfolios. Traditional cyclicality in the memory segment is giving way to something steadier and more structural.
This shift is propelled by federal protectionist policy and a tightening supply ceiling as high-performance compute (HPC) clusters consume global foundry capacity, fundamentally resetting the industry's long-term margin profile.
Washington is working to insulate critical technology supply chains, effectively establishing a federally guarded protectionist moat. At the same time, hyper-scaler data center demand is consuming global silicon wafer capacity, creating a structural shortage in advanced memory.
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This combination grants domestic producers unprecedented pricing power over hardware developers. Instead of competing on thin margins against subsidized foreign producers, domestic makers are securing multi-year, high-margin supply agreements. Investors who grasp how this geopolitical shield feeds directly into wider margins can spot these structural shifts before the market fully prices them in.
Washington Cuts off Cheap Foreign ChipsThis policy shift shows up most clearly in consumer hardware, where major technology companies face shrinking flexibility in component sourcing. A prime example occurred when federal trade officials cautioned consumer electronics leader Apple Inc. NASDAQ: AAPL against buying lower-cost memory components from foreign state-subsidized suppliers, including Yangtze Memory Technologies Corp and ChangXin Memory Technologies.
With hardware gross margins facing pressure from rising component costs, mega-cap buyers naturally sought cheaper alternatives overseas. However, the U.S. Department of Commerce made its position explicit: sourcing core memory components from blacklisted or foreign military-linked enterprises poses unacceptable national security risks. This regulatory stance removes low-cost foreign producers from the domestic supply chain, stripping buyers of their traditional negotiating leverage.
Micron Technology Today
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Consequently, technology enterprises must commit to domestic and allied suppliers for their needs. Domestic manufacturers are capturing these guaranteed order volumes by investing heavily in reshoring production.
Micron Technology NASDAQ: MU committed approximately $250 billion to construct mega-fab facilities across Idaho and New York. These capital commitments align directly with federal industrial policy, creating a captive-customer dynamic in which domestic equipment manufacturers must secure long-term, non-cancelable supply agreements at prices that favor suppliers.
How AI Accelerators Gobble Global Silicon CapacityWhile trade restrictions establish a regulatory barrier, the physical supply of silicon memory is undergoing an equally dramatic contraction. The primary driver is the surge in demand for high-performance computing platforms built by chipmakers such as NVIDIA Corporation NASDAQ: NVDA and Advanced Micro Devices, Inc. NASDAQ: AMD.
To power modern intelligence models, advanced graphics processors require large stacks of high-bandwidth memory (HBM). Examining the physics of semiconductor manufacturing reveals the broader economic impact. Producing one bit of HBM requires roughly three times the silicon wafer capacity of standard DRAM. As foundries convert conventional manufacturing lines over to specialized packaging, global wafer capacity for standard consumer memory dries up.
This wafer conversion ratio creates a rising tide that expands pricing power across all memory categories. Manufacturers report that 100% of their 2026 HBM production capacity is fully allocated under non-cancelable long-term agreements. Because chipmakers like NVIDIA Corporation consume vast amounts of available foundry capacity, traditional hardware makers must compete for a shrinking pool of conventional memory, cementing high contract pricing across the hardware ecosystem.
Financial Data Proves Memory Pricing PowerRecent financial data from Micron provides concrete numerical proof of how this protectionist moat and supply deficit have converted into fundamental outperformance. In its Q3 fiscal year 2026 earnings report, Micron reported revenue of nearly $41.5 billion, representing a year-over-year increase of nearly 346%, and topped consensus earnings expectations at $25.11 per share. Management subsequently issued Q4 earnings guidance of $30 to $32 per share, outpacing Wall Street estimates.
Beyond top-line momentum, the true story lies in profitability and cash generation. Net profit margins expanded to nearly 56%, demonstrating that memory producers are no longer price takers. Analysts at Bank of America recently revised their long-term structural models, projecting that Micron's earnings could surpass $230 per share by fiscal year 2030 as high-margin contracts replace low-margin commodity DRAM.
Even with MU trading around $1,015 per share and carrying a market capitalization closing in on $1.15 trillion, its forward price-to-earnings ratio sits at a modest 13x to 14x. Institutional investors have taken notice, driving roughly $119 billion in gross institutional inflows into the stock over the trailing 12 months. This institutional accumulation reflects growing recognition that domestic protectionism is fundamentally altering the long-term earnings baseline.
Semiconductor Exposure: Positioned for the Protectionist ShiftThe convergence of federal trade mandates and supply deficits has altered semiconductor economics. By restricting foreign state-subsidized supply, Washington has underwritten a domestic protectionist moat that nearly guarantees captive demand for Western manufacturers.
While fundamental tailwinds remain powerful, investors should account for potential risks, including broader pullbacks in the technology sector, executive profit-taking following steep stock rallies, and construction timelines for new domestic fabs.
Those evaluating exposure to the sector might consider monitoring domestic memory manufacturers during short-term market consolidation, focusing on enterprises with high exposure to HBM production, or tracking changes in federal trade policy as key indicators for long-term position management.
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Micron, SanDisk a SK Hynix v předobchodní fázi prudce klesly po pondělním rally, protože investoři omezili riziko u paměťových titulů. Micron klesl asi o 6 %, SanDisk o 5,3 % a SK Hynix o 5,1 %. Tlak zesílil i kvůli slabším futures na Nasdaq 100, které klesly asi o 1,2 %, a růstu výnosu 30letého amerického dluhopisu na zhruba 5,33 %.
Micron Technology (NASDAQ: MU) and SanDisk stock (NASDAQ: SNDK) fell sharply in US premarket trading on Tuesday, reversing Monday’s powerful memory-chip rally as investors cut exposure to 2026’s hottest AI winners.
Micron was indicated about 6% lower around 5:30 a.m. ET, while SanDisk was down 5.3%.
SK Hynix’s US-listed ADRs fell about 5.1%, even after its Seoul-listed shares had rallied earlier in the Asian session.
The retreat came without an obvious overnight deterioration in memory demand.
Instead, Nasdaq 100 futures dropped around 1.2% and the 30-year Treasury yield climbed to about 5.33%, its highest in nearly two decades, creating a tougher backdrop for richly valued technology stocks.
Micron gained 4.1% on Monday, SanDisk jumped 8.9% and SK Hynix’s ADRs added about 3% as investors returned to memory names after July’s violent selloff.
SanDisk had already risen roughly 35% over the five sessions through Friday before extending the rebound Monday.
Fresh enthusiasm came from AI infrastructure spending, SanDisk’s bullish investor-day targets and reports that US officials were discouraging Apple from sourcing memory chips from Chinese suppliers.
Yet the same momentum that powered those gains also leaves the trade vulnerable when investors reduce risk.
AvaTrade analyst Simon Friedman cautioned investors against chasing memory stocks after the rebound, MarketWatch reported, pointing to the sector’s recent volatility and the scale of July’s declines.
The underlying industry picture remains stronger than Tuesday’s stock moves suggest.
AI data centres continue to consume growing quantities of high-bandwidth memory, DRAM and flash storage while supply remains constrained.
Manufacturers are also signing longer-term customer agreements, improving visibility compared with previous cycles.
“The recent volatility in semiconductor stocks appears disconnected from any material change in long-term fundamentals,” ClearBridge Investments portfolio manager Divya Mathur told Reuters earlier this month.
Mathur added that share prices can react more sharply than the underlying outlook when investors reassess expectations and risk appetite.
Deutsche Bank analyst Melissa Weathers has similarly argued that this memory cycle “is different than others,” according to MarketWatch.
She expects DRAM supply to remain tight through 2027 and into 2028 as AI demand keeps pressure on high-bandwidth memory availability.
SanDisk shows why strong fundamentals can still produce violent equity moves.
At its investor day, the company targeted mid-to-high-teens annual revenue growth from fiscal 2028 through 2030 and adjusted gross margins around 80%, supported partly by multiyear customer agreements.
Bank of America analysts said the strategy suggests the memory industry “may be entering a more durable phase” than its historical boom-and-bust pattern, according to MarketWatch.
That optimism is also the problem.
After enormous gains across memory stocks, investors are demanding exceptional results.
Analysts noted that during an earlier August selloff, even strong earnings and upbeat forecasts were failing to satisfy investors because expectations had become so elevated.
In fiscal 2022, Micron Technology (MU +4.13%) earned $8.7 billion, one of the best years the memory maker had ever reported. In fiscal 2023, it lost $5.8 billion. Revenue nearly halved to $15.5 billion, and gross margin collapsed from 45% to negative 9%.
That is what the end of a memory boom looks like. And it is worth studying now, because Micron is in the middle of a far bigger one.
The company's net income over its last 12 reported months comes to $50.5 billion, nearly six times what that fiscal 2022 peak delivered. Its most recent reported quarter alone, the fiscal third quarter ended in May, brought in $28.2 billion of net income under generally accepted accounting principles (GAAP) -- double fiscal 2018's full-year record.
So what happens to memory earnings after a top? Micron's own income statement answers that question better than any forecast could.
Image source: Micron.
The bust, year by year The speed is the striking part. Micron's revenue fell 49% in fiscal 2023, to $15.5 billion from $30.8 billion the year before. Gross margin, 45.2% in fiscal 2022, finished fiscal 2023 at negative 9.1% -- meaning the company was selling chips for less than they cost to make. And the bottom line swung from an $8.7 billion profit to a $5.8 billion loss in the space of a single fiscal year.
Nothing about the company had broken. Memory chips are commodities, demand stalled, industry supply kept growing anyway, and prices fell until the profit was gone.
Of course, investors who watched it happen knew the script. It had run before.
The cycle before ran slower The 2023 bust wasn't a one-off, though the cycle before it took a different shape. Micron's net income peaked at $14.1 billion in fiscal 2018. It fell to $6.3 billion in fiscal 2019, then to $2.7 billion in fiscal 2020 -- down 81% from the peak over two years, without ever tipping into a loss.
The shapes differ, one fast and deep, the other slower and shallower. In both, though, most of the peak's earnings were gone within about two years of the top.
Zoom out further and the pattern holds. Micron has recorded an annual loss three times in the last 15 years, most recently in fiscal 2023.
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A peak of a different size The artificial intelligence (AI) boom running now dwarfs both of those cycles. Micron's revenue is running near $90 billion a year, against the $15.5 billion fiscal 2023 produced, and the June report showed quarterly sales at more than four times the year-ago level. And the quarter ahead is expected to be bigger still. Management's latest guidance called for about $50 billion of revenue in the fiscal fourth quarter alone.
Management, for its part, is behaving like a company that expects demand to hold -- and I don't doubt that today it does.
"Micron is investing at record levels in technology, products and supply to address our customers' rapidly growing demand," CEO Sanjay Mehrotra said in the company's June earnings release.
That sentence carries history's uncomfortable note, however. Memory busts have a way of being financed by the boom before them -- high prices paying for new supply until the new supply arrives. And the investment underway now is, by management's own description, at record levels.
With that said, Micron has built defenses this time that earlier cycles lacked. Its multi-year Strategic Customer Agreements lock in commitments years ahead, and management believes they will make its results significantly more durable and predictable.
They may. No previous cycle had them. But agreements can shape how a downturn arrives without preventing one.
History's message here is a modest one, then. Nothing in the record says this boom must end soon (the last two cycles gave little notice either way), and this one is larger, more profitable, and arguably better-defended than any before it.
As of this writing, the stock sits near $972, valuing the company around $1.1 trillion. The market is paying about 22 times earnings for a business it knows is cyclical.
The record, I believe, justifies respect in both directions. Micron has never had a run like this. It has also never held a peak. The swing from fiscal 2022 to fiscal 2023 took back the entire boom and then some, and fiscal 2023 is only three years back.
Decker Retirement Planning Inc. ve 2. čtvrtletí snížila svůj podíl v Micron Technology o 94,7 % a prodala 27 839 akcií. Po prodeji držela 1 546 akcií v hodnotě 1 784 000 USD.
Decker Retirement Planning Inc. lessened its holdings in Micron Technology, Inc. (NASDAQ:MU – Free Report) by 94.7% during the 2nd quarter, according to its most recent Form 13F filing with the SEC. The fund owned 1,546 shares of the semiconductor manufacturer’s stock after selling 27,839 shares during the period. Decker Retirement Planning Inc.’s holdings in Micron Technology were worth $1,784,000 at the end of the most recent quarter.
A number of other hedge funds also recently bought and sold shares of the business. Vanguard Group Inc. increased its holdings in shares of Micron Technology by 1.9% in the 4th quarter. Vanguard Group Inc. now owns 106,608,094 shares of the semiconductor manufacturer’s stock worth $30,427,016,000 after buying an additional 1,954,644 shares during the last quarter. State Street Corp raised its position in shares of Micron Technology by 2.1% during the 4th quarter. State Street Corp now owns 52,749,817 shares of the semiconductor manufacturer’s stock valued at $15,061,310,000 after buying an additional 1,090,644 shares in the last quarter. Norges Bank bought a new position in shares of Micron Technology in the 4th quarter valued at about $6,433,456,000. Morgan Stanley lifted its holdings in shares of Micron Technology by 5.1% in the 4th quarter. Morgan Stanley now owns 16,396,655 shares of the semiconductor manufacturer’s stock valued at $4,679,771,000 after acquiring an additional 794,289 shares during the last quarter. Finally, Northern Trust Corp grew its position in Micron Technology by 1.9% in the fourth quarter. Northern Trust Corp now owns 10,654,349 shares of the semiconductor manufacturer’s stock worth $3,040,858,000 after acquiring an additional 194,550 shares in the last quarter. Hedge funds and other institutional investors own 80.84% of the company’s stock.
Analyst Upgrades and Downgrades MU has been the topic of several analyst reports. Bank of America boosted their price objective on Micron Technology from $950.00 to $1,500.00 and gave the stock a “buy” rating in a research note on Tuesday, June 23rd. Wedbush raised their price objective on Micron Technology from $1,300.00 to $1,400.00 and gave the company an “outperform” rating in a research note on Thursday, June 25th. The Goldman Sachs Group lifted their target price on Micron Technology from $900.00 to $1,100.00 and gave the stock a “neutral” rating in a report on Thursday, June 25th. Susquehanna boosted their target price on Micron Technology from $1,750.00 to $2,000.00 and gave the company a “positive” rating in a research report on Thursday, June 25th. Finally, Rosenblatt Securities boosted their target price on Micron Technology from $1,200.00 to $1,500.00 and gave the company a “buy” rating in a research report on Thursday, June 25th. Four investment analysts have rated the stock with a Strong Buy rating, thirty-two have given a Buy rating and two have assigned a Hold rating to the company. According to data from MarketBeat.com, the company currently has an average rating of “Buy” and a consensus price target of $1,259.97.
