Micron and the Taichung union withdrew from mediation after reaching an agreement. Summary
Micron shares rose more than 2% in premarket trading.
Memory-chip manufacturer Micron Technology Inc. (MU, Financials) is lowering some of its Taiwan labor risk after a deal with workers at its Taichung facility.
The accord caused both sides to pull out of proposed mediation on Oct. 22.
Terms were not given, but Micron and the union said they will give specifics to impacted workers in the coming days.
The deal is significant as Micron has one of its main production hubs in Taiwan, including Taichung, where it produces memory chips for AI servers and other devices.
But the labor question is not yet settled.
A different union representing workers in Taoyuan is still planning a one-day warning strike over bonuses and profit sharing.
The two unions have campaigned for a permanent arrangement to set aside 15% of Micron's operational profit for quarterly incentives.
For investors, the Taichung resolution reduces the possibility of a wider production interruption, but the Taoyuan disagreement still has to be followed attentively.
The next trigger is whether Micron can strike a similar deal with Taoyuan workers before the conflict turns worse.
Disclosures I/we have no positions in any stocks mentioned, and have no plans to buy any new positions in the stocks mentioned within the next 72 hours.
Micron (MU +0.02%) stock has more than tripled so far in 2026, making it the fourth-best-performing stock in the S&P 500 (^GSPC +0.21%) this year. That's an impressive run, but for investors, the past really doesn't matter; only the future.
So, could Micron repeat this feat in 2027? One metric suggests that the answer to that question is yes.
Image source: The Motley Fool.
The memory chip shortage is far from over
Micron produces memory chips, which have become some of the most in-demand tech hardware due to their scarcity. The companies that manufacture them were not ready for the massive growth in demand generated by the artificial intelligence (AI) build-out, which has consumed all the supplies they could produce this year.
Memory chips are essentially commodity products. When demand significantly outpaces supply, prices soar -- and that's exactly what happened this year. However, Micron's input costs barely shifted, so the rising prices it can now charge are pure profit, and the stock skyrocketed as investors watched the company's top and bottom lines multiply.
MU Micron Technology$896.26+$0.19 (+0.02%)
NASDAQ · As of 9:47 AM ET 10/21/26
Moreover, this shortage isn't going to end soon.
On the latest earnings call, Micron's management team advised investors that it expects conditions in the memory chip market to be even tighter in 2027 and 2028 than they were in 2026. But Micron has been building new foundry lines in the meantime, and with more production capacity coming online in 2027, it will be able to manufacture more chips to sell at these higher price points, leading to significant additional profit growth.
This is reflected in Wall Street's outlook for the stock. Micron reported $75.52 in earnings per share during its fiscal 2026 (which ended in August), and management estimates Micron will generate a jaw-dropping $176.55 in earnings per share during its fiscal 2027.
Over the past couple of years, Micron's stock has usually traded in the neighborhood of 20 times earnings. Right now, it's a dirt cheap 12 times earnings because the market does not believe that this boom will last. However, its management team, which has access to more information about the tech sector than most investors, has already told anyone who will listen that the conditions leading to high memory demand and insufficient supply aren't going anywhere. As a result, the stock looks undervalued.
MU PE Ratio data by YCharts.
If Micron only meets analysts' expectations for its fiscal 2027, then in order to trade at just 15 times earnings next fall, the stock would have to triple. If it trades at 20 times earnings at that point, then the stock will have quadrupled from here.
The market's bearishness about the long-term outlook for AI spending has investors leaving obvious money on the table when it comes to a stock like Micron. Now is the time to take advantage of that mistake and buy Micron stock on sale, as it has major upside potential.
Just as it was reaching the 30-day low closing price of $878.84 on October 16, Micron (NASDAQ: MU) stock recorded its largest insider sale since August.
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This signal is triggered upon the reporting of the trade to the Securities and Exchange Commission (SEC).
Indeed, an October 20 filing with the Securities and Exchange Commission (SEC) revealed that President and Chief Technology and Products Officer, Scott DeBoer, traded 28,545 MU shares at an average price of $900, raising a total of $25.7 million.
The sale represents both DeBoer’s first such Micron equity move in 2026, one of the largest the company has seen since the year started, and an insider sale executed at the lowest average price since May.
Additionally, the President is only the second senior person at the firm to have dumped MU shares since August, with the other being Senior Vice President and Chief Legal Officer (CLO) Michael Ray, who raised a significantly smaller $5.9 million on October 14.
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This signal is triggered upon the reporting of the trade to the Securities and Exchange Commission (SEC).
Micron stock price performance in October
Meanwhile, Micron stock itself experienced something of a rebound on the same day as DeBoer sold, rallying 1.96% to its latest closing price of $896.07, and diminishing the 30-day loss to 14.17%.
Micron stock price one-month chart highlighting performance since the latest MU insider sale. Source: Google
The Wednesday, October 21, pre-market session likewise brought good news to MU shareholders as the equity is up another 3.26% to its press-time price of $925.30.
This upside could, however, prove unstable as Micron appears to have achieved only partial success in negotiations with its Taiwanese workers and a one-day strike is anticipated later this week.
Furthermore, the company could be facing more trouble in the long run.
Is Micron stock in trouble?
Recent weeks delivered multiple warning signals about the state of the artificial intelligence (AI) ‘boom’ – or bubble – various data center construction and initial public offering (IPO) setbacks, allegations of rampant and unsustainable spending at some of the sector’s largest companies, and an overall strain on the available cash and credit.
For Micron in particular, the news that Amazon (NASDAQ: AMZN) overbought chips relative to its capacity to run them – news that came only weeks after similar allegations emerged regarding Microsoft’s (NASDAQ: MSFT) purchases – could prove especially consequential.
Indeed, these particular developments highlighted that the supply constraints that drove personal computer (PC) and video game console prices through the roof were, in no small part, artificial.
Considering Micron played a significant role in the disruption by deliberately abandoning the consumer market late in 2025, it could find itself short on customer goodwill if its corporate clients end up wanting for cash.
Featured image via Shutterstock
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Over the last year, memory chip manufacturers have benefited from extraordinary demand for artificial intelligence (AI). In particular, Micron Technology (MU +0.02%) has witnessed its market capitalization propel from just $53 billion at the start of the AI revolution to more than $1 trillion today.
MU Market Cap data by YCharts
Despite its historic rally, investors should not assume Micron's growth is finished. As AI moves beyond data centers and becomes increasingly embedded in everyday products, the company stands to benefit from another wave of demand. What's encouraging is that you don't need thousands of dollars to participate in Micron's upside.
As of this writing (Oct. 20), Micron stock trades around $900. But investors can purchase fractional shares, allowing them to invest a fixed amount without buying an entire share. Let's assess what could happen if you invested $150 in Micron every month between now and the end of 2030.
What tailwinds does Micron have? Micron manufactures DRAM, NAND flash memory, and high bandwidth memory (HBM). These products help computers process, access, and store information.
HBM is becoming particularly important because AI accelerators require vast amounts of memory to process queries efficiently. Micron is already shipping HBM4 products optimized for Nvidia's Vera Rubin architecture, positioning the company to benefit from the AI infrastructure build-out.
Importantly, Micron's long-run opportunity extends beyond Nvidia's GPUs. The proliferation of agentic AI, CPUs, robotics, and autonomous systems will create additional demand for memory and storage. As these applications become more sophisticated and move into production, they will inevitably require greater capacity to process information, store data, and handle complex workloads.
Consider the automotive industry as an example. Micron has already announced long-term supply agreements with General Motors and Ford Motor Company. These partnerships support next-generation vehicle platforms, including advanced driver-assistance systems and AI-powered experiences inside of cars.
Micron also forged agreements with automotive technology suppliers such as Qualcomm, DENSO, and Hyundai Mobis -- demonstrating how memory is becoming essential across applications beyond consumer devices and hyperscale data centers.
Image source: Micron Technology.
How big can Micron get? Micron currently boasts a market capitalization of roughly $1.03 trillion. I see a few reasons why the company could become significantly more valuable as AI infrastructure investments accelerate, fueling further demand for advanced memory.
First, AI systems are becoming more memory-intensive. As new processors enter production and companies deploy AI across enterprise applications, demand for HBM and advanced DRAM should continue growing.
Second, Micron is investing heavily in manufacturing capacity while securing longer-term strategic customer agreements. Higher-value products such as HBM should support more robust profitability than conventional DRAM, helping Micron turn growing demand into sustainable earnings growth.
Lastly, investors could begin valuing Micron differently as its role in the AI supply chain becomes more recognized and appreciated. Historically, memory manufacturers traded at modest valuation multiples because of their cyclical business models. However, increasingly sophisticated memory products, stickier customer relationships, and new use cases could support a more favorable long-term valuation.
Taken together, I think Micron could reach a $2.5 trillion market capitalization by December 2030. Compared with its current market cap, that represents 145% cumulative upside, equivalent to 24% annualized stock appreciation, or 1.8% per month when compounded.
While this is slightly aggressive, I think it's a reasonable upside scenario considering it's considerably below the stock returns Micron has already generated during the AI infrastructure supercycle. If I apply that projected growth rate to all 51 monthly investments of $150, the total contribution of $7,650 invested could finish 2030 worth approximately $12,400. That represents roughly $4,750 in investment gains, or 62% upside.
MU Micron Technology$896.26+$0.19 (+0.02%)
NASDAQ · As of 9:47 AM ET 10/21/26
Smart investors always think about the long term Of course, Micron's actual stock price won't move in a perfect line. Semiconductor stocks frequently experience sharp rallies and sell-offs, making short-term fluctuations difficult to predict. That's precisely what makes dollar-cost averaging appealing. Investors can build a position over a long-term time frame without attempting to identify the perfect entry price.
The bigger theme here is that Micron should continue benefiting from multiple secular growth tailwinds that can support additional stock price appreciation over the next several years. As AI becomes more integrated into computing, transportation, and everyday consumer products, demand for advanced memory should expand.
For this reason, I see Micron as a compelling buy-and-hold opportunity for patient investors right now.
Micron's Taiwan workers voted 99% in favor of a strike after turning down what most employees would consider a life-changing offer, and the walkout lands on the same day the company faces a second, far larger union at the bargaining…
A union representing 2,258 eligible Micron Technology (NASDAQ:MU | MU Price Prediction) workers in Taoyuan, Taiwan, plans to walk off the job on Thursday, October 22, 2026. That is the same day Micron meets a separate, larger union in Taichung for mediation.
The Taoyuan union calls it a one-day warning strike. It says the walkout is meant to show solidarity with Taichung and to push for a concrete profit-sharing plan, and it will sign if Micron makes an acceptable proposal.
This is one union within Micron’s Taiwan workforce, which numbers about 15,000. The Taichung union is still negotiating and has not voted to strike, and no production disruption has been reported.
The stock closed October 20 at $896.07, down 0.98%. It is down 11.77% over the past month, so the strike news landed on a stock that was already falling.
Workers Rejected an Offer of 68 Months’ Pay The union wants a one-off bonus equal to 83 months’ pay. It also wants a permanent system that gives workers 15% of operating profit, paid every quarter.
Micron offered up to 68 months of pay last month, and workers turned it down. The company says it is “committed to constructive engagement” with both unions.
Micron already paid Taiwan workers a NT$1 million (about $31,400) cash bonus as part of its fiscal 2026 rewards. The union wants a set formula instead of one-time payments, and 99% of votes supported strike authorization on October 7.
A Profit Pool That Tripled in a Year Fiscal 2026 revenue reached $133.19 billion, up from $37.38 billion. Operating income came to $99.34 billion, and gross margin rose to 81% from 40%.
Guidance for the first quarter of fiscal 2027 calls for $61.5 billion in revenue. With profits that large, a fixed percentage of operating profit becomes a much bigger commitment than any single bonus.
Management has already said labor costs are rising. Higher bonus pay, startup costs, and other items add up to “roughly a billion dollars of higher cost in Q1”, so some increase in pay is already in the guidance.
Taiwan Makes Most of Micron’s DRAM Taoyuan makes DRAM and high-bandwidth memory (HBM, the stacked memory used in AI servers). Micron makes 50% to 60% of its chips in Taiwan.
Its annual report states, “A majority of our DRAM production output in 2026 was from our fabrication facilities in Taiwan,” and it warns that a work stoppage “could cause significant business interruption.” A one-day walkout by a minority of staff is unlikely to reduce output. A long disruption is possible, though, and it could get much more serious if the Taichung union joins.
In Korea, rivals are already sharing the profits. Samsung set aside 10.5% of its chip division’s operating profit for special bonuses to head off a strike in May. SK Hynix agreed to put 10% of annual operating profit into its bonus pool and removed the cap.
Those deals give Taiwan workers a clear benchmark. The most likely settlement is a formula close to the Korean levels, which would sit below the union’s 15% demand.
What Could Change the Outlook for MU Stock The fundamentals still look good despite the labor dispute. A profit-sharing formula would trim margins slightly.
The shares trade at 7 times forward earnings, and the average analyst price target is $1,585.93. A labor deal tied to profits matters far less than that valuation.
This view changes if the Taichung union holds its own strike vote after the October 22 mediation, or if the Taoyuan walkout runs past one day. Either step would put DRAM supply at risk.
Contact [email protected] for any questions or corrections.
Despite Micron Technology, Inc. (NASDAQ: MU) stock crashing over 17% so far in October 2026, triggered by macroeconomic shifts and competitive pressures, C.J. Muse, a Wall Street analyst at Cantor Fitzgerald, expects a bull rally to a new all-time high (ATH) over the next 12 months.
