Micron Technology (MU +12.26%) stock has shed close to 29% of its value over the past month, but it has nothing to do with fundamentals. The tailwinds of the memory cycle remain intact, and each day further proves that AI demand is rising. The current dip presents a compelling buying opportunity that may not be around much longer.
Image source: Getty Images.
The Kimi AI news validates the AI thesis Moonshot AI's large language model product Kimi AI recently shared an X post that enhanced Micron's bullish thesis. The Chinese company explained that it can no longer take on new customers for its open source LLM because it has run out of available compute. This decision was made to "protect the experience of existing subscribers."
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Kimi is a chatbot with a similar setup to OpenAI's ChatGPT, where you can enter prompts or have AI agents perform tasks. Each of those prompts and AI agents requires compute from GPUs, and the GPUs need memory chips to remember everything and function more efficiently.
Kimi AI's news demonstrates parabolic demand for its services, which can only be met by buying more memory chips. This event isn't limited to Kimi AI. Other companies have more GPUs or are taking extra precautions to ensure they do not run out of compute. If other businesses don't want to turn away customers amid soaring demand, they will have to buy more Micron chips.
The valuation is a lot cheaper Much has been made about Micron's low forward P/E ratio. However, the recent share price drop makes the current valuation look even more absurd. Micron trades at a forward P/E of only 5.5. Micron traded at a forward P/E of about 15 near the end of 2025.
The valuation alone leaves more room for upside, but Micron's tremendous financial growth shows that the forward P/E ratio can drop considerably even if the stock goes on another big rally. Revenue more than quadrupled year over year, and new profit margins almost touched 70% in the most recent quarter.
The continuation of high sequential growth shows that these results are the norm, rather than an anomaly. Micron has the qualities of a value stock and a growth stock wrapped into one.
Broader AI fears and a margin unwind are the two most likely factors behind the recent correction. It's not just Micron. Most AI stocks have been unpleasant to hold over the past few weeks, but once fundamentals prevail over current sentiment, Micron stock should be due for another rally.
Marc Guberti 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.
The Nasdaq Composite (^IXIC +1.29%) gained 1.29% to 25,837, the S&P 500 (^GSPC +0.89%) rose 0.89% to 7,509 ,and the Dow Jones Industrial Average (^DJI +0.74%) added 0.74% to 52,225, snapping a three-session losing streak as semiconductor strength outweighed trade and geopolitical tensions.
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Gold prices rose 1.75% to $4,082.73 as of U.S. market close, and the 10-Year Treasury yield climbed 0.03% to 4.63%. Industrial and energy shares gained the most, while communications and consumer defensive stocks were in the red.
Today's biggest movesMicron Technology surged 12%, and Sandisk Corporation soared 14% in a memory-led technology rally. An 8% increase from Advanced Micro Devices extended yesterday’s gains following its artificial intelligence (AI) deal with Microsoft. General Motors lifted early sentiment on strong quarterly results, and AeroVironment shares pushed upwards on news of a new U.S. Army contract.
What this means for investorsBeaten-down semiconductor stocks rebounded today, boosting the tech-heavy Nasdaq despite increasing geopolitical concerns and renewed tariff uncertainty. WTI crude oil gained 2% to trade at almost $85 a barrel, and analysts weighed the implications of a proposed 50% tariff on a range of Canadian goods.
Further inflation fears didn’t slow investor enthusiasm for chip stocks, particularly as strong export data from South Korea showed continued AI demand. For investors, today’s gains offer some reassurance that the recent pullback was more of a reset rather than a wider loss of confidence. Tomorrow’s results from Alphabet and Tesla will provide more insight into the correlation between heavy AI spending and earnings.
Emma Newbery has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Advanced Micro Devices, AeroVironment, Alphabet, Micron Technology, Microsoft, and Tesla. The Motley Fool recommends General Motors. The Motley Fool has a disclosure policy.
Micron Technology Inc (NASDAQ:MU) experienced a significant Power Inflow alert, a key bullish indicator that is closely tracked by traders who value order flow analytics, specifically institutional and retail order flow data.
Understanding the Power Inflow Signal
Order flow analytics examine real-time buying and selling behavior by analyzing volume, timing, and order size across both retail and institutional participants. These insights provide a deeper understanding of price action and market sentiment, allowing traders and institutions to make more informed decisions.
MU Performance
At the time of the Power Inflow alert, MU was trading at $932.86. Following the signal:
• Intraday High As Of 2:00PM EST: $982.88 (+5.36%)
This article is for informational purposes only and does not constitute financial advice, investment recommendations, or a solicitation to buy or sell securities. The analysis is based on stock order flow data, but accuracy is not guaranteed. Investing involves risk, including possible loss of principal, and past performance is not indicative of future results. Please consult a licensed financial advisor before making any investment decisions.
Benzinga Disclaimer: This article is from an unpaid external contributor. It does not represent Benzinga’s reporting and has not been edited for content or accuracy.
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Micron Technology Inc. (MU) shares surged 12% on Tuesday after Bank of America argued that the rapid emergence of low-cost, open-source Chinese artificial intelligence models could increase, rather than reduce, demand for memory chips.
The rally came ahead of a key week for the technology sector, with investors awaiting earnings from Alphabet and other major technology companies for updates on artificial intelligence spending that could influence demand for high-bandwidth memory (HBM).
In a note published Monday, Bank of America analyst Vivek Arya reiterated a Buy rating on Micron with a $1,550 price target, implying roughly 79% upside from the previous day's closing price.
The report coincided with the release of Moonshot AI's Kimi K3, a 2.8-trillion-parameter model that Bank of America described as the largest open-weight model ever built.
According to Bank of America, open-weight AI models create broader demand for memory because each organization deploying the model must run it on its own hardware.
Unlike closed AI models that operate from centralized data centers, open models require enterprises, governments, and cloud providers to install model weights locally.
The bank said every download of an open-weight model creates an additional customer-side memory requirement that would not otherwise exist.
Although Chinese AI companies are offering models at significantly lower prices, Bank of America said lower pricing reflects business strategy rather than lower hardware requirements.
The report noted that Kimi K3 charges $3 per million input tokens compared with $15 for Anthropic's Claude Opus 4.8, while some Chinese models are priced as much as 350 times below Western competitors.
Despite those lower prices, Bank of America estimated that running Kimi K3 still requires about 1.4 terabytes of high-bandwidth memory spread across at least 64 AI accelerators.
"Open LLMs such as Kimi K3 pose no threats to memory demand," Arya wrote.
"They require the same or more memory as their model weights and active parameters increase."
Bank of America also addressed concerns about growing competition from Chinese memory manufacturers.
The firm said ChangXin Memory Technologies is expanding production but currently competes primarily in commodity DRAM rather than advanced HBM3E and HBM4 memory used in AI systems.
It also noted uncertainty over whether US equipment suppliers will receive approval to sell into the Chinese company.
Beyond AI demand, Bank of America highlighted another potential catalyst for Micron shares.
The firm expects restrictions on Micron's share repurchases under the CHIPS Act to expire around December 2026, potentially allowing the company to resume large-scale stock buybacks.
Arya estimated Micron could generate between $120 billion and $130 billion in annual free cash flow over the next several years.
Under a hypothetical 40% payout policy, that could translate into annual share repurchases of $50 billion to $60 billion, or roughly 5% to 6% of the company's projected market capitalization each year.
Micron and SK Hynix shares also gained ahead of earnings from major technology companies, beginning with Alphabet's quarterly report on Wednesday.
Investors are looking for confirmation that large technology companies will continue increasing AI infrastructure spending, supporting demand for high-bandwidth memory and related components.
Pozitivní nálada vydržela po celou obchodní seanci. Obrat na čipovém sektoru udržel technologický NASDAQ výrazně v plusu. Přesto klasické technologie z magnificent 7 skončily v záporu (Amazon -0,98 %). To vše se dělo při stále rostoucí cenně ropy. Investoři sledují především čísla hospodaření a geopolitika šla mírně stranou.
Z čipového sektoru se dařilo především výrobci paměťových čipů Micron +12,04 %, Sandisk +14% či výrobce procesorů Intel +8,64 %.
Automobilový koncern General Motors po zveřejněných kvartálních výsledcích přidal + 4,87 %.
Obrat zažily jak cenné kovy (zlato +1,85 %) tak kryptoměny (Bitcoin +1,61 %). Z růstu kryptoměn těžily akcie burzy Coinbase +9,67 %.
Index Dow Jones +0,74 % na 52223,93 b.
S&P 500 +0,89 % na 7509,21 b.
Nasdaq Composite +1,29 % na 25837,21 b.
Index S&P 500 +0,89 % na 7509,21 b. Nejsilnější sektory S&P Změna Nejslabší sektory S&P Změna Informační technologie +2,3 % Nezbytná spotřeba -1 % Energie +1,2 % Komunikační služby -0,8 % Zdravotní péče +0,6 % Utility +0 % Nejsilnější akcie S&P Změna Nejslabší akcie S&P Změna Sandisk Corp (SNDK) +14 % Danaher Corp (DHR) -11 % Western Digital Corp (WDC) +13 % MSCI (MSCI) -10 % Micron Technology (MU) +12 % Tyler Technologies (TYL) -5,7 % Teradyne (TER) +12 % Halliburton (HAL) -5,5 % Coherent Corp (COHR) +11 % Gartner (IT) -4,5 %
Jan Pazourek, Fio banka, a.s.
If Monday was a tale of divergence, Tuesday brought something rarer: agreement. All three major indexes climbed together, powered by a semiconductor rally that showed no signs of fading.
By 11:31 a.m. ET, the Nasdaq Composite (^IXIC +1.37%) had jumped 1.3%, the S&P 500 (^GSPC +0.85%) was up 0.7%, and the Dow Jones Industrial Average (^DJI +0.69%) had gained 0.6%. The session started with a brief wobble; all three indexes opened in the green but dipped in the first 20 minutes before finding their footing. By late morning, each had hit fresh session highs.
^IXIC data by YCharts
Why chip stocks keep bouncing back Memory chip stocks stole the show on Tuesday. Micron Technology (MU +12.42%) surged 10.1% after Morgan Stanley predicted memory prices could rise 25% on continued AI demand. SK Hynix (SKHY +13.10%), the Korean memory giant that just debuted on the Nasdaq earlier this month, jumped 10.9% as bargain hunters piled in to take advantage of last week's sell-off.
The iShares Semiconductor ETF (SOXX +5.52%) climbed 5.2%, extending Monday's gains. Memory chips led the charge, but the chipmaker rally was broad. Nvidia (NVDA +1.72%) rose 1.5% after releasing new details about its Vera CPU for AI data centers. Advanced Micro Devices (AMD +7.85%) popped 6.1% without much news of its own. If anything, Nvidia's Vera chips pose a new threat to AMD's EPYC server processors; no one said the stock market had to make sense.
Image source: Getty Images.
The Dow got help from an unlikely source. Caterpillar, Monday's biggest drag, reversed course with a 2.7% gain. 3M (MMM +7.12%) extended a post-earnings rally to 9.8% after beating expectations with bullish second-half guidance. Together, the two industrials contributed more than 230 points to the Dow's advance.
President Donald Trump's announcement of 50% tariffs on most Canadian goods barely registered with investors. The duties take effect in 30 days, leaving room for negotiation. Canadian Prime Minister Mark Carney said Ottawa is ready to talk.
Oil prices kept climbing. Brent crude topped $91 per barrel as tankers reportedly caught fire in the Strait of Hormuz. Gold caught a tailwind, too. The SPDR Gold Shares ETF (GLD +1.90%) rose 1.8%, suggesting some investors are hedging their optimism.
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The week is just getting started Tuesday's rally suggests investors remain focused on AI-driven semiconductor demand despite mounting geopolitical and trade uncertainties.
So far, 87% of S&P 500 companies have beaten earnings estimates this quarter. The real tests are coming over the next couple of weeks, with several major names on tap before the weekend. Alphabet and Tesla report on Wednesday. Intel, up 7% Tuesday on news of a new foundry customer, reports Thursday. If AI spending remains robust, the chip rally could have room to run.
For now, Tuesday belongs to the memory makers. The semiconductor sector is reminding investors why it remains the market's most volatile corner, and its most closely watched. Whether the current rally has legs depends on what the earnings calls reveal about demand and pricing power in the months ahead.