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Micron Technology Stock Performance Shares of NASDAQ MU opened at $971.66 on Monday. The company has a debt-to-equity ratio of 0.05, a quick ratio of 2.98 and a current ratio of 3.42. The business’s 50 day moving average price is $965.49 and its 200-day moving average price is $679.10. Micron Technology, Inc. has a fifty-two week low of $113.46 and a fifty-two week high of $1,255.00. The company has a market cap of $1.10 trillion, a price-to-earnings ratio of 22.00 and a beta of 2.19.
Micron Technology (NASDAQ:MU – Get Free Report) last issued its quarterly earnings results on Wednesday, June 24th. The semiconductor manufacturer reported $25.11 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $21.39 by $3.72. Micron Technology had a return on equity of 71.13% and a net margin of 55.91%.The firm had revenue of $41.46 billion during the quarter, compared to analyst estimates of $35.91 billion. During the same period last year, the company earned $1.91 EPS. Micron Technology’s quarterly revenue was up 345.8% compared to the same quarter last year. Micron Technology has set its Q4 2026 guidance at 30.000-32.000 EPS. On average, sell-side analysts expect that Micron Technology, Inc. will post 72.93 earnings per share for the current year.
Micron Technology Announces Dividend The firm also recently announced a quarterly dividend, which was paid on Tuesday, July 21st. Shareholders of record on Monday, July 6th were paid a $0.15 dividend. The ex-dividend date was Monday, July 6th. This represents a $0.60 dividend on an annualized basis and a yield of 0.1%. Micron Technology’s dividend payout ratio (DPR) is presently 1.36%.
Insiders Place Their Bets In other news, CEO Sanjay Mehrotra sold 31,285 shares of the company’s stock in a transaction dated Friday, July 24th. The shares were sold at an average price of $926.83, for a total value of $28,995,876.55. Following the transaction, the chief executive officer directly owned 313,218 shares in the company, valued at approximately $290,299,838.94. This represents a 9.08% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through the SEC website. Also, Director Lynn A. Dugle sold 1,300 shares of the firm’s stock in a transaction dated Tuesday, June 30th. The stock was sold at an average price of $1,150.43, for a total transaction of $1,495,559.00. Following the completion of the transaction, the director directly owned 17,728 shares in the company, valued at $20,394,823.04. This represents a 6.83% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold a total of 162,179 shares of company stock valued at $167,811,861 in the last three months. 0.24% of the stock is owned by company insiders.
Key Micron Technology News Here are the key news stories impacting Micron Technology this week:
Positive Sentiment: New Street upgraded Micron to “Buy” from “Neutral” and set a $1,250 price target, citing the possibility that AI is making memory demand less cyclical. The firm projects a potential $2 trillion-$3 trillion valuation for Micron by the end of the decade. Micron Upgraded to Buy on the Claim Memory Stopped Being Cyclical Positive Sentiment: DRAM and NAND prices are tightening again, potentially increasing the earnings impact of Micron’s rapidly expanding data-center business. Analysts are continuing to raise revenue estimates and price targets as AI infrastructure spending supports demand for high-bandwidth memory and storage. Micron Stock Jumps as Memory Pricing Tightens Again Positive Sentiment: Micron launched a $250 million Micron Ventures Paradigm Fund to invest across the AI technology stack, including model development, computing infrastructure, enterprise applications and physical AI. The initiative could strengthen partnerships and give Micron earlier insight into future memory and storage requirements. Micron Ventures Launches $250 Million Fund Neutral Sentiment: Broader semiconductor strength, record U.S. equity benchmarks and easing rate-hike expectations are supporting risk appetite for memory stocks. Technical analysts also identify approximately $1,012 as an important near-term resistance level. Micron Price Forecast Negative Sentiment: Risks remain from rising Chinese competition and execution timing. YMTC has surpassed Micron in NAND shipments, while Micron’s new $9.3 billion fabrication plant is not expected to produce chips until 2028. Michael Burry has also increased bearish positions involving Micron, underscoring concerns about valuation, supply growth and a possible return of memory-cycle volatility. Micron Technology Profile (Free Report)
Micron Technology, Inc is a global semiconductor company that designs and manufactures memory and storage solutions. Its product portfolio includes dynamic random-access memory (DRAM), NAND flash memory, solid-state drives (SSDs), memory modules and embedded memory solutions for a wide range of computing and electronic devices. Micron supplies components used in data centers, enterprise and cloud infrastructure, client computing, mobile devices, automotive systems and industrial applications, and also markets consumer-facing products under the Crucial brand.
Founded in 1978 and headquartered in Boise, Idaho, Micron has grown into an international manufacturer with research, development and production facilities across multiple regions.
See Also Five stocks we like better than Micron Technology The Metals Company’s Big Bet Now Comes Down to a License OneSpaWorld Keeps Turning Cruise Demand Into Record Earnings Meta and Tesla Are Rebounding From Oversold Levels—Now What? AMG’s Alternatives Boom Powers Record Growth Want to see what other hedge funds are holding MU? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Micron Technology, Inc. (NASDAQ:MU – Free Report).
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Micron podle Trivariate Research může během příštích let zdvojnásobit hodnotu, protože napjatá nabídka má udržet zisky déle, než čeká trh. Parker nevidí problém ani v potenciální čínské nabídce.
Micron Technology, Inc (NASDAQ:MU) stock gained over 3% during Monday’s premarket session as risk appetite firms up into the open and traders continue to lean into the stock’s longer-term uptrend. Nasdaq futures are up 0.53% while S&P 500 futures have gained 0.18%.
The stock could deliver stronger earnings and cash flow for longer than the market expects as tighter industry supply and structural changes in the memory business extend the current cycle, according to Trivariate Research founder and CEO Adam Parker.
Parker Sees Micron’s Earnings Staying Stronger for LongerParker told CNBC last Friday that Trivariate ran 10,000 simulations to assess how long Micron’s current earnings cycle could last and how much the company could generate.
He believes consensus estimates assume earnings will fall too quickly after reaching a peak.
Parker estimates Micron trades at roughly 11 to 12 times normalized earnings and about five times peak earnings, a valuation he considers too low.
He also said investors are not fully accounting for Micron’s potential cash generation, estimating that the company could generate close to $300 billion in free cash flow over the next two years.
Based on that outlook, Parker said Micron’s stock will “probably” double over the next couple of years before the cycle ends. Asked whether Micron could eventually reach a $1 trillion market capitalization, he said, “I wouldn’t be shocked.”
Industry Changes Challenge the Old Memory-Cycle PlaybookParker argued that investors should not rely on Micron’s historical boom-and-bust cycles to judge the current opportunity.
He noted that DRAM previously represented about 40% of a server’s cost but now accounts for less than 10%, while the memory industry has also consolidated.
He expects constrained supply to help sustain the cycle and believes Micron could generate more earnings for longer than investors currently anticipate.
Parker Plays Down China Supply RiskParker also downplayed concerns that additional Chinese semiconductor supply could quickly undermine the market. He pointed to the long timelines required to build leading-edge manufacturing capacity, arguing that competitors cannot rapidly add enough production to disrupt supply conditions.
As a result, Parker believes persistent supply constraints and stronger-than-expected earnings could support Micron’s performance over the next few years.
Earnings And Analyst OutlookMicron’s next earnings report is estimated for Sept. 22.
Analysts expect earnings of $31.27 per share, compared with $3.03 per share a year earlier. Revenue is projected at $50.81 billion, up from $11.31 billion.
Micron carries a Buy consensus rating with an average price forecast of $1,537.50.
Recent analyst moves include Citigroup, which maintained a Buy rating on Aug. 7 but lowered its price forecast to $1,150. KeyBanc Capital Markets maintained an Overweight rating and raised its price forecast to $1,750 in July, while Cantor Fitzgerald maintained an Overweight rating and raised its forecast to $2,000 in June.
Top ETF Exposure Invesco PHLX Semiconductor ETF (NASDAQ:SOXQ): 8.91% Weight State Street SPDR NYSE Technology ETF (NYSE:XNTK): 8.14% Weight Invesco AI and Next Gen Software ETF (NYSE:IGPT): 8.71% Weight Significance: Because MU carries such a heavy weight in these funds, any significant inflows or outflows for these ETFs will likely force automatic buying or selling of the stock.
Price ActionMU Stock Price Activity: Micron Technology shares were trading higher by 3.58% at $1006.47 during premarket trading on Monday, according to Benzinga Pro data.
Bank of America vidí u Micronu díky AI další růst paměťového trhu a odhaduje EPS 236,16 USD na akcii ve fiskálním roce 2030. Konsensus je výrazně níž, na 136,24 USD.
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The semiconductor market has spent decades teaching investors the same lesson: memory booms eventually become memory busts. Supply catches up with demand, pricing falls, margins collapse, and yesterday’s earnings suddenly look like a mirage.
That history explains why investors continue to treat Micron Technology (NASDAQ:MU | MU Price Prediction) as a cyclical stock, even after AI has pushed its results into territory the company has never seen before. Micron generated $41.46 billion of revenue and an 85% gross margin in fiscal Q3 2026, versus 38% a year earlier.
Now Bank of America is asking investors to consider whether AI has broken that cycle.
BofA Sees a $236 EPS Micron BofA Global Research sketches out a dramatically different future for Micron. Under its “SanDisk-like” assumptions, sales reach $377.3 billion by fiscal 2030, versus $280.5 billion in the consensus case.
Fiscal 2030 Consensus BofA’s SNDK-like Case Sales $280.5 billion $377.3 billion Gross margin 78.0% 80.0% EPS $136.24 $236.16 FCF $190.8B $188.6B That implies a 30.7% sales CAGR and a 34.1% EPS CAGR through fiscal 2030. Yet the market values Micron at roughly 6x forward earnings on the consensus fiscal 2027 EPS estimate of $151.37 — pricing in an end to the memory party well before Micron gets comfortable. BofA thinks that’s backward.
Bank of America is betting big that the AI revolution has fundamentally rewritten the rules of the semiconductor game—challenging decades of market history. The AI Memory Cycle Really Is Different This Time There’s a good reason to take the bullish case seriously. Micron’s fiscal Q3 DRAM revenue jumped 343% year over year to $31.3 billion, while NAND rose 361% to $9.9 billion. Consolidated gross margin hit 84.9%, with fiscal Q4 guidance around 86%.
High-bandwidth memory is central to this shift. Micron says HBM requires more than three times the wafer capacity per bit of conventional DRAM, and supply remains allocated — hyperscalers want more, but manufacturers can’t flood the market overnight. HBM4 is already shipping in volume, with HBM4E production expected in 2027.
Other tailwinds: enterprise SSDs are taking a growing share of NAND as AI data centers generate more data, and next-gen AI inference could demand entirely new memory types. Earlier this month, SK hynix (NASDAQ:SKHY) and Sandisk (NASDAQ:SNDK) unveiled the first High Bandwidth Flash specs — a category designed to sit between HBM and SSDs, offering up to 512GB and 3TB/s of bandwidth. That needn’t hurt Micron, but it shows how fast memory architecture is evolving, and why today’s winners shouldn’t be assumed to own every new category.
The EPS Forecast Could Be Aggressive The bullish AI thesis is compelling; the bullish Micron forecast requires a leap. An 80% gross margin isn’t crazy today, but looks crazy as a structural assumption through 2030. Memory has historically been among the most cyclical semiconductor businesses, with normal-cycle margins often around 30% to 40%. Micron’s current 85% reflects an unusually tight market. The real question is what happens once competitors add capacity.
SK hynix remains formidable, while Samsung and potentially Chinese suppliers are also ramping up. If competition keeps pricing disciplined instead of letting Micron hold 80% margins indefinitely, earnings could land closer to consensus — which is why BofA’s $236.16 estimate deserves skepticism even if the broader thesis holds. Investors don’t need BofA’s most aggressive assumptions to find the story compelling: Micron is already producing record revenue, 85% margins, and $25.39 billion in quarterly operating cash flow.
Key Takeaway BofA seems right about the direction but too aggressive about the destination. AI is changing memory economics by pulling demand toward HBM, advanced DRAM, enterprise SSDs, and potentially HBF, and long lead times could make supply responses slower than in past cycles. But $236 of EPS in 2030 requires Micron to become structurally different from the cyclical company investors have known for decades.
Still, the case doesn’t require believing an 80% margin lasts forever. At roughly 6x forward earnings, the market seems to be pricing in a return to much weaker economics — so it may be underestimating how long this boom lasts. I’d treat BofA’s analysis as the bull case, not the base case.
Contact [email protected] for any questions or corrections.
Elon Musk řekl, že hlavním omezením pro AI je nyní paměť, což přímo míří na Micron. Na stejném hovoru uvedl, že výroba pamětí roste asi o 20 % ročně, zatímco poptávka roste o 200 % ročně, možná i více.
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On SpaceX (NASDAQ:SPCX | SPCX Price Prediction)’s Q2 2026 earnings call held Aug. 4, 2026, Elon Musk answered a question about the pace of compute buildout with five words that memory investors have circulated ever since: “Limiting factor currently is memory.”
The remark lands directly on Micron Technology (NASDAQ:MU), the only U.S.-based maker of high-bandwidth memory and one of just three global HBM suppliers. SpaceX itself trades publicly as NASDAQ:SPCX after its 2026 IPO. Musk just told public shareholders that memory caps his AI ambitions, above both power and GPUs.
What Musk Actually Said Musk framed the constraint in his own supply-versus-demand math. “The memory output is increasing by around 20% per year. Now, normally that would be fantastically fast and amazing for any large, mature industry. But ask yourself, is the demand increasing by 20% a year? No, the demand is increasing by 200% a year, maybe higher. So if you’ve got demand increasing much faster than supply, then Economics 101 would suggest that the price increases. It does not decrease.” Those 20% and 200% figures are his characterization on the call, not independently verified industry data.