Muse reiterated an ‘Overweight’ rating on Micron stock, according to a note Finbold viewed on October 21 but sent to clients on Tuesday. He also maintained the firm’s 12-month price forecast for MU at $2,000.
With MU stock trading at about $913.20 in Wednesday’s pre-market, Cantor Fitzgerald sees potential 119.01% upside over the next 12 months. This bullish thesis was centered on the company’s strong long-term fundamentals.
Specifically, Muse noted that Micron has secured 16 Strategic Customer Agreements (SCAs), with 14 featuring set pricing metrics. He highlighted that these SCAs are projected to cover 50% of the company’s total revenue moving forward, up significantly from 25% in the May quarter and 35% in the August quarter.
Muse added that memory supply-demand conditions will be tighter in Calendar Year 2027 than in 2026, with persistent supply bottlenecks extending through 2028. Most importantly, the firm signaled a bullish outlook for Micron stock ahead of the planned $35 billion share repurchase authorization on December 9.
Micron stock price prediction
At press time, 29 Wall Street analysts surveyed by TipRanks over the past 3 months had set an average 12-month price target for MU at $1,585.93.
Micron stock price prediction. Source: TipRanks
As a result, these analysts signal a possible bull run of roughly 73.67% over the next 12 months.
Is MU a good stock to buy?
Even though Micron stock has faced choppy consolidation since early June 2026, MU price is up nearly 343% over the last 12 months,
MU price performance on October 21. Source: TradingView
Consequently, Micron had a market capitalization of $1 trillion at the time of publication.
Amid this established bullish momentum for MU over the past 12 months, driven by robust demand in the artificial intelligence (AI) space, Wall Street analysts believe another rally to a new peak could happen over the next 12 months.
Featured image via Shutterstock
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Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.
Two chipmakers are carrying an unusual share of the market's profit growth. In its Oct. 16 Earnings Insight report, FactSet listed Micron Technology (MU -0.98%) and Nvidia (NVDA -0.29%) as the two biggest contributors to year-over-year earnings growth for the S&P 500 (^GSPC +0.28%) in the third quarter of 2026.
FactSet's blended growth rate of the index, which mixes reported results with estimates for companies yet to report, is at 29%. Without Micron and Nvidia, it would drop to 20%. Said another way, two companies are providing about 9 percentage points of the growth in an index of 500.
Their stocks have been moving the other way. As of this writing, Nvidia shares are around $217 and have lost 9% since their Oct. 6 record close. Micron is near $905, about 25% below its June 25 record close of $1,213.56.
I think this gap between what these companies earn and what their shares cost makes both stocks worth buying today.
Image source: The Motley Fool.
Micron's part of FactSet's number is an actual result, not a forecast. The memory maker's fiscal fourth quarter of 2026, which ended Sept. 3 and was reported on Sept. 30, goes into FactSet's third-quarter total.
Micron's non-GAAP (adjusted) earnings per share came in at $33.42, a gain of over 1,000% from the $3.03 it earned in the year-ago period. Revenue grew 379% year over year to $54.2 billion.
Notably, the margin expansion behind that rise looks like it's mostly played out. Micron's GAAP operating margin (operating income as a share of revenue) hit 80.7% in fiscal Q4, versus 32.3% a year earlier. But that was just a little over the 80.4% it had in fiscal Q3, and management's guidance for the first quarter of fiscal 2027 calls for an operating margin of around 82%. So Micron's profit growth from here depends mainly on revenue instead of far higher margins. And the company expects revenue to keep rising, to about $61.5 billion in fiscal Q1.
The shares don't reflect much of that. At roughly $905, Micron trades at about 12 times the $74.33 in earnings per share it posted for fiscal 2026. This price-to-earnings ratio is under half the S&P 500's ratio of 26, based on the index's last 12 months of earnings, according to FactSet. And if Micron just matched its fiscal Q4 profit for four quarters, the stock would cost about 7 times earnings. A price this low suggests investors expect memory prices, and Micron's profits with them, to drop eventually.
Memory prices have always run in cycles, so it might happen. For now, though, Micron's own outlook points higher.
MU Micron Technology$896.07-$8.83 (-0.98%)
NASDAQ · As of 4:00 PM ET 10/20/26
An estimate, for nowNvidia is different. The artificial intelligence (AI) chip leader hasn't reported its fiscal third quarter yet, so FactSet still uses an estimate for it.
Still, Nvidia's outlook for the fiscal third quarter points to around $108 billion in revenue, nearly twice the $57.0 billion it posted a year before.
Nvidia's profits are growing even faster than its sales. In its fiscal 2027 second quarter, the three months ending July 26, 2026, Nvidia's non-GAAP net income jumped 118% year over year, to $54.0 billion, while revenue rose 106%. Profit also climbed 18% from the $45.5 billion Nvidia made in fiscal Q1. And the company's non-GAAP gross margin widened to 75% from 72.5% a year before, so Nvidia doesn't seem to be cutting prices to get this growth.
Investors aren't paying much of a premium for it, either. On analysts' average estimate for the fiscal year ending in January 2028, the stock sells for around 14 times earnings. For a business whose profit is more than doubling, the market seems to doubt this rate can hold.
Of course, an outlook isn't a result. A drop in data center budgets at the big cloud companies could slow Nvidia down fast.
NVDA Nvidia$216.47-$0.62 (-0.29%)
NASDAQ · As of 4:00 PM ET 10/20/26
Are both still worth buying?The ranking also says something about where this growth comes from. FactSet said that its next three contributors, Meta Platforms, EchoStar, and Boeing, are all getting help from easy comparisons, because their year-ago results had big charges. Last quarter, Micron and Nvidia placed third and fourth behind two businesses whose profits were boosted by investment gains.
Micron and Nvidia reached the top this time by earning far more from their own operations.
Both companies are growing profits much faster than the S&P 500, and neither stock is priced like it. Memory prices could still turn, or AI spending could slow, and either would probably hit these shares hard.
Micron Technology said on Wednesday that it had reached a labour-management agreement with the Taichung union in Taiwan, with both parties agreeing to withdraw from the mediation process that had been scheduled for October 22.
Idaho-based Micron employs about 15,000 people in Taiwan.
Shares of Micron Technology (MU -0.98%) have climbed about 10-fold from their 2024 closing price of about $84. The memory maker's stock jumped 239% in 2025, and as I write it's more than tripled again this year, to roughly $903.
If the stock ends 2026 over about $571, it'll be just the second time Micron has put up back-to-back triple-digit years. The first was 1993 and 1994, when shares rose 146% and 137%. (These and the other annual numbers here are calendar-year price returns from year-end closes, without dividends.)
Micron's own history doesn't rule out more gains. But after looking at what followed its past booms, I think investors should expect far less from here.
Image source: Micron.
The stock tends to fall before the profits doAfter its 1993-94 run, Micron stock climbed another 80% in 1995. The shares peaked on Sept. 11, 1995, though, and ended the year around 58% off that high before sliding another 26% in 1996.
But the business hadn't peaked when the stock did. Micron made $328.5 million in its first fiscal quarter of 1996 (roughly September to November 1995), more than in any earlier quarter.
Then its memory chip prices slid faster than the company could lower its costs, and net income shrank to $188 million, then $58 million, then $19 million in the next three quarters.
The next two booms followed a similar pattern. Micron stock climbed 300% in 2009 and lost 24% in 2010. Yet fiscal 2010 (which ended in early September 2010) saw net income of $1.85 billion, a swing from a $1.9 billion loss a year earlier. The stock was looking ahead. In fiscal 2011, Micron's average DRAM selling prices slid 39%, and earnings sank around 91% to $167 million.
After a 243% gain in 2013, the shares climbed another 61% in 2014 and then fell 60% in 2015. Again, full-year profits still looked strong. Fiscal 2015 net income of $2.9 billion was just a bit under fiscal 2014's $3.0 billion.
By fiscal 2016, with DRAM prices off 35%, Micron had a $276 million loss.
In short, Micron's stock has tended to fall while its full-year profits still looked strong -- and before those profits dropped.
Has the turn already started?The stock might already be repeating this pattern. Micron's shares hit a closing high of $1,213.56 in late June and now sit about 26% below it.
Yet Micron's earnings have kept climbing since then. In fiscal 2026, which ended Sept. 3, revenue grew to $133.2 billion, over 3.5 times the prior year's total. The company made $74.33 a share under generally accepted accounting principles, up almost tenfold from $7.59 in fiscal 2025.
But the rate of this growth is slowing. On a non-GAAP (adjusted) basis, Micron's per-share profit jumped 106% from fiscal Q2 to fiscal Q3, then rose 33% to $33.42 in fiscal Q4. Management's guidance of around $38.15 for fiscal Q1 2027 implies growth of about 14%. Pricing shows the same slowdown. Micron's DRAM prices rose by a percentage in the low 60s from the prior quarter in fiscal Q3, but only by a high-teens percentage in fiscal Q4.
Still, there's a key difference from past cycles. In every earlier bust, memory prices dropped. Now they're still rising, just slower.
"[W]e do not have line of sight to when supply and demand will return to balance," CEO Sanjay Mehrotra said in prepared remarks for the company's fiscal Q4 earnings call.
Of course, slowing price gains are arguably how a turn starts.
MU Micron Technology$896.07-$8.83 (-0.98%)
NASDAQ · As of 4:00 PM ET 10/20/26
Investors are already paying for a downturnAt roughly $903, Micron's price-to-earnings ratio is about 12 on fiscal 2026 results. Against analysts' fiscal 2027 adjusted profit estimates, the shares trade at only about 5 times earnings.
A price-to-earnings ratio this low for a tech business growing this fast suggests the market doesn't expect those profits to last. (I've written before about how quickly memory makers' peak margins fell in past cycles.)
Still, I wouldn't bet on a repeat of 2025 or 2026. In the two years after its 2009 and 2013 booms, the stock lost about 40% and 35%. And even after 1994, investors had to ride out a 58% fall in late 1995.
Can Micron stock keep climbing from here? It can, especially if memory prices keep rising into 2027, and I think the shares are worth a look for long-term investors at this price. I'd just size a position with the next downturn in mind, because Micron's stock has usually started falling well before its profits do.
Micron (MU -0.98%) has been one of the market's hottest stocks over the past year, with the ongoing artificial intelligence (AI) boom driving investors toward companies that make memory and storage devices. The stock was up 334% over the past 12 months and up 208% for the year through market close on Oct. 16.
There's no doubt it's been a good ride for Micron investors, but what might the next few years look like for the stock?
MU Micron Technology$896.07-$8.83 (-0.98%)
NASDAQ · As of 4:00 PM ET 10/20/26
Micron is riding an AI high Training AI models requires tons of data processing, and all that data must be stored in ways that allow processors to access it rapidly, which is why memory and storage devices have become some of the most important components in data centers.
With demand for memory chips skyrocketing and supplies limited, shortages are plaguing the whole space, and Micron and its peers have been able to flex their pricing power. From fiscal 2025 to fiscal 2026 (which ended Sept. 3), Micron's operating income (profit from core operations) rose from $9.77 billion to $99.34 billion, its gross margin jumped from 39.8% to 80.7%, and its operating margin jumped from 26.1% to 74.6%.
MU Revenue (Annual) data by YCharts.
The memory chip industry has always been cyclical, so current conditions won't prevail permanently, but right now, the company is definitely riding high.
At the moment, all the memory-chip makers are working on new fabrication lines to expand their production capacity. When supply catches up (and it will), prices will inevitably cool, but that doesn't diminish the stock's long-term appeal. The shortage is expected to last at least through 2027, though some have projected it to persist into 2030 because of the compute demands expected from agentic AI.
Regardless, right now, money is pouring into Micron and its peers from the ongoing data center and AI infrastructure build-out.
Could investors triple their investment by 2030? At the time of this writing, Micron is trading at 7.5 times its sales, slightly above the 6.5 P/S ratio it has averaged over the past three years.
MU PS Ratio data by YCharts.
In its fiscal 2027, Micron's revenue is projected to be $318 billion, up 139% from the $133.2 billion it made in fiscal 2026. I don't expect that growth rate to continue to 2030, but let's assume it grows by 30% in fiscal 2028 and 25% in fiscal 2029. That would put its revenue at around $517 billion in fiscal 2030.
If Micron trades at 6.5 to 8 times sales at that point, it would be valued between $3.36 trillion and $4.14 trillion. Right now, it's valued at $994 billion (as of Oct. 16), meaning a $5,000 investment could grow to between $16,900 and $20,800.
Even based on a more conservative P/S outlook, like 3 to 4 times sales (its average in the five years leading up to 2026), a $5,000 investment could grow to between $7,800 and $10,400.
Given all that, it's not hard to imagine a $5,000 investment in Micron growing to at least $15,000 by 2030.
Insatiable demand for artificial intelligence (AI) infrastructure has been a generational catalyst for memory specialist Micron Technology (MU +0.51%). After an extraordinary rally earlier this year, investors may be wondering where the stock is headed next.
Between 2020 and 2025, Micron stock generated an average gain of 28% during the calendar fourth quarter. So far this year, the story has looked different. After closing September at $1,065, Micron stock has fallen roughly 17% through Oct. 16.
Nevertheless, I see two upcoming catalysts that could help reverse sentiment and send Micron shares soaring before 2027 arrives.
Image source: Micron Technology.
Earnings season could ignite enthusiasm for memory stocks
Over the next several weeks, investors will hear from some of the world's largest AI companies. Space Exploration Technologies reports third-quarter earnings on Oct. 20, followed by Tesla and Meta Platforms on Oct. 21. Microsoft, Alphabet, Amazon, Apple, and Nvidia are also scheduled to report earnings throughout the remainder of October and November.