Anders Bylund has positions in Alphabet, Intel, Micron Technology, and Nvidia. The Motley Fool has positions in and recommends Advanced Micro Devices, Alphabet, Caterpillar, Intel, Micron Technology, Nvidia, Tesla, and iShares Trust-iShares Semiconductor ETF. The Motley Fool recommends 3M. The Motley Fool has a disclosure policy.
Shares of Micron Technology (MU +12.42%) have jumped by more than 7x over the past year, driven by phenomenal growth in the company's revenue and earnings.
However, Micron stock has fallen out of favor with investors lately. It has pulled back 29% since hitting a 52-week high on June 25. This sharp drop is unrelated to the company's financial performance, as it continues to benefit from the ongoing memory shortage. Investors, however, have been rotating out of memory stocks lately, which explains the drop in Micron's shares.
As a result, it won't be surprising to see Micron management going for a stock split this year. Let's see why that may be the case.
Image source: Micron Technology.
A stock split could increase demand for Micron stock A stock split is a cosmetic move that increases or decreases the number of outstanding shares of a company while keeping the market capitalization constant. A forward stock split is the most common type of stock split, increasing the outstanding share count and lowering the price per share.
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Now, a forward stock split doesn't alter a company's fundamentals or prospects. However, it is believed that a lower share price could increase demand for a company's shares by making them easier for retail investors to own. Also, a lower share price encourages stronger trading volumes and is considered a sign of management's confidence in a company's prospects.
Given that Micron has delivered stellar returns over the past year and each share of the company now trades at just over $900, as of this writing, the time seems ripe for a forward stock split. Let's say Micron executes a 10-for-1 forward stock split, each share of the company will trade at around $90, potentially boosting demand for its shares.
This could help arrest the recent slide in Micron stock. However, if someone has enough disposable cash to buy this company's shares or access to a brokerage that allows buying fractional shares, buying Micron is a no-brainer following its recent pullback.
The stock's drop is a terrific buying opportunity Micron now trades at just 19 times earnings following its recent slide. Moreover, its forward earnings multiple of just 5.5 is even more attractive. For a company whose earnings increased by a stunning 13x year over year in the previous quarter, buying this stock is a no-brainer at its current multiples.
More importantly, the artificial intelligence (AI)-fueled memory shortage won't end soon. Memory chip demand could outpace supply well beyond 2030, according to industry bellwether SK Hynix. Additionally, Micron is strengthening its long-term revenue pipeline by inking long-term supply agreements with customers.
It recently signed such agreements with companies like Qualcomm and Harman to supply memory chips for automotive applications. Micron notes that it signed 16 long-term customer agreements just last month, which isn't surprising as memory is one of the most important components in data centers, smartphones, personal computers, and automotive applications.
This explains why Micron's terrific earnings growth is poised to continue beyond this year.
Data by YCharts
So, Micron may not trade at a dirt cheap valuation for long. Moreover, a potential stock split could give the stock a psychological boost. That's why investors who can buy Micron stock now should do so right away, as the outstanding growth in its revenue and earnings could send it on a bull run once again.
Micron (MU +12.42%) stock shot higher for a second straight day Tuesday, soaring 13.4% through 1 p.m. ET.
You can thank Taiwan Semiconductor Manufacturing Company (TSM +5.39%) for that -- and Bank of America, too.
Image source: Micron.
TSMC raises prices Nikkei Asia reports TSMC will raise prices for contract chip manufacturing by "up to 10%" in 2027 (and some prices might spike 20%). Nikkei says TSMC is doing this to offset "rising costs for materials, manufacturing equipment and construction of new overseas chip plants."
But that's just one reason -- the other reason is that TSMC can raise prices.
Just because input prices rise doesn't mean a manufacturer can raise its product prices without losing customers. If customers balk, the manufacturer may need to absorb the higher costs of the more expensive inputs, hurting its profit margin. In light of strong demand for artificial intelligence chips, though, it seems TSMC is comfortable raising prices -- and confident its customers will not flee.
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Implications for Micron By implication -- because AI chips require lots of memory chips when performing inference functions -- this means Micron can raise its prices, too. So in essence, TSMC has reinforced the bull thesis for Micron stock today.
Separately, Bank of America analyst Vivek Arya addressed concerns that cheap AI models from China might threaten Micron's business... a theory he says is nonsense. Just because Chinese models charge lower prices than American models from Anthropic and OpenAI doesn't mean they're doing so profitably, or that their input costs are lower.
To the contrary, Arya thinks that by using fewer and lower-quality GPUs, Chinese AI companies may actually need to buy more memory chips to answer questions -- not fewer. And if he's right about that, he's just given investors yet another reason to buy Micron stock.
Bank of America is an advertising partner of Motley Fool Money. Rich Smith has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Micron Technology and Taiwan Semiconductor Manufacturing. The Motley Fool has a disclosure policy.
A year ago, a mainstream PC memory kit cost about $75. Today, the same kit can sell for as much as $460. The easy explanation would be another chip shortage. But this time, the culprit isn’t a lack of factories or broken supply chains. It’s a business decision.
The result? AI customers get priority, while everyone else pays more.
AI Is Paying More—So It Gets The WafersSamsung, SK Hynix and Micron control the vast majority of the global DRAM market, giving the three companies enormous influence over where memory production goes.
Unlike conventional DRAM, HBM commands significantly higher prices while consuming much more manufacturing capacity. Every wafer redirected toward AI memory means less supply for PCs, smartphones and automotive chips.
As semiconductor commentator Shanaka Fernando recently argued in a post on X, no coordinated action is needed to create today’s tight memory market. The economics are doing the work. AI memory generates higher returns, and manufacturers are simply following the margins.
The numbers show just how dramatic that shift has become.
According to TrendForce data, conventional DRAM contract prices surged 93% to 98% in the first quarter before climbing another 58% to 63% in the second quarter. NAND flash prices also rose 70% to 75% as suppliers continued prioritizing AI-related products over mainstream memory.
Even the Biggest Customers Are Feeling the PressureThe squeeze is now rippling across the technology industry.
Meanwhile, HBM capacity is effectively sold out through 2026, with much of 2027 production already committed. That has allowed memory makers to lock in premium pricing while demand continues to outstrip supply.
For Samsung, SK Hynix and Micron, the strategy has translated into expanding margins. By selling more high-value AI memory and less conventional DRAM, the industry’s biggest players are earning more from fewer consumer-focused chips.
Today’s Shortage Could Become Tomorrow’s GlutThe current pricing boom is unlikely to last forever.
Micron is building new fabs in Idaho and New York, while Samsung and SK Hynix continue expanding production capacity. Those investments are expected to come online over the next two years, increasing supply just as China’s CXMT rapidly expands its presence in the commodity DRAM market.
For now, however, AI remains first in line.
The bigger story isn’t simply that PC memory has become dramatically more expensive. It’s that AI has fundamentally changed how the world’s three largest memory makers allocate capital. As long as AI data centers continue delivering the highest returns, consumer electronics will keep competing for whatever capacity is left behind.
Photo: Pete Hansen / Shutterstock
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SummaryMicron Technology, Inc. is re-rated as a Buy, driven by AI super-cycle demand and transformative strategic customer agreements (SCAs).MU’s Q3 ’26 revenue surged 346% YoY, with strong margin expansion—operating margin reached 81.2% and is forecasted to peak at 86% in Q4.SCAs now represent ~20% of DRAM and 1/3 of NAND volume, providing multi-year revenue visibility, margin floors, and $22B in financial commitments.Investors are mispricing MU’s profitability; sustainable margins above 60% are likely, supported by tight supply, pricing power, and structural industry change. JHVEPhoto/iStock Editorial via Getty Images
Investment Thesis Since my last coverage, Micron Technology, Inc.’s (MU) stock has been up by over 100%, and since my initial Buy analysis, it is up almost 300%.
To remind readers, in my initial analysis
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Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, but may initiate a beneficial Long position through a purchase of the stock, or the purchase of call options or similar derivatives in MU:CA, MU over 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 (MU - Free Report) has recently been on Zacks.com's list of the most searched stocks. Therefore, you might want to consider some of the key factors that could influence the stock's performance in the near future.
Shares of this chipmaker have returned -28.6% over the past month versus the Zacks S&P 500 composite's -0.6% change. The Zacks Computer - Integrated Systems industry, to which Micron belongs, has lost 17.1% over this period. Now the key question is: Where could the stock be headed in the near term?
Although media reports or rumors about a significant change in a company's business prospects usually cause its stock to trend and lead to an immediate price change, there are always certain fundamental factors that ultimately drive the buy-and-hold decision.
Revisions to Earnings EstimatesRather than focusing on anything else, we at Zacks prioritize evaluating the change in a company's earnings projection. This is because we believe the fair value for its stock is determined by the present value of its future stream of earnings.
We essentially look at how sell-side analysts covering the stock are revising their earnings estimates to reflect the impact of the latest business trends. And if earnings estimates go up for a company, the fair value for its stock goes up. A higher fair value than the current market price drives investors' interest in buying the stock, leading to its price moving higher. This is why empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For the current quarter, Micron is expected to post earnings of $31.39 per share, indicating a change of +936% from the year-ago quarter. The Zacks Consensus Estimate has changed +26.3% over the last 30 days.
For the current fiscal year, the consensus earnings estimate of $73.85 points to a change of +790.8% from the prior year. Over the last 30 days, this estimate has changed +20.9%.
For the next fiscal year, the consensus earnings estimate of $157.83 indicates a change of +113.7% from what Micron is expected to report a year ago. Over the past month, the estimate has changed +34.8%.
Having a strong externally audited track record, our proprietary stock rating tool, the Zacks Rank, offers a more conclusive picture of a stock's price direction in the near term, since it effectively harnesses the power of earnings estimate revisions. Due to the size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, Micron is rated Zacks Rank #1 (Strong Buy).
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS
Revenue Growth ForecastWhile earnings growth is arguably the most superior indicator of a company's financial health, nothing happens as such if a business isn't able to grow its revenues. After all, it's nearly impossible for a company to increase its earnings for an extended period without increasing its revenues. So, it's important to know a company's potential revenue growth.
For Micron, the consensus sales estimate for the current quarter of $50.76 billion indicates a year-over-year change of +348.6%. For the current and next fiscal years, $129.61 billion and $248.08 billion estimates indicate +246.7% and +91.4% changes, respectively.
Last Reported Results and Surprise HistoryMicron reported revenues of $41.46 billion in the last reported quarter, representing a year-over-year change of +345.7%. EPS of $25.11 for the same period compares with $1.91 a year ago.
Compared to the Zacks Consensus Estimate of $36.72 billion, the reported revenues represent a surprise of +12.91%. The EPS surprise was +17.39%.
The company beat consensus EPS estimates in each of the trailing four quarters. The company topped consensus revenue estimates each time over this period.
ValuationWithout considering a stock's valuation, no investment decision can be efficient. In predicting a stock's future price performance, it's crucial to determine whether its current price correctly reflects the intrinsic value of the underlying business and the company's growth prospects.
Comparing the current value of a company's valuation multiples, such as its price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), to its own historical values helps ascertain whether its stock is fairly valued, overvalued, or undervalued, whereas comparing the company relative to its peers on these parameters gives a good sense of how reasonable its stock price is.
The Zacks Value Style Score (part of the Zacks Style Scores system), which pays close attention to both traditional and unconventional valuation metrics to grade stocks from A to F (an A is better than a B; a B is better than a C; and so on), is pretty helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.
Micron is graded D on this front, indicating that it is trading at a premium to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
ConclusionThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Micron. However, its Zacks Rank #1 does suggest that it may outperform the broader market in the near term.
Micron (NASDAQ: MU) stock surged around 8% to trade at $937 on Tuesday, July 21, as renewed bullish commentary from Wall Street analysts revived investor confidence in the memory chip sector.
Most notably, Bank of America (BofA) added Micron to the firm’s “U.S. 1 List,” which features what the bank sees as the best investment ideas.
Analyst Vivek Arya also raised his Micron price target to $1,550, implying 83% upside in the next 12 months, a figure he finds justified as the chipmaker has beat earnings per share (EPS) estimates by 24% for the eighth straight quarter.
MU stock price. Source: Google Arya also stated that he believes Chinese competitors pose no threat to the company. Rather, he believes the rise of open-weight AI models could in fact increase the need for memory chips and benefit Micron in the process.
The rally was also driven largely by Morgan Stanley analyst Joseph Moore, who described the recent weakness in memory stocks as a buying opportunity. At the same time, he argued that memory shortages continue to worsen and forecast that memory prices could rise by roughly 25% in the third quarter.