He Ruled Out Power on the Same Call What gives the memory line weight is what Musk dismissed alongside it. He said SpaceX’s “tentative target is to actually have 20 gigawatts at the power and cooling level online by the end of next year,” while conceding “I don’t think we’re going to achieve 20 gigawatts” and expecting “something close to 15 gigawatts.” He stated the design philosophy plainly: “our goal is to have far more power, cooling, and electrical equipment than we have GPUs. That’s the logical thing to do given the relative expense of GPUs versus balance of system.” On GPU access from NVIDIA (NASDAQ:NVDA), he added, “Our understanding within NVIDIA is that we will receive a very small percentage of their GPUs next year.” Power was named excess. Memory was named the bottleneck.
The Tesla Echo, Two Weeks Earlier On Tesla (NASDAQ:TSLA) Q2 2026 earnings on roughly July 23, 2026, Musk thanked Micron by name twice for giving Tesla a “significant” memory allocation “on reasonable terms,” and called current memory pricing “the biggest price jump in anything I’ve ever seen.” Micron shares rose 3.1% intraday that day while Tesla stock fell 14.3% on an earnings miss. Same concern, different call.
The Supply and Demand Case Reporting around the calls has framed the imbalance in stark numbers. Nearly 100 gigawatts of new AI data center capacity are expected globally within four years, against only about 15 gigawatts of new DRAM supply capacity over the next two years. DRAM contract prices have been projected to rise another 90% to 95% in early 2026 on top of already-steep increases. All three HBM producers, Micron, Samsung, and SK Hynix, are reportedly sold out of 2026 HBM capacity, with meaningful new supply not expected until 2028 or later. HBM content per GPU has grown roughly 3.6 times from NVIDIA’s H100 generation to Blackwell Ultra, and frontier AI model context windows have expanded roughly 230 times in three years. Conventional DRAM contract prices reportedly surged around 171.8% year over year in Q3 2025.
What It Means for Micron Micron closed at $971.66 on Aug. 14, up 240.65% year to date from $285.23 at the end of 2025, up 676.79% over one year from $125.09 on Aug. 14, 2025, up 10.72% over the past week from $877.57 on Aug. 7, up 7.45% over the past month from $904.28 on July 15, and up 2.30% on Aug. 14 alone from $949.83. The stock trades around 6 times forward earnings. CEO Sanjay Mehrotra told investors Micron expects tight conditions to persist beyond calendar 2027, backed by Strategic Customer Agreements disclosed in its Q3 FY26 8-K.
The Other Side The bear case deserves weight. A Motley Fool analysis published Aug. 9, 2026 cited TrendForce forecasts for Q3 2026 contract price increases of just 13% to 18% for DRAM and 10% to 15% for NAND, a sharp deceleration from the prior quarter’s gains of more than 60% and more than 80% sequentially. Wall Street’s fiscal 2027 EPS estimates for Micron have reportedly plateaued, rising just 1.2% over the latest month after a much larger jump three months earlier, suggesting earnings-upside momentum may be cooling. The underlying warning is that memory is historically a cyclical, boom-and-bust business, and today’s low-looking valuation multiples could prove misleading if price growth decelerates and margins compress.
Structural Shift or Peak Cycle Musk’s five words describe a moment in which the richest customer of AI compute has publicly identified memory as the ceiling on his plans. Whether that reflects a durable rewrite of memory economics or a peak-cycle snapshot in an industry that has seen every prior boom end will show up in DRAM contract prices, HBM allocation contracts, and whether Micron’s $100 billion cumulative revenue at floor price across signed SCAs holds through 2028. For now, the SpaceX CEO has told the market where the bottleneck sits.
Contact [email protected] for any questions or corrections.
Intel zvažuje nové paměťové architektury a propojení paměti s procesory, ale zatím neoznámil žádný nový DRAM, NAND ani HBM produkt. Pro Micron je to zatím jen omezená hrozba, zatímco ceny pamětí dál rostou.
Intel is reconsidering a business it spent decades leaving as artificial intelligence transforms memory from a commodity into a crucial computing bottleneck.
CEO Lip-Bu Tan said on the TechSurge: Deep Tech podcast that Intel is exploring new memory architectures, including ways to bring memory and processors closer together.
Tan said he once viewed memory as a commodity business not worth investing in but believes the economics have changed.
Intel has not announced a new DRAM, NAND or HBM product. The comments matter for Micron stock investors because they arrive during shortages, rising prices and AI-driven demand.
Tan’s interest comes as memory profitability looks unusually strong.
KeyBanc analyst John Vinh said “memory shortages remain persistent,” after supply-chain checks in Asia.
The firm expects tight conditions through 2027, with DRAM prices rising another 15%-20% sequentially in the third quarter and 15% in the fourth. NAND prices could jump 30%-40% in the third quarter before another 15% increase.
That helps explain why Intel is looking again.
AI systems increasingly depend on moving huge quantities of data quickly between processors and memory.
That has made bandwidth, packaging and memory capacity strategic constraints for AI systems.
Intel also hired former SK Hynix chief executive Seok-Hee Lee in June to lead advanced packaging and system integration at Intel Foundry.
Lee will help tightly couple logic, memory, networking and other components in next-generation systems, the company said.
His appointment is not evidence of a new memory division, but it strengthens Intel’s expertise where compute and memory are converging.
For Micron, the immediate competitive threat still looks limited.
Oppenheimer analysts, cited by Barron’s, said a serious Intel return to memory would require fresh capital, significant research and development and, crucially, time. That makes a major near-term challenge unlikely.
Meanwhile, Micron is benefiting from tightening high-bandwidth memory supply. UBS analyst Timothy Arcuri said HBM4 and HBM4E pricing was “even stronger than our prior expectations.” UBS expects HBM average selling prices to rise about 79% year on year.
Micron is also trying to make the current boom more durable. The company says multiyear strategic customer agreements should improve the predictability of its financial performance.
Its June agreement with Anthropic spans memory and storage architecture design, supply and AI infrastructure development.
Mizuho analyst Vijay Rakesh remains bullish too. Barron’s reported that Rakesh expects DRAM and NAND markets to stay tight through 2027 and believes Micron could sustain gross margins above 80%.
Intel can decide it wants exposure to memory, but recreating Micron’s manufacturing scale, HBM expertise and customer relationships is another matter.
That does not make Intel’s interest irrelevant.
High memory prices are attracting capital across the industry. Chinese producers are also expanding.
YMTC overtook Micron in NAND shipment volume during the second quarter, although Micron remained ahead by revenue because its product mix carries greater value.
Intel potentially represents a different competitive risk. Tan appears interested in architectures that integrate processing and memory more closely rather than simply returning to commodity NAND.
Memory is a critical part of the artificial intelligence (AI) hardware stack in data centers, computers, smartphones, and even cars. It keeps data constantly flowing to processing chips during AI model training and inference workloads, preventing bottlenecks. Without sufficient memory capacity, users of AI chatbots, AI agents, and even self-driving cars would have a very laggy experience.
In April, Roundhill Investments launched an exchange-traded fund (ETF) that exclusively invests in memory stocks called the Roundhill Memory ETF (DRAM +0.69%). It has already delivered an 80% return in just four months.
The ETF has more than one-quarter of its assets allocated to America's top memory company, Micron Technology (MU +2.30%), which has been a key driver of its returns. Should investors add this fund to their portfolio now, or have they missed the boat?
Image source: Getty Images.
Every leading memory stock is packed into one ETF Data center operators are currently buying high bandwidth memory (HBM) hand over fist to power their AI workloads. It's causing a global shortage across all memory types because suppliers are reducing manufacturing capacity in some segments to prioritize HBM.
This is creating a bonanza for companies like Micron and its main competitors, Samsung Electronics and SK Hynix, because the shortage allows them to dictate prices. As a result, all three are experiencing blistering increases in revenue and earnings. Shareholders are reaping the rewards, with Micron stock soaring by over 600% over the last 12 months alone.
MU data by YCharts
The Roundhill Memory ETF holds 24 stocks, but Micron, Samsung, and SK Hynix, its top three holdings, account for a whopping 70.9% of the portfolio's value.
Stock
Roundhill ETF Portfolio Weighting
Micron Technology
26.02%
Samsung Electronics
24.57%
SK Hynix
20.37%
Data source: Roundhill Investments. Portfolio weightings are accurate as of Aug. 10, 2026, and are subject to change.
Micron, Samsung, and SK Hynix are racing to produce as many of their new HBM4 data center chips as possible, which offer record capacity specifically for AI workloads. Micron's HBM4 delivers 60% higher performance than its previous HBM3 solution and is 20% more energy-efficient. This is an ideal combination for data center operators seeking the fastest processing speeds at the lowest cost.
The memory shortage is so severe right now that Nvidia is sourcing HBM4 from all three suppliers for its new Vera Rubin systems, which include its Rubin graphics processing units (GPUs), Vera central processing units (CPUs), and specialized networking equipment. These systems are now the gold standard for running AI workloads.
Outside of its top three positions, the Roundhill ETF also holds prominent memory and storage names like Seagate Technology Holdings, Western Digital, and Sandisk.
The Roundhill ETF is obliterating the market, but can it continue? The Roundhill Memory ETF only launched on April 2, so it doesn't have much of a track record for investors to consider. But as mentioned, it has already rocketed up by 80%, obliterating the broader market so far.
Today's Change
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However, the soaring cost of AI chips and infrastructure is making AI models and software increasingly expensive to deploy. Large companies like Uber Technologies, Walmart, AT&T, and even Amazon have reportedly placed AI usage restrictions on their employees to prevent cost blowouts.
In Uber's case, the decision came after it blew through its entire 2026 AI budget in four months, triggered by a passive price increase imposed by Anthropic for using its Claude Code programming assistant.
A recent survey by UBS Group found that 60% of businesses are routing tasks to more efficient AI models that use less computing power to keep their spending under control. That isn't great news for the semiconductor industry, as it could eventually lead to declining demand for GPUs, CPUs, and memory.
But none of this should be surprising, because the chip industry has always been cyclical. Data center operators used to invest in new infrastructure every few years, but that upgrade cycle has shortened as updated chips and components now hit the market annually. Any data center operator that doesn't buy the latest chips risks losing the race for AI supremacy.
However, the current spending rate won't be sustainable forever, so I would be very cautious about buying the Roundhill Memory ETF right now. If I did add it to my diversified portfolio, I would ensure it has a very small weighting, under 5%, to keep potential risks in check.
Ayrshire Capital Management ve druhém čtvrtletí nově nakoupila 2 257 akcií Micron Technology za zhruba 2,605 milionu USD. Micron zároveň oznámil, že jeho tržby za čtvrtletí vzrostly meziročně o 345,8 % na 41,46 miliardy USD.
Ayrshire Capital Management LLC acquired a new stake in Micron Technology, Inc. (NASDAQ:MU – Free Report) during the second quarter, according to its most recent disclosure with the Securities & Exchange Commission. The firm acquired 2,257 shares of the semiconductor manufacturer’s stock, valued at approximately $2,605,000. Micron Technology makes up about 1.2% of Ayrshire Capital Management LLC’s holdings, making the stock its 29th largest holding.
A number of other hedge funds have also added to or reduced their stakes in the stock. Heritage Trust Co grew its stake in Micron Technology by 9.7% in the 4th quarter. Heritage Trust Co now owns 15,026 shares of the semiconductor manufacturer’s stock worth $4,289,000 after buying an additional 1,323 shares in the last quarter. Castleark Management LLC purchased a new position in shares of Micron Technology in the 1st quarter worth about $3,709,000. Legacy Wealth Management LLC MS increased its position in shares of Micron Technology by 73.3% during the 2nd quarter. Legacy Wealth Management LLC MS now owns 3,544 shares of the semiconductor manufacturer’s stock valued at $4,091,000 after purchasing an additional 1,499 shares during the last quarter. Financial Synergies Wealth Advisors Inc. bought a new position in shares of Micron Technology during the 4th quarter valued at about $1,316,000. Finally, PKO BP BANKOWY Universal Pension Society JSC purchased a new position in shares of Micron Technology during the 4th quarter valued at about $61,306,000. Institutional investors and hedge funds own 80.84% of the company’s stock.
Key Micron Technology News Here are the key news stories impacting Micron Technology this week:
Positive Sentiment: New Street upgraded Micron to “Buy” from “Neutral” and set a $1,250 price target, citing the possibility that AI is making memory demand less cyclical. The firm projects a potential $2 trillion-$3 trillion valuation for Micron by the end of the decade. Micron Upgraded to Buy on the Claim Memory Stopped Being Cyclical Positive Sentiment: DRAM and NAND prices are tightening again, potentially increasing the earnings impact of Micron’s rapidly expanding data-center business. Analysts are continuing to raise revenue estimates and price targets as AI infrastructure spending supports demand for high-bandwidth memory and storage. Micron Stock Jumps as Memory Pricing Tightens Again Positive Sentiment: Micron launched a $250 million Micron Ventures Paradigm Fund to invest across the AI technology stack, including model development, computing infrastructure, enterprise applications and physical AI. The initiative could strengthen partnerships and give Micron earlier insight into future memory and storage requirements. Micron Ventures Launches $250 Million Fund Neutral Sentiment: Broader semiconductor strength, record U.S. equity benchmarks and easing rate-hike expectations are supporting risk appetite for memory stocks. Technical analysts also identify approximately $1,012 as an important near-term resistance level. Micron Price Forecast Negative Sentiment: Risks remain from rising Chinese competition and execution timing. YMTC has surpassed Micron in NAND shipments, while Micron’s new $9.3 billion fabrication plant is not expected to produce chips until 2028. Michael Burry has also increased bearish positions involving Micron, underscoring concerns about valuation, supply growth and a possible return of memory-cycle volatility. Insider Buying and Selling at Micron Technology In other Micron Technology news, CAO Scott R. Allen sold 879 shares of the company’s stock in a transaction on Thursday, July 23rd. The stock was sold at an average price of $1,000.00, for a total value of $879,000.00. Following the completion of the sale, the chief accounting officer directly owned 34,958 shares in the company, valued at $34,958,000. This represents a 2.45% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. Also, CEO Sanjay Mehrotra sold 37,439 shares of the stock in a transaction that occurred on Friday, May 29th. The stock was sold at an average price of $960.38, for a total value of $35,955,666.82. Following the completion of the transaction, the chief executive officer owned 387,064 shares of the company’s stock, valued at $371,728,524.32. The trade was a 8.82% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last three months, insiders sold 162,179 shares of company stock worth $167,811,861. 0.24% of the stock is currently owned by company insiders.