These earnings reports could be especially important for Micron because each of these companies is spending hundreds of billions of dollars building AI data centers, and they are increasingly discussing the same bottleneck: memory supply.
During SpaceX's second-quarter earnings call, Elon Musk said memory was the limiting factor for AI development. He implied that memory production was growing 20% annually while demand was increasing much faster, around 200%. His outlook was straightforward: "Economics 101 would suggest that the price increases."
Musk has also publicly praised Micron for being reasonable about memory prices, suggesting that the company's approach will strengthen customer relationships.
Meanwhile, Apple's former CEO Tim Cook touched on memory costs during the company's July earnings call. Cook characterized the situation as a "hundred-year flood," explaining why Apple decided to raise prices on certain products.
These comments are important because they illustrate how memory shortages aren't limited to data centers. Demand for high bandwidth memory (HBM) and advanced DRAM also affects consumer electronics, autonomous systems, and other end-markets.
As big tech companies continue discussing their capital expenditure (capex) plans, investors will likely receive additional evidence that memory supply remains tight. For Micron, that could reinforce expectations for higher average selling prices and stronger profitability heading into next year.
Micron's $35 billion stock buyback is another catalyst
On Oct. 8, Micron's board increased the company's share repurchase authorization to $35.16 billion. The timing of this announcement was particularly interesting. During Micron's most recent earnings call, CFO Mark Murphy explained that the company will increase capital returns beginning Dec. 9, subject to restrictions associated with CHIPS Act funding agreements.
When a company repurchases stock, it reduces the number of outstanding shares. That means future earnings are divided among fewer shares, potentially increasing earnings per share (EPS) even without additional profit growth.
Considering Micron is already witnessing record earnings momentum, stock buybacks should provide another tailwind. If the company begins repurchasing shares while its valuation remains depressed, the new authorization could prove especially lucrative for long-term investors.
MU Micron Technology$909.54+$4.64 (+0.51%)
NASDAQ · As of 1:48 PM ET 10/20/26
Should you buy Micron stock before 2027?
The most compelling part of Micron's investment thesis revolves around valuation. Wall Street's fiscal 2027 earnings estimates currently sit around $176 per share. With Micron trading around $911, that implies a forward price-to-earnings (P/E) ratio of roughly 5.2. That's a reasonable multiple for a company benefiting from one of the AI industry's biggest investment cycles.
Of course, there are reasons for investors to be cautious. Memory is notoriously cyclical. If manufacturers expand production too aggressively, prices could eventually decline. Moreover, rising competition from China's ChangXin Memory Technologies (CXMT) also presents a longer-term risk.
Nevertheless, Micron's near-term fundamentals are compelling. The company has secured numerous long-term strategic customer agreements that cover a substantial portion of its expected fiscal 2027 production, which provides greater visibility into future demand.
When combined with favorable industry conditions and Micron's expanded buyback authorization, the bull case becomes clear. Investors could see rising earnings, a shrinking share count, and potentially an expanding valuation multiple if confidence in the memory industry's outlook improves.
In turn, Micron stock could witness substantial stock-price appreciation sooner than most investors anticipate. In my view, Micron's recent sell-off presents an attractive entry point ahead of 2027. With shares trading at a reasonable valuation, I see Micron stock as a rock-solid buy for long-term investors.
Investors following Micron Technology (MU +0.51%) have plenty to focus on: record earnings, surging revenue, and the memory chips powering artificial intelligence (AI).
But a quieter development could shape the company's long-term future: Micron is accumulating the financial firepower to invest aggressively, weather a downturn, and return capital to shareholders without necessarily having to choose just one.
In fiscal 2026, Micron generated $89.7 billion in operating cash flow and $62.3 billion in adjusted free cash flow. It ended the year with $73.5 billion in cash, marketable investments, and restricted cash, compared with $12 billion a year earlier.
Those numbers represent a dramatic change in Micron's financial position. The bigger question is what management will do with that money -- and whether the company can turn a cyclical windfall into a more durable competitive advantage.
Image source: Getty Images.
Micron's cash generation has changed dramatically
Free cash flow is the money a business generates after accounting for capital spending. It matters because accounting profits alone do not tell investors how much financial flexibility a company has. Micron's adjusted free cash flow climbed from $3.7 billion in fiscal 2025 to $62.3 billion in fiscal 2026. That is an extraordinary increase, even for a company benefiting from a powerful memory-market up cycle.
It's important to keep in mind that Micron is not a business that can simply stop investing when conditions become difficult; it must continually spend on manufacturing capacity, advanced production processes, and product development to remain competitive. In fiscal 2026, its capital expenditure was already $27.4 billion. Still, Micron generated tens of billions of dollars in adjusted free cash flow after that spending.
That distinction matters, because Micron is not merely reporting record profits; it is generating substantial cash while funding the investments required to compete in a capital-intensive industry.
Having said that, investors should not assume that fiscal 2026 represents a sustainable annual run rate. Memory prices and profitability can change sharply, so the crucial test is how much cash Micron can generate when market conditions worsen.
MU Micron Technology$909.54+$4.64 (+0.51%)
NASDAQ · As of 1:48 PM ET 10/20/26
Cash could become a competitive advantage
Memory manufacturing is expensive, and technological progress requires continuous investment. A company that cuts spending too aggressively during a downturn risks falling behind just as competitors prepare for the next recovery. A stronger balance sheet gives Micron another option. If memory-market conditions weaken, Micron could use its financial reserves to keep investing in technology and strategically important capacity.
Having that option, however, would not eliminate the memory industry's cyclical risks. Nor would it guarantee that every investment earns an attractive return. Moreover, building capacity ahead of demand can still destroy value.
But financial flexibility can help a company make decisions based on long-term competitive needs rather than immediate financial pressure. For investors, the potential significance of Micron's growing cash position is that it could help the company navigate the next downturn without sacrificing as many of its long-term ambitions.
A $35 billion buyback authorization raises the stakes
Micron is also signaling that shareholder returns could become a more significant part of its capital-allocation strategy. The company recently announced an additional $33 billion share repurchase authorization, bringing its total authorized repurchases to approximately $35.2 billion.
That is a substantial commitment on paper, but investors need to distinguish an authorization from actual purchases. The program does not oblige Micron to repurchase shares, and any buybacks remain subject to management's assessment of the best use of its cash.
That qualification is important. Micron still has enormous investment requirements, and the cash generated during an exceptional period may not persist at the same level. Besides, repurchasing shares can create value when a company buys them at a discount to intrinsic value. But buying back stock at an excessive price -- or prioritizing repurchases over attractive growth investments -- can squander a financial advantage.
The question is not whether Micron can return billions to shareholders, but whether management can balance buybacks, dividends, manufacturing investment, and financial resilience to increase long-term per-share value.
What does it mean for investors?
Micron's financial transformation gives investors another way to evaluate the business beyond quarterly earnings. The bullish case is straightforward: If Micron can maintain strong cash generation while funding its investments, it may emerge from the current cycle with greater technological capabilities and more options for shareholders.
The risk is that today's cash generation reflects unusually favorable industry conditions. If profitability contracts, free cash flow could fall sharply even if Micron remains a strong long-term business.
That is why investors should watch not just earnings, but also adjusted free cash flow, capital expenditure, and the amount of cash Micron retains as it increases shareholder returns. And above all, whether management can use the huge cash flow to strengthen the business beyond this cycle.
Micron Technology shares MU rebounded on Tuesday as US equities recovered and oil prices retreated from recent highs, easing some pressure on technology stocks following a sharp selloff. Micron shares rose 0.73% in trading, reversing earlier losses as the technology sector recovered.
CXMT is closing in on server memory, and Micron and Intel sit on opposite sides of the same threat. Their business models guarantee that one company sweats this far more than the other.
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Stock to Watch: Micron (MU - Free Report) Micron Technology, headquartered in Idaho, has established itself as one of the leading worldwide providers of semiconductor memory solutions.
MU is a #1 (Strong Buy) on the Zacks Rank, with a VGM Score of A.
Additionally, the company could be a top pick for growth investors. MU has a Growth Style Score of A, forecasting year-over-year earnings growth of 135.3% for the current fiscal year.
13 analysts revised their earnings estimate higher in the last 60 days for fiscal 2027, while the Zacks Consensus Estimate has increased $19.90 to $177.73 per share. MU also boasts an average earnings surprise of +21%.
With a solid Zacks Rank and top-tier Growth and VGM Style Scores, MU should be on investors' short list.
Richards Merrill and Peterson Inc. boosted its holdings in Micron Technology, Inc. (NASDAQ: MU) by 15.6% in the undefined quarter, according to its most recent disclosure with the Securities and Exchange Commission. The fund owned 5,960 shares of the semiconductor manufacturer's stock after purchasing an additional 804 shares during the quarter. Micron Technology
Kercheville Advisors LLC grew its holdings in shares of Micron Technology, Inc. (NASDAQ: MU) by 35.8% in the third quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The fund owned 8,144 shares of the semiconductor manufacturer's stock after acquiring an additional 2,146 shares during
Fairvoy Private Wealth LLC raised its position in shares of Micron Technology, Inc. (NASDAQ: MU) by 30.9% in the third quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The firm owned 2,594 shares of the semiconductor manufacturer's stock after acquiring an additional 613 shares during
Latest investment under Micron's up to $3 billion U.S. supply-chain plan strengthens the domestic semiconductor ecosystem and expands access to critical materials for advanced memory manufacturing Latest investment under Micron's up to $3 billion U.S. supply-chain plan strengthens the domestic semiconductor ecosystem and expands access to critical materials for advanced memory manufacturing
SummaryMicron Technology (MU) presents a compelling buy opportunity after a recent pullback, with a reinforced $1,320–$1,530 base-case price target. AI-driven memory demand, constrained DRAM supply, and robust HBM growth are materially elevating MU’s earnings floor and pricing power. Consensus FY2028 EPS has surged to $207, supporting 46–70% upside potential even at conservative multiples. Risks remain from supply expansion, customer memory optimization, labor disputes in Taiwan, and the cyclical nature of memory pricing. JHVEPhoto/iStock Editorial via Getty Images
Elevator Thesis Micron Technology (MU) stock gave up a lot of its September gains, and personally, I feel it’s an excellent time to load up on the dip.
If anything, the pullback has made the
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Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.
Computer memory and computer data storage products manufacturer Micron Technology (MU +2.96%) has been one of the biggest investment stories over the past year. Its memory chips continue to fly off the shelves, and its stock price is up about 350% over that period.
That's a lot of growth over a relatively short period, and some investors wonder whether the gains will continue. I suspect they will, but I also think investors may actually do better with these three memory stocks instead.
Image source: Getty Images.
1. SK Hynix
SK Hynix (SKHY +4.67%) is another premier memory chipmaker. Just like Micron, it has also secured multiyear customer agreements. Around 10 key customers reached long-term agreements related to the company's memory chips in the second quarter. That foundation implies that the 257% year-over-year revenue boost SK Hynix saw in Q2 isn't a one-off event.
SKHY SK Hynix$142.87+$6.38 (+4.67%)
NASDAQ · As of 4:00 PM ET 10/19/26
The company generated revenue similar to Micron's, depending on the currency conversion. The exact number was 79.3 trillion Korean won, and that marked a 51% sequential jump in sales. Micron delivered 31% sequential growth in its most recent quarter, implying that recent growth acceleration favors SK Hynix.
The exchange rate for USD and won at the time SK Hynix reported earnings on July 29 translated into $54.9 billion in Q2 revenue. Both SK Hynix and Micron operate in the same industry and offer similar products. SK Hynix has higher sequential growth, higher revenue, a lower market cap, and a more attractive P/E ratio. That makes SK Hynix more appealing at current levels.
2. Sandisk
Sandisk (SNDK +5.53%) is another memory stock that offers faster growth than Micron and a similar valuation when looking at P/E and forward P/E ratios. The NAND flash memory chip provider's share price has surged more than 800% over the past year, and earnings due at the end of October may be the next catalyst for a renewed rally.
SNDK Sandisk$1,371.12+$71.82 (+5.53%)
NASDAQ · As of 4:00 PM ET 10/19/26
Sandisk's fiscal 2026 fourth-quarter results are a teaser of what may be possible when the company reports earnings later this month. That quarter saw 51% sequential growth, higher than Micron's. Furthermore, Sandisk anticipates fiscal 2027 first-quarter revenue will reach $10.8 billion at the high end of its guidance, which implies 20.4% sequential growth. Sandisk has a history of beating the high end of its guidance, and with Micron achieving the feat in its recent results, Sandisk is likely to follow at the end of the month.
Sandisk has long-term deals with key customers to support revenue expansion beyond fiscal 2027. Its finances are optimized for growth, sustainability, and shareholder return through fiscal 2030, according to Sandisk's Investor Day presentation.
3. Astera Labs
Astera Labs (ALAB +0.27%) is a relatively smaller memory stock that specializes in rack-scale artificial intelligence (AI) infrastructure. These racks are vital for AI data centers and are filled with memory chips, GPUs, and other components. If you think of each memory chip or GPU as a book, Astera Labs is the bookshelf that keeps them all together. The rack connects key AI components and lets them operate together.
ALAB Astera Labs$286.58+$0.76 (+0.27%)
NASDAQ · As of 4:00 PM ET 10/19/26
This product explains why Astera Labs more than doubled its sales year over year in the second quarter. Its revenue also jumped by 27% sequentially. While those numbers are lower than Micron's growth rates, Astera Labs is expanding its margins quickly while guiding for accelerated sales momentum in the third quarter. Astera Labs CEO Jitendra Mohan also hinted at the company's growth opportunities expanding in 2027 and beyond.