UBS also highlighted the strength of the AI memory cycle, warning that rapidly rising prices could eventually pressure some end markets and shorten the current supercycle. The bank also projected that Micron could repurchase more than 40% of its outstanding shares by 2028 once current buyback restrictions expire in December 2026.
The move also came amid a broader improvement in stock market sentiment, with NASDAQ futures, for example, rising around 1.4% and S&P 500 futures gaining approximately 0.5% before the opening bell.
This combination of factors has helped shift investor sentiment around Micron. That is, after falling sharply from its 52-week high of $1,255, the stock is now increasingly being viewed as an opportunity to gain exposure to the ongoing AI infrastructure boom rather than a sign of its weakening fundamentals.
Featured image via Shutterstock
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SummaryTSMC and ASML confirmed AI memory demand remains exceptionally strong, while fully booked EUV capacity limits industry supply growth through 2028.Japan and the U.S. committed billions toward Micron Technology, Inc.'s manufacturing expansion, strengthening long-term capacity, supply-chain resilience, and geopolitical positioning.General Motors and Ford signed long-term supply agreements, diversifying Micron beyond hyperscalers with stable automotive AI memory demand.Micron trades at only 11.6x forward earnings despite consensus forecasting EPS growth from $73.39 to $150.91 in FY2027.The main risks are HBM4 technology execution and antitrust litigation, while investor sentiment has become increasingly polarized after the recent selloff. petrovv/iStock via Getty Images
Investment Thesis Despite the correction in Micron Technology, Inc.'s (MU) stock price, TSMC (TSM) and ASML Holding (ASML) have reiterated that HBM demand remains exceptionally strong, whereas EUV shortages turn into
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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.
The artificial intelligence revolution continues to reshape global markets. Hyperscalers and tech giants pour hundreds of billions into data center infrastructure, chasing ever-larger models and smarter applications. At the heart of this buildout lies a critical but until recently overlooked component: memory chips. Unlike compute-focused GPUs that grab most headlines, high-bandwidth memory (HBM) and related DRAM solutions serve as the essential infrastructure that feeds massive datasets to processors in real time. Demand has surged so sharply that supply shortages now define the cycle, creating outsized opportunities for specialized players.
Micron Technology (NASDAQ:MU | MU Price Prediction) has emerged as one of the clearest beneficiaries. The company’s recent performance illustrates how AI-driven tailwinds can transform a traditionally cyclical business into a high-margin growth engine. Smart investors who connected these dots early have enjoyed remarkable returns, while broader Wall Street recognition arrives later.
The Numbers Speak Volumes Micron shares have climbed 715% over the past year and stand 223% higher year-to-date. The stock trades around $925 after hitting above $1,000 last month, pushing its market capitalization past $1 trillion.
Price alone tells investors little without context. What matters is future earnings power. Wall Street forecasts Micron will grow earnings at 172% annually over the next five years. That growth stems directly from AI workloads demanding far more high-bandwidth memory than the industry can supply.
This shortage has driven prices higher and lifted Micron’s profitability. In its fiscal Q3 2026, the company reported operating margins near 83% in key segments — levels software companies typically generate, not traditional hardware makers. Data center revenue exploded, with cloud memory and core data center units delivering strong double-digit growth. Micron now holds 16 strategic customer agreements with multiyear commitments that lock in pricing floors and provide revenue visibility through 2030.
While peers like SK Hynix (NASDAQ:SKHY) also benefit, Micron’s focus on HBM and strategic deals positions it to capture a larger share of the expanding pie. Industry DRAM bit supply growth for calendar 2026 sits in the low- to mid-20s percent range, yet demand continues to outpace additions.
Wall Street Finally Arrives at the Party Bank of America analysts recently raised their price target on Micron stock to $1,550 from $1,500, implying roughly 83% upside from recent levels around the time of the call, and added the stock to its “Best Investment Ideas” list. Analyst Vivek Arya cited sustained AI demand and structural supply constraints.
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That move validates what many retail investors spotted months earlier. Smart shareholders who recognized HBM’s critical role in the AI buildout have already booked substantial gains. Bank of America is jumping on a bandwagon already rolling strong. Ironically, this late endorsement comes after retail investors drove much of the early momentum.
That said, long-term agreements reduce volatility. Micron expects free cash flow margins to approach 50% to 60% in coming years, supporting potential share buybacks and further investment.
Key Takeaway Investors who boarded early on the AI memory thesis can smile as Wall Street arrives. Micron’s combination of explosive growth, pricing power, and locked-in demand supports a strong long-term case, even after the massive run.
For those still on the sidelines, Micron Technology offers compelling exposure to AI infrastructure — provided you accept the volatility. In the end, the data points to continued upside as AI infrastructure spending accelerates through at least the next few years. Sharp investors will weigh the rewards against the inevitable cycle turns.
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Andar Capital Management HK Ltd acquired a new position in shares of Micron Technology, Inc. (NASDAQ:MU – Free Report) in the 1st quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission. The fund acquired 4,000 shares of the semiconductor manufacturer’s stock, valued at approximately $1,351,000. Micron Technology comprises 1.2% of Andar Capital Management HK Ltd’s investment portfolio, making the stock its 12th biggest holding.
A number of other large investors also recently added to or reduced their stakes in MU. Resolute Advisors LLC acquired a new position in shares of Micron Technology in the 1st quarter valued at $278,000. MWA Asset Management increased its position in shares of Micron Technology by 105.1% in the 1st quarter. MWA Asset Management now owns 1,487 shares of the semiconductor manufacturer’s stock valued at $502,000 after buying an additional 762 shares in the last quarter. JSF Financial LLC increased its position in shares of Micron Technology by 6.4% in the 1st quarter. JSF Financial LLC now owns 3,332 shares of the semiconductor manufacturer’s stock valued at $1,126,000 after buying an additional 200 shares in the last quarter. Legacy Wealth Managment LLC ID raised its stake in Micron Technology by 54.2% during the 1st quarter. Legacy Wealth Managment LLC ID now owns 572 shares of the semiconductor manufacturer’s stock worth $193,000 after buying an additional 201 shares during the period. Finally, Florida Financial Advisors LLC lifted its holdings in Micron Technology by 22.4% during the first quarter. Florida Financial Advisors LLC now owns 11,457 shares of the semiconductor manufacturer’s stock worth $3,871,000 after acquiring an additional 2,096 shares in the last quarter. 80.84% of the stock is currently owned by institutional investors and hedge funds.
Key Stories Impacting Micron Technology Here are the key news stories impacting Micron Technology this week:
Positive Sentiment: Micron is being highlighted as a strong AI chip and memory beneficiary, with several bullish articles pointing to durable demand, strong profitability, and attractive valuation after the recent pullback. NVIDIA & Micron: 2 Profitable AI Stocks With Strong Growth Potential Positive Sentiment: Morgan Stanley and other analysts said the selloff in memory stocks created a strong buying opportunity, arguing that data-center memory shortages are still intensifying. The Memory Stock Sell-Off Created a ‘Strong Entry Point,’ Says Morgan Stanley. Investors Are Buying In. Positive Sentiment: Shares of Micron, SanDisk, and Western Digital rebounded as investors rotated back into semiconductor names after last week’s sharp drop in AI-related stocks. Micron Jumps 5%, SanDisk Rises 6%, Western Digital Climbs 4% as Memory Stocks Rebound With Chips Positive Sentiment: A Seeking Alpha upgrade argued Micron’s business model and large backlog could drive EPS accretion and multiple expansion through FY2027. Micron: Berkshire-ification Against The Possible Greenfield Margin Squeeze (Upgrade) Neutral Sentiment: Some coverage noted large institutional call buying and speculative dip-buying in Micron, which can support short-term trading sentiment but does not change the company’s fundamentals. The Ugliest Stocks in the Market Just Got a Very Expensive Vote of Confidence (MU) Neutral Sentiment: Several articles focused on Micron’s broader role in the AI trade and memory shortage, reinforcing that the stock remains highly sensitive to swings in semiconductor sentiment. Micron, Lumentum, Sweetgreen, AMC, Domino’s, and More Stocks That Explain Today’s Market Negative Sentiment: Michael Burry’s short position and warning that Micron is “cyclical like no other” added caution around the stock’s valuation and the risk of a deeper AI-chip correction. Claude AI Says Michael Burry’s Micron (MU) Warning “Deserves Respect” Negative Sentiment: Bearish commentary also warned that semiconductor and technology stocks could still face another leg down if the recent AI trade unwind continues. Expect a 75% technology stocks wipeout, warns strategist Negative Sentiment: Micron has also been under pressure recently after SK Hynix’s memory-price warning sparked debate over how long tight supply can last, contributing to the prior selloff. Micron Stock Set to Snap Losing Streak After SK Hynix Memory Price Warning Analysts Set New Price Targets Several equities analysts have recently weighed in on the company. Citigroup lifted their price objective on Micron Technology from $1,200.00 to $1,400.00 and gave the company a “buy” rating in a report on Thursday, June 25th. Sanford C. Bernstein set a $1,300.00 price target on shares of Micron Technology in a report on Monday, June 22nd. Mizuho increased their price objective on shares of Micron Technology from $1,150.00 to $1,375.00 and gave the stock an “outperform” rating in a research report on Thursday, June 25th. TD Cowen restated a “buy” rating on shares of Micron Technology in a report on Friday, July 10th. Finally, Melius Research began coverage on shares of Micron Technology in a research report on Monday, April 27th. They issued a “buy” rating and a $700.00 price objective on the stock. Four equities research analysts have rated the stock with a Strong Buy rating, thirty have issued a Buy rating and three have assigned a Hold rating to the stock. Based on data from MarketBeat.com, Micron Technology has an average rating of “Buy” and a consensus price target of $1,268.93.
Check Out Our Latest Stock Report on Micron Technology
Insider Activity at Micron Technology In other Micron Technology news, EVP April S. Arnzen sold 40,000 shares of the company’s stock in a transaction on Wednesday, July 1st. The shares were sold at an average price of $1,083.94, for a total value of $43,357,600.00. Following the transaction, the executive vice president directly owned 85,737 shares in the company, valued at $92,933,763.78. The trade was a 31.81% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this hyperlink. Also, Director Lynn A. Dugle sold 1,300 shares of the stock in a transaction dated Tuesday, June 30th. The shares were sold at an average price of $1,150.43, for a total transaction of $1,495,559.00. Following the completion of the transaction, the director directly owned 17,728 shares in the company, valued at $20,394,823.04. The trade was a 6.83% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last three months, insiders sold 163,300 shares of company stock valued at $152,667,204. 0.24% of the stock is owned by company insiders.
Micron Technology Price Performance Shares of MU opened at $865.46 on Tuesday. The company has a current ratio of 3.42, a quick ratio of 2.98 and a debt-to-equity ratio of 0.05. The company’s fifty day simple moving average is $950.86 and its 200 day simple moving average is $606.14. Micron Technology, Inc. has a 1-year low of $103.38 and a 1-year high of $1,255.00. The company has a market cap of $977.44 billion, a price-to-earnings ratio of 19.59 and a beta of 2.14.
Micron Technology (NASDAQ:MU – Get Free Report) last announced its quarterly earnings results on Wednesday, June 24th. The semiconductor manufacturer reported $25.11 EPS for the quarter, beating analysts’ consensus estimates of $21.39 by $3.72. Micron Technology had a net margin of 55.91% and a return on equity of 71.13%. The firm had revenue of $41.46 billion during the quarter, compared to analysts’ expectations of $35.91 billion. During the same quarter last year, the company posted $1.91 earnings per share. The company’s revenue for the quarter was up 345.8% compared to the same quarter last year. Micron Technology has set its Q4 2026 guidance at 30.000-32.000 EPS. On average, research analysts forecast that Micron Technology, Inc. will post 72.93 earnings per share for the current fiscal year.
Micron Technology Announces Dividend The firm also recently announced a quarterly dividend, which will be paid on Tuesday, July 21st. Investors of record on Monday, July 6th will be issued a dividend of $0.15 per share. The ex-dividend date of this dividend is Monday, July 6th. This represents a $0.60 dividend on an annualized basis and a dividend yield of 0.1%. Micron Technology’s payout ratio is presently 1.36%.