Analyst Ratings Changes Several analysts have issued reports on MU shares. Wolfe Research set a $1,500.00 target price on Micron Technology in a research note on Thursday, June 25th. Erste Group Bank raised Micron Technology from a “hold” rating to a “buy” rating in a research report on Thursday, June 25th. Seaport Research Partners reiterated a “buy” rating on shares of Micron Technology in a research note on Friday. Rosenblatt Securities lifted their price target on shares of Micron Technology from $1,200.00 to $1,500.00 and gave the stock a “buy” rating in a research note on Thursday, June 25th. Finally, Bank of America increased their price objective on shares of Micron Technology from $950.00 to $1,500.00 and gave the stock a “buy” rating in a research note on Tuesday, June 23rd. Four research analysts have rated the stock with a Strong Buy rating, thirty-two have assigned a Buy rating and two have issued a Hold rating to the stock. According to data from MarketBeat, Micron Technology has a consensus rating of “Buy” and a consensus price target of $1,259.97.
View Our Latest Report on Micron Technology
Micron Technology Trading Up 2.3% Shares of NASDAQ MU opened at $971.66 on Friday. Micron Technology, Inc. has a twelve month low of $113.46 and a twelve month high of $1,255.00. The company has a quick ratio of 2.98, a current ratio of 3.42 and a debt-to-equity ratio of 0.05. The business has a fifty day simple moving average of $965.49 and a two-hundred day simple moving average of $677.08. The firm has a market cap of $1.10 trillion, a PE ratio of 22.00 and a beta of 2.18.
Micron Technology (NASDAQ:MU – Get Free Report) last issued its earnings results on Wednesday, June 24th. The semiconductor manufacturer reported $25.11 earnings per share (EPS) for the quarter, topping the consensus estimate of $21.39 by $3.72. The company had revenue of $41.46 billion for the quarter, compared to analysts’ expectations of $35.91 billion. Micron Technology had a net margin of 55.91% and a return on equity of 71.13%. The firm’s quarterly revenue was up 345.8% on a year-over-year basis. During the same period in the prior year, the business earned $1.91 EPS. Micron Technology has set its Q4 2026 guidance at 30.000-32.000 EPS. Analysts expect that Micron Technology, Inc. will post 72.93 earnings per share for the current fiscal year.
Micron Technology Announces Dividend The firm also recently declared a quarterly dividend, which was paid on Tuesday, July 21st. Investors of record on Monday, July 6th were issued a $0.15 dividend. This represents a $0.60 annualized dividend and a yield of 0.1%. The ex-dividend date was Monday, July 6th. Micron Technology’s dividend payout ratio is 1.36%.
About Micron Technology (Free Report)
Micron Technology, Inc is a global semiconductor company that designs and manufactures memory and storage solutions. Its product portfolio includes dynamic random-access memory (DRAM), NAND flash memory, solid-state drives (SSDs), memory modules and embedded memory solutions for a wide range of computing and electronic devices. Micron supplies components used in data centers, enterprise and cloud infrastructure, client computing, mobile devices, automotive systems and industrial applications, and also markets consumer-facing products under the Crucial brand.
Founded in 1978 and headquartered in Boise, Idaho, Micron has grown into an international manufacturer with research, development and production facilities across multiple regions.
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Accurate Wealth Management LLC lifted its position in Micron Technology, Inc. (NASDAQ:MU – Free Report) by 98.0% in the 2nd quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The institutional investor owned 7,452 shares of the semiconductor manufacturer’s stock after acquiring an additional 3,688 shares during the quarter. Micron Technology accounts for approximately 0.8% of Accurate Wealth Management LLC’s holdings, making the stock its 25th largest position. Accurate Wealth Management LLC’s holdings in Micron Technology were worth $8,602,000 at the end of the most recent quarter.
A number of other institutional investors have also made changes to their positions in MU. Heritage Trust Co boosted its position in Micron Technology by 9.7% during the 4th quarter. Heritage Trust Co now owns 15,026 shares of the semiconductor manufacturer’s stock worth $4,289,000 after acquiring an additional 1,323 shares during the period. Castleark Management LLC acquired a new position in shares of Micron Technology during the first quarter valued at $3,709,000. Legacy Wealth Management LLC MS increased its holdings in shares of Micron Technology by 73.3% during the second quarter. Legacy Wealth Management LLC MS now owns 3,544 shares of the semiconductor manufacturer’s stock valued at $4,091,000 after purchasing an additional 1,499 shares during the period. PKO BP BANKOWY Universal Pension Society JSC bought a new stake in shares of Micron Technology during the fourth quarter valued at about $61,306,000. Finally, Financial Synergies Wealth Advisors Inc. bought a new stake in shares of Micron Technology during the fourth quarter valued at about $1,316,000. 80.84% of the stock is currently owned by institutional investors.
Micron Technology Stock Performance
Shares of Micron Technology stock opened at $971.66 on Friday. Micron Technology, Inc. has a 12 month low of $113.46 and a 12 month high of $1,255.00. The company has a quick ratio of 2.98, a current ratio of 3.42 and a debt-to-equity ratio of 0.05. The stock has a market cap of $1.10 trillion, a PE ratio of 22.00 and a beta of 2.18. The business has a fifty day simple moving average of $965.49 and a 200-day simple moving average of $677.08.
Micron Technology (NASDAQ:MU – Get Free Report) last posted its quarterly earnings results on Wednesday, June 24th. The semiconductor manufacturer reported $25.11 earnings per share for the quarter, beating the consensus estimate of $21.39 by $3.72. The firm had revenue of $41.46 billion for the quarter, compared to analyst estimates of $35.91 billion. Micron Technology had a return on equity of 71.13% and a net margin of 55.91%.Micron Technology’s quarterly revenue was up 345.8% on a year-over-year basis. During the same period in the previous year, the firm earned $1.91 earnings per share. Micron Technology has set its Q4 2026 guidance at 30.000-32.000 EPS. On average, sell-side analysts anticipate that Micron Technology, Inc. will post 72.93 EPS for the current fiscal year.
Micron Technology Dividend Announcement
The company also recently disclosed a quarterly dividend, which was paid on Tuesday, July 21st. Investors of record on Monday, July 6th were given a dividend of $0.15 per share. The ex-dividend date of this dividend was Monday, July 6th. This represents a $0.60 dividend on an annualized basis and a yield of 0.1%. Micron Technology’s dividend payout ratio (DPR) is presently 1.36%.
Insider Transactions at Micron Technology
In other news, CAO Scott R. Allen sold 879 shares of the firm’s stock in a transaction dated Thursday, July 23rd. The stock was sold at an average price of $1,000.00, for a total transaction of $879,000.00. Following the completion of the sale, the chief accounting officer directly owned 34,958 shares of the company’s stock, valued at $34,958,000. This trade represents a 2.45% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this hyperlink. Also, CEO Sanjay Mehrotra sold 31,285 shares of Micron Technology stock in a transaction dated Friday, July 24th. The shares were sold at an average price of $926.83, for a total value of $28,995,876.55. Following the sale, the chief executive officer owned 313,218 shares of the company’s stock, valued at approximately $290,299,838.94. This represents a 9.08% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 162,179 shares of company stock worth $167,811,861 in the last ninety days. Company insiders own 0.24% of the company’s stock.
Key Headlines Impacting Micron Technology
Here are the key news stories impacting Micron Technology this week:
Positive Sentiment: New Street upgraded Micron to “Buy” from “Neutral” and set a $1,250 price target, citing the possibility that AI is making memory demand less cyclical. The firm projects a potential $2 trillion-$3 trillion valuation for Micron by the end of the decade. Micron Upgraded to Buy on the Claim Memory Stopped Being Cyclical
Positive Sentiment: DRAM and NAND prices are tightening again, potentially increasing the earnings impact of Micron’s rapidly expanding data-center business. Analysts are continuing to raise revenue estimates and price targets as AI infrastructure spending supports demand for high-bandwidth memory and storage. Micron Stock Jumps as Memory Pricing Tightens Again
Positive Sentiment: Micron launched a $250 million Micron Ventures Paradigm Fund to invest across the AI technology stack, including model development, computing infrastructure, enterprise applications and physical AI. The initiative could strengthen partnerships and give Micron earlier insight into future memory and storage requirements. Micron Ventures Launches $250 Million Fund
Neutral Sentiment: Broader semiconductor strength, record U.S. equity benchmarks and easing rate-hike expectations are supporting risk appetite for memory stocks. Technical analysts also identify approximately $1,012 as an important near-term resistance level. Micron Price Forecast
Negative Sentiment: Risks remain from rising Chinese competition and execution timing. YMTC has surpassed Micron in NAND shipments, while Micron’s new $9.3 billion fabrication plant is not expected to produce chips until 2028. Michael Burry has also increased bearish positions involving Micron, underscoring concerns about valuation, supply growth and a possible return of memory-cycle volatility.
Wall Street Analysts Forecast Growth
A number of brokerages recently issued reports on MU. Seaport Research Partners reiterated a “buy” rating on shares of Micron Technology in a research report on Friday. Wells Fargo & Company boosted their price target on shares of Micron Technology from $1,220.00 to $1,525.00 and gave the stock an “overweight” rating in a research report on Thursday, June 25th. Cantor Fitzgerald reaffirmed an “overweight” rating and issued a $1,500.00 price target on shares of Micron Technology in a research note on Thursday, June 25th. Raymond James Financial increased their price objective on shares of Micron Technology from $1,100.00 to $1,500.00 and gave the company an “outperform” rating in a report on Thursday, June 25th. Finally, Erste Group Bank upgraded shares of Micron Technology from a “hold” rating to a “buy” rating in a research note on Thursday, June 25th. Four investment analysts have rated the stock with a Strong Buy rating, thirty-two have assigned a Buy rating and two have given a Hold rating to the stock. According to MarketBeat.com, Micron Technology presently has a consensus rating of “Buy” and a consensus price target of $1,259.97.
Read Our Latest Research Report on MU
Micron Technology Company Profile
(Free Report)
Micron Technology, Inc is a global semiconductor company that designs and manufactures memory and storage solutions. Its product portfolio includes dynamic random-access memory (DRAM), NAND flash memory, solid-state drives (SSDs), memory modules and embedded memory solutions for a wide range of computing and electronic devices. Micron supplies components used in data centers, enterprise and cloud infrastructure, client computing, mobile devices, automotive systems and industrial applications, and also markets consumer-facing products under the Crucial brand.
Founded in 1978 and headquartered in Boise, Idaho, Micron has grown into an international manufacturer with research, development and production facilities across multiple regions.
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Key Takeaways WMT shares have lost momentum in 2026, with the company set to report results on August 20th. Other notable retailers, including TGT and HD, are also scheduled to report Q2 results soon. The overall Q2 earnings cycle is winding down, with more than 450 S&P 500 members already reporting. Walmart (WMT - Free Report) shares have struggled lately after consistently outshining others over the last few years. The stock outperformed peers like Target (TGT - Free Report) , Home Depot (HD - Free Report) , and even Amazon (AMZN - Free Report) over the last five years, up more than +130% vs. +60.8% for Amazon, +2.1% for Home Depot, and -40.9% for Target. Walmart’s +130% gain over the last five years compares to a +77.7% gain for the S&P 500 index.
Walmart shares seem to have lost momentum this year even though the company continues to perform exceptionally well, as the year-to-date performance chart below for Walmart, Target, Amazon, Home Depot, and the S&P 500 index shows.
Image Source: Zacks Investment Research
Walmart shares were down following the last quarterly release on May 21st, even though it comfortably beat consensus EPS, revenues, and same-store sales estimates. The stock has failed to recoup those losses since then and remains -11.6% below its May 20th level.
It will be interesting to see whether the Thursday, August 20th quarterly release helps shift sentiment toward this retail leader, but the revisions trend has been modestly negative heading into this release. We will have seen results from Target and Home Depot ahead of Walmart’s release, with Home Depot reporting Tuesday morning and Target the day after (Wednesday, August 19th).
Walmart and other big-box retailers are undoubtedly facing a difficult operating environment, with elevated fuel costs not only adding to consumers’ financial burdens but also increasing retailers’ expenses. These macro overhangs prompted management to reiterate prior guidance in the May quarterly release, a move that became a key source of market concern. These headwinds likely played a role in Friday’s soft July Retail Sales reading.
It is important to keep in mind that Walmart shares command a premium valuation, trading currently at 37.6X forward 12-month EPS estimates, only modestly below the 10-year high valuation multiple of 45.4X in February 2026. This represents a significant expansion in the valuation premium relative to Target, as the chart below of the two stocks’ 10-year valuation history shows.
Image Source: Zacks Investment Research
It is reasonable to chalk up Walmart’s recent underperformance to its premium valuation, particularly in light of management’s conservative, if not altogether underwhelming, guidance back in May. Market participants expect stocks commanding premium valuation multiples to beat-and-raise when they report results.
Notwithstanding the negative effects of elevated fuel costs on consumer spending as well as the company’s freight costs, Walmart remains better positioned than many others in the space given its value orientation, greater indexing to groceries, and robust digital capabilities. Walmart has been consistently gaining market share among higher-income households in recent years, which has more than offset affordability-based demand softness from its lower-income consumers.
Walmart is expected to report $0.73 in EPS on $186.3 billion in revenues, representing year-over-year changes of +7.4% and +5.03%, respectively. Estimates have been under pressure, with the current 73-cent estimate down from 74 cents a month ago and 75 cents three months ago.
In terms of same-store sales, the expectation is for U.S. comps (ex fuel) of +3.57%, which will compare to a +4.1% gain in the preceding quarter (vs. expectations of +4.03%) and a +4.6% gain in the year-earlier period (vs. expectations of +3.98%).
The expectation for Target on the comps front is +2.29% growth, following the +5.6% gain in the preceding period (vs. expectations of 1.34%). Target’s impressive comp showing in the May 20th release followed four back-to-back quarters of negative comps.
A positive general merchandise read will also have positive read-throughs for Target.