The company's guidance for its fiscal 2026 third quarter implies a substantial sequential growth rate. Astera Labs is aiming for $550 million in sales at the midpoint, which represents a 40.2% sequential boost. That's a higher projected growth rate than the guidance Micron provided in its recent results.
Astera Labs shares have outperformed the S&P 500, more than doubling year-to-date, but the growth stock has plunged by more than 40% from its high. A strong print for the company's fiscal 2026 third-quarter results can reignite the rally.
Micron faces a fresh challenge to its recovery after workers at a Taiwanese facility announced plans to strike on Thursday over a dispute about profit-sharing. The Taoyuan walkout, scheduled for 22 October, comes as the US memory-chip producer seeks to recover from a 14.6% share-price slump last week.
Currently, 13 stocks traded on U.S. exchanges have a market capitalization of at least $1 trillion. Of those companies, Wall Street is most bullish on these three:
Among 56 analysts, Micron Technology (MU +2.96%) has a median target price of $1,575 per share. That implies 70% upside from its current share price of $925.Among 53 analysts, Broadcom has a median target price of $525 per share. That implies 54% upside from its current share price of $329.Among 72 analysts, Nvidia has a median target price of $320 per share. That implies 45% upside from its current share price of $219.The figures above suggest that Wall Street analysts view Micron as the best trillion-dollar stock to buy now. Here's what investors should know about the semiconductor company.
Image source: Getty Images.
Micron's profits are soaring due to a memory chip supply shortageMicron is a semiconductor company that manufactures memory chips and data storage solutions built on NAND flash and DRAM technology, including high-bandwidth memory (HBM). Its products are used in data centers, mobile devices, personal computers, and automotive systems.
Memory chips are currently in short supply due to immense demand for artificial intelligence infrastructure. The immediate consequence of that supply shortage is that DRAM and NAND prices have more than doubled in the last two years, and Micron's financial results have been impeccable.
In the September quarter, Micron's revenue increased 379% to $54 billion, and non-GAAP earnings soared to $33.42 per diluted share, an 11-fold increase from $3.03 per diluted share last year. And investors have good reason to think the company will maintain similar momentum in the coming years, as the memory chip supply shortage is likely to persist through at least 2028.
"Industry demand has strengthened since our last earnings call, and we expect memory and storage supply-demand conditions to be much tighter in fiscal 2027 and 2028 than they were in 2026," CEO Sanjay Mehrotra told analysts last month.
New memory chip production capacity could lead to oversupply by 2029The major memory chip suppliers are working to address supply constraints by adding production capacity. Micron earlier this year broke ground in New York on a new facility that will include up to four fabrication plants, making it the largest semiconductor manufacturing site in the U.S. The company is also constructing other wafer fabrication plants domestically and abroad.
Micron is not alone. Samsung is building DRAM facilities. SK Hynix is constructing DRAM, HBM, and NAND flash facilities, and it’s building an advanced packaging site. Meanwhile, Sandisk and Kioxia earlier this year opened a NAND flash facility, and Kioxia plans to build another NAND facility.
Memory chips from those new manufacturing sites will hit the market at various points over the next three years, potentially leading to oversupply by 2029. Historically, memory chip prices have fallen sharply during periods where supply outpaced demand, leading to large decreases in suppliers' earnings.
The last major downturn in the memory chip industry occurred during the aftermath of the pandemic. DRAM and NAND prices peaked in early 2021, then declined approximately 70% by late 2023. Against that backdrop, Micron stock declined 50% from its high at one point in 2022.
MU Micron Technology$904.90+$26.06 (+2.96%)
NASDAQ · As of 4:00 PM ET 10/19/26
Some investors think the current memory cycle will break the boom-and-bust moldIn the past, the memory chip industry has been highly cyclical, following a boom-and-bust pattern driven by fluctuations in supply and demand. Periods of strong demand would push prices higher, boosting suppliers' profits and incentivizing them to produce more chips. But they would invariably oversupply the market, causing prices and profits to fall.
Many investors see that pattern as a reason to be cautious in the current environment. But others think the AI revolution has changed the industry, potentially overcoming the traditional cycles by creating a powerful and durable source of demand. Indeed, Micron and other memory chip companies have signed longer contracts during the current cycle than in previous ones.
Also, conventional DRAM is a commodity because chips from different suppliers are largely interchangeable, meaning sellers compete heavily on price. However, HBM chips are more differentiated, so manufacturers compete on performance and power efficiency. As the AI boom unfolds and HBM becomes more important, memory chip suppliers could gain greater pricing power, potentially making the industry less susceptible to boom-and-bust cycles.
That puts investors in a difficult place. Micron stock looks quite cheap at 12 times earnings, especially because Wall Street estimates earnings will increase at 72% annually during the next three years. Then again, Micron traded at 6 times earnings at the low point of the last memory chip cycle. The stock would need to lose 50% of its value to reach that level today.
Personally, I think Micron is worth buying, but I would keep my position sizing small because a steep decline in the future is certainly plausible. It’s dangerous to assume the current memory chip cycle will play out any differently than the last one.
Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.
A union representing Micron Technology (MU.O) workers in Taoyuan, Taiwan, said it would launch a strike on Thursday to coincide with a mediation meeting between the US chipmaker and another collective representing workers at its Taichung operations, escalating a dispute over employee bonuses.
The strike raises the stakes in a labour dispute at one of Micron's most important manufacturing hubs, where it produces DRAM and high-bandwidth memory (HBM) chips, key components in AI servers.
The Taoyuan union said the strike was intended to show solidarity with the Taichung union and to increase pressure on Micron to put forward a concrete profit-sharing proposal.
Micron employs about 15,000 people in Taiwan, with separate unions representing workers at its Taoyuan and Taichung operations. The company has said it has invested more than T$1.6 trillion ($49 billion) on the island.
Mediation between Micron and the Taoyuan union ended without an agreement in September. The union secured authorisation from its members to strike in early October.
The Taichung union, which represents workers at Micron's largest operation in Taiwan, remains in negotiations with the company. It has yet to hold a vote on whether to strike.
The Taoyuan union did not specify how long the solidarity strike would last, saying it would release further details on Thursday.
"Through our actions, we will make our dissatisfaction with the current system heard and demonstrate our determination to establish a fair profit-sharing system," the Taoyuan union said in a statement on Monday.
Taiwanese President Lai Ching-te called last week for Micron and its workers to negotiate "sincerely".
Artificial intelligence (AI) is ushering in significant changes across every sector and industry, and some of the companies at the forefront have already been handsomely rewarded for their efforts, with much more to come. But with more and more companies getting in on AI, which ones are worth investing in?
Perhaps it might help to take some inspiration from successful investors, such as David Tepper, the billionaire founder of the family office Appaloosa Management. Appaloosa has several prominent AI stocks in its public equity portfolio, and two of them, Micron Technology (MU +2.96%) and Amazon (AMZN +4.98%), account for about 31% of the portfolio. Are these AI stocks worth buying today? Let's find out.
Image source: The Motley Fool.
1. Micron TechnologyMicron is one of the leaders in providing computer memory and data storage products, such as DRAM (Dynamic Random Access Memory) chips, which are widely used in data centers. The company's shares have climbed a little more than 200% this year as its financial results have significantly improved. In the fourth quarter of its fiscal year 2026, which ended Sept. 3, Micron's revenue soared by 379% to $54.2 billion. That was more than it generated during its entire fiscal year 2025.
MU Micron Technology$904.90+$26.06 (+2.96%)
NASDAQ · As of 4:00 PM ET 10/19/26
The company's non-GAAP gross margin for the period was 87%, substantially higher than the 45.7% reported in the prior-year quarter. Micron's non-GAAP operating income was $44.6 billion at an 82.3% operating margin, versus $4 billion at 35% in the year-ago period.
And Micron posted non-GAAP earnings per share of $33.42, up 1003% year over year. Micron is flying on all cylinders. But during the second quarter, Appaloosa Management reduced its stake in the stock by about 41%, likely partly to cash in some nice gains. It now accounts for 15.06% of the fund's public equity portfolio, indicating that Tepper and his team remain bullish on the company's prospects.
That makes sense. Micron Technology is benefiting from a shortage of memory chips amid the massive AI build-out, which is granting the company significant pricing power. The shortage could continue at least through 2028, according to some projections, and Micron sees significant demand through that year.
Micron's incredible sales and earnings growth will eventually slow and normalize. But note that the market is arguably already factoring that in. The company is trading at just 7x forward earnings, versus an average of 19.7x for information technology stocks. At current levels, Micron's shares remain attractive.
2. AmazonAmazon was the largest holding in Appaloosa Management's public equity portfolio as of the second quarter, accounting for almost 16% of the portfolio. What's more, during the period, Tepper and his team increased their stake in the conglomerate by about 15.7%. That was, in my view, a good move.
Amazon is performing well. Second-quarter revenue jumped 20% year over year to $200.6 billion, while the company's net earnings per share came in at $5.75, up 242% from the year-ago period (in fairness, Amazon's EPS included a positive impact from equity investments).
AMZN Amazon$262.45+$12.45 (+4.98%)
NASDAQ · As of 4:00 PM ET 10/19/26
Amazon's cloud business, Amazon Web Services, performed particularly well. It posted net sales of $42.2 billion, up 37% year over year. The company's AI business is playing a key role here, and there is more where that came from. Amazon is guiding for $220 billion in capex this year, up from its previous projection of $200 billion (the increase was partly due to higher memory prices).
That's a significant sum, but Amazon appears to be in a strong position to monetize its investments over the medium term. The company already has cloud demand visibility through 2028, for instance. Even beyond its cloud business, though, Amazon has attractive growth opportunities.
The company's high-margin advertising segment continues to grow at a good clip, while it is looking to make productivity and margin gains within its largest segment by sales -- e-commerce -- notably through AI-powered initiatives. Amazon has performed more or less in line with broader equities this year, and over the next five years, the company is well-positioned to deliver strong returns.
Generali Investments Management Co LLC purchased a new position in shares of Micron Technology, Inc. (NASDAQ:MU – Free Report) during the third quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The firm purchased 13,405 shares of the semiconductor manufacturer’s stock, valued at approximately $14,278,000. Micron Technology accounts for approximately 2.7% of Generali Investments Management Co LLC’s portfolio, making the stock its 8th biggest holding.
Other hedge funds and other institutional investors have also bought and sold shares of the company. Denali Advisors LLC purchased a new stake in Micron Technology in the 2nd quarter worth about $7,364,000. Castleark Management LLC bought a new position in Micron Technology during the first quarter worth about $3,709,000. Oppenheimer & Co. Inc. increased its stake in shares of Micron Technology by 16.0% in the second quarter. Oppenheimer & Co. Inc. now owns 48,520 shares of the semiconductor manufacturer’s stock worth $56,006,000 after purchasing an additional 6,702 shares in the last quarter. Legacy Wealth Management LLC MS raised its position in shares of Micron Technology by 73.3% in 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. Finally, Franklin Street Advisors Inc. NC lifted its stake in shares of Micron Technology by 2,461.4% during the 2nd quarter. Franklin Street Advisors Inc. NC now owns 37,141 shares of the semiconductor manufacturer’s stock valued at $42,871,000 after buying an additional 35,691 shares in the last quarter. Hedge funds and other institutional investors 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: Micron’s long-term outlook remains supported by tight memory supply and robust AI demand. Analysts and commentators point to expanding margins, pricing strength, high-bandwidth memory (HBM) growth, and management’s expectation that supply constraints could persist through 2028. Micron: Why You Should Buy Before Dec’26 Positive Sentiment: Recent results exceeded expectations: fiscal fourth-quarter revenue reached approximately $54.2 billion, above the high end of management’s outlook, while full-year revenue reportedly rose to about $133.2 billion. Supporters also cite long-term customer agreements, price floors, potential share repurchases under Micron’s $35 billion authorization, and continued investment in U.S. manufacturing. Micron Stock Is 25% Below Its June Record Positive Sentiment: ASML’s comments that demand for advanced chipmaking equipment exceeds supply through 2028 are viewed as favorable for Micron, a major ASML customer developing next-generation HBM products. Micron also pledged $50 million to U.S. memory research, reinforcing its domestic technology and supply-chain strategy. ASML Just Delivered Excellent News for Micron Stock Investors Neutral Sentiment: Several analysts continue to describe the retreat as a potential buying opportunity, citing Micron’s valuation and earnings growth. However, bullish price targets depend on memory demand remaining strong and the current pricing cycle lasting longer than expected. Negative Sentiment: Investors remain concerned that CXMT’s progress in DDR5, LPDDR5X, and server memory could pressure pricing and market share, particularly in conventional memory. A possible industry oversupply later this decade adds to the cyclical risk. Memory stocks are getting hammered Negative Sentiment: The broader AI trade is under pressure as investors question whether data-center spending can generate adequate returns and whether highly leveraged “neocloud” companies can remain viable. Higher inflation and the prospect of additional interest-rate increases are also encouraging rotation away from expensive technology stocks. Negative Sentiment: One senior executive sold 6,328 Micron shares on October 14. The transaction appears isolated and is small relative to the company, but it adds a modest negative signal during an already weak trading period. Monster insider trading alert for Micron stock Micron Technology Price Performance Shares of NASDAQ:MU opened at $878.84 on Monday. The company’s fifty day moving average price is $985.88 and its 200-day moving average price is $865.04. The firm has a market capitalization of $994.34 billion, a price-to-earnings ratio of 11.84, a PEG ratio of 0.15 and a beta of 2.22. Micron Technology, Inc. has a one year low of $192.40 and a one year high of $1,255.00. The company has a debt-to-equity ratio of 0.03, a current ratio of 3.31 and a quick ratio of 2.94. Micron Technology (NASDAQ:MU – Get Free Report) last announced its earnings results on Wednesday, September 30th. The semiconductor manufacturer reported $33.42 earnings per share (EPS) for the quarter, topping the consensus estimate of $31.77 by $1.65. Micron Technology had a net margin of 63.80% and a return on equity of 92.62%. The company had revenue of $54.23 billion during the quarter, compared to analyst estimates of $51.33 billion. During the same period in the previous year, the business earned $3.03 earnings per share. The firm’s quarterly revenue was up 379.1% compared to the same quarter last year. Micron Technology has set its Q1 2027 guidance at 37.150-39.150 EPS. On average, equities research analysts anticipate that Micron Technology, Inc. will post 177.03 earnings per share for the current fiscal year.