Micron Technology Company Profile (Free Report)
Micron Technology, Inc is a global semiconductor company that designs and manufactures memory and storage solutions. Its product portfolio includes dynamic random-access memory (DRAM), NAND flash memory, solid-state drives (SSDs), memory modules and embedded memory solutions for a wide range of computing and electronic devices. Micron supplies components used in data centers, enterprise and cloud infrastructure, client computing, mobile devices, automotive systems and industrial applications, and also markets consumer-facing products under the Crucial brand.
Founded in 1978 and headquartered in Boise, Idaho, Micron has grown into an international manufacturer with research, development and production facilities across multiple regions.
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Baader Bank Aktiengesellschaft raised its holdings in shares of Micron Technology, Inc. (NASDAQ:MU – Free Report) by 85.9% in the first quarter, according to its most recent Form 13F filing with the SEC. The institutional investor owned 15,804 shares of the semiconductor manufacturer’s stock after buying an additional 7,301 shares during the period. Baader Bank Aktiengesellschaft’s holdings in Micron Technology were worth $5,339,000 as of its most recent SEC filing.
Other hedge funds have also recently added to or reduced their stakes in the company. Kohmann Bosshard Financial Services LLC bought a new stake in shares of Micron Technology during the 1st quarter worth $27,000. High Note Wealth LLC grew its holdings in shares of Micron Technology by 65.4% in the 4th quarter. High Note Wealth LLC now owns 86 shares of the semiconductor manufacturer’s stock worth $25,000 after acquiring an additional 34 shares during the last quarter. Elevation Wealth Partners LLC raised its position in shares of Micron Technology by 295.8% during the fourth quarter. Elevation Wealth Partners LLC now owns 95 shares of the semiconductor manufacturer’s stock worth $27,000 after purchasing an additional 71 shares during the period. Steigerwald Gordon & Koch Inc. raised its position in shares of Micron Technology by 4,800.0% during the fourth quarter. Steigerwald Gordon & Koch Inc. now owns 98 shares of the semiconductor manufacturer’s stock worth $28,000 after purchasing an additional 96 shares during the period. Finally, Bayban purchased a new stake in shares of Micron Technology during the fourth quarter valued at $29,000. Institutional investors and hedge funds own 80.84% of the company’s stock.
Analysts Set New Price Targets A number of research firms recently weighed in on MU. Barclays increased their price target on Micron Technology from $1,175.00 to $2,000.00 and gave the company an “overweight” rating in a research report on Thursday, June 25th. 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. Mizuho lifted their target price on shares of Micron Technology from $1,150.00 to $1,375.00 and gave the stock an “outperform” rating in a research report on Thursday, June 25th. Stifel Nicolaus lifted their target price on shares of Micron Technology from $550.00 to $1,500.00 and gave the stock a “buy” rating in a research report on Thursday, June 18th. Finally, Weiss Ratings restated a “buy (b)” rating on shares of Micron Technology in a report on Tuesday, May 12th. Four investment analysts have rated the stock with a Strong Buy rating, thirty have assigned a Buy rating and three have given a Hold rating to the stock. According to data from MarketBeat.com, Micron Technology has an average rating of “Buy” and a consensus target price of $1,268.93.
View Our Latest Stock Report on Micron Technology
Trending Headlines about Micron Technology Here are the key news stories impacting Micron Technology this week:
Positive Sentiment: Micron is being highlighted as a strong AI chip and memory beneficiary, with several bullish articles pointing to durable demand, strong profitability, and attractive valuation after the recent pullback. NVIDIA & Micron: 2 Profitable AI Stocks With Strong Growth Potential Positive Sentiment: Morgan Stanley and other analysts said the selloff in memory stocks created a strong buying opportunity, arguing that data-center memory shortages are still intensifying. The Memory Stock Sell-Off Created a ‘Strong Entry Point,’ Says Morgan Stanley. Investors Are Buying In. Positive Sentiment: Shares of Micron, SanDisk, and Western Digital rebounded as investors rotated back into semiconductor names after last week’s sharp drop in AI-related stocks. Micron Jumps 5%, SanDisk Rises 6%, Western Digital Climbs 4% as Memory Stocks Rebound With Chips Positive Sentiment: A Seeking Alpha upgrade argued Micron’s business model and large backlog could drive EPS accretion and multiple expansion through FY2027. Micron: Berkshire-ification Against The Possible Greenfield Margin Squeeze (Upgrade) Neutral Sentiment: Some coverage noted large institutional call buying and speculative dip-buying in Micron, which can support short-term trading sentiment but does not change the company’s fundamentals. The Ugliest Stocks in the Market Just Got a Very Expensive Vote of Confidence (MU) Neutral Sentiment: Several articles focused on Micron’s broader role in the AI trade and memory shortage, reinforcing that the stock remains highly sensitive to swings in semiconductor sentiment. Micron, Lumentum, Sweetgreen, AMC, Domino’s, and More Stocks That Explain Today’s Market Negative Sentiment: Michael Burry’s short position and warning that Micron is “cyclical like no other” added caution around the stock’s valuation and the risk of a deeper AI-chip correction. Claude AI Says Michael Burry’s Micron (MU) Warning “Deserves Respect” Negative Sentiment: Bearish commentary also warned that semiconductor and technology stocks could still face another leg down if the recent AI trade unwind continues. Expect a 75% technology stocks wipeout, warns strategist Negative Sentiment: Micron has also been under pressure recently after SK Hynix’s memory-price warning sparked debate over how long tight supply can last, contributing to the prior selloff. Micron Stock Set to Snap Losing Streak After SK Hynix Memory Price Warning Micron Technology Trading Up 1.9% Shares of NASDAQ MU opened at $865.46 on Tuesday. The company has a current ratio of 3.42, a quick ratio of 2.98 and a debt-to-equity ratio of 0.05. Micron Technology, Inc. has a one year low of $103.38 and a one year high of $1,255.00. The business has a 50-day moving average price of $950.86 and a two-hundred day moving average price of $606.14. The firm has a market capitalization of $977.44 billion, a PE ratio of 19.59 and a beta of 2.14.
Micron Technology (NASDAQ:MU – Get Free Report) last issued its earnings results on Wednesday, June 24th. The semiconductor manufacturer reported $25.11 earnings per share for the quarter, beating analysts’ consensus estimates of $21.39 by $3.72. The company had revenue of $41.46 billion for the quarter, compared to the consensus estimate of $35.91 billion. Micron Technology had a return on equity of 71.13% and a net margin of 55.91%.The firm’s quarterly revenue was up 345.8% on a year-over-year basis. During the same quarter in the prior year, the company earned $1.91 EPS. Micron Technology has set its Q4 2026 guidance at 30.000-32.000 EPS. As a group, analysts predict that Micron Technology, Inc. will post 72.93 earnings per share for the current fiscal year.
Micron Technology Announces Dividend The business also recently disclosed a quarterly dividend, which will be paid on Tuesday, July 21st. Shareholders of record on Monday, July 6th will be paid a $0.15 dividend. This represents a $0.60 annualized dividend and a yield of 0.1%. The ex-dividend date is Monday, July 6th. Micron Technology’s dividend payout ratio is currently 1.36%.
Insider Activity at Micron Technology In other news, EVP April S. Arnzen sold 40,000 shares of the company’s stock in a transaction on Wednesday, July 1st. The shares were sold at an average price of $1,083.94, for a total value of $43,357,600.00. Following the transaction, the executive vice president directly owned 85,737 shares of the company’s stock, valued at approximately $92,933,763.78. This represents a 31.81% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, Director Lynn A. Dugle sold 1,300 shares of the company’s stock in a transaction on Tuesday, June 30th. The stock was sold at an average price of $1,150.43, for a total transaction of $1,495,559.00. Following the completion of the transaction, the director directly owned 17,728 shares in the company, valued at $20,394,823.04. This trade represents a 6.83% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold a total of 163,300 shares of company stock worth $152,667,204 in the last 90 days. 0.24% of the stock is owned by corporate insiders.
Micron Technology Company Profile (Free Report)
Micron Technology, Inc is a global semiconductor company that designs and manufactures memory and storage solutions. Its product portfolio includes dynamic random-access memory (DRAM), NAND flash memory, solid-state drives (SSDs), memory modules and embedded memory solutions for a wide range of computing and electronic devices. Micron supplies components used in data centers, enterprise and cloud infrastructure, client computing, mobile devices, automotive systems and industrial applications, and also markets consumer-facing products under the Crucial brand.
Founded in 1978 and headquartered in Boise, Idaho, Micron has grown into an international manufacturer with research, development and production facilities across multiple regions.
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Bank of America says Micron Technology (NASDAQ:MU | MU Price Prediction) is going to $1,550, a call that implies roughly 83% upside from the stock’s $848.95 close on July 17, 2026. Investors should confirm the price intraday, since the memory name has been moving fast in both directions.
Who Is Making the Call BofA analyst Vivek Arya lifted his price objective to $1,550 from $1,500 and reiterated a Buy rating, citing “another memorable beat.” Arya has also framed the recent chip pullback as a “summer reset” rather than a fundamental reversal. He is not alone. TD Cowen has also moved to $1,500, and the Street consensus target sits at $1,491.95, with 31 Buy and 9 Strong Buy ratings against a single Strong Sell.
The Numbers Behind the Target Micron’s fiscal Q3 2026 report gave the bulls plenty of ammunition. Revenue landed at $41.46 billion, up 345.72% year over year from $9.30 billion. GAAP net income was $28.24 billion, up 1,398.3%. Non-GAAP gross margin hit 84.9% (GAAP 84.6%, up from 37.7% a year ago), and non-GAAP diluted EPS of $25.11 topped the $20.28 consensus by 23.79%, the eighth straight quarterly beat.
Cloud Memory generated $13.77 billion, with Core Data Center and Mobile and Client each at $11.52 billion and Automotive and Embedded at $4.63 billion.
The Structural AI Thesis BofA argues memory chips, especially high-bandwidth memory (HBM) for AI accelerators, are shifting from a cyclical commodity into a long-term AI theme. The firm raised its global semiconductor sales forecast to $2.7 trillion by 2030, up from $2.3 trillion, and projects the HBM market could reach roughly $246 billion by 2030, up from about $35 billion. Micron has signed 16 multi-year Strategic Customer Agreements that lock in pricing visibility, including a new supply-and-investment partnership with Anthropic announced in June 2026.
CEO Sanjay Mehrotra put it plainly: “Micron’s record fiscal Q3 financial results and even stronger outlook for Q4 reflect the strategic value of memory in the AI era.” That outlook calls for fiscal Q4 revenue of $50.0 billion plus or minus $1.0 billion, non-GAAP EPS of $31.00 plus or minus $1.00, and non-GAAP gross margin of approximately 86%.
Volatility Is the Price of Admission Micron is up 197.63% year to date, but it has slipped 13.31% in the past week and 18.61% over the past month. Shares spiked to roughly $1,190 in the hour after earnings before sliding back to $848.95. The reversal tracks a broad memory-sector selloff that also hit Samsung and SK Hynix, not a Micron-specific issue.
The Balanced Takeaway BofA’s $1,550 call is one analyst’s view, not a guarantee. The fundamentals support a bullish case, and the forward P/E of 5 is unusually low for a name growing this fast. Micron has also shown it can swing sharply in both directions, so this remains a high-conviction, high-volatility bet rather than a settled outcome.
Micron Technology (NASDAQ: MU) could face modest downside over the coming days, according to the latest forecast generated by the Finbold AI Agent.
The machine learning model projects Micron stock to trade at an average price of $849.66 on August 1, 2026, representing a 1.92% decline from its reference price of $866.30.
MU stock price prediction. Source: Finbold The forecast comes after a period of heightened volatility for Micron shares, which have surged on the back of booming artificial intelligence demand and strong pricing across the memory semiconductor market.
While Wall Street remains broadly bullish on the company’s long-term outlook, the AI-powered prediction suggests MU stock could experience short-term pressure before the start of August.
The Finbold AI Agent aggregates forecasts from multiple large language models and machine learning systems to estimate future price movements. For Micron, the models produced a range of outcomes for August 1.
GPT-5.6 Sol delivered the most optimistic forecast, projecting MU shares at $910, implying a 5.04% gain. Gemini 3.5 Flash predicted a price of $855, while Claude Opus 4.8 forecast $815.20. Grok 4.5 was also cautious, estimating a price target of $818.45.
Combining the individual forecasts resulted in an average projected price of $849.66, suggesting a modest pullback from current levels.