With respect to the Retail sector 2026 Q2 earnings season scorecard, we now have results from 18 of the 31 retailers in the S&P 500 index. Regular readers know that Zacks has a dedicated stand-alone economic sector for the retail space, which is unlike the placement of the space in the Consumer Staples and Consumer Discretionary sectors in the Standard & Poor’s standard industry classification.
The Zacks Retail sector includes not only Walmart, Target, and other traditional retailers, but also online vendors like Amazon (AMZN - Free Report) and restaurant players. The 18 Zacks Retail companies in the S&P 500 index that have already reported Q2 results are mostly in the ecommerce and restaurant industries, though we have several restaurant companies on deck to report this week as well.
Total Q2 earnings for these 18 retailers that have reported are up +12% from the same period last year on +15.4% higher revenues, with 77.8% beating EPS estimates and 55.6% beating revenue estimates.
The comparison charts below put the Q2 beats percentages for these retailers in a historical context.
Image Source: Zacks Investment Research
As you can see above, the revenue beats percentages for these online players and restaurant operators are tracking significantly below the historical averages for this group of companies, but EPS beats are far more numerous.
With respect to earnings and revenue growth rates at this stage, we like to show the group’s performance with and without Amazon, whose results are among those of the 18 companies that have already reported. As we know, Amazon’s Q2 earnings were up +12.6% on +19.6% higher revenues, as it beat both EPS and top- line expectations.
The two comparison charts below show the Q2 earnings and revenue growth relative to other recent periods, both with Amazon’s results (left side chart) and without Amazon’s numbers (right side chart)
Image Source: Zacks Investment Research
As you can see above, earnings for the group outside of Amazon are up +10.9% on a +10.0% top-line gain.
Q2 Earnings Season ScorecardThrough Friday, August 7th, we have seen quarterly results from 456 S&P 500 members, or 91.2% of the index’s total membership. Total earnings for these companies are up +41.5% from the same period last year on +14.7% revenue gains, with 83.6% of the companies beating EPS estimates and 76.5% of them beating revenue estimates.
The comparison charts below put the Q2 earnings and revenue growth rates for these index members in a historical context.
Image Source: Zacks Investment Research
The comparison charts below put the Q2 EPS and revenue beats percentages in a historical context.
Image Source: Zacks Investment Research
The unusually strong earnings growth rate of +41.5% and revenue growth of +14.7% are benefiting from Micron (MU - Free Report) and Alphabet’s (GOOGL - Free Report) blockbuster results.
The chart below shows the reported Q2 earnings growth pictures, with and without Alphabet and Micron.
Image Source: Zacks Investment Research
The Q2 reporting cycle is in its final stretch now, with half of the 16 Zacks sectors having reported all of their results, including Energy, Finance, Construction, Basic Materials, Utilities, and others.
This week’s line-up includes more than 100 companies, 12 of which are S&P 500 members. Notable companies reporting this week, in addition to the aforementioned retailers, include Estée Lauder, Viking, Deere & Co., and others.
The Earnings Big PictureThe chart below gives you a big-picture view of the overall earnings picture. It highlights current Q2 expectations right alongside actual results from the past four quarters and forecasts for the next three (including 2026 Q2).
Image Source: Zacks Investment Research
As you can see here, total S&P 500 earnings for 2026 Q2 are expected to increase by +43.2% compared to the same period last year on +15.2% higher revenues.
Of the 16 Zacks sectors, 13 are expected to have positive earnings growth in Q2, with Energy (earnings growth of +142.8%), Tech (+95.1%), Basic Materials (+52.3%), and Finance (+22.3%) as the major growth drivers.
Q2 earnings growth drops to +18.5% from +43.2% once the Tech sector’s substantial contribution is excluded.
The +142.8% earnings growth for the Energy sector is meaningful, but aggregate earnings growth would still be up +38.9% on an ex-Energy basis. The sector simply no longer has the heft it once did.
The Tech sector has been a pillar of earnings growth over the last two years and is expected to continue playing that role in Q2 and beyond. The chart below shows current earnings and revenue growth expectations for the sector relative to what it actually reported in the preceding two periods and what is expected over the following three quarters.
Image Source: Zacks Investment Research
The Tech sector is unlike the other 15 Zacks sectors, as it alone brings in 41.7% of all S&P 500 earnings and accounts for 46.3% of the index’s total market capitalization.
As noted earlier, Alphabet’s Q2 results included a huge boost from a non-operating side, specifically the unrealized gain it has been forced to book on its SpaceX stake following that company’s IPO. Alphabet isn’t alone in having an outsized impact on the sector’s growth pace, as Nvidia and Micron are also exerting an outsized influence.
Excluding the contribution from Alphabet, Micron, and Nvidia, Q2 earnings for the rest of the Zacks Tech sector would be up +33.6% (vs. +95.1% otherwise).
The chart below shows the Tech sector’s earnings growth picture, with and without these three companies.
Image Source: Zacks Investment Research
The chart below shows the aggregate growth picture for the S&P 500 index on a calendar year basis.
Image Source: Zacks Investment Research
As with Q2 expectations, the Tech sector has an outsized impact on the annual earnings picture as well. Total Tech sector earnings are expected to increase +50.8% from the same period last year on +17.5% higher revenues.
Excluding the Tech sector’s substantial contribution, total S&P 500 earnings for the year would be up +14.7% (vs. +27.0% otherwise).
As we saw with Q2 expectations, contributions from Alphabet, Micron, and Nvidia are also significant here on an annual basis, as the chart below shows.
Image Source: Zacks Investment Research
The Revisions Trend – 2026 Q3We showed in an earlier chart that S&P 500 earnings are expected to increase by +21.9% in 2026 Q3 on +10.7% higher revenues.
The revisions trend has remained positive, sustaining the favorable trend in place for almost a year now. The chart below shows how 2026 Q3 earnings growth expectations have evolved lately.
Image Source: Zacks Investment Research
As noted earlier, these favorable revision patterns are not a new development; they extend a tailwind that has been building for nearly a year. Historically, these upward adjustments were tightly concentrated in Technology and, more recently, Energy following Middle East supply disruptions. However, for Q3 2026, the constructive estimate revisions have broadened significantly, rising across 8 of the 16 Zacks sectors—including Transportation, Finance, Aerospace, Industrials, Utilities, and Construction, as well as Tech and Energy.
For a detailed view of the evolving earnings picture, please check out our weekly Earnings Trends report here >>>> Q2 Earnings Scorecard: Record Margins, Strong Beats and Upward Revisions
Michael Burry zvýšil sázku proti Micronu a přesunul put opce na QQQ do vyšší strike a delší expirace, přestože jeho shortové portfolio už sklouzává do ztráty. Uvádí, že se připravuje na větší pokles trhu.
Michael Burry, the Scion Asset Management founder known for “The Big Short,” is adding to his short book despite losses. In his Substack post “Trading Post August 13, 2026,” Burry disclosed that he pressed his bet against Micron Technology (NASDAQ:MU | MU Price Prediction) as the stock climbed toward $1,000, and rolled his puts on the Invesco QQQ Trust (NASDAQ:QQQ) up in strike and further out in time.
Burry stated that his goal was “to reduce gross exposure, and to free up some cash, while maintaining the short bias.” He acknowledged being “roughly breakeven” on his shorts, “but the situation is tipping into a loss position across the short portfolio as the market, and certain stocks, rallied.”
Moreover, Burry framed the repositioning as preparation for a “larger fall” in the market. Micron stock has soared 238% year to date, putting the Burry squarely in the path of the AI memory trade.
The Micron Short Gets Bigger Micron shares are trading near $966, up 671% over the past year. Micron’s fiscal Q3 2026 revenue hit $41.5 billion, up 346% year over year, with a GAAP gross margin of 84.6% and seven consecutive EPS beats.
CEO Sanjay Mehrotra stated that “DRAM and NAND industry demand continues to significantly exceed industry supply” and that Micron expects tight conditions to persist beyond calendar 2027. Micron guided Q4 FY2026 revenue to $50 billion plus or minus $1 billion and non-GAAP EPS to $31 plus or minus $1.
The bear case has merit. Memory is historically cyclical, and Micron’s Q4 capex is guided near $10 billion. MU stock trades at a forward P/E ratio of 5.55x, reflecting a market pricing peak earnings, with a beta of 2.213.
The QQQ Roll and the Semiconductor Distinction Burry rolled his January 2027 QQQ ETF puts struck in the mid-to-high $500s into a June 2027 position struck in the mid-to-high $600s, now 6% of his portfolio. QQQ shares, which track the NASDAQ 100 index, are up 19% year to date, so the roll resets a hedge that had gone against him.
A key nuance: Burry closed his put options on the iShares Semiconductor ETF (NASDAQ:SOXX), a losing trade, while keeping his short position in the shares themselves. That semiconductor ETF short remains his largest bearish position at 7% of the portfolio, even though SOXX shares are up 80% year to date. The same logic applies to Oracle (NYSE:ORCL): Burry said Oracle’s puts are too expensive, so he holds the short position in the shares.
What He Covered, What He Spared Burry covered his Tesla short after a decent gain. Tesla (NASDAQ:TSLA) stock is down 28% year to date. He also covered his Applied Materials (NASDAQ:AMAT) short and trimmed his Caterpillar (NYSE:CAT) short by 25%. Burry stated: “Quick sizable short sale gains are gift horses in this market.”
He kept his NVIDIA (NASDAQ:NVDA) and Palantir Technologies (NASDAQ:PLTR) puts, which he said he “spared.” NVDA stock is up 21% year to date, and PLTR shares are down 1%.
Burry trimmed his long positions across the board, bringing cash to 12%. On Stocktwits, retail sentiment reads neutral on NVIDIA stock, bullish on Palantir stock, bearish on Micron stock, and neutral on Tesla stock.
Is He Asking for Trouble? Pressing a short into a stock that’s up roughly 240% year to date is high-conviction contrarianism. If Burry is right, long-dated Micron puts could pay off asymmetrically; if the AI memory cycle continues, the losses could compound quickly.
Investors can watch for signs of memory pricing rolling over, HBM4 supply catching up with demand, or deterioration in hyperscaler capex commitments. Micron’s analyst target price of $1,501.98 sits well above where MU stock trades today, and 40 of the 45 covering analysts rate the stock a Buy or Strong Buy.
Burry has been early before, and being early can look identical to being wrong for a long time. Position sizing, more than conviction, can separate a bad trade from a devastating loss.
Contact [email protected] for any questions or corrections.
Micron Technology MU shares climbed on Friday after New Street upgraded the memory-chip maker to 'Buy', arguing that artificial intelligence could transform the company into a $2 trillion to $3 trillion business by the end of the decade.
New Street raised its rating from Neutral to Buy and set a price target of $1,250, implying roughly 29% upside from current levels. Micron stock was up 1.3% in trading, giving the company a market capitalization of around $1 trillion.
The bullish outlook comes as analysts increasingly expect AI-driven demand for memory chips to reshape the industry's long-term growth trajectory while making earnings less cyclical than in previous decades.
New Street said Micron remains attractively valued despite its recent rally, citing the company's price-to-cost-of-goods-sold ratio as evidence that the shares still offer value.
The stock has already gained more than 10% over the past five trading sessions.
The brokerage expects AI to become the dominant driver of memory demand in the coming years.
According to its forecasts, AI applications will account for roughly two-thirds of total memory demand, with annual memory demand growth reaching 15% beyond 2030, compared with the historical average of about 10% over the past two decades.
The firm also argued that the memory business is becoming structurally stronger.
It said high-bandwidth memory "deserves a premium to commodity DRAM" because demand is increasingly supported by long-term AI infrastructure spending rather than traditional cyclical factors.
Looking further ahead, New Street projects Micron could generate more than $150 billion in annual free cash flow by 2030 while accumulating over $600 billion in cash, describing both figures as peak levels.
Micron's rally has also been supported by improving sentiment across the broader memory sector.
Investors have returned to memory-chip stocks following Sandisk's optimistic long-term outlook presented at its investor day earlier this week.
Shares of South Korean memory producer SK Hynix also moved higher in trading.
Analysts expect memory pricing to remain strong throughout the year.
KeyBanc forecasts dynamic random-access memory (DRAM) prices will increase by 15% to 20% in the third quarter compared with the previous quarter, followed by another 15% increase in the fourth quarter.
For NAND flash memory, the firm expects prices to rise by 30% to 40% in the third quarter before advancing another 15% in the final quarter of the year.
Despite Micron's strong performance, analysts argue the stock still trades at a discount to many semiconductor peers.
According to FactSet data, Micron trades at a forward price-to-earnings ratio of about 6.3 times, though analysts note traditional valuation metrics can be misleading because memory earnings have historically been cyclical.
UBS analyst Timothy Arcuri recently reiterated a $1,625 price target, valuing the company at 11 times his projected 2029 earnings.
Arcuri said he is using 2029 earnings because they "best reflect Micron's through-cycle earnings power under LTAs", adding that his model assumes "a moderate memory downcycle" by then.
With analysts seeing high target prices for Micron, investors weighing an entry point can use investment apps to access research tools and execute trades at the right time.
With AI infrastructure spending continuing to accelerate and analysts forecasting sustained strength in memory pricing, investors are increasingly viewing Micron as a long-term beneficiary of the expanding AI ecosystem.
Micron oznámil tržby za 3. čtvrtletí fiskálního roku 2026 ve výši 41,5 miliardy USD a hrubou marži 84,9 %, tažené cenami HBM a NAND. Firma navíc uzavřela 16 strategických smluv na zhruba 100 miliard USD minimálních tržeb.
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Micron Technology (NASDAQ:MU | MU Price Prediction) at $949.83 looks compelling, and the rally still has room to run. Quarterly revenue jumped from $11.3 billion in Q4 2025 to $41.5 billion in Q3 2026, making memory the scarce commodity of the AI era. Micron is the only U.S.-based supplier.
Micron sells DRAM and NAND memory into cloud, mobile, automotive, and embedded markets. High Bandwidth Memory (HBM) sits alongside every AI accelerator shipped by NVIDIA (NASDAQ:NVDA) and AMD (NASDAQ:AMD), moving from a rounding error to the company’s most strategic revenue stream in under two years.
The move from $118.29 in early September 2025 to $949.83 reflects fundamental repricing. Earnings, margins, and forward guidance have all reset higher in lockstep.