Micron Technology Dividend Announcement The company also recently disclosed a quarterly dividend, which will be paid on Thursday, October 29th. Investors of record on Wednesday, October 14th will be issued 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 of this dividend is Wednesday, October 14th. Micron Technology’s dividend payout ratio (DPR) is currently 0.81%.
Insider Buying and Selling In other Micron Technology news, CEO Sanjay Mehrotra sold 40,000 shares of Micron Technology stock in a transaction that occurred on Friday, August 21st. The shares were sold at an average price of $968.90, for a total transaction of $38,756,000.00. Following the transaction, the chief executive officer directly owned 264,503 shares of the company’s stock, valued at approximately $256,276,956.70. This trade represents a 13.14% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. Also, CAO Scott R. Allen sold 879 shares of the business’s stock in a transaction that occurred 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 completion of 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 SEC filing for this sale provides additional information. Insiders sold 95,879 shares of company stock worth $90,939,466 in the last quarter. 0.24% of the stock is owned by insiders.
Wall Street Analyst Weigh In Several research firms have issued reports on MU. Phillip Securities increased their target price on Micron Technology from $530.00 to $1,870.00 and gave the stock a “buy” rating in a research report on Monday, June 29th. JPMorgan Chase & Co. raised their price objective on shares of Micron Technology from $550.00 to $1,540.00 and gave the company an “overweight” rating in a research report on Thursday, June 25th. Morgan Stanley reaffirmed an “overweight” rating and set a $1,200.00 price objective on shares of Micron Technology in a research note on Thursday, October 1st. Erste Group Bank raised shares of Micron Technology from a “hold” rating to a “buy” rating in a report on Thursday, June 25th. Finally, UBS Group reiterated a “buy” rating and issued a $1,625.00 price objective (up from $535.00) on shares of Micron Technology in a research report on Wednesday, September 23rd. One research analyst has rated the stock with a Strong Buy rating, forty-one have given a Buy rating and four have assigned a Hold rating to the company’s stock. According to data from MarketBeat.com, the company has a consensus rating of “Moderate Buy” and an average price target of $1,407.88.
Check Out Our Latest Stock Report on MU
(Free Report)
Micron Technology, Inc is a semiconductor company that develops and manufactures memory and storage products. Its portfolio includes dynamic random-access memory (DRAM), NAND flash memory, NOR flash memory, solid-state drives, memory modules, and other semiconductor solutions used in data centers, personal computers, smartphones, automotive systems, industrial equipment, and consumer electronics.
The company also provides high-bandwidth memory and other advanced memory technologies designed to support artificial intelligence, high-performance computing, networking, and graphics applications.
Featured Articles Five stocks we like better than Micron Technology These 3 Green Stocks Have a Growth Story That Goes Far Beyond Washington Meta Claims Frontier-Class AI Status With New Muse Wonder Models Berkshire Just Backed This Little-Known Stock—Should You Chase It? Broadcom’s CEO Sees Years of AI Demand But Warns of a Bigger Threat to the Boom
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Grant Private Wealth Management Inc raised its holdings in Micron Technology, Inc. (NASDAQ:MU – Free Report) by 48.0% in the third quarter, according to its most recent 13F filing with the Securities & Exchange Commission. The firm owned 4,740 shares of the semiconductor manufacturer’s stock after purchasing an additional 1,537 shares during the period. Micron Technology makes up about 2.2% of Grant Private Wealth Management Inc’s portfolio, making the stock its 11th largest holding. Grant Private Wealth Management Inc’s holdings in Micron Technology were worth $5,048,000 as of its most recent SEC filing.
A number of other institutional investors have also recently bought and sold shares of the business. Andar Capital Management HK Ltd raised its position in shares of Micron Technology by 856,960.3% in the second quarter. Andar Capital Management HK Ltd now owns 34,282,413 shares of the semiconductor manufacturer’s stock valued at $39,571,847,000 after buying an additional 34,278,413 shares in the last quarter. Primecap Management Co. CA bought a new stake in shares of Micron Technology in the second quarter valued at approximately $22,182,263,000. Bank of America Corp DE boosted its stake in shares of Micron Technology by 26.6% in the second quarter. Bank of America Corp DE now owns 10,174,757 shares of the semiconductor manufacturer’s stock valued at $11,744,621,000 after buying an additional 2,136,470 shares during the period. Legal & General Group Plc bought a new stake in shares of Micron Technology in the second quarter valued at approximately $8,402,393,000. Finally, Wellington Management Group LLP grew its position in Micron Technology by 28.7% during the second quarter. Wellington Management Group LLP now owns 5,045,141 shares of the semiconductor manufacturer’s stock worth $5,823,556,000 after buying an additional 1,125,414 shares in the last quarter. Institutional investors own 80.84% of the company’s stock.
Micron Technology Price Performance
NASDAQ MU opened at $878.84 on Monday. The business has a fifty day moving average price of $985.88 and a two-hundred day moving average price of $865.04. The company has a debt-to-equity ratio of 0.03, a current ratio of 3.31 and a quick ratio of 2.94. Micron Technology, Inc. has a fifty-two week low of $192.40 and a fifty-two week high of $1,255.00. The stock has a market capitalization of $994.34 billion, a PE ratio of 11.84, a PEG ratio of 0.15 and a beta of 2.22.
Micron Technology (NASDAQ:MU – Get Free Report) last issued its quarterly earnings results on Wednesday, September 30th. The semiconductor manufacturer reported $33.42 earnings per share (EPS) for the quarter, beating the consensus estimate of $31.77 by $1.65. Micron Technology had a return on equity of 92.62% and a net margin of 63.80%. The company had revenue of $54.23 billion for the quarter, compared to analyst estimates of $51.33 billion. During the same quarter last year, the company posted $3.03 EPS. The company’s revenue for the quarter was up 379.1% compared to the same quarter last year. Micron Technology has set its Q1 2027 guidance at 37.150-39.150 EPS. Equities analysts expect that Micron Technology, Inc. will post 177.03 earnings per share for the current fiscal year.
Micron Technology Dividend Announcement
The business also recently declared a quarterly dividend, which will be paid on Thursday, October 29th. Stockholders of record on Wednesday, October 14th will be issued a dividend of $0.15 per share. The ex-dividend date is Wednesday, October 14th. This represents a $0.60 annualized dividend and a dividend yield of 0.1%. Micron Technology’s dividend payout ratio is 0.81%.
Insider Activity at Micron Technology
In other Micron Technology news, CEO Sanjay Mehrotra sold 40,000 shares of the company’s stock in a transaction dated Friday, August 21st. The stock was sold at an average price of $968.90, for a total value of $38,756,000.00. Following the completion of the transaction, the chief executive officer owned 264,503 shares of the company’s stock, valued at $256,276,956.70. This represents a 13.14% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, EVP Sumit Sadana sold 15,000 shares of the stock in a transaction dated Tuesday, August 18th. The shares were sold at an average price of $934.29, for a total value of $14,014,350.00. Following the completion of the transaction, the executive vice president owned 191,021 shares of the company’s stock, valued at $178,469,010.09. This represents a 7.28% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold a total of 95,879 shares of company stock valued at $90,939,466 in the last 90 days. 0.24% of the stock is owned by corporate insiders.
Key Micron Technology News
Here are the key news stories impacting Micron Technology this week:
Positive Sentiment: Micron’s long-term outlook remains supported by tight memory supply and robust AI demand. Analysts and commentators point to expanding margins, pricing strength, high-bandwidth memory (HBM) growth, and management’s expectation that supply constraints could persist through 2028. Micron: Why You Should Buy Before Dec’26
Positive Sentiment: Recent results exceeded expectations: fiscal fourth-quarter revenue reached approximately $54.2 billion, above the high end of management’s outlook, while full-year revenue reportedly rose to about $133.2 billion. Supporters also cite long-term customer agreements, price floors, potential share repurchases under Micron’s $35 billion authorization, and continued investment in U.S. manufacturing. Micron Stock Is 25% Below Its June Record
Positive Sentiment: ASML’s comments that demand for advanced chipmaking equipment exceeds supply through 2028 are viewed as favorable for Micron, a major ASML customer developing next-generation HBM products. Micron also pledged $50 million to U.S. memory research, reinforcing its domestic technology and supply-chain strategy. ASML Just Delivered Excellent News for Micron Stock Investors
Neutral Sentiment: Several analysts continue to describe the retreat as a potential buying opportunity, citing Micron’s valuation and earnings growth. However, bullish price targets depend on memory demand remaining strong and the current pricing cycle lasting longer than expected.
Negative Sentiment: Investors remain concerned that CXMT’s progress in DDR5, LPDDR5X, and server memory could pressure pricing and market share, particularly in conventional memory. A possible industry oversupply later this decade adds to the cyclical risk. Memory stocks are getting hammered
Negative Sentiment: The broader AI trade is under pressure as investors question whether data-center spending can generate adequate returns and whether highly leveraged “neocloud” companies can remain viable. Higher inflation and the prospect of additional interest-rate increases are also encouraging rotation away from expensive technology stocks.
Negative Sentiment: One senior executive sold 6,328 Micron shares on October 14. The transaction appears isolated and is small relative to the company, but it adds a modest negative signal during an already weak trading period. Monster insider trading alert for Micron stock
Analysts Set New Price Targets
A number of research firms have commented on MU. KeyCorp restated an “overweight” rating on shares of Micron Technology in a research note on Thursday, October 1st. Sanford C. Bernstein reiterated an “outperform” rating on shares of Micron Technology in a research report on Thursday, October 1st. Susquehanna reiterated a “positive” rating on shares of Micron Technology in a research report on Thursday, October 1st. Needham & Company LLC reissued a “buy” rating and set a $1,650.00 target price on shares of Micron Technology in a report on Thursday, October 1st. Finally, Zacks Research upgraded Micron Technology from a “hold” rating to a “strong-buy” rating in a research report on Tuesday, October 6th. One analyst has rated the stock with a Strong Buy rating, forty-one have given a Buy rating and four have assigned a Hold rating to the company’s stock. According to data from MarketBeat, Micron Technology presently has an average rating of “Moderate Buy” and an average target price of $1,407.88.
View Our Latest Report on Micron Technology
Micron Technology Profile
(Free Report)
Micron Technology, Inc is a semiconductor company that develops and manufactures memory and storage products. Its portfolio includes dynamic random-access memory (DRAM), NAND flash memory, NOR flash memory, solid-state drives, memory modules, and other semiconductor solutions used in data centers, personal computers, smartphones, automotive systems, industrial equipment, and consumer electronics.
The company also provides high-bandwidth memory and other advanced memory technologies designed to support artificial intelligence, high-performance computing, networking, and graphics applications.
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Micron Technology shares MU rose on Monday as semiconductor stocks rebounded from a broad selloff driven by concerns over the sustainability of artificial intelligence spending and the valuations of companies linked to the AI boom. Micron shares gained 2.85% during the session, recovering some of the losses from the previous week, when the memory-chip maker's stock fell 11%.
Micron's sales and profits have soared in the past year. Demand for memory and storage products remains robust, but if there's a bubble in artificial intelligence, that could wreak havoc on its business.
SummaryMicron Technology, Inc. is re-rated as a Buy, supported by strong revenue visibility, pricing power, and robust demand through FY30.CXMT’s technological advancements pose a long-term threat, but meaningful competitive impact on MU is unlikely before 2028.MU’s HBM segment is narrowing its margin gap with conventional DRAM, with higher selling prices and strong demand driving margin expansion in FY27.With a $150B backlog and 35%+ revenue covered through 2030, MU’s risk-reward profile remains attractive despite competitive and supply risks. amgun/iStock via Getty Images
Investment Thesis Investors are punishing AI-related stocks due to many of them needing to take on high debt to expand their operations and build new data centers.
Since my last coverage, Micron Technology, Inc. (
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IFP Advisors Inc decreased its stake in Micron Technology, Inc. (NASDAQ:MU – Free Report) by 4.2% in the third quarter, according to its most recent filing with the Securities & Exchange Commission. The firm owned 15,779 shares of the semiconductor manufacturer’s stock after selling 700 shares during the quarter. IFP Advisors Inc’s holdings in Micron Technology were worth $16,806,000 as of its most recent filing with the Securities & Exchange Commission.