MU stock price prediction. Source: Finbold MU stock fundamentals Despite the near-term bearish forecast, Micron continues to benefit from strong demand for high-bandwidth memory (HBM) and other AI-related memory products.
The company reported record fiscal third-quarter 2026 revenue of $41.46 billion, significantly exceeding analyst expectations.
Non-GAAP earnings per share reached $25.11, while management issued fourth-quarter revenue guidance of approximately $50 billion, reflecting continued momentum in AI infrastructure spending.
Micron has also stated that its HBM supply for 2026 is fully sold out, with demand visibility extending into 2027. These trends have helped drive one of the strongest stock performances in the semiconductor sector this year.
Micron stock technical indicators The Finbold AI Agent’s forecast aligns with recent technical weakness in Micron shares. The stock has retreated sharply from its all-time highs, while momentum indicators have softened.
The Relative Strength Index (RSI) has trended lower in recent weeks, indicating fading buying pressure. At the same time, the Moving Average Convergence Divergence (MACD) indicator remains under pressure, reflecting a slowdown in upward momentum following the stock’s rapid advance earlier in the year.
While Micron’s long-term outlook remains supported by AI-driven memory demand, the machine learning forecast suggests investors could see additional short-term volatility before August begins.
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In the first wave of the artificial intelligence (AI) boom, everyone was talking about Nvidia, the world's biggest AI chip designer, and cloud companies such as Amazon and Microsoft. And those companies continue to be key AI players.
But in recent times, investors have recognized a new group of AI companies, and they have been leading the pack when it comes to stock performance. I'm talking about memory and storage companies, and one of the leaders is Micron Technology (MU +1.93%).
Micron has seen its stock skyrocket over the past few years thanks to the crucial role it plays in the AI story. If you'd invested $10,000 in Micron around the time of its initial public offering, how much would you have now? Let's find out.
Image source: Getty Images.
Earnings explode higher First, it's important to note that Micron didn't launch its IPO just a few years ago. The company has been around for almost 50 years, and it completed its IPO in 1984. Micron specializes in the memory and storage needed in devices from personal computers and servers to smartphones. Over the years, the company progressively grew earnings, but they just recently exploded higher -- and that has been thanks to AI demand.
MU Revenue (Annual) data by YCharts
Customers have rushed to Micron and peers for the memory needs of AI workloads, and demand has been so high that it's led to tight supply. In fact, Micron predicts this difficult supply situation will continue past the 2027 calendar year.
Not only is demand high, but ramping up production of memory chips isn't something that happens overnight. The need for skilled workers, permitting requirements, and other factors have contributed to the memory shortage -- and this concerns all memory chip companies, not just Micron.
All of this has kept earnings marching higher, and the stock price has followed as investors took notice of Micron's tremendous growth.
Now, let's consider the value of your investment if you'd bought $10,000 in Micron shares on IPO day. Today, your investment would be worth more than $8 million -- so Micron has been a millionaire-maker stock.
MU data by YCharts
Favor long-term investing It's important to note, however, that such a big investment in one stock is risky -- you should always favor investing broadly across many stocks and holding on over time. But this example does show the value of holding onto a stock over the long term. If you had sold Micron shares after only a couple of years, you might have sold at a loss. By holding on to the stock for at least a decade, though, you clearly won. If you bought on IPO day and sold 10 years later, your investment would have been worth more than $46,000. That may seem like nothing compared to today's multi-million-dollar return, but it still is a significant gain.
MU data by YCharts
Of course, you can't count on every stock to deliver such returns, even over many decades. But if you choose quality stocks and hold on for at least 10 years, you're likely to set yourself up for success.
Now, you might be wondering about Micron's performance in the years to come. Is the growth over, or does this stock have more room to run? It's unlikely Micron will replicate the immense gain we've seen in recent years, but that doesn't mean the stock's potential is over. Micron's business is going strong, and the combination of the memory chip shortage along with the major needs of AI players should power earnings growth in the quarters to come.
Chips generally have been a cyclical business, with demand soaring at a particular point, then falling as supply exceeds the needs of the times. This results in the stocks climbing, then going on to stagnate or stumble. Considering the strength of the AI story so far, though, it's possible that Micron and peers may see cycles that are less extreme -- it's too early to say for sure.
But it's very possible that this stock that's made millionaires, even if it takes a pause at a certain moment, will continue to advance over the long run.
HomeIndustriesComputers/ElectronicsTech StocksTech StocksMoonshot AI’s Kimi K3 could encourage a surge in enterprise workloads and provide a long-term tailwind to chip demandJuly 20, 2026, 6:21 p.m. ET
A cheap yet competitive artificial-intelligence model out of China has reignited the debate over the massive amounts of money that companies are spending on memory components and compute power.
But the emergence of low-cost Chinese AI isn’t necessarily a bad thing for U.S. semiconductor heavyweights that have seen their shares soar on strong demand for expensive AI hardware, according to some analysts. They reason that these chip companies could end up benefitting, even as AI costs go down.
After three straight days of selling, Micron (MU +1.93%) stock rebounded on Monday, rising 4.3% through 2:05 p.m. ET.
You can thank Morgan Stanley for that... and UBS, too.
Image source: Micron.
Memory stocks are still in fashion Let's start with the news from Morgan Stanley, where analyst Joseph Moore sees last week's Micron sell-off as a buying opportunity.
As StreetInsider.com reports, Moore admits that "data center strength is the only cause" for this year's incredible demand for memory chips. That sounds like bad news -- this stool has only one leg to stand on -- but Moore's not worried. Shortages of memory chips continue to worsen, says the analyst, and Q3 memory prices will rise 25% from Q2.
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Micron could grow by shrinking Higher prices for the memory chips Micron sells mean more profit for Micron. More importantly, they mean more cash for Micron -- and that's the crux of the report UBS just filed.
Micron will generate "a prodigious amount" of free cash flow over the next few years, predicts UBS analyst Timothy Arcuri -- as much as $400 billion in cash profit between now and 2028 -- and he thinks the company may use some or all of this cash to buy back its own stock. If he's right about that, Micron could conceivably buy back as much as 40% of outstanding shares when all's said and done, cutting its share count nearly in half, and concentrating profits among the shares that remain.
What would this mean for profits? Well, net profit wouldn't change in this scenario, but profit per share could explode higher, nearly doubling on top of whatever growth in profit the company would already make from selling more chips, and selling them at higher prices.
Count this as one more great reason to buy Micron stock.
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, Inc. is upgraded to Buy as it transitions into an infrastructure toll-bridge, leveraging $18B zero-cost float and SOCAMM2 architectural leadership. MU's $100B+ in guaranteed RPOs and aggressive capital return program may drive significant EPS accretion and multiple expansion through FY2027. Risks include a looming 2027 margin squeeze from greenfield CapEx, rising wafer/input costs, and SCA price ceilings capping up to 50% of revenue.
Key Takeaways NVIDIA posted a 63% trailing 12-month net profit margin, highlighting strong profitability. Micron reported a 55.9% trailing 12-month net profit margin, reflecting solid bottom-line strength. NVIDIA and Micron passed profitability screens with strong net income ratios and industry-leading growth. Investors mostly favor companies that generate strong returns after covering both operating and non-operating expenses. As a result, businesses that consistently report profits tend to be more appealing than those that incur losses. To assess a company’s profitability, investors rely on accounting ratios that highlight the most common measures of a company’s bottom-line performance.
On that note, NVIDIA Corporation (NVDA - Free Report) and Micron Technology, Inc. (MU - Free Report) stand out as leading profitable artificial intelligence (AI) stocks, supported by strong net income ratios and promising growth prospects.
Understanding the Net Income Ratio The net income ratio indicates a company’s profitability. It reflects the percentage of net income relative to total sales revenues. Using the net income ratio, one can determine a firm’s ability to cover operating and non-operating expenses with revenues. A higher net income ratio usually implies a company’s ability to generate sufficient revenues and manage all business functions effectively.
Stock Screening Parameters Using Research Wizard The net income ratio is not the only indicator of future winners. So, we have added a few more criteria to arrive at a winning strategy.
Zacks Rank less than or equal to #2: Whether the market is good or bad, stocks with a Zacks Rank #1 (Strong Buy) or 2 (Buy) have a proven history of outperformance. You can see the complete list of today’s Zacks #1 Rank stocks here.
Trailing 12-Month Sales and Net Income Growth Higher than X Industry: Stocks that have witnessed higher-than-industry sales and net income growth in the past 12 months are positioned to perform well.
Trailing 12-Month Net Income Ratio Higher than X Industry: A high net income ratio indicates a company’s solid profitability.
Percentage Rating Strong Buy greater than 70: This indicates that 70% of the current broker recommendations for the stock are Strong Buy.
These few parameters have narrowed the universe of more than 7,685 stocks to only 32.
Here are two of the 32 stocks that qualified for the screening:
NVIDIA NVIDIA is a global computing infrastructure company offering graphics, compute, and networking solutions. The 12-month net profit margin of NVDA is 63%. NVIDIA has a Zacks Rank #2, and its expected earnings growth rate for the current year is 90.6% (read more: Everyone’s Buying NVIDIA, but 2 Smaller AI Stocks Could Soar Higher).
Micron Technology Micron Technology is a provider of memory and storage products globally. The 12-month net profit margin of MU is 55.9%. Micron has a Zacks Rank #1, and its expected earnings growth rate for the current year is 790.8% (read more: Micron vs. TSMC: Which AI Semiconductor Stock Is a Better Buy Now?).
Technology stocks could face a decline of as much as 75% from their peaks, according to a new warning from veteran market strategist Gareth Soloway.
According to Soloway, the ongoing weakness in semiconductor and memory stocks may be an early sign of a broader correction across the sector, he said in an interview with David Lin published on July 17.
The strategist said markets are beginning to look beyond the current boom in artificial intelligence infrastructure spending and are increasingly focused on future supply growth and slowing demand momentum.
The warning comes as several high-flying chipmakers and memory stocks have already suffered steep declines after posting record gains during the AI-driven rally.
Soloway pointed to the recent weakness in memory and semiconductor stocks as evidence that the market is starting to price in changing industry fundamentals.
According to his analysis, investors are looking roughly 12 months ahead and anticipating increased memory production capacity as new manufacturing facilities come online.
“The first thing we have to understand is that markets are always looking 12 months in advance.<…> The semiconductors eventually will see downside of as much as 75%. That’s what history has told us. This time is not different. It’s no different than the AI revolution or again the internet revolution. They’re the same in terms of earth-changing and game-changing technologies. But at the same time, bounces will happen,” Soloway said.
At the same time, technology companies are exploring ways to reduce costs and maximize existing memory inventories after a period of elevated prices.
Cracks already appearing in chip stocks The shift in sentiment has already been reflected in stock performance. Memory-chip giant Micron Technology (NASDAQ: MU) has fallen roughly 36% from its all-time high to recent lows, despite reporting strong earnings results during the period.
The decline has fueled concerns that the broader semiconductor stocks selloff could extend further if expectations for AI-related demand begin to moderate.
While Soloway remains constructive on the sector in the short term and expects potential rebounds after the recent pullback, he argued that history suggests major technology booms are often followed by significant corrections.
He compared the current AI investment cycle to previous transformative technology revolutions, including the internet era, noting that groundbreaking innovations can still experience substantial valuation resets after periods of excessive optimism.
The strategist believes semiconductor stocks could experience temporary rallies after their recent correction but maintains that the longer-term risk remains skewed to the downside.
The warning arrives as investors debate whether the recent weakness in memory stocks represents a healthy consolidation or the start of a larger technology stock market correction.
The AI trade has been one of the strongest themes on Wall Street over the past several years, driving massive gains across semiconductor manufacturers, data-center suppliers, and hardware companies.
However, growing supply expectations, rising competition, and questions about long-term demand sustainability have started to pressure some of the sector’s biggest winners.
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July has been an odd month for artificial intelligence (AI) investors. Some stocks have done quite well, but some of the first half's biggest winners have performed poorly. However, nothing has really changed in the AI investment landscape, and there could be huge growth still to come in this industry. That makes taking advantage when AI hardware stocks go on sale a smart thing to do, and Micron (MU +3.09%) and Nvidia (NVDA +0.62%) look like genius buys this month.
Both of these companies are at the heart of the AI build-out and look primed to head higher throughout the remainder of 2026 and into 2027.
Image source: Getty Images.