An HBM Franchise That Prices Like a Monopoly
Micron’s Q3 FY26 non-GAAP gross margin hit 84.9%, more than double year-ago levels, driven by HBM pricing and NAND increases in the mid-80s percentage range sequentially. Management has signed 16 Strategic Customer Agreements covering roughly $100 billion of minimum committed revenue, with about $22 billion in cash deposits and letters of credit backing them.
CEO Sanjay Mehrotra said “the gross margins at the floor will be well beyond the peaks that we experienced” in past cycles, meaning even a downturn should clear prior peak profitability. Q4 FY26 guidance calls for $50 billion in revenue and $31 in non-GAAP EPS, leaving the stock near 6x forward earnings.
Insider Selling and Cyclical Risk
The bear case starts with insider behavior. CEO Mehrotra executed 122 separate sell transactions across three months, and CPO April Arnzen sold 35,364 shares at $1,077 to $1,096. No insiders bought.
Citi cut its price target to $1,150 from $1,400 on August 7, arguing memory prices peak in 2027, and SK Hynix announced a $38 billion fab expansion will add competing HBM capacity. Memory is cyclical, and $7.8 billion in quarterly capex assumes AI demand keeps compounding.
Why Patience Has a Real Cost
A Hold case rests on tension between record fundamentals and heavy insider distribution near the top. The stock has returned 665.57% over one year, and pullbacks of 20% or more have been routine. Waiting for the next reset is defensible.
The cost is watching a company under multi-year take-or-pay contracts continue to compound. Watch HBM4E qualification milestones, quarterly SCA disclosures, and any sign that memory pricing rolls over.
What the Data Says
Micron trades at $949.83 with a market cap near $1.03 trillion, a trailing P/E of 20, and a forward P/E of 6. The consensus analyst price target sits at $1,501.98, implying meaningful upside.
Coverage tilts decisively bullish, with 40 Buy ratings, 5 Hold, and zero Sell. Year to date Micron is up 233% against a much smaller gain for the S&P 500, and the beat streak has reached seven consecutive quarters.
Why The Bull Case Holds At $949.83
At $949.83, the bull case remains intact. The path to further appreciation runs through the September earnings report, where guidance of $50 billion in revenue and $31 EPS would annualize to more than $120 in earnings power, leaving forward multiples in the mid-single digits.
Strategic Customer Agreements de-risk the traditional memory bust by locking floor pricing above prior peak margins across roughly half of expected revenue. This structural change separates this cycle from every prior one and is not yet reflected at 6x forward earnings.
The thesis breaks if HBM pricing cracks meaningfully before 2027, if lead customer concentration on HBM4 turns into share loss, or if capex overshoots demand. Watch pricing commentary quarter to quarter and whether SCA coverage grows toward the targeted 50% of revenue.
Memory is now a strategic asset. Micron owns the U.S. supply, and the market is pricing the stock like a commodity cyclical, which is why the current level still looks reasonable on the fundamentals.
Contact [email protected] for any questions or corrections.
Michael Burry drží medvědí sázky na Nvidia, Palantir a Micron, ale CoreWeave nechce shortovat kvůli riziku prudkého short squeeze. Akcie CoreWeave ve středu po výsledcích vyskočily o více než 19 %.
Michael Burry is becoming more aggressive against the AI trade, but one company he has criticised remains off limits: CoreWeave.
The “Big Short” investor has retained put options on Nvidia and Palantir, increased his Micron short and replaced losing semiconductor ETF puts with a larger bearish position in the Nasdaq-heavy QQQ.
Yet Burry says CoreWeave is too dangerous to short because its limited float, retail following and volatility can overwhelm fundamentals.
His decision is tactical rather than bullish. CoreWeave may be one of the AI companies Burry distrusts most, but it is also the one he sees as most capable of punishing bearish traders.
Burry said his current bearish exposure resembles, and may be even more aggressive in some respects than, his positioning around the 2020 market crash.
His latest portfolio update shows QQQ puts representing about 6% of the portfolio after he exited losing SOXX puts.
An outright SOXX short remains his largest bearish position at roughly 7%, while he retained Nvidia and Palantir puts and increased his Micron short as the memory stock approached $1,000.
Burry has also increased cash to about 12% as partial preparation for a broader decline.
His concern stretches beyond valuations. Burry argues that AI companies increasingly finance one another and recycle capital through the same ecosystem, while growing debt introduces a real cost of capital.
He has identified 2028 as a possible point when excess compute capacity becomes more visible.
CoreWeave would appear to fit Burry’s thesis perfectly.
Earlier this year, he criticised its debt-funded GPU spending, rapid depreciation and customer concentration, comparing the AI cloud provider unfavourably with infrastructure businesses from the dot-com era.
But when asked whether CoreWeave was an attractive short, Burry focused instead on trading risk.
“CRWV has more of a meme vibe,” he said, according to Stocktwits, adding that he would rather avoid shorting the leading candidate for “memesville.”
This week demonstrated the danger.
CoreWeave shares surged more than 19% on Wednesday after second-quarter revenue more than doubled to $2.58 billion.
Revenue backlog reached $104.2 billion, while the company raised its 2026 revenue outlook to $12.4 billion-$13.2 billion.
Bernstein analyst Madison Rezaei, previously critical of CoreWeave’s execution, acknowledged after the results that “in this quarter, they delivered.” She nevertheless retained an Underperform view, with debt and longer-term AI-compute economics still concerns.
The contradiction captures Burry’s problem: questionable fundamentals do not guarantee a falling stock.
Burry is betting against a market where many analysts still see demand, not excess capacity, as the dominant issue.
Brad Neuman, director of market strategy at Alger, told Business Insider that investors should be “more worried about supply than demand,” pointing to constraints around data centres and grid connections.
Micron offers another sharp disagreement. Mizuho analyst Vijay Rakesh reiterated an Outperform rating and $1,375 target this week, arguing that tight DRAM and NAND conditions could persist through 2027 and support unusually high margins.
Nvidia also retains strong analyst support. Bank of America’s Vivek Arya described Nvidia’s new third-party AI infrastructure financing platform as structurally bullish because it shifts much of the capital burden away from Nvidia while reinforcing its CUDA ecosystem.
Akcie Micron Technology ve čtvrtek vzrostly až o 7,3 % po zprávách o chystaném programu návratu kapitálu akcionářům. Finanční ředitel uvedl, že firma časem vrátí 100 % přebytečné hotovosti, hlavně prostřednictvím zpětných odkupů.
Shares of Micron Technology (MU +4.23%) charged sharply higher on Thursday, jumping as much as 7.3%. As of 2:04 p.m. ET, the stock was still up 6.6%.
The catalyst that sent the semiconductor specialist higher was media reports detailing the company's upcoming capital allocation plans.
Image source: The Motley Fool.
Show me the money In late 2024, Micron received a $6.1 billion chip-making subsidy from the U.S. Department of Commerce to produce semiconductors in the U.S. The agreement, formally known as the CHIPS Incentive Program, rewarded companies that agreed to increase manufacturing in the U.S. One of the stipulations was that none of the funds could be used for share repurchases, and recipients agreed to refrain from stock buybacks for a period of time after receiving the subsidy.
In the fiscal 2026 Q3 earnings call with analysts in June, CFO Mark Murphy revealed that Micron was sitting on what it called "excess cash." He addressed the issue of returning capital to shareholders, saying, "Over time, we expect to return 100% of our excess cash to shareholders."
He went further, noting, "the principal capital return we have will be share repurchase. I said today in the prepared remarks that we intend to increase our capital return from Dec. 9, which is the second anniversary of our CHIPS agreement signature." He pointed to the company's record cash flow, noting that in the past two quarters, Micron had "generated as much as [in] much of the company's history."
Today's Change
(
4.23
%) $
38.54
Current Price
$
949.83
Several press reports have surfaced, recounting that interaction, and the prospect of a robust capital return program has investors cheering.
Even after today's rally, Micron stock is selling for just 22 times earnings, an attractive multiple for a company growing revenue and profits at triple-digit rates. Bears will argue that chip stocks are cyclical and that the current cycle will eventually end. However, as I've detailed before, Micron has taken steps to lock many of its major customers into multi-year, non-cancelable contracts to ensure its windfall continues.
As such, I would argue that Micron stock is still a buy.
Danny Vena, CPA has positions in Micron Technology. The Motley Fool has positions in and recommends Micron Technology. The Motley Fool has a disclosure policy.
SanDisk na Dni investorů zveřejnil dlouhodobý model s cílem růstu tržeb v polovině až vyšších desítkách procent a marží kolem 80 %, což zvedlo i Micron, Western Digital a SK hynix.
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Memory and storage stocks opened roughly flat Thursday and then rallied sharply through the morning session, making the group the standout trade of the day. At midday, SanDisk (NASDAQ:SNDK | SNDK Price Prediction) was up about 15%, Western Digital (NASDAQ:WDC) up about 10%, SK hynix (NASDAQ:SKHY) up about 8%, and Micron Technology (NASDAQ:MU) up about 6%.
The move is a sharp reclaim after a rough stretch. SanDisk entered the session down roughly 19.7% over the past month, and Western Digital was down roughly 18.3% over the past month and about 12.5% over the past week. Today the group is reclaiming that ground.
SanDisk Investor Day Reprices the Whole Group
The catalyst is SanDisk’s 2026 Investor Day, “Sandisk In Focus,” and the long-term financial model released alongside it. For fiscal 2028 through fiscal 2030, management is targeting mid-to-high teens revenue growth, non-GAAP gross margins sustained at approximately 80%, non-GAAP operating margins of roughly 75%, and an adjusted free cash flow margin of about 50%. The company also plans to return 100% of excess cash to shareholders after investing in the business.
An 80% gross margin sustained through fiscal 2030 is an extraordinary claim in NAND, an industry historically defined by brutal cyclicality. That is why one company’s investor day is lifting Micron, Western Digital, and SK hynix in sympathy. Investors are being asked to accept that memory economics have structurally changed.
The Mechanism: New Business Model Agreements
Management is anchoring the durability claim on its New Business Model agreements, built on committed volumes, enforceable contractual frameworks with minimum financial guarantees, and structured pricing mechanisms. SanDisk has signed NBMs with eight customers, representing approximately 50% of bits in FY2027 and about two-thirds of bits in FY2028.
CFO Luis Visoso framed the pitch: “We are optimizing for growth, sustainability and returns. As we do that, we expect to return 100 percent of excess cash to our shareholders after investing in the business.” CEO David Goeckeler added, “Our strong performance today is the direct result of disciplined execution against the strategy we outlined 18 months ago.” Management also flagged that the enterprise data center flash total addressable market is growing to 1.2 zettabytes by 2030, driven by AI inference workloads and KV cache reshaping the memory hierarchy.
Read-Across to Peers
Western Digital is the natural comparable after being separated from SanDisk, so a bullish long-term NAND margin framework reads directly across. Micron spans DRAM and NAND and is the primary US-listed way to play a broad memory cycle view. SK hynix is a critical HBM supplier for AI accelerators, though investors should note it is an ADS whose primary listing is the Korea Exchange, reporting in Korean Won under K-IFRS.
Today’s Move vs. Year to Date
Stock
Today
Year to Date
SanDisk (SNDK)
+15%
+466.3%
Western Digital (WDC)
+10%
+163.8%
SK hynix (SKHY)
+8%
n/a (short US listing)
Micron (MU)
+6%
+219.5%
All names are up big year-to-date, but just went through a whipsaw July that saw many memory stocks draw down dramatically. SanDisk’s margin commentary on its earnings call lead to a broad sell-off across the sapce, but today’s long-term view provides conviction that margins will stay elevated for longer than investors expected.
Risks Vs. Opportunities After Today’s Jump
An 80% gross margin held through fiscal 2030 remains a forecast rather than an achieved result restated: it is only a target. NAND has repeatedly punished investors who assumed the cycle was over. These are forward-looking non-GAAP targets without a full GAAP reconciliation available. And several of these names carry enormous year-to-date gains already, with SanDisk up 466.3% on the year.
Still, it’s worth noting that Wall Street expects normalized earnings of $213.23, $265.12, and $214.10 from SanDisk across the next three years. After today’s financial model was released, I would expect that today number ($214.10) to rise. So, from a forward perspective, SanDisk’s valuation isn’t outrageous as they’ll likely return about half their current value to shareholders across the coming three years.
Contact [email protected] for any questions or corrections.
Micron ve fiskálním 3. čtvrtletí 2026 zvýšil tržby meziročně o 346 % na 41,46 miliardy USD díky silné poptávce po pamětech pro AI. Na trhu s HBM má 21 %, zatímco SK Hynix drží 58 %.
Key Takeaways Micron's fiscal Q3 2026 revenues surged 346% year over year to $41.46 billion amid strong AI demand.Micron has generated more than $1 billion in HBM4 revenues, with its 12-high ramp twice as fast as HBM3E.SK Hynix holds a 58% HBM share vs. Micron's 21%, while SNDK and MU each have a 13% share in the NAND market.
Micron Technology, Inc. (MU - Free Report) is sharpening its focus on artificial intelligence (AI) memory as demand for high-bandwidth memory (HBM), DRAM and data-center storage accelerates. The strategy is producing strong financial results, but Micron still faces tough competition from SK Hynix Inc. (SKHY - Free Report) in HBM and Sandisk Corporation (SNDK - Free Report) in NAND.
Micron's third-quarter fiscal 2026 revenues surged 346% year over year to $41.46 billion, while non-GAAP earnings reached $25.11 per share compared with $1.91 a year earlier. Data-center demand was particularly strong, with revenues exceeding $25 billion during the quarter.
HBM is central to Micron's AI strategy. The company has already generated more than $1 billion in HBM4 revenues, while its 12-high HBM4 ramp is progressing twice as fast as its HBM3E 12-high ramp. HBM4 is already shipping in high volumes to a lead customer, with additional customers receiving qualification samples.
However, SK Hynix remains a formidable HBM competitor, with a reported 58% HBM market share, according to a Counterpoint report. Micron competes with Sandisk mainly in the NAND memory market. Sandisk holds a 13% share in the global NAND memory market, according to a Counterpoint report. Micron has a 21% share in the global HBM market and 13% in the global NAND memory market.