A number of other hedge funds and other institutional investors have also modified their holdings of MU. Denali Advisors LLC purchased a new position in Micron Technology during the 2nd quarter valued at about $7,364,000. Castleark Management LLC acquired a new position in shares of Micron Technology in the 1st quarter valued at about $3,709,000. Oppenheimer & Co. Inc. lifted its position in shares of Micron Technology by 16.0% in the second quarter. Oppenheimer & Co. Inc. now owns 48,520 shares of the semiconductor manufacturer’s stock worth $56,006,000 after purchasing an additional 6,702 shares in the last quarter. Legacy Wealth Management LLC MS lifted its position in shares of Micron Technology by 73.3% in the second quarter. Legacy Wealth Management LLC MS now owns 3,544 shares of the semiconductor manufacturer’s stock worth $4,091,000 after purchasing an additional 1,499 shares in the last quarter. Finally, Franklin Street Advisors Inc. NC lifted its position in shares of Micron Technology by 2,461.4% in the second quarter. Franklin Street Advisors Inc. NC now owns 37,141 shares of the semiconductor manufacturer’s stock worth $42,871,000 after purchasing an additional 35,691 shares in the last quarter. Institutional investors and hedge funds own 80.84% of the company’s stock.
Trending Headlines about Micron Technology Here are the key news stories impacting Micron Technology this week:
Positive Sentiment: Micron’s long-term outlook remains supported by tight memory supply and robust AI demand. Analysts and commentators point to expanding margins, pricing strength, high-bandwidth memory (HBM) growth, and management’s expectation that supply constraints could persist through 2028. Micron: Why You Should Buy Before Dec’26 Positive Sentiment: Recent results exceeded expectations: fiscal fourth-quarter revenue reached approximately $54.2 billion, above the high end of management’s outlook, while full-year revenue reportedly rose to about $133.2 billion. Supporters also cite long-term customer agreements, price floors, potential share repurchases under Micron’s $35 billion authorization, and continued investment in U.S. manufacturing. Micron Stock Is 25% Below Its June Record Positive Sentiment: ASML’s comments that demand for advanced chipmaking equipment exceeds supply through 2028 are viewed as favorable for Micron, a major ASML customer developing next-generation HBM products. Micron also pledged $50 million to U.S. memory research, reinforcing its domestic technology and supply-chain strategy. ASML Just Delivered Excellent News for Micron Stock Investors Neutral Sentiment: Several analysts continue to describe the retreat as a potential buying opportunity, citing Micron’s valuation and earnings growth. However, bullish price targets depend on memory demand remaining strong and the current pricing cycle lasting longer than expected. Negative Sentiment: Investors remain concerned that CXMT’s progress in DDR5, LPDDR5X, and server memory could pressure pricing and market share, particularly in conventional memory. A possible industry oversupply later this decade adds to the cyclical risk. Memory stocks are getting hammered Negative Sentiment: The broader AI trade is under pressure as investors question whether data-center spending can generate adequate returns and whether highly leveraged “neocloud” companies can remain viable. Higher inflation and the prospect of additional interest-rate increases are also encouraging rotation away from expensive technology stocks. Negative Sentiment: One senior executive sold 6,328 Micron shares on October 14. The transaction appears isolated and is small relative to the company, but it adds a modest negative signal during an already weak trading period. Monster insider trading alert for Micron stock Micron Technology Stock Performance NASDAQ:MU opened at $878.84 on Monday. The company has a market capitalization of $994.34 billion, a P/E ratio of 11.84, a P/E/G ratio of 0.15 and a beta of 2.22. The stock’s 50 day moving average price is $985.88 and its 200 day moving average price is $865.04. The company has a debt-to-equity ratio of 0.03, a quick ratio of 2.94 and a current ratio of 3.31. Micron Technology, Inc. has a 52 week low of $192.40 and a 52 week high of $1,255.00. Micron Technology (NASDAQ:MU – Get Free Report) last posted its earnings results on Wednesday, September 30th. The semiconductor manufacturer reported $33.42 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $31.77 by $1.65. The firm had revenue of $54.23 billion during the quarter, compared to analysts’ expectations of $51.33 billion. Micron Technology had a net margin of 63.80% and a return on equity of 92.62%. The company’s revenue was up 379.1% compared to the same quarter last year. During the same period in the previous year, the company earned $3.03 earnings per share. Micron Technology has set its Q1 2027 guidance at 37.150-39.150 EPS. On average, research analysts forecast that Micron Technology, Inc. will post 177.03 EPS for the current fiscal year.
Micron Technology Dividend Announcement The firm also recently disclosed a quarterly dividend, which will be paid on Thursday, October 29th. Investors of record on Wednesday, October 14th will be issued a $0.15 dividend. The ex-dividend date is Wednesday, October 14th. This represents a $0.60 dividend on an annualized basis and a yield of 0.1%. Micron Technology’s dividend payout ratio is currently 0.81%.
Insider Buying and Selling at Micron Technology In other Micron Technology news, CEO Sanjay Mehrotra sold 40,000 shares of the business’s stock in a transaction dated Friday, August 21st. The stock was sold at an average price of $968.90, for a total value of $38,756,000.00. Following the completion of the sale, the chief executive officer owned 264,503 shares of the company’s stock, valued at $256,276,956.70. The trade was a 13.14% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, CAO Scott Allen sold 879 shares of the company’s stock in a transaction dated 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 sale, the chief accounting officer owned 34,958 shares of the company’s stock, valued at approximately $34,958,000. This trade represents a 2.45% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold a total of 95,879 shares of company stock worth $90,939,466 over the last three months. Corporate insiders own 0.24% of the company’s stock.
Wall Street Analyst Weigh In Several analysts recently commented on MU shares. Zacks Research upgraded shares of Micron Technology from a “hold” rating to a “strong-buy” rating in a report on Tuesday, October 6th. Bank of America upped their price objective on shares of Micron Technology from $950.00 to $1,500.00 and gave the company a “buy” rating in a research note on Tuesday, June 23rd. Needham & Company LLC reiterated a “buy” rating and issued a $1,650.00 target price on shares of Micron Technology in a research report on Thursday, October 1st. Citigroup increased their target price on shares of Micron Technology from $1,150.00 to $1,300.00 and gave the stock a “buy” rating in a research report on Wednesday, September 23rd. Finally, Arete Research upped their price target on shares of Micron Technology from $852.00 to $1,500.00 and gave the stock a “buy” rating in a research note on Tuesday, July 21st. One equities research analyst has rated the stock with a Strong Buy rating, forty-one have given a Buy rating and four have issued a Hold rating to the company’s stock. Based on data from MarketBeat.com, Micron Technology currently has an average rating of “Moderate Buy” and a consensus price target of $1,407.88.
Check Out Our Latest Stock Analysis on Micron Technology
(Free Report)
Micron Technology, Inc is a semiconductor company that develops and manufactures memory and storage products. Its portfolio includes dynamic random-access memory (DRAM), NAND flash memory, NOR flash memory, solid-state drives, memory modules, and other semiconductor solutions used in data centers, personal computers, smartphones, automotive systems, industrial equipment, and consumer electronics.
The company also provides high-bandwidth memory and other advanced memory technologies designed to support artificial intelligence, high-performance computing, networking, and graphics applications.
Featured Articles Five stocks we like better than Micron Technology These 3 Green Stocks Have a Growth Story That Goes Far Beyond Washington Meta Claims Frontier-Class AI Status With New Muse Wonder Models Berkshire Just Backed This Little-Known Stock—Should You Chase It? Broadcom’s CEO Sees Years of AI Demand But Warns of a Bigger Threat to the Boom
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Delta Capital Management LLC trimmed its position in Micron Technology, Inc. (NASDAQ:MU – Free Report) by 37.8% during the third quarter, according to its most recent filing with the Securities and Exchange Commission. The institutional investor owned 13,075 shares of the semiconductor manufacturer’s stock after selling 7,930 shares during the quarter. Micron Technology makes up 4.3% of Delta Capital Management LLC’s investment portfolio, making the stock its 3rd largest position. Delta Capital Management LLC’s holdings in Micron Technology were worth $13,926,000 at the end of the most recent quarter.
A number of other hedge funds and other institutional investors have also modified their holdings of the company. Andar Capital Management HK Ltd grew its stake in shares of Micron Technology by 856,960.3% during the second quarter. Andar Capital Management HK Ltd now owns 34,282,413 shares of the semiconductor manufacturer’s stock worth $39,571,847,000 after purchasing an additional 34,278,413 shares in the last quarter. Primecap Management Co. CA acquired a new stake in Micron Technology in the second quarter valued at $22,182,263,000. Legal & General Group Plc acquired a new position in shares of Micron Technology during the 2nd quarter worth about $8,402,393,000. Situational Awareness LP increased its holdings in shares of Micron Technology by 1,149.0% in the 2nd quarter. Situational Awareness LP now owns 4,828,786 shares of the semiconductor manufacturer’s stock valued at $5,573,819,000 after acquiring an additional 5,289,124 shares during the last quarter. Finally, Canada Pension Plan Investment Board purchased a new position in shares of Micron Technology in the 2nd quarter valued at about $3,761,237,000. 80.84% of the stock is currently owned by institutional investors and hedge funds.
Key Headlines Impacting Micron Technology Here are the key news stories impacting Micron Technology this week:
Positive Sentiment: Micron’s long-term outlook remains supported by tight memory supply and robust AI demand. Analysts and commentators point to expanding margins, pricing strength, high-bandwidth memory (HBM) growth, and management’s expectation that supply constraints could persist through 2028. Micron: Why You Should Buy Before Dec’26 Positive Sentiment: Recent results exceeded expectations: fiscal fourth-quarter revenue reached approximately $54.2 billion, above the high end of management’s outlook, while full-year revenue reportedly rose to about $133.2 billion. Supporters also cite long-term customer agreements, price floors, potential share repurchases under Micron’s $35 billion authorization, and continued investment in U.S. manufacturing. Micron Stock Is 25% Below Its June Record Positive Sentiment: ASML’s comments that demand for advanced chipmaking equipment exceeds supply through 2028 are viewed as favorable for Micron, a major ASML customer developing next-generation HBM products. Micron also pledged $50 million to U.S. memory research, reinforcing its domestic technology and supply-chain strategy. ASML Just Delivered Excellent News for Micron Stock Investors Neutral Sentiment: Several analysts continue to describe the retreat as a potential buying opportunity, citing Micron’s valuation and earnings growth. However, bullish price targets depend on memory demand remaining strong and the current pricing cycle lasting longer than expected. Negative Sentiment: Investors remain concerned that CXMT’s progress in DDR5, LPDDR5X, and server memory could pressure pricing and market share, particularly in conventional memory. A possible industry oversupply later this decade adds to the cyclical risk. Memory stocks are getting hammered Negative Sentiment: The broader AI trade is under pressure as investors question whether data-center spending can generate adequate returns and whether highly leveraged “neocloud” companies can remain viable. Higher inflation and the prospect of additional interest-rate increases are also encouraging rotation away from expensive technology stocks. Negative Sentiment: One senior executive sold 6,328 Micron shares on October 14. The transaction appears isolated and is small relative to the company, but it adds a modest negative signal during an already weak trading period. Monster insider trading alert for Micron stock Micron Technology Stock Performance MU opened at $878.84 on Monday. The firm has a market cap of $994.34 billion, a price-to-earnings ratio of 11.84, a price-to-earnings-growth ratio of 0.15 and a beta of 2.22. Micron Technology, Inc. has a 52 week low of $192.40 and a 52 week high of $1,255.00. The business’s 50 day moving average is $985.88 and its two-hundred day moving average is $865.04. The company has a quick ratio of 2.94, a current ratio of 3.31 and a debt-to-equity ratio of 0.03. Micron Technology (NASDAQ:MU – Get Free Report) last posted its quarterly earnings data on Wednesday, September 30th. The semiconductor manufacturer reported $33.42 earnings per share for the quarter, beating the consensus estimate of $31.77 by $1.65. The business had revenue of $54.23 billion during the quarter, compared to the consensus estimate of $51.33 billion. Micron Technology had a return on equity of 92.62% and a net margin of 63.80%. The company’s revenue was up 379.1% compared to the same quarter last year. During the same period in the prior year, the company earned $3.03 earnings per share. Micron Technology has set its Q1 2027 guidance at 37.150-39.150 EPS. On average, research analysts predict that Micron Technology, Inc. will post 177.03 EPS for the current year.
Micron Technology Announces Dividend The firm also recently declared a quarterly dividend, which will be paid on Thursday, October 29th. Investors of record on Wednesday, October 14th will be paid a dividend of $0.15 per share. The ex-dividend date is Wednesday, October 14th. This represents a $0.60 dividend on an annualized basis and a yield of 0.1%. Micron Technology’s dividend payout ratio is currently 0.81%.
Analyst Ratings Changes Several equities research analysts recently weighed in on MU shares. Zacks Research upgraded Micron Technology from a “hold” rating to a “strong-buy” rating in a research note on Tuesday, October 6th. Itau BBA Securities raised their price objective on shares of Micron Technology from $1,243.78 to $1,697.09 and gave the stock an “outperform” rating in a report on Wednesday, July 22nd. TD Cowen restated a “buy” rating and set a $1,600.00 price objective on shares of Micron Technology in a research report on Thursday, October 1st. Deutsche Bank Aktiengesellschaft restated a “buy” rating on shares of Micron Technology in a report on Thursday, October 1st. Finally, Wolfe Research set a $1,500.00 target price on shares of Micron Technology in a research report on Thursday, June 25th. One research analyst has rated the stock with a Strong Buy rating, forty-one have given a Buy rating and four have given a Hold rating to the stock. According to data from MarketBeat.com, Micron Technology has an average rating of “Moderate Buy” and an average target price of $1,407.88.