Micron Micron's stock has had a banner year, and the company has also done incredibly well. Thanks to a shortage of supply in the memory chip market, prices are soaring, which boosts Micron's earnings and profits. This tailwind is far from slackening: Wall Street expects the memory company to deliver 80% growth in its fiscal 2027 (which begins in September).
MU Revenue (Quarterly YoY Growth) data by YCharts.
However, that outlook did not prevent the stock from selling off over the past few weeks as investors grew more worried that the AI demand curve may not last as long as predicted. But to think that requires one to ignore the messaging that these companies have provided lately. Micron has informed investors that it expects the undersupply in the memory chip market to persist beyond 2027. That's after it expects to bring some of its new production capacity online, but it still could be a while before Micron and its peers can catch up with the incredibly high demand for their wares. Furthermore, with the AI infrastructure build-out expected to keep accelerating through 2030, there's plenty of growth ahead for this investment trend.
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As a result, I think Micron is a solid stock to buy on the dip, as the medium-term tailwinds are blowing heavily in its favor.
Nvidia Nvidia makes the GPUs that provide the bulk of AI computing power, and it uses Micron's memory chips in its products. So, as demand for Nvidia's processors rises, so will demand for Micron's chips. All indications point to that demand rising, as Nvidia informed investors it expects that hyperscalers' data center capital expenditures will rise to $1 trillion in 2027, up from $650 billion in 2026. The reality is that Nvidia likely has most of its product orders for 2027 already booked in its system, as the AI hyperscalers want to ensure the computing chips they need will be available once the rest of their data center infrastructure is complete. That gives Nvidia inside information about the future of the tech sector that it's freely relaying to the public. Yet the market hasn't really acted on it.
Nvidia trades at about 23.1 times forward earnings. If the company exactly hits Wall Street's full-year estimates, it will trade at 23.1 times trailing earnings. For reference, the S&P 500 (^GSPC +0.10%) trades for 25.6 times trailing earnings right now.
NVDA PE Ratio (Forward) data by YCharts.
Based on the current share price, the market is basically saying that after 2026's growth is complete, Nvidia should be priced as a below-average company, which is silly. Analysts are estimating strong 42% growth for it in 2027. Wall Street has historically underestimated how fast Nvidia would grow. If that's the case now, the stock could be an even deeper value.
In the chart above, I've also included the forward one-year price-earnings ratio, which uses next fiscal year's earnings estimate. From that standpoint, Nvidia trades at 16 times forward earnings, which will be a very low price to pay for the stock. I'd expect both of those numbers to increase the closer we get to 2027, making right now an excellent time to buy the stock, as the market hasn't factored next year's growth into its price.
Micron’s (NASDAQ:MU | MU Price Prediction) Fiscal Q3 2026 results include something you should look into a little more closely. The company’s CEO said, “We expect tight conditions to persist beyond calendar 2027…” The tight conditions here refer to the supply crunch for DRAM and NAND, which has led to MU stock soaring by 176% year-to-date.
Of course, the stock has cooled significantly from its peak, and many other related stocks have taken a dive, but if he’s right, we could soon see a reversal. Memory businesses may have much more pricing power and growth left before any cyclical slowdown or downturn.
Past selloffs of this scale have led to an even bigger surge down the line. Micron isn’t too big yet for this to happen, given it’s still a sub-$1 trillion company (albeit by a hair) and trades at a 6x forward PE ratio.
Here are three memory stock ETFs to look into if the company’s CEO is right about the memory cycle being longer:
Roundhill Memory ETF (DRAM) The Roundhill Memory ETF (BATS:DRAM) is the first pure-play ETF focused on memory and storage chip makers. This ETF remains the most popular way to play the memory trade, and I have no doubt DRAM will surge if the memory rally continues through 2027 or plunge if the cyclical downturn hits earlier. If you believe Micron’s CEO, the latter is less likely.
Before making a decision, the biggest thing to keep in mind is China. If the U.S. government allows major companies to import components freely from there, you’re going to see a massive influx of Chinese components.
But that doesn’t mean the supply crunch is entirely artificial due to U.S. policy.
China does not have the advanced EUV lithography machines for the highest-end memory chips, so they can only brute-force the mass production of standard consumer memory. Many memory makers have already exited those fields, so I expect the DRAM ETF’s holdings to continue climbing as long as AI spending remains solid.
The DRAM ETF is up 91% year-to-date. It was up 191% at one point but has cratered since. Its largest holdings are a mix of U.S. and non-U.S. memory makers.
Franklin FTSE South Korea ETF (FLKR) Speaking of non-U.S. memory, you can look into the Franklin FTSE South Korea ETF (NYSEARCA:FLKR). There is a difference between this ETF and its more popular counterpart, the iShares MSCI South Korea ETF (NYSEARCA:EWY). The difference is that FLKR comes with a 0.09% expense ratio, whereas EWY charges 0.59%. Total return has been essentially identical.
And if you are unaware of why we’re looking at Korea specifically, it’s because the country is home to two memory heavyweights: SK Hynix (NASDAQ:SKHY) and Samsung. SK Hynix made a blockbuster debut in the U.S. stock market just days ago.
South Korea’s stock market has also been on a roll, as the government is propping it up through a “value-up” program to bridge the “Korea Discount.” Korean stocks have historically traded cheaply relative to global stocks, and you could argue this remains the case, as memory stocks trade at just 6-7x earnings.
But again, it’s hard to say whether or not we’ve reached a top yet. FLKR is down 25% from its June peak. A similar selloff happened from late February to late March, so I wouldn’t be too fearful.
VanEck Semiconductor ETF (SMH) The two ETFs above will let you dip into most major DRAM and NAND stocks. VanEck’s Semiconductor ETF (NASDAQ:SMH) does not expressly target memory, but if you believe that the memory rally will continue through 2027, you must also believe that semiconductor stocks will ride along. Both components are necessary to train and run AI models.
SMH has arguably been the single best major ETF you could’ve owned as a buy-and-hold play in the past 20 years. No one knows what the next 20 years may bring, but it’s not a stretch to believe that the rally could go on for at least one more year. The “cool-off” in the past month is a drop in the bucket compared to SMH’s 363% 5-year return, as it is only down 7.1% in the past month.
There have been two 30%-plus corrections in the past, but the SMH still recovered every single time. The demand for chips is broader and was outperforming the broader market well before AI became a thing. Thus, you may as well load up on SMH if you are loading up on memory stocks. In fact, I believe SMH will outperform any memory-focused ETFs because it is less cyclical. The expense ratio is 0.35%, which is negligible against the performance.
Contact [email protected] for any questions or corrections.
Key Takeaways AI chip stocks corrected on valuation fears, but AI demand remains intact. Strong Micron and NVIDIA earnings support the long-term AI investment case. Some specific semiconductor ETFs could offer attractive dip-buying opportunities. A sharp selloff in semiconductor stocks last week has rattled markets globally, raising questions about whether the AI-fueled rally had become overextended.
Investors across Asia, Europe and the United States pulled back from AI-linked and momentum stocks that have driven market gains for much of the year.
The Philadelphia SE Semiconductor Index fell 1.6% on Friday and tumbled about 10% for the week, marking its sharpest weekly decline in more than a year, per Reuters, as quoted on Yahoo Finance. The index is now down more than 20% from its late-June record high, placing it in bear market territory, though it remains up more than 60% year to date.
Profit-Taking and Valuation Concerns Market participants attributed much of the weakness to profit-taking following a massive rally. Chuck Carlson, chief executive of Horizon Investment Services, suggested that the decline was driven more by portfolio repositioning than by deteriorating business fundamentals, per the same Reuters source.
Fresh AI Developments Fuel Investor AnxietySeveral developments intensified concerns over AI spending during the month.
Chinese AI startup Moonshot unveiled what it described as the world's largest open-weight AI model, renewing investor scrutiny over whether U.S. technology companies will generate adequate returns on their enormous AI investments.
Separately, a Bloomberg report indicated that Alphabet's Google is running months behind schedule in launching its flagship Gemini 3.5 Pro AI model, adding to worries about the pace of AI innovation.
Global Technology Stocks Come Under PressureThe semiconductor selloff coincided with weakness across global equity markets.
South Korea's KOSPI briefly entered bear market territory last, while Japan's Nikkei slipped into correction territory. Europe's technology sector also ranked among the week's weakest performers, per the above-mentioned source.
Leveraged Semiconductor ETFs Hit HardThe pullback has been even more pronounced in leveraged semiconductor ETFs.
The Direxion Daily Semiconductor Bull 3X ETF (SOXL - Free Report) has plunged more than 50% from its late-June high. The fund slumped 22.8% last week.
Goldman Sachs indicated that several large hedge funds have recently reduced exposure to leading AI infrastructure companies after building sizable positions earlier in the year, per the above-mentioned Reuters source.
According to Walter Todd, chief investment officer at Greenwood Capital, many investors had become overly confident that AI-related stocks would continue climbing. Those who borrowed money to buy these names may now be facing margin calls as prices decline.
Investors Rotate Rather Than Exit AI: How to Trade AI Now? Despite the volatility, market participants do not appear to be abandoning AI investments altogether. Options activity also suggested bargain hunting. Several semiconductor names, including SK Hynix, Micron Technology and SanDisk, attracted bullish options trades in recent sessions.
Should You Be Selective in AI Trades?U.S.-listed shares of SK Hynix briefly traded below their offering price before recovering to finish modestly higher on Friday. So, Direxion Daily SK Hynix Bull 2X ETF (SKHL), Leverage Shares 2x Long SK Hynix Daily ETF (SKHX) and T-REX 2X Long SKHY Daily Target ETF (HYNX) could be options to play (read: Tap SK Hynix's Memory Leadership With These New Leveraged ETFs).
Note that 16 single-stock leverage products tied to Samsung Electronics and SK Hynix, including two inverse products, fetched about 7 trillion won over one month, as quoted on Seoul Economics Daily. So, who says AI trade is dead?
Micron’s (MU - Free Report) underperformance last Friday was respectable as the stock slipped only 0.5%. The company has already reported Q2 results, with earnings up 1350.1% on 345.7% higher revenues. So, MU-heavy ETFs like iShares MSCI USA Value Factor ETF (VLUE - Free Report) , Strive U.S. Semiconductor ETF (SHOC - Free Report) and Global X AI Semiconductor & Quantum ETF (CHPX - Free Report) should be in focus.
Earnings Paint the True Story of AI Companies The Q2 earnings season has started strong. Many S&P 500 companies will report over the coming weeks. Two companies — Micron and NVIDIA — are significant contributors to the Tech sector's robust growth expectations, per the Earnings Trends.
Barring the contribution from Micron and NVIDIA, Q2 earnings for the rest of the Zacks Tech sector would be up 25.3% (vs. 48.8% otherwise). Hence, although NVIDIA is down 3.7% over the past month, one can consider this a buying opportunity. VanEck Fabless Semiconductor ETF (SMHX - Free Report) and VanEck Semiconductor ETF (SMH - Free Report) are some NVDA-heavy ETFs.
Bottom LineAI mania is not over yet. What’s happening currently is a valuation correction. Despite the immense demand for memory, the Roundhill Memory ETF (DRAM - Free Report) lost 8.3% last week and more than 30% past month. Even with these selloffs, the DRAM ETF is still up about 90% this year.
So, recent corrections can be seen as healthy. Investors can take this as a buying opportunity as long as the AI boom remains in place (read: Memory Stocks & ETF DRAM in Bear Market: Time to Buy the Dip?).
UBS's June warning to "reduce risk meaningfully" in AI‑linked semi stocks landed in one of the most crowded trades in the market, and the past month has delivered enough volatility to judge it on more than vibes.
Boston Common Asset Management LLC decreased its stake in Micron Technology, Inc. (NASDAQ:MU – Free Report) by 10.5% in the first quarter, according to its most recent filing with the Securities & Exchange Commission. The firm owned 18,864 shares of the semiconductor manufacturer’s stock after selling 2,211 shares during the quarter. Boston Common Asset Management LLC’s holdings in Micron Technology were worth $6,373,000 as of its most recent filing with the Securities & Exchange Commission.