Micron's advantage is its broad exposure to both memory and storage, along with rapidly improving HBM4 execution. If it maintains this pace while expanding advanced packaging capacity, AI could help Micron narrow SK Hynix's HBM lead and outperform Sandisk's storage-focused growth. The Zacks Consensus Estimate for fiscal 2026 and 2027 revenues indicates a year-over-year increase of 247% and 91%, respectively.
How Do SK Hynix and SanDisk Fare Against Micron?SK Hynix is Micron’s strongest competitor in HBM, where AI accelerator demand is driving rapid growth. Its early HBM leadership gives it an important advantage. The rapid buildout of AI data centers has triggered a global shortage of memory products, driving demand across industries ranging from cloud computing to consumer electronics.
As a key supplier of AI memory chips to NVIDIA, SK Hynix is well-positioned to capitalize on the AI boom. Leveraging its relationship with NVIDIA, the company is expanding its manufacturing capacity to keep pace with rising demand fueled by the ongoing global AI investment cycle. In the recently reported results for the second quarter of 2026, SK Hynix’s revenues surged 257% year over year, while net income jumped 1,242%.
Sandisk is a more direct competitor in NAND and enterprise SSDs, rather than HBM. In the fourth quarter of fiscal 2026, Sandisk’s revenues soared 372% year over year to $8.97 billion, while non-GAAP net income jumped to $6.16 billion from $42 million in the year-ago quarter. Sandisk is benefiting from AI-led demand that is lifting enterprise SSD adoption and supporting pricing across NAND end markets. Its data-center revenues jumped 437% year over year to $5.15 billion in fiscal 2026.
SanDisk also has signed long-term supply agreements, adding some demand visibility. During its fourth-quarter fiscal 2026 earnings call, SanDisk revealed that it holds eight long-term contracts with six customers worth $93.9 billion. The average length of contracts is four years. SanDisk expects half of its bit production to be covered by these deals in fiscal 2027 and two-thirds in fiscal 2028.
Micron’s Price Performance, Valuation and EstimatesShares of Micron have surged around 220.3% year to date compared with the Zacks Computer and Technology sector’s return of 16.8%.
From a valuation standpoint, MU trades at a forward price-to-earnings ratio of 5.93, significantly lower than the sector’s average of 21.33.
Micron Technology 12-Month Forward P/E Ratio
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Micron’s fiscal 2026 and 2027 earnings implies a year-over-year increase of 791% and 114%, respectively. Bottom-line estimates for fiscal 2026 and 2027 have been revised upward in the past 30 days.
Image Source: Zacks Investment Research
Micron currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Micron je sice v podílu na NAND za YMTC, ale v tržbách zůstává před čínským rivalem. AI zvyšuje poptávku po enterprise storage a tlačí tržby odvětví na rekord.
Micron Technology, Inc. (NASDAQ:MU) stock traded lower Thursday morning, even as U.S. stock futures pointed slightly higher. Nasdaq futures rose 0.07%, while S&P 500 futures gained 0.18%.
AI Storage Demand Boosts NAND MarketMicron’s premarket decline comes despite a favorable industry backdrop. The company is benefiting from a shift toward higher-value NAND products as artificial intelligence fuels demand for enterprise storage, according to Counterpoint Research.
Enterprise solid-state drives accounted for 48% of global NAND shipments in the second quarter, nearly double their 26% share a year earlier. Counterpoint said rising AI inference demand tightened supply and helped push industry revenue to record levels.
Micron Holds 13% Of NAND ShipmentsMicron held about 13% of NAND shipments. It trailed Samsung Electronics Co., Ltd. (OTC:SSNLF), SK hynix Inc. (NASDAQ:SKHY), privately held Yangtze Memory Technologies Co., or YMTC, and Kioxia Holdings Corporation.
However, Micron remained ahead of YMTC by revenue despite the Chinese rival capturing a larger 14% shipment share. Sandisk Corporation (NASDAQ:SNDK) held an 11% shipment share.
Premium NAND Mix Could Drive ProfitabilityCounterpoint said NAND profitability through 2027 will increasingly depend on selling the right mix of higher-value products rather than simply shipping more bits. That trend could favor suppliers with greater exposure to premium enterprise storage as AI infrastructure expands.
Against that backdrop, Micron’s Thursday decline puts more focus on technical levels following the stock’s recent consolidation.
Micron Technical AnalysisMicron traded 3.4% above its 20-day simple moving average of $879.08. However, it remained 5.8% below its 50-day SMA of $965.16.
The longer-term trend remains stronger. Micron traded 18.5% above its 100-day SMA of $767.27 and 66.8% above its 200-day SMA of $545.19.
The relative strength index stood at 50.23. An RSI near 50 signals neutral momentum, meaning neither buyers nor sellers have a clear advantage.
Micron’s 20-day SMA remains below its 50-day SMA, a bearish short-term signal. However, its 50-day SMA remains above the 200-day SMA, supporting the longer-term bullish trend.
Key resistance: $1,012. Key support: $891.50, near the 20-day exponential moving average of $891.82. Micron Earnings And Analyst OutlookMicron’s next earnings report is estimated for Sept. 22.
Wall Street expects earnings of $31.27 per share, up from $3.03 a year earlier. Revenue is projected at $50.81 billion, compared with $11.31 billion a year ago.
Micron carries a Buy consensus rating and an average price forecast of $1,537.50. Recent analyst actions include:
Citigroup: Buy, lowered price forecast to $1,150 on Aug. 7. KeyBanc: Overweight, raised price forecast to $1,750 on July 14. Cantor Fitzgerald: Overweight, raised price forecast to $2,000 on June 29. Benzinga Edge RankingsMicron scores strongly across several Benzinga Edge measures. Its Momentum score stands at 99.59, Quality at 97.41 and Growth at 91.47. Its Value score is lower at 34.24.
The rankings point to strong momentum, quality and growth, while valuation remains the weaker part of the profile.
MU Price ActionMU Stock Price Activity: Micron Technology shares were down 0.72% at $904.75 during premarket trading on Thursday, according to Benzinga Pro data.
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YMTC se ve 2. čtvrtletí dostala mezi tři největší výrobce NAND podle objemu dodávek, s 14% podílem na světě, za Samsungem a SK Hynixem. Na tržbách ale zůstala až pátá.
China’s Yangtze Memory Technologies has broken into the global top three for NAND shipments, overtaking Kioxia and finishing ahead of Micron, showing how quickly China’s memory industry is advancing.
YMTC captured 14% of global NAND shipments in the second quarter, behind Samsung’s 25% and SK Hynix’s 22%, according to Counterpoint Research.
But the ranking comes with a caveat: YMTC remained fifth by NAND revenue, behind both Kioxia and Micron. That gap between volume and value is what matters next.
YMTC’s NAND shipments rose 22% from a year earlier and 5% from the previous quarter as shortages helped it expand supply to Chinese device makers.
Counterpoint said the company is mass-producing 267-layer 3D NAND and developing technology beyond 300 layers using its Xtacking architecture.
MS Hwang, research director at Counterpoint, told Barron’s in June that additional capital from a potential IPO could equip YMTC to “surpass both Kioxia and Micron” and become the world’s third-largest NAND producer.
By shipment volume, that prediction has effectively arrived.
But shipping more bits does not automatically mean earning more money. Counterpoint said YMTC’s product mix remains concentrated in consumer applications, with limited exposure to the expensive enterprise SSDs used in data centres.
Micron and Kioxia therefore continue to generate more NAND revenue despite shipping fewer bits.
That distinction is becoming more important because artificial intelligence is changing where NAND demand comes from.
Enterprise SSDs accounted for 48% of global NAND bits shipped in Q2, almost double their 26% share a year earlier, Counterpoint said.
Servers are expected to consume more than half of all NAND bits by the end of 2026 as AI workloads shift from training towards inference.
Inference requires fast access to large datasets and KV caches, making high-capacity enterprise storage increasingly valuable.
Counterpoint said profitability through 2027 will therefore depend less on total shipment volume and more on product mix.
YMTC is targeting that opportunity. The researcher said the company plans to increase the proportion of enterprise SSDs in its mix during the second half of 2026.
Nearly 80% of Micron’s revenue comes from DRAM, including high-bandwidth memory used in AI accelerators. NAND is therefore only part of its business.
The memory market also remains unusually tight. Mizuho analyst Vijay Rakesh reiterated an Outperform rating and $1,375 target on Micron this week, arguing that DRAM and NAND supply constraints could persist through 2027.
That makes an immediate price war less likely, but longer-term risk is different for Micron and Kioxia.
BNP Paribas analyst Karl Ackerman has warned that Chinese memory companies including YMTC are “aggressively ramping capacity”, potentially pushing parts of the consumer-memory market towards oversupply. He nevertheless maintained an Outperform rating on Micron.
Micron v dnešním obchodování roste o 6,5 % díky silným výsledkům a výhledu CoreWeave a Nebius i zprávám o lobbingu proti používání čínských paměťových čipů v USA. Akcie jsou ale stále zhruba 6 % níže za poslední měsíc.
Micron (MU +7.48%) stock is bounding higher in Wednesday's trading, with its share price up 6.5% as of 12:45 p.m. ET. For comparison, the S&P 500 and the Nasdaq Composite were up 0.3% and 0.6%.
Micron is seeing bullish momentum in today's trading, thanks in part to news about lobbying against the use of Chinese memory chips in the U.S. market. The company's share price is also getting a boost from strong quarterly results and guidance from two high-profile players in the neocloud artificial intelligence space. Whlie Micron has been climbing recently, the stock is still down roughly 6% over the last month.
Image source: Getty Images.
Quarterly reports from CoreWeave and Nebius boosting Micron stock CoreWeave published its second-quarter results after the market closed yesterday, and Nebius published its Q2 results before the market opened this morning -- and each neocloud company posted better-than-expected sales and forward guidance. Micron provides high-bandwidth memory (HBM) chips that are incorporated into the advanced processors that are at the heart of CoreWeave's and Nebius's data centers, and strong quarterly performances and forward guidance from both companies bode well for the memory-chip specialist.
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Micron rises on lobbying push According to a recent report published by The New York Times, both U.S. officials and Micron are lobbying to prevent the use of Chinese memory chips. Due to shortages, Apple has been testing the waters for using Chinese memory chips -- a development that has put valuation pressures on Micron stock.
Micron is a leading provider of memory chips and has benefited from soaring demand in the category, but there's a risk that its unit sales and pricing power could be diminished if high-performance alternatives from China see substantial adoption. Meanwhile, some U.S. officials and policy analysts are raising national security concerns about integrating Chinese chips into the country's tech stack.
Keith Noonan has positions in Micron Technology. The Motley Fool has positions in and recommends Micron Technology. The Motley Fool has a disclosure policy.
Micron ve fiskálním 2026 3. čtvrtletí zvýšil výnosy na rekordních 41,4 miliardy USD a zisk na akcii meziročně vyskočil o 1 368 % na 24,67 USD. Akcie jsou podle P/E levné, ale autor varuje před cykličností trhu s paměťmi.
Micron Technology (MU +0.87%) is one of the world's three top suppliers of memory chips, which play a critical role in the artificial intelligence (AI) hardware stacks in data centers, computers, smartphones, and even cars. There is a worldwide shortage of memory right now, which allows the manufacturers to dictate prices. For Micron, this resulted in a staggering 1,368% year-over-year increase in earnings to $24.67 per share during its most recently reported quarter.
A company growing at such a blistering pace would normally be expected to command a sky-high valuation as investors pile into its stock to get ahead of future potential returns. And investors have bid the stock up: Micron is sitting on a 12-month gain of around 640% -- but it's actually still trading at a steep discount to the S&P 500 (^GSPC -0.32%) and Nasdaq-100 indexes by one traditional valuation metric.
Normally, I would consider a stock like Micron to be a bargain at the current price. But here's why I'm not a buyer right now.
Image source: Getty Images.
Micron is unquestionably cheap at first glance During its fiscal 2026 third quarter (which ended on May 28), Micron generated a record $41.4 billion in revenue -- a 364% increase from the prior-year period. That result was driven by triple-digit percentage growth across all four of its business segments:
Segment
Fiscal Q3 Revenue
Revenue Growth (YOY)
Cloud memory
$13.7 billion
307%
Core data center
$11.5 billion
653%
Mobile and client
$11.5 billion
254%
Automotive and embedded
$4.6 billion
311%
Data source: Micron Technology. YOY = year over year.
Cloud memory is the category that includes Micron's sales of its high bandwidth memory (HBM) for data centers, where it sits alongside the graphics processing units (GPUs) supplied by chipmakers like Nvidia. HBM stores data in a ready state for GPUs so that they can access it rapidly, helping to maximize processing speeds. That's particularly valuable in intense AI training and inference workloads.
Suppliers like Micron have been reducing their production of other types of memory and reallocating that capacity to boost their output of HBM because demand for it is so strong.
Micron has now generated earnings of $44.23 per share over the last four quarters, placing its stock at a price-to-earnings (P/E) ratio of just 19.8. That's cheaper than both the S&P 500 and the Nasdaq-100, which have P/E ratios of 25.2 and 32.6, respectively.
But Micron's blockbuster financial performance is widely expected to continue. The average forecast among Wall Street analysts covering the company (provided by Yahoo Finance) suggests that its earnings will surge to $155.56 in its fiscal 2027, which begins in September. That gives the stock a forward P/E of just 5.6, which would normally constitute an irresistible bargain in my book.
Valuation isn't everything in this situation The semiconductor industry -- and particularly the memory segment -- has historically been extremely cyclical. In the past, companies would build data centers and upgrade them only once every few years, resulting in lumpy revenues for chipmakers. The AI boom has condensed the upgrade cycle to 12 months or less because companies like Nvidia and Micron keep bringing out faster chips to meet the market's insatiable demand for computing power.
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But this can't go on forever. The Financial Times reports that Amazon, Alphabet, Meta Platforms, and Microsoft have spent a combined $1.1 trillion on AI infrastructure since 2023, and they are still increasing their annual capital expenditures. That kind of spending makes economic sense only if there is a tangible return, but it appears that the end-users of AI are starting to feel the pinch financially.