Get Our Latest Stock Report on Micron Technology
Insider Buying and Selling In other news, EVP Sumit Sadana sold 15,000 shares of the company’s stock in a transaction dated Tuesday, August 18th. The shares were sold at an average price of $934.29, for a total value of $14,014,350.00. Following the completion of the sale, the executive vice president directly owned 191,021 shares of the company’s stock, valued at approximately $178,469,010.09. This represents a 7.28% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, CAO Scott R. Allen sold 879 shares of the company’s stock in a transaction dated 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 completion of the sale, the chief accounting officer directly owned 34,958 shares of the company’s stock, valued at $34,958,000. The trade was a 2.45% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold a total of 95,879 shares of company stock worth $90,939,466 in the last 90 days. Company insiders own 0.24% of the company’s stock.
(Free Report)
Micron Technology, Inc is a semiconductor company that develops and manufactures memory and storage products. Its portfolio includes dynamic random-access memory (DRAM), NAND flash memory, NOR flash memory, solid-state drives, memory modules, and other semiconductor solutions used in data centers, personal computers, smartphones, automotive systems, industrial equipment, and consumer electronics.
The company also provides high-bandwidth memory and other advanced memory technologies designed to support artificial intelligence, high-performance computing, networking, and graphics applications.
Featured Articles Five stocks we like better than Micron Technology These 3 Green Stocks Have a Growth Story That Goes Far Beyond Washington Meta Claims Frontier-Class AI Status With New Muse Wonder Models Berkshire Just Backed This Little-Known Stock—Should You Chase It? Broadcom’s CEO Sees Years of AI Demand But Warns of a Bigger Threat to the Boom 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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Founders Grove Wealth Partners LLC boosted its holdings in shares of Micron Technology, Inc. (NASDAQ:MU – Free Report) by 62.8% in the 3rd quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The institutional investor owned 2,012 shares of the semiconductor manufacturer’s stock after acquiring an additional 776 shares during the period. Founders Grove Wealth Partners LLC’s holdings in Micron Technology were worth $2,143,000 at the end of the most recent reporting period.
Other large investors also recently bought and sold shares of the company. Andar Capital Management HK Ltd boosted its holdings in shares of Micron Technology by 856,960.3% during the 2nd quarter. Andar Capital Management HK Ltd now owns 34,282,413 shares of the semiconductor manufacturer’s stock worth $39,571,847,000 after purchasing an additional 34,278,413 shares during the last quarter. Primecap Management Co. CA purchased a new stake in shares of Micron Technology in the second quarter valued at approximately $22,182,263,000. Bank of America Corp DE grew its position in shares of Micron Technology by 26.6% in the second quarter. Bank of America Corp DE now owns 10,174,757 shares of the semiconductor manufacturer’s stock valued at $11,744,621,000 after purchasing an additional 2,136,470 shares in the last quarter. Legal & General Group Plc purchased a new stake in shares of Micron Technology in the second quarter valued at approximately $8,402,393,000. Finally, Wellington Management Group LLP increased its holdings in shares of Micron Technology by 28.7% in the second quarter. Wellington Management Group LLP now owns 5,045,141 shares of the semiconductor manufacturer’s stock valued at $5,823,556,000 after purchasing an additional 1,125,414 shares during the last quarter. Hedge funds and other institutional investors own 80.84% of the company’s stock.
Analyst Ratings Changes MU has been the topic of a number of analyst reports. Susquehanna reiterated a “positive” rating on shares of Micron Technology in a research report on Thursday, October 1st. Raymond James Financial reissued an “outperform” rating on shares of Micron Technology in a research note on Thursday, October 1st. Robert W. Baird boosted their price objective on Micron Technology from $1,280.00 to $1,520.00 and gave the stock an “outperform” rating in a research note on Monday, September 28th. BMO Capital Markets restated an “outperform” rating on shares of Micron Technology in a report on Thursday, October 1st. Finally, BNP Paribas Exane upped their target price on Micron Technology from $615.00 to $1,700.00 and gave the company an “outperform” rating in a report on Thursday, June 25th. One analyst has rated the stock with a Strong Buy rating, forty-one have assigned a Buy rating and four have given a Hold rating to the company. According to MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and a consensus target price of $1,407.88.
Check Out Our Latest Stock Analysis on MU Micron Technology Stock Performance NASDAQ MU opened at $878.84 on Monday. The stock has a fifty day simple moving average of $985.88 and a 200-day simple moving average of $865.04. The company has a current ratio of 3.31, a quick ratio of 2.94 and a debt-to-equity ratio of 0.03. The stock has a market cap of $994.34 billion, a PE ratio of 11.84, a P/E/G ratio of 0.15 and a beta of 2.22. Micron Technology, Inc. has a twelve month low of $192.40 and a twelve month high of $1,255.00.
Micron Technology (NASDAQ:MU – Get Free Report) last issued its quarterly earnings data on Wednesday, September 30th. The semiconductor manufacturer reported $33.42 earnings per share (EPS) for the quarter, beating the consensus estimate of $31.77 by $1.65. The firm had revenue of $54.23 billion for the quarter, compared to analyst estimates of $51.33 billion. Micron Technology had a net margin of 63.80% and a return on equity of 92.62%. Micron Technology’s revenue was up 379.1% on a year-over-year basis. During the same period in the previous year, the firm earned $3.03 EPS. Micron Technology has set its Q1 2027 guidance at 37.150-39.150 EPS. Equities analysts anticipate that Micron Technology, Inc. will post 177.03 earnings per share for the current year.
Micron Technology Announces Dividend The business also recently declared a quarterly dividend, which will be paid on Thursday, October 29th. Shareholders of record on Wednesday, October 14th will be given a dividend of $0.15 per share. The ex-dividend date is Wednesday, October 14th. This represents a $0.60 dividend on an annualized basis and a dividend yield of 0.1%. Micron Technology’s dividend payout ratio (DPR) is currently 0.81%.
Insider Buying and Selling at Micron Technology In other Micron Technology news, CEO Sanjay Mehrotra sold 40,000 shares of Micron Technology stock in a transaction dated Friday, August 21st. The shares were sold at an average price of $968.90, for a total transaction of $38,756,000.00. Following the completion of the sale, the chief executive officer directly owned 264,503 shares in the company, valued at $256,276,956.70. This trade represents a 13.14% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, CAO Scott Allen sold 879 shares of the business’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 transaction 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 trade represents a 2.45% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold a total of 95,879 shares of company stock worth $90,939,466 over the last three months. Insiders own 0.24% of the company’s stock.
Key Stories Impacting Micron Technology Here are the key news stories impacting Micron Technology this week:
Positive Sentiment: Micron’s long-term outlook remains supported by tight memory supply and robust AI demand. Analysts and commentators point to expanding margins, pricing strength, high-bandwidth memory (HBM) growth, and management’s expectation that supply constraints could persist through 2028. Micron: Why You Should Buy Before Dec’26 Positive Sentiment: Recent results exceeded expectations: fiscal fourth-quarter revenue reached approximately $54.2 billion, above the high end of management’s outlook, while full-year revenue reportedly rose to about $133.2 billion. Supporters also cite long-term customer agreements, price floors, potential share repurchases under Micron’s $35 billion authorization, and continued investment in U.S. manufacturing. Micron Stock Is 25% Below Its June Record Positive Sentiment: ASML’s comments that demand for advanced chipmaking equipment exceeds supply through 2028 are viewed as favorable for Micron, a major ASML customer developing next-generation HBM products. Micron also pledged $50 million to U.S. memory research, reinforcing its domestic technology and supply-chain strategy. ASML Just Delivered Excellent News for Micron Stock Investors Neutral Sentiment: Several analysts continue to describe the retreat as a potential buying opportunity, citing Micron’s valuation and earnings growth. However, bullish price targets depend on memory demand remaining strong and the current pricing cycle lasting longer than expected. Negative Sentiment: Investors remain concerned that CXMT’s progress in DDR5, LPDDR5X, and server memory could pressure pricing and market share, particularly in conventional memory. A possible industry oversupply later this decade adds to the cyclical risk. Memory stocks are getting hammered Negative Sentiment: The broader AI trade is under pressure as investors question whether data-center spending can generate adequate returns and whether highly leveraged “neocloud” companies can remain viable. Higher inflation and the prospect of additional interest-rate increases are also encouraging rotation away from expensive technology stocks. Negative Sentiment: One senior executive sold 6,328 Micron shares on October 14. The transaction appears isolated and is small relative to the company, but it adds a modest negative signal during an already weak trading period. Monster insider trading alert for Micron stock Micron Technology Company Profile (Free Report)
Micron Technology, Inc is a semiconductor company that develops and manufactures memory and storage products. Its portfolio includes dynamic random-access memory (DRAM), NAND flash memory, NOR flash memory, solid-state drives, memory modules, and other semiconductor solutions used in data centers, personal computers, smartphones, automotive systems, industrial equipment, and consumer electronics.
The company also provides high-bandwidth memory and other advanced memory technologies designed to support artificial intelligence, high-performance computing, networking, and graphics applications.
Recommended Stories Five stocks we like better than Micron Technology These 3 Green Stocks Have a Growth Story That Goes Far Beyond Washington Meta Claims Frontier-Class AI Status With New Muse Wonder Models Berkshire Just Backed This Little-Known Stock—Should You Chase It? Broadcom’s CEO Sees Years of AI Demand But Warns of a Bigger Threat to the Boom 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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Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.
Micron Technologies (MU +3.98%) has long been a relatively boring investment. After it peaked during the dot-com bubble in 2000, the company faced a long-lasting slump as modest demand and intense competition eroded its growth prospects relative to other tech giants. However, everything changed in 2022 when the release of ChatGPT sparked an entirely new industry: generative artificial intelligence (AI).
Micron's shares have risen by an eye-popping 333% over the last 12 months alone as data center clients scramble to purchase its advanced memory hardware. But even though demand shows no signs of slowing any time soon, there is reason to be nervous. Let's dig into Micron's pros and cons to decide how much shares might be worth by the end of 2027.
Image source: Getty Images.
The bottleneck in the AI industry The early phases of the generative AI boom were driven by chipmakers like Nvidia, which supplied graphics processing units (GPUs) and other types of compute hardware needed to run and train large language models. However, as these chips became more powerful, a bottleneck emerged in the supply of memory hardware capable of keeping up. Micron is in the right place at the right time to cash in on the windfall.
Fourth-quarter revenue skyrocketed by a jaw-dropping 379% year over year to $54.23 billion. This is the type of growth you typically see in a small penny stock, not a 48-year-old behemoth. And it wasn't only driven by data center and cloud computing-related sales. Micron is enjoying strength across all its segments as memory shortages have led to higher margins in less-glamorous opportunities like mobile and automotive.
MU Micron Technology$913.79+$34.95 (+3.98%)
NASDAQ · As of 10:33 AM ET 10/19/26
Micron's profitability growth is even more breathtaking, with fourth-quarter net income surging more than 10-fold to $37.7 billion. The company will likely return some of this to investors through a buyback program with $35.7 billion in share repurchases authorized.
What is happening in South Korea? But if Micron's business is doing so great, why is its stock so cheap at a forward price-to-earnings (P/E) of just 7 compared to the S&P 500 average of 19? To answer that question, we need to look at what is happening in South Korea, home to Micron's biggest rivals, Samsung Electronics and SK Hynix, both of which also produce high bandwidth memory.
The country's KOSPI Index is dominated by chipmakers, and it has cratered by over 40% since its peak in June, erasing more than $2 trillion in value. This crisis resembles the scale of crashes like the dot-com bubble burst, and it is being driven by fears that rising bond yields will make it more expensive for AI companies to buy memory chips. Investors are also worried about rising Chinese capabilities.
This month, Chinese memory producer CXMT announced plans to roll out new server memory products based on breakthrough designs. It is becoming clear that the upstart could soon become a bona fide competitor to the established giants, raising fears of margin-eroding competition and a race to the bottom -- similar to what happened to other industries China has taken over, like electric cars and solar panels.
The Korean stock market crash may be an early warning of what high-flying American chip stocks might soon face. And Micron is particularly exposed because it operates on a business model similar to that of South Korea's giants.
Some South Korean experts are now predicting a memory chip supply glut by 2029. And if this happens, Micron could easily find itself facing years of stagnant performance, similar to what happened after the dot-com bubble. These uncertainties will likely be priced into Micron's stock price over the next few months, and investors shouldn't expect the stock to exceed its current price of $879 by the end of 2027.
Analyst’s Disclosure: I/we have a beneficial long position in the shares of MU either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.
Tech StocksIt’s a key week for tech stocks as Nvidia gears up for a European conference and Meta prepares to report earnings
After a painful selloff spanning nearly two weeks, the chip sector is on the mend.
Nvidia’s stock NVDA is up 2.1% ahead of the market open Monday, while rival Advanced Micro Devices’ stock AMD is up 4%. Shares of Intel INTC and Micron Technology MU, which have both been major beneficiaries of AI-driven demand so far this year, are climbing 4.5% and 3.9%, respectively, in premarket action on Monday. Sandisk’s stock SNDK is also headed for a recovery, up 5%. The iShares Semiconductor ETF SOXX is up 3.8%.
Last week was miserable for Micron (MU +3.98%) stock, with the maker of DRAM and NAND flash memory chips losing nearly 15% on worries that Chinese DRAM company ChangXin Memory Technologies was bringing to market "4F square" technology to increase DRAM storage density -- and begin stealing market share from Micron.
Monday morning, things are looking better for Micron, though, and the stock is up 4% as of 10:35 a.m. ET.
Image source: Micron.
Dell sounds the all-clear for memory stocksYou can thank Michael Dell for that -- and Wall Street bankers, too.