Other institutional investors have also recently bought and sold shares of the company. AlphaCentric Advisors LLC purchased a new stake in Micron Technology during the first quarter valued at about $102,000. Planning Alternatives Ltd. ADV acquired a new position in shares of Micron Technology in the first quarter worth about $233,000. Eaton Cambridge Inc. purchased a new position in shares of Micron Technology in the first quarter worth approximately $292,000. Trivest Advisors Ltd increased its position in shares of Micron Technology by 28.1% in the first quarter. Trivest Advisors Ltd now owns 784,100 shares of the semiconductor manufacturer’s stock worth $264,900,000 after acquiring an additional 172,100 shares in the last quarter. Finally, True North Advisors LLC increased its position in shares of Micron Technology by 14.3% in the first quarter. True North Advisors LLC now owns 5,585 shares of the semiconductor manufacturer’s stock worth $1,887,000 after acquiring an additional 697 shares in the last quarter. Hedge funds and other institutional investors own 80.84% of the company’s stock.
Wall Street Analysts Forecast Growth MU has been the subject of several research analyst reports. Morgan Stanley upped their price target on shares of Micron Technology from $1,050.00 to $1,200.00 and gave the company an “overweight” rating in a research report on Thursday, June 25th. The Goldman Sachs Group lifted their price objective on shares of Micron Technology from $900.00 to $1,100.00 and gave the stock a “neutral” rating in a research report on Thursday, June 25th. Mizuho boosted their target price on shares of Micron Technology from $1,150.00 to $1,375.00 and gave the company an “outperform” rating in a research note on Thursday, June 25th. Wolfe Research set a $1,500.00 target price on Micron Technology in a report on Thursday, June 25th. Finally, Needham & Company LLC increased their target price on Micron Technology from $1,550.00 to $1,650.00 and gave the company a “buy” rating in a report on Thursday, June 25th. Four equities research analysts have rated the stock with a Strong Buy rating, thirty have given a Buy rating and three have given a Hold rating to the company. According to MarketBeat.com, the stock currently has a consensus rating of “Buy” and a consensus price target of $1,268.93.
Read Our Latest Stock Report on MU
Micron Technology Stock Performance MU stock opened at $848.95 on Monday. The firm has a 50 day simple moving average of $949.46 and a 200 day simple moving average of $602.10. Micron Technology, Inc. has a 52 week low of $103.38 and a 52 week high of $1,255.00. The stock has a market cap of $958.80 billion, a P/E ratio of 19.22 and a beta of 2.14. The company has a debt-to-equity ratio of 0.05, a quick ratio of 2.98 and a current ratio of 3.42.
Micron Technology (NASDAQ:MU – Get Free Report) last released its quarterly earnings data on Wednesday, June 24th. The semiconductor manufacturer reported $25.11 earnings per share for the quarter, beating the consensus estimate of $21.39 by $3.72. Micron Technology had a net margin of 55.91% and a return on equity of 71.13%. The firm had revenue of $41.46 billion for the quarter, compared to analyst estimates of $35.91 billion. During the same quarter in the prior year, the business earned $1.91 EPS. The company’s revenue for the quarter was up 345.8% compared to the same quarter last year. Micron Technology has set its Q4 2026 guidance at 30.000-32.000 EPS. Research analysts anticipate that Micron Technology, Inc. will post 72.93 earnings per share for the current fiscal year.
Micron Technology Announces Dividend The business also recently declared a quarterly dividend, which will be paid on Tuesday, July 21st. Stockholders of record on Monday, July 6th will be paid a $0.15 dividend. The ex-dividend date of this dividend is Monday, July 6th. This represents a $0.60 dividend on an annualized basis and a dividend yield of 0.1%. Micron Technology’s dividend payout ratio is 1.36%.
Insider Transactions at Micron Technology In related news, Director Lynn A. Dugle sold 1,300 shares of the stock in a transaction on Tuesday, June 30th. The stock was sold at an average price of $1,150.43, for a total transaction of $1,495,559.00. Following the completion of the sale, the director directly owned 17,728 shares in the company, valued at approximately $20,394,823.04. This trade represents a 6.83% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, Director Steven J. Gomo sold 2,000 shares of Micron Technology stock in a transaction on Monday, May 11th. The shares were sold at an average price of $787.03, for a total value of $1,574,060.00. Following the sale, the director directly owned 17,139 shares of the company’s stock, valued at approximately $13,488,907.17. The trade was a 10.45% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 163,300 shares of company stock valued at $152,667,204 in the last three months. 0.24% of the stock is currently owned by insiders.
Key Headlines Impacting Micron Technology Here are the key news stories impacting Micron Technology this week:
Positive Sentiment: Micron continues to benefit from AI infrastructure spending, with multiple articles highlighting strong demand for advanced memory and storage as a long-term growth driver. Positive Sentiment: Analysts at KeyCorp reiterated an Overweight view and a $1,750 price target, signaling continued Wall Street confidence in Micron’s earnings power. Positive Sentiment: Recent coverage says Micron’s lower valuation, strong returns, and light debt load may make it more attractive than peers such as TSMC as an AI semiconductor investment. Positive Sentiment: Micron also announced long-term automotive supply agreements, expanding its AI-memory opportunity beyond data centers into next-generation vehicles. Neutral Sentiment: The stock is being described as highly volatile, with some analysts framing Micron as a momentum name that can swing sharply in either direction as sentiment around AI changes. Neutral Sentiment: Several recent commentaries argue the latest drop may be technical and sentiment-driven, creating a different risk-reward setup than Micron had a month ago. Micron: Things Change Negative Sentiment: Micron is falling alongside other chip stocks as investors rotate out of AI and momentum names, pressuring the whole semiconductor group. Negative Sentiment: Fresh concerns about future memory pricing, including reports of Chinese competitor CXMT preparing a large IPO and CoreWeave exploring hedges against falling memory costs, are weighing on sentiment. Negative Sentiment: Micron’s recent sharp pullback has revived worries that the memory cycle may be peaking, even though several bullish articles argue the long-term demand story remains intact. About Micron Technology (Free Report)
Micron Technology, Inc is a global semiconductor company that designs and manufactures memory and storage solutions. Its product portfolio includes dynamic random-access memory (DRAM), NAND flash memory, solid-state drives (SSDs), memory modules and embedded memory solutions for a wide range of computing and electronic devices. Micron supplies components used in data centers, enterprise and cloud infrastructure, client computing, mobile devices, automotive systems and industrial applications, and also markets consumer-facing products under the Crucial brand.
Founded in 1978 and headquartered in Boise, Idaho, Micron has grown into an international manufacturer with research, development and production facilities across multiple regions.
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Eaton Cambridge Inc. bought a new stake in shares of Micron Technology, Inc. (NASDAQ:MU – Free Report) during the first quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The fund bought 864 shares of the semiconductor manufacturer’s stock, valued at approximately $292,000.
Other hedge funds also recently bought and sold shares of the company. High Note Wealth LLC lifted its position in shares of Micron Technology by 65.4% in the fourth quarter. High Note Wealth LLC now owns 86 shares of the semiconductor manufacturer’s stock valued at $25,000 after acquiring an additional 34 shares in the last quarter. Elevation Wealth Partners LLC grew its position in shares of Micron Technology by 295.8% during the fourth quarter. Elevation Wealth Partners LLC now owns 95 shares of the semiconductor manufacturer’s stock worth $27,000 after purchasing an additional 71 shares in the last quarter. Kohmann Bosshard Financial Services LLC purchased a new stake in shares of Micron Technology during the first quarter worth about $27,000. Steigerwald Gordon & Koch Inc. raised its stake in Micron Technology by 4,800.0% during the 4th quarter. Steigerwald Gordon & Koch Inc. now owns 98 shares of the semiconductor manufacturer’s stock valued at $28,000 after purchasing an additional 96 shares during the period. Finally, Bayban bought a new stake in Micron Technology during the 4th quarter valued at approximately $29,000. Institutional investors own 80.84% of the company’s stock.
More Micron Technology News Here are the key news stories impacting Micron Technology this week:
Positive Sentiment: Micron continues to benefit from AI infrastructure spending, with multiple articles highlighting strong demand for advanced memory and storage as a long-term growth driver. Positive Sentiment: Analysts at KeyCorp reiterated an Overweight view and a $1,750 price target, signaling continued Wall Street confidence in Micron’s earnings power. Positive Sentiment: Recent coverage says Micron’s lower valuation, strong returns, and light debt load may make it more attractive than peers such as TSMC as an AI semiconductor investment. Positive Sentiment: Micron also announced long-term automotive supply agreements, expanding its AI-memory opportunity beyond data centers into next-generation vehicles. Neutral Sentiment: The stock is being described as highly volatile, with some analysts framing Micron as a momentum name that can swing sharply in either direction as sentiment around AI changes. Neutral Sentiment: Several recent commentaries argue the latest drop may be technical and sentiment-driven, creating a different risk-reward setup than Micron had a month ago. Micron: Things Change Negative Sentiment: Micron is falling alongside other chip stocks as investors rotate out of AI and momentum names, pressuring the whole semiconductor group. Negative Sentiment: Fresh concerns about future memory pricing, including reports of Chinese competitor CXMT preparing a large IPO and CoreWeave exploring hedges against falling memory costs, are weighing on sentiment. Negative Sentiment: Micron’s recent sharp pullback has revived worries that the memory cycle may be peaking, even though several bullish articles argue the long-term demand story remains intact. Micron Technology Price Performance Shares of Micron Technology stock opened at $848.95 on Monday. The stock has a 50 day moving average of $949.46 and a 200 day moving average of $602.10. Micron Technology, Inc. has a 12 month low of $103.38 and a 12 month high of $1,255.00. The firm has a market cap of $958.80 billion, a PE ratio of 19.22 and a beta of 2.14. The company has a current ratio of 3.42, a quick ratio of 2.98 and a debt-to-equity ratio of 0.05.
Micron Technology (NASDAQ:MU – Get Free Report) last released its quarterly earnings data on Wednesday, June 24th. The semiconductor manufacturer reported $25.11 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $21.39 by $3.72. The business had revenue of $41.46 billion for the quarter, compared to the consensus estimate of $35.91 billion. Micron Technology had a return on equity of 71.13% and a net margin of 55.91%.The company’s revenue was up 345.8% compared to the same quarter last year. During the same quarter in the previous year, the company posted $1.91 EPS. Micron Technology has set its Q4 2026 guidance at 30.000-32.000 EPS. On average, research analysts expect that Micron Technology, Inc. will post 72.93 EPS for the current fiscal year.
Micron Technology Announces Dividend The firm also recently declared a quarterly dividend, which will be paid on Tuesday, July 21st. Investors of record on Monday, July 6th will be given a $0.15 dividend. This represents a $0.60 annualized dividend and a yield of 0.1%. The ex-dividend date is Monday, July 6th. Micron Technology’s payout ratio is currently 1.36%.
Insider Buying and Selling at Micron Technology In other Micron Technology news, CEO Sanjay Mehrotra sold 28,506 shares of the stock in a transaction on Friday, June 26th. The shares were sold at an average price of $1,149.28, for a total transaction of $32,761,375.68. Following the completion of the transaction, the chief executive officer owned 355,997 shares in the company, valued at $409,140,232.16. This trade represents a 7.41% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, Director Lynn A. Dugle sold 1,300 shares of Micron Technology stock in a transaction on Tuesday, June 30th. The stock was sold at an average price of $1,150.43, for a total transaction of $1,495,559.00. Following the completion of the transaction, the director directly owned 17,728 shares of the company’s stock, valued at $20,394,823.04. The trade was a 6.83% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 163,300 shares of company stock worth $152,667,204 in the last ninety days. Company insiders own 0.24% of the company’s stock.
Analyst Upgrades and Downgrades A number of research firms recently commented on MU. Wolfe Research set a $1,500.00 price target on Micron Technology in a research note on Thursday, June 25th. Stifel Nicolaus increased their price objective on shares of Micron Technology from $550.00 to $1,500.00 and gave the company a “buy” rating in a report on Thursday, June 18th. Erste Group Bank upgraded shares of Micron Technology from a “hold” rating to a “buy” rating in a research report on Thursday, June 25th. Wedbush boosted their target price on shares of Micron Technology from $1,300.00 to $1,400.00 and gave the stock an “outperform” rating in a report on Thursday, June 25th. Finally, Weiss Ratings restated a “buy (b)” rating on shares of Micron Technology in a research report on Tuesday, May 12th. Four research analysts have rated the stock with a Strong Buy rating, thirty have assigned a Buy rating and three have issued a Hold rating to the stock. According to MarketBeat, the company has an average rating of “Buy” and an average target price of $1,268.93.