Alphabet CEO Sundar Pichai recently said he is fielding complaints from Google Cloud customers about the rising cost of deploying AI. Moreover, a recent price increase by Anthropic for the use of its AI products caused Uber Technologies to blow through its entire 2026 AI budget in just four months. As a result, the company's chief operating officer said it's getting harder to justify the current rate of spending.
Uber has now imposed limits on AI usage for its employees, as have other large companies including Walmart, AT&T, and Amazon. If infrastructure costs keep rising, AI companies will have to continue hiking prices, and this will cause even more of their customers to watch their spending to prevent budget blowouts.
In my opinion, this explains why investors aren't piling into Micron stock despite its low P/E ratio. Even though the AI boom has distorted the cyclicality of the semiconductor industry, it's almost certainly a temporary phenomenon. AI infrastructure spending will eventually slow down. Plus, since Micron and its competitors are rapidly building more chip manufacturing capacity, they are also likely to surrender much of their pricing power in the future as new production comes online and helps ease the shortage -- or even creates a supply glut.
Simply put, it's possible that Micron's earnings could start shrinking in a couple of years as the supply-demand imbalance in the memory market is resolved. That would make its stock more expensive on a forward basis than it currently appears to be. As a result, I'm not buying it right now.
Micron uvedl, že humanoidní robot potřebuje zhruba 10× více DRAM než běžné vozidlo s asistencí řidiče. Firma čeká, že napjatá nabídka pamětí potrvá i po roce 2027.
Every gold rush produces two kinds of investors: the ones betting on which prospector strikes it rich, and the ones who just sell the picks and shovels. The humanoid robot race has turned into exactly that kind of rush, with dozens of companies — American, Chinese, and everywhere in between — racing to put a walking, talking machine on a factory floor.
Investors keep trying to guess which robot maker wins. That’s the wrong question. The right one is: what does every single robot need, regardless of who builds it or where it ships? The answer is memory, and that points investors toward a company that never shows up in the humanoid robot headlines at all — Micron Technology (NASDAQ:MU | MU Price Prediction).
The Robot Race Nobody Can Handicap Figure AI‘s Brett Adcock announced the company’s 1,000th Figure 03 unit on July 23, off a line running at roughly one robot per hour. China’s AgiBot rolled its 15,000th unit off the line in late June — and by its own disclosures, the jump from 5,000 to 10,000 units took just three months. TrendForce’s December 2025 forecast called 2026 the inflection year, projecting 50,000 humanoid shipments, up more than 700% from 2025.
Forbes says reality outpaced even that. Smart Analytics Global’s newest report puts global shipments at 19,100 units in the first half of 2026 alone – up 272% year over year — with the full year now tracking toward 60,000 units and 500,000 by 2030. Chinese vendors built 97% of them, and Chinese buyers absorbed 85% of demand.
Meanwhile, the most documented American deployment — Figure’s fleet at BMW‘s Spartanburg plant — ran eleven months, helped build 30,000 X3s, and was retired in November for a newer model.
That’s the trap: China currently owns the volume, and picking the eventual global winner among Figure, AgiBot, Unitree, Tesla (NASDAQ:TSLA), and a few hundred others is genuinely unknowable this early.
Only three companies make DRAM at scale: Micron, Samsung, and SK Hynix (NASDAQ:SKHY). Mehrotra said on that same call Micron has no line of sight to supply catching up with demand, with tightness persisting beyond 2027. Granted, 50,000 or even 500,000 robots’ worth of DRAM is negligible compared to data center consumption — a hyperscaler’s data center can have between 10 million and 20 million individual DRAM silicon chips.
But that demand arrives after data centers have already claimed most of the available supply — and the training behind these fleets runs in data centers too, scaling with fleet size rather than chip count per unit. This thesis doesn’t require any of the predictions to land exactly; it just needs shipments to keep growing at the torrid pace companies are already announcing, while new fab capacity takes years to come online.
SK Hynix and Samsung have committed roughly $870 billion combined toward new capacity, but SK Hynix’s first new fab doesn’t open a clean room until February 2027, and Micron’s newly approved capacity doesn’t arrive until 2028.
Key Takeaway Investors don’t need to guess whether Figure, AgiBot, or Unitree wins the humanoid race. Every winner buys DRAM from one of three suppliers, and Micron trades at a fraction of the market’s growth multiple while supply stays structurally tight into 2028. That’s a memory trade, not a robotics bet — and it’s the more durable way in.
Contact [email protected] for any questions or corrections.
Nvidia testuje Rubin Ultra s menší pamětí, což může paradoxně zvýšit celkovou spotřebu HBM a prospět dodavatelům Micron a SK Hynix. UBS zároveň čeká, že ceny HBM letos porostou výrazně rychleji.
Nvidia’s decision to test versions of its upcoming Rubin Ultra chip with less memory could paradoxically increase demand for high-bandwidth memory, providing another boost to leading suppliers such as Micron Technology and SK Hynix.
UBS analyst Timothy Arcuri said Monday that Nvidia appears to have moved to “de-spec” its upcoming Rubin Ultra offering, a term used when certain specifications or capabilities of a chip are reduced, MarketWatch reported.
The Information reported that Nvidia is testing different versions of the chip with lower memory capacity because of concerns over the availability of high-bandwidth memory, or HBM.
At first glance, using less HBM in each chip could appear negative for memory suppliers.
But Arcuri believes the change could allow Nvidia to produce more chips, potentially resulting in greater overall HBM consumption in 2027 than previously expected.
The development comes as HBM supply remains tight and pricing for newer generations of the technology strengthens.
UBS said pricing for HBM4 and HBM4E is now “even stronger than our prior expectations.”
Micron is one of the world's leading HBM suppliers, alongside South Korea’s SK Hynix and Samsung Electronics.
The implications could be particularly important for SK Hynix, which remains the largest HBM supplier globally and an important supplier to Nvidia.
Arcuri said “memory suppliers are rewidening” the premium charged for HBM, prompting him to sharply raise his expectations for pricing.
The analyst now expects HBM average selling prices to rise by about 79% from a year earlier, compared with his previous estimate of a 67% increase.
The pricing strength reflects the growing amount of memory required by AI accelerators and the difficulty manufacturers face in rapidly adding HBM capacity.
HBM is increasingly critical to the performance of advanced AI systems because it allows processors to access large amounts of data at high speeds.
For Micron, stronger HBM pricing could translate into a significant improvement in earnings and cash generation.
The company has invested heavily in expanding its HBM manufacturing capacity as demand from AI data centres accelerates.
Arcuri expects Micron’s earnings per share to remain above $160 in 2029. He also forecasts more than $450 billion in cumulative free cash flow through 2028.
“To us, this increasingly looks like a structural reset in earnings power — where this kind of durability/visibility should command a shift toward a broader semi multiple,” Arcuri wrote.
A broader semiconductor multiple would imply that investors could become willing to value Micron more like other high-performing chip companies, rather than assigning it the lower valuation typically associated with the cyclical memory industry.
Micron stock remains up by more than 172% but is down by 30% from its all-time high.
The bullish outlook extends beyond HBM.
Contract pricing for NAND flash memory is also moving higher, according to Arcuri.
He attributed the improvement to stronger-than-expected demand for server and storage solid-state drives, which has helped offset weakness in the personal-computer market.
Although Arcuri expects sequential growth in NAND average selling prices to be less powerful than previously forecast, he said “the demand backdrop remains constructive.”
The analyst raised his expectations for NAND bit demand growth to 23% this year and 26% in 2027.
A bit refers to the smallest unit of digital information and is commonly used as a measure of memory consumption.
The improvement in server and storage demand adds another potential source of support for memory manufacturers as AI infrastructure investment expands.
Micron sees supply remaining tight beyond 2027Micron executives have also offered a bullish assessment of the supply-demand balance.
Chief business officer Sumit Sadana said at the KeyBanc Technology Leadership Forum on Monday that the company expects tight memory supply to persist beyond 2027 as customer demand continues to rise.
“With all of the efforts that we are doing, we still don’t have line of sight as to when the supply is going to be able to meet demand, because demand continues to escalate at a very rapid pace over time,” Sadana said, according to a FactSet transcript.
Sadana said memory demand during the AI era is “very different” from previous cycles because AI technology is still developing rapidly.
That rapid technological progress is increasing the amount of memory required by advanced computing systems, while simultaneously making it difficult for manufacturers to predict exactly where future demand will settle.
The HBM boom is also creating challenges elsewhere in the memory industry.
Sadana said rising HBM demand has put pressure on wafer supply for other memory products.
Expanding wafer capacity is not a quick process, he added, because it requires significant manufacturing investment and lengthy capacity expansion timelines.
That dynamic could help sustain pricing across the broader memory market if manufacturers remain unable to add capacity quickly enough.
Micron’s customers have so far shown little sign of retreating despite higher prices.
Sadana said customers in the company’s data-centre business and other segments continue to seek additional memory supplies even as prices rise.
That willingness to pay could provide further evidence that AI infrastructure demand is supporting a fundamentally different memory cycle.
Micron Technology čeká, že napětí na trhu s pamětmi potrvá i po roce 2027, protože poptávka po DRAM tažená AI dál převyšuje výrobní kapacity. Firma říká, že rok 2027 bude ještě těsnější než 2026.
The S&P 493 Are Staging a Comeback—This Value ETF Offers Broad ExposureMicron Technology NASDAQ: MU expects memory-market supply constraints to persist beyond 2027 as demand driven by artificial intelligence continues to outpace the industry’s ability to add manufacturing capacity, Executive Vice President and Chief Business Officer Sumit Sadana said at KeyBanc Capital Markets’ Annual Technology Leadership Forum.
Sadana said customer demand signals have increased since Micron’s latest earnings report, leading the company to expect calendar 2027 to be “even tighter than 2026.” He said the company does not yet have visibility into when industry supply will catch up with demand.
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Chips & Clips: Memory Tariffs Rewire Tech Supply Chains“The number one constraint” for customers is DRAM, rather than power availability, real estate, data-center capacity or logic wafers, Sadana said. He attributed the imbalance in part to the difficulty and length of time required to construct and ramp leading-edge memory fabrication plants.
AI Demand Reshapes Memory Market Sadana characterized the current environment as fundamentally different from prior memory cycles, citing the expansion of generative AI, agentic AI and future artificial general intelligence applications. He said agentic AI workloads can require five to 30 times more tokens than comparable chat-interface tasks, with deep-reasoning workloads requiring still more.
5 AI Stocks Are Pulling Back—Which Growth Catalysts Still Look Strongest?He also pointed to the rising importance of high-bandwidth memory, or HBM, in AI systems. According to Sadana, processors can sit idle while waiting for data from DRAM, making higher memory bandwidth and capacity necessary to improve system utilization.
Micron has previously discussed a tradeoff between HBM production and conventional DDR memory supply. Sadana said producing 100 bits of HBM can reduce DDR output by roughly 300 bits for HBM3E, a three-to-one trade ratio. He said that ratio could approach four-to-one with HBM4E, increasing pressure on conventional memory supply.
While data centers represent the most acute area of demand, Sadana said demand is elevated across market segments. He said some data-center customers cannot obtain more than half of the memory volume they seek, despite high pricing.
Customers are adjusting system memory configurations primarily because of constrained availability, rather than pricing, Sadana said. While lower average DRAM capacity can allow customers to ship more systems, he said it can also reduce processor utilization and create latent demand for higher-capacity configurations when supply becomes available.
Strategic Customer Agreements Sadana discussed Micron’s strategic customer agreements, or SCAs, which he described as distinct from historical long-term agreements in the memory industry. The agreements cover multiyear periods, with the majority of SCA-related revenue expected to fall under terms extending through the end of calendar 2030, he said.
Unlike prior arrangements, Sadana said the SCAs include binding purchase commitments, take-or-pay provisions and no contractual exits for customers. At the time of Micron’s earnings report, the company had announced 16 agreements that included $22 billion in cash and cash-like commitments, including $18 billion in cash expected to be held on Micron’s balance sheet.
Some agreements use market-based pricing, while most volume covered by the agreements will include pricing bands, Sadana said. He said the floor prices are set at levels intended to generate gross margins above previous industry-cycle peaks.
Sadana said the agreements also support deeper engineering collaboration with customers, including product and research roadmaps extending beyond 2030. He cited Micron’s HBM3E product, which he said offered 30% lower power consumption than the next-best product, and its work with NVIDIA to bring low-power DRAM into data centers.
Investment and U.S. Manufacturing Micron is increasing its planned U.S. investment to $250 billion from $200 billion over the coming years, Sadana said. The company is also investing across its manufacturing network in Japan, Taiwan and Singapore, as well as in back-end manufacturing in India.
He said Micron has committed $500 million to GlobalWafers for raw wafers and is participating in a broader $3 billion supply-chain investment effort.
Sadana described Micron as the only company investing in front-end memory-fab manufacturing in the U.S. He said Micron’s Idaho 1 facility is expected to come online in the middle of next year, with Idaho 2 expected at the end of 2028. The company also plans a New York fab cluster and investments in Virginia, including the introduction of 1-alpha DRAM technology.
Micron expects its U.S. manufacturing footprint to command a pricing premium and provide customers with greater supply-chain resilience, Sadana said.
HBM and Physical AI Opportunities Looking ahead, Sadana said HBM4E will introduce opportunities for customized HBM products. He expects many HBM programs to use one or two suppliers because qualification and co-engineering processes are time-consuming and expensive.
He also highlighted “physical AI,” including robotics and humanoid robots, as an emerging long-term demand driver. Sadana said a humanoid robot could require hundreds of gigabytes of DRAM and terabytes of solid-state storage to support onboard computing, safety and responsiveness when cloud access is unavailable.
While robotics remains in its early stages, he said Micron expects the segment to grow later this decade and potentially enter a more rapid growth phase in the early part of the next decade.
About Micron Technology (NASDAQ:MU)Micron Technology, Inc is a global semiconductor company that designs and manufactures memory and storage solutions. Its product portfolio includes dynamic random-access memory (DRAM), NAND flash memory, solid-state drives (SSDs), memory modules and embedded memory solutions for a wide range of computing and electronic devices. Micron supplies components used in data centers, enterprise and cloud infrastructure, client computing, mobile devices, automotive systems and industrial applications, and also markets consumer-facing products under the Crucial brand.
Founded in 1978 and headquartered in Boise, Idaho, Micron has grown into an international manufacturer with research, development and production facilities across multiple regions.
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