Quoted in The Wall Street Journal Friday, the Dell founder CEO predicted the ongoing shortage of computer memory is "gonna get worse" in 2027. Perversely, that's good news for Micron because when memory supplies are too low, memory prices go higher -- and so do Micron's profit margins.
Separately this morning, analysts at Wall Street banks Mizuho and KeyBanc both chimed in to support memory stocks. Mizuho predicts demand for agentic AI will keep NAND supply tight and force prices higher throughout 2027. KeyBanc likewise predicts price increases in NAND, as reports.
MU Micron Technology$913.79+$34.95 (+3.98%)
NASDAQ · As of 10:33 AM ET 10/19/26
What it means for Micron stockAdmittedly, NAND demand is more of a bull case for Sandisk than for Micron. Micron only gets about 26% of its revenue from NAND flash sales, after all; 73% of its business is in selling DRAM, and Micron is in fact the world's third-biggest supplier of DRAM.
But that's fine. Even a small boost to NAND prices, on top of the price hikes it's already enjoying, is good news for Micron. With the stock already trading under 25 times trailing earnings -- and just 7x forward earnings -- Micron stock still looks like a buy to me.
Rich Smith has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Micron Technology. The Motley Fool has a disclosure policy.
Micron Technology stock has slumped into a technical bear market after falling from the year-to-date high of $1,253 in June ro $878 today. This retreat has coincided with the ongoing sell-off among memory stocks.
Micron and SanDisk shares rose in US pre-market trading on Monday, recovering part of last week's heavy losses as investors returned to technology stocks following a bruising sell-off. Micron gained 2.6% to $901.76, while SanDisk advanced roughly 4% towards $1,350.
President and Chief Technology and Products Officer Scott DeBoer to discuss innovations across DRAM, HBM and NAND that extend Micron’s technology leadership | Source: Micron Technology, Inc.
BOISE, Idaho, Oct. 19, 2026 (GLOBE NEWSWIRE) -- Micron Technology, Inc. (Nasdaq: MU) announced today that it will host a technology webinar on Wednesday, Oct. 21, 2026, at 8 a.m. Mountain Time. Scott DeBoer, Micron president and chief technology and products officer, will lead the discussion.
The path to accelerating Super Intelligence demands a fundamental leap in memory and storage capabilities. The next generation of AI infrastructure will require significantly higher bandwidth, capacity and efficiency in how data is moved, stored and accessed. The webinar will detail how Micron's technology foundation, multigenerational roadmap, close customer co-design and long-term research position the company to extend its technology leadership over the next decade and beyond.
DeBoer’s presentation will be followed by a question-and-answer session.
The webinar will be webcast live at http://investors.micron.com/. Webcast replay of the presentation can be accessed from Micron’s Investor Relations website for approximately one year after the event.
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 deliver 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.
Workers at Micron Technology (MU -5.63%) in Taiwan have come a step closer to a strike. On Oct. 7, the union at the memory maker's Taoyuan site said 1,994 members voted to authorize a strike over how Micron splits its profits. This was 99% of the ballots cast. Just 14 voted against.
No strike date has been set. The union asked members to take Monday, Oct. 19, off for a rally in Taipei, which it said wouldn't be a strike. But the union's chair has said a surprise walkout, announced to members by text on short notice, is on the table.
When I covered the dispute in early September, I thought a deal was the likelier ending. As of this writing, the growth stock trades near $879, off about 28% from its record close of $1,213.56 in late June.
Image source: Micron.
A tougher lineIn an August poll, over 80% of participating union members backed strike action. Then mediation between Micron and the Taoyuan union ended without a deal in September.
In prepared remarks for its Sept. 30 earnings call, CEO Sanjay Mehrotra said the firm had raised fiscal 2026 incentive pay for all employees worldwide.
But that didn't settle the dispute. The union wants a permanent system that gives 15% of Micron's operating profit to workers.
Pressure on the tech firm is coming from outside, too. Taiwan's labor ministry urged Micron to offer "concrete, feasible proposals."
And on Oct. 15, President Lai Ching-te called on both sides to negotiate sincerely at the opening of Micron's new Taichung plant, which packages and tests high-bandwidth memory (HBM) for AI systems.
How much output is at risk?Taiwan arguably matters more to Micron than any other country. A majority of the company's DRAM output in fiscal 2026 came from its fabs there, according to its annual report.
And DRAM is most of the business. Showing how fast it's grown, Micron's DRAM revenue hit a record $39.8 billion in the fiscal fourth quarter, up 27% from the previous quarter and 343% year over year. That was 73% of total revenue. Taiwan also had $27.6 billion of Micron's long-lived assets (mostly plants and equipment) at the end of fiscal 2026, versus $19 billion a year before -- around 43% of the company's total.
But the strike vote so far covers the smaller of Micron's two big Taiwan sites. Taoyuan's union has 2,258 registered members, and the fab there mainly makes DRAM.
Taichung is Micron's largest base in Taiwan, and its union, which represents around 10,000 workers there and in Tainan, hasn't voted. It holds a second mediation session with the company on Oct. 22, and a failed one might lead to a strike vote there, too.
Micron has already sold much of its supplyDelays might cost Micron more than usual, because much of what its fabs make is already spoken for. On its Sept. 30 earnings call, management said over 75% of Micron's fiscal 2027 shipments were already committed.
"We have already sold out all the capacity for 2027 that this factory will build," Micron President and Chief Operating Officer Manish Bhatia said at the Taichung opening.
MU Micron Technology$878.84-$52.40 (-5.63%)
NASDAQ · As of 4:00 PM ET 10/16/26
A long strike, then, might leave Micron short on deliveries it's already promised. Micron's latest annual report warns that labor disruptions "could also impair our ability to meet delivery schedules under strategic customer agreements, which could result in contractual liability, loss of customer confidence, or diversion of customer demand to competing suppliers."
Of course, I think the more likely cost is a richer pay plan. Notably, Micron's annual report now names new profit-sharing or bonus programs among the ways a labor dispute might get settled.
Under the union's 15% formula, Micron's fiscal 2026 operating income of $99.3 billion (up from $9.8 billion in fiscal 2025) would have meant around $14.9 billion for employees. The payout would be around a third of the $43.8 billion in operating income Micron made in the fiscal fourth quarter alone. And at around 12 times fiscal 2026 earnings, investors aren't paying as if this level of profit will last anyway.
Could a strike hurt the stock? A long one at Taichung could. But I still think a deal is the more likely outcome, and I don't see the vote as a reason to sell. If Taichung's union goes to a strike vote after its Oct. 22 meeting, though, I'd take the risk of lost output much more seriously.
Micron (MU -5.63%) is undergoing one of the biggest shifts of nearly any stock in the market. It's seeing unprecedented demand for its memory chips and is also helping to transform its industry at the same time. The moves it's making are upending some of the long-established understandings regarding its business, but the market hasn't caught up to those changes yet.
I think this could be one of the greatest investment opportunities out there right now, as I could easily see a $5,000 investment made in Micron now growing into a $25,000 position by 2028.
Image source: The Motley Fool.
The memory chip industry is shifting Micron makes memory chips, and that has historically been an extremely cyclical industry. There's little to differentiate one memory chip brand from another, so the chips have practically become commodities. Pricing is dictated almost entirely by supply-and-demand dynamics, and right now, demand from AI data centers has eaten up all available supply. The resulting deep shortage has caused memory chip prices to soar.
So Micron is enjoying monster growth, with revenue skyrocketing nearly 380% year over year in its most recent quarter. However, it isn't just sitting around enjoying the gains. It's using this opportunity to reshape its business model.
MU Micron Technology$878.84-$52.40 (-5.63%)
NASDAQ · As of 4:00 PM ET 10/16/26
While it's great to sell any commodity during a supply crunch, the opposite is true when there's a glut, and when this AI demand wave is over, a glut can be expected. As a result, Micron is taking steps to secure its business strength for the longer term. It has entered into numerous multiyear take-or-pay agreements with large customers, and as of the end of Q3, it had locked in about 35% of revenue through 2030. These agreements have price floors and ceilings for its memory chips, which gives Micron much greater visibility into its finances over the next few years than it has previously enjoyed.
This could have only occurred with a major supply crunch, as it gave Micron bargaining power with its clients, and drove the customers to seek more certainty about their memory chip supplies. As more of these contracts come into play, it should reduce the cyclicality of the memory chip industry, which will be a great thing for Micron shareholders. However, the market hasn't started pricing that change into the stock yet, and this mismatch has created a golden opportunity for investors.
Micron's stock is dirt cheap Because the market remains convinced that the next down phase of the memory cycle will eventually hit, Micron's stock is priced at a major discount. It trades for a mere 5.3 times earnings estimates for fiscal 2027 (which ends in August 2027).
MU PE Ratio (Forward) data by YCharts.
That's the market flat-out telling investors that it doesn't believe in Micron's long-term growth story. However, the market just isn't listening to the memory makers. Micron management told investors that conditions in the memory chip market will be tighter in 2027 and 2028 than they are in 2026. As a result, prices will continue to rise. Micron is also building new production facilities, which are expected to come online in mid-2027 and late 2028. That will boost its capacity during a supply crunch, leading to even more revenue growth.
That will be a huge catalyst that isn't accounted for right now in 2028's projected growth rates. (Wall Street only projects 16% growth for 2028 right now.) I think it's more accurate to pencil in a bit more aggressive revenue growth, like 30%, although I still think that's a major undershoot.
For fiscal 2027, Wall Street thinks Micron will generate $176.55 in earnings per share (EPS). If earnings grow by 30% in fiscal 2028, that would lift EPS to nearly $230. If the market adjusts to the idea that Micron isn't as cyclical as it once was, it may price it at 20 times earnings. That valuation with $230 in EPS would give it a stock price of $4,590.
From today's $920 share price, that suggests the stock could increase fivefold, turning a $5,000 investment into about $25,000. That makes Micron a top AI stock to buy now.
The memory market has historically been a commoditized industry that has experienced major boom-and-bust cycles. Demand from new technologies will often cause prices to surge, only for the market to eventually get hit with new supply and prices to crash.
That is one of the main reasons why Micron Technology's (MU -5.63%) stock trades at a forward P/E of just over 5 times fiscal 2027 (ending August) analyst estimates despite soaring growth, as investors expect the current supercycle to eventually end.
Micron is one of the big three DRAM (dynamic random access memory) makers, along with its Korean counterparts SK Hynix (SKHY -6.58%) and Samsung. It currently has around a 24% market share in the DRAM market and derived 73% of its revenue from this type of memory last quarter (its fiscal Q4). It also has a 15% share in the NAND (flash) market, which made up 26% of its sales last quarter. With demand for memory far outstripping supply, Micron has seen its revenue surge and gross margins balloon largely on the back of higher DRAM and NAND prices.
Image source: Getty Images
AI driving memory prices The memory market is currently being driven by the artificial intelligence (AI) infrastructure build-out. Graphics processing units (GPUs) and other AI accelerators need to be packaged with a special form of DRAM called high-bandwidth memory (HBM) to optimize the performance of these ultra-expensive chips; otherwise, they'd be sitting idle too long. At the same time, AI model training requires that its data be stored in massive solid-state drives (SSDs) consisting of flash memory.
The big three memory makers have turned much of their efforts and resources toward HBM, which has led to shortages throughout the memory industry and rapidly rising prices for both conventional DRAM and NAND. Meanwhile, keeping up with demand for HBM has been difficult, as memory makers are competing for the same limited number of extreme ultraviolet (EUV) lithography machines used to make advanced logic chips, such as GPUs and CPUs (central processing units). At the same time, HBM also uses upwards of three times the wafer capacity of ordinary DRAM. As a result, SK Hynix has said that 2027 will see the largest supply-demand imbalance in the industry's history and that DRAM will remain in short supply until at least 2030.
New supply worries That said, investors have been increasingly worried that a new set of memory supply will hit the market much sooner, coming from China. China's CXMT has been taking share in the DRAM market, going from just 4% in Q2 2025 to 10% in Q2 2026. Meanwhile, the company is looking to launch a data-center memory product based on a new architecture later this year. While it would be unlikely to be allowed in U.S. data centers, it could be allowed in other regions and help add supply to the market. Adding fuel to the fire are reports from Korean trade publications that predict that the memory market will be flooded with new supply in 2029 and that by 2030 "the supercycle could be over and the industry could enter a downturn."
Micron and other memory makers are well aware of the cyclical risk in the industry, and as such have been signing long-term deals for the first time. Micron has signed 26 SCAs (strategic customer agreements) for both DRAM and NAND, covering about 35% of its sales through 2030. Longer-term deals can help mitigate some of the industry's cyclicality, but 2030 still lines up with the Korean trade publications' prediction that the market will falter.
MU Micron Technology$878.84-$52.40 (-5.63%)
NASDAQ · As of 4:00 PM ET 10/16/26
Important long-term deals That's why important news recently came out from analysts at Keybanc that memory customers were looking to extend their agreements beyond 2030. The analysts believe that HP and Dell extended their SCAs with Micron into 2031, while, even more notably, it said Alphabet has been in talks with memory companies to extend its long-term agreements out to 2035.
While the memory cycle may not last until 2035, it is a good sign that it may last a lot longer than expected. Meanwhile, Keybanc projected that in the near term, DRAM prices are expected to increase by 15% to 20% quarter over quarter and NAND prices by over 20%. It also noted that Micron was quoting SSD prices to be up 40% to 45% quarter over quarter.
With near-term pricing still surging, the stock cheap, Micron buying back stock, and the memory cycle perhaps set to last considerably longer than expected, maybe it's time to buy this AI stock on the recent dip.