Check Out Our Latest Research Report on Micron Technology
About Micron Technology (Free Report)
Micron Technology, Inc is a global semiconductor company that designs and manufactures memory and storage solutions. Its product portfolio includes dynamic random-access memory (DRAM), NAND flash memory, solid-state drives (SSDs), memory modules and embedded memory solutions for a wide range of computing and electronic devices. Micron supplies components used in data centers, enterprise and cloud infrastructure, client computing, mobile devices, automotive systems and industrial applications, and also markets consumer-facing products under the Crucial brand.
Founded in 1978 and headquartered in Boise, Idaho, Micron has grown into an international manufacturer with research, development and production facilities across multiple regions.
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Dimensional Fund Advisors LP increased its stake in shares of Micron Technology, Inc. (NASDAQ:MU – Free Report) by 1.3% in the first quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The institutional investor owned 6,967,065 shares of the semiconductor manufacturer’s stock after purchasing an additional 86,488 shares during the quarter. Micron Technology makes up approximately 0.5% of Dimensional Fund Advisors LP’s holdings, making the stock its 16th largest holding. Dimensional Fund Advisors LP owned 0.62% of Micron Technology worth $2,352,282,000 at the end of the most recent reporting period.
Several other institutional investors have also recently added to or reduced their stakes in the company. High Note Wealth LLC boosted its stake in shares of Micron Technology by 65.4% during the 4th quarter. High Note Wealth LLC now owns 86 shares of the semiconductor manufacturer’s stock worth $25,000 after purchasing an additional 34 shares during the last quarter. Elevation Wealth Partners LLC raised its position in shares of Micron Technology by 295.8% in the fourth quarter. Elevation Wealth Partners LLC now owns 95 shares of the semiconductor manufacturer’s stock valued at $27,000 after buying an additional 71 shares during the last quarter. Kohmann Bosshard Financial Services LLC purchased a new position in shares of Micron Technology during the first quarter valued at approximately $27,000. Steigerwald Gordon & Koch Inc. lifted its stake in shares of Micron Technology by 4,800.0% during the fourth quarter. Steigerwald Gordon & Koch Inc. now owns 98 shares of the semiconductor manufacturer’s stock valued at $28,000 after buying an additional 96 shares during the period. Finally, Bayban acquired a new stake in Micron Technology during the fourth quarter worth approximately $29,000. Institutional investors and hedge funds own 80.84% of the company’s stock.
Micron Technology Stock Performance NASDAQ:MU opened at $848.95 on Monday. The company has a market cap of $958.80 billion, a P/E ratio of 19.22 and a beta of 2.14. The firm’s 50 day moving average is $949.46 and its two-hundred day moving average is $602.10. Micron Technology, Inc. has a fifty-two week low of $103.38 and a fifty-two week high of $1,255.00. The company has a quick ratio of 2.98, a current ratio of 3.42 and a debt-to-equity ratio of 0.05.
Micron Technology (NASDAQ:MU – Get Free Report) last announced its quarterly earnings results on Wednesday, June 24th. The semiconductor manufacturer reported $25.11 EPS for the quarter, topping the consensus estimate of $21.39 by $3.72. The company had revenue of $41.46 billion during the quarter, compared to analyst estimates of $35.91 billion. Micron Technology had a return on equity of 71.13% and a net margin of 55.91%.The firm’s revenue was up 345.8% on a year-over-year basis. During the same period in the prior year, the firm posted $1.91 earnings per share. Micron Technology has set its Q4 2026 guidance at 30.000-32.000 EPS. Analysts expect that Micron Technology, Inc. will post 72.93 EPS for the current year.
Micron Technology Announces Dividend The firm also recently announced a quarterly dividend, which will be paid on Tuesday, July 21st. Stockholders of record on Monday, July 6th will be paid a dividend of $0.15 per share. This represents a $0.60 annualized dividend and a dividend yield of 0.1%. The ex-dividend date is Monday, July 6th. Micron Technology’s dividend payout ratio is 1.36%.
Analyst Upgrades and Downgrades Several research firms have commented on MU. Citigroup lifted their target price on shares of Micron Technology from $1,200.00 to $1,400.00 and gave the stock a “buy” rating in a research note on Thursday, June 25th. Bank of America increased their price target on Micron Technology from $950.00 to $1,500.00 and gave the stock a “buy” rating in a research note on Tuesday, June 23rd. Barclays raised their price objective on Micron Technology from $1,175.00 to $2,000.00 and gave the stock an “overweight” rating in a report on Thursday, June 25th. Deutsche Bank Aktiengesellschaft lifted their price objective on Micron Technology from $1,500.00 to $1,550.00 and gave the company a “buy” rating in a research report on Thursday, June 25th. Finally, Melius Research initiated coverage on Micron Technology in a research note on Monday, April 27th. They issued a “buy” rating and a $700.00 target price for the company. Four equities research analysts have rated the stock with a Strong Buy rating, thirty have given a Buy rating and three have given a Hold rating to the company’s stock. According to MarketBeat.com, the company currently has a consensus rating of “Buy” and an average target price of $1,268.93.
Check Out Our Latest Analysis on Micron Technology
Insider Activity at Micron Technology In related news, EVP April S. Arnzen sold 40,000 shares of the business’s stock in a transaction dated Wednesday, July 1st. The stock was sold at an average price of $1,083.94, for a total value of $43,357,600.00. Following the completion of the sale, the executive vice president directly owned 85,737 shares of the company’s stock, valued at $92,933,763.78. The trade was a 31.81% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. Also, CEO Sanjay Mehrotra sold 40,000 shares of the company’s stock in a transaction that occurred on Friday, May 1st. The shares were sold at an average price of $536.26, for a total value of $21,450,400.00. Following the sale, the chief executive officer owned 424,503 shares in the company, valued at $227,643,978.78. The trade was a 8.61% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last three months, insiders sold 163,300 shares of company stock worth $152,667,204. 0.24% of the stock is currently owned by company insiders.
Key Stories Impacting Micron Technology Here are the key news stories impacting Micron Technology this week:
Positive Sentiment: Micron continues to benefit from AI infrastructure spending, with multiple articles highlighting strong demand for advanced memory and storage as a long-term growth driver. Positive Sentiment: Analysts at KeyCorp reiterated an Overweight view and a $1,750 price target, signaling continued Wall Street confidence in Micron’s earnings power. Positive Sentiment: Recent coverage says Micron’s lower valuation, strong returns, and light debt load may make it more attractive than peers such as TSMC as an AI semiconductor investment. Positive Sentiment: Micron also announced long-term automotive supply agreements, expanding its AI-memory opportunity beyond data centers into next-generation vehicles. Neutral Sentiment: The stock is being described as highly volatile, with some analysts framing Micron as a momentum name that can swing sharply in either direction as sentiment around AI changes. Neutral Sentiment: Several recent commentaries argue the latest drop may be technical and sentiment-driven, creating a different risk-reward setup than Micron had a month ago. Micron: Things Change Negative Sentiment: Micron is falling alongside other chip stocks as investors rotate out of AI and momentum names, pressuring the whole semiconductor group. Negative Sentiment: Fresh concerns about future memory pricing, including reports of Chinese competitor CXMT preparing a large IPO and CoreWeave exploring hedges against falling memory costs, are weighing on sentiment. Negative Sentiment: Micron’s recent sharp pullback has revived worries that the memory cycle may be peaking, even though several bullish articles argue the long-term demand story remains intact. Micron Technology Company Profile (Free Report)
Micron Technology, Inc is a global semiconductor company that designs and manufactures memory and storage solutions. Its product portfolio includes dynamic random-access memory (DRAM), NAND flash memory, solid-state drives (SSDs), memory modules and embedded memory solutions for a wide range of computing and electronic devices. Micron supplies components used in data centers, enterprise and cloud infrastructure, client computing, mobile devices, automotive systems and industrial applications, and also markets consumer-facing products under the Crucial brand.
Founded in 1978 and headquartered in Boise, Idaho, Micron has grown into an international manufacturer with research, development and production facilities across multiple regions.
Featured Articles Five stocks we like better than Micron Technology Strait of Hormuz Tensions Spike Tanker Trade: These 2 Stocks Are Set to Benefit Shopify’s Quiet AI Strategy Could Be Its Biggest Advantage Yet Why These 3 Nuclear ETFs Are Getting a Fresh Look as AI Power Demand Rises 3 Aerospace Suppliers That Could Benefit as Aircraft Makers Face Bottlenecks 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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NEW YORK--(BUSINESS WIRE)---- $MU #NASDAQ--Scott+Scott Attorneys at Law LLP has launched an urgent investigation into whether certain officers and directors of Micron Technology, Inc. (NASDAQ: MU) failed to manage Micron in an acceptable manner, breaching their fiduciary duties to Micron, and whether Micron and its shareholders have suffered damages as a result. Attorney Joseph A. Pettigrew is heading the investigation—what shareholders need to know:On June 25, 2026, a consumer class action complaint was filed.
Micron (MU +0.04%) has been an incredible performer this year, with the stock tripling. However, it has sold off by more than 25% in recent weeks as fears grow regarding the health of its business. While it's fair to be cautious, Micron has already told investors that there's no need to fear due to the long-term outlook.
Micron informed investors during its latest earnings call that it expects "tightness" in the memory chip market to last beyond 2027, which should ease some fears. That language, combined with the sell-off, makes Micron a great stock to buy now. If you missed out on some of its initial run-up, now could be a perfect second chance.
Image source: The Motley Fool.
The memory chip market is cyclical Investors are a bit cautious about buying too much into Micron's future because of the nature of its business. Micron is a memory chip fabricator, making NAND and DRAM. There is always demand for these products, as memory chips are important parts of every computing system, be it a data center, smartphone, or laptop. However, there isn't a ton that sets one manufacturer's memory chip apart from another's, so the market is fairly commoditized. With AI data center build-outs causing a historic spike in demand, Micron and its peers don't have the production capacity to meet it. As a result, memory chip prices have skyrocketed, making everything more expensive in the computing industry.
Micron and its peers are the primary beneficiaries of those rising memory chip prices, and this has translated into jaw-dropping revenue and earnings growth for Micron.
MU Revenue (Quarterly YoY Growth) data by YCharts.
It isn't done there, either. Wall Street expects 81% revenue growth in the company's next fiscal year. However, all of the memory makers are building new foundries, so supplies will eventually grow. At some point, the shortage should ease. It could also turn into a glut, which would crash memory chip prices and put Micron's investment thesis in peril. That's why the market is hesitant to bid the stock to a higher valuation, but knowing that the memory chip market supply will remain tight beyond 2027 should ease investors' concerns for the next couple of years.
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The market will eventually come back around to Micron's stock, although it could take a bit of time. In the meantime, Micron's stock is priced at a pretty cheap 11.6 times expected earnings for its fiscal year 2026 (which ends in August) and 5.7 times expected fiscal 2027 earnings. Those prices appear cheap, but if the memory market crashes, they may actually look expensive. However, with a rosy outlook for at least another year and a half, I think investors are fine to scoop up Micron's stock. Still, they'll have to continue monitoring market conditions and be willing to sell once some of the demand pressure in the memory chip market is alleviated.
Micron and SanDisk shares rebounded in the early premarket trading on Monday after a bruising semiconductor sell-off forced investors to reassess one of the most crowded parts of the artificial intelligence trade.
At 5:45 am ET, Micron (NASDAQ: MU) was up more than 3%, while SanDisk (NASDAQ: SNDK) had gained about 2.5%, according to market data, as investors attempted to buy the dip following last week’s sharp sell-off.
The reversal captures the debate confronting memory investors: did last week’s rout create an attractive entry point, or is the market beginning to anticipate the next downturn in a notoriously cyclical industry?
The rebound followed a punishing week for AI hardware as the Philadelphia Semiconductor Index dropped 1.6% on Friday and entered a bear market after falling more than 20% from its June peak.
Micron ended the week roughly 30% below its June record, while SanDisk had retreated more than 28% from its June 25 high.
SanDisk stock rose by more than 600% in 2026, underscoring how far expectations and valuations had run before the correction.
That reset encouraged traders to revisit companies still benefiting from constrained supply and rising prices.
JPMorgan cross-asset strategist Fabio Bassi described the chip decline as a temporary “wobble”, rather than the end of the AI rally, in comments reported by The Wall Street Journal.
Bassi said memory stocks had become highly concentrated positions, allowing small changes in sentiment to produce unusually large moves.
Demand for the computing capacity required by AI, however, remained strong.
That helps explain why Monday’s buyers emerged quickly, even though the broader valuation and spending concerns behind Friday’s rout had not disappeared.
The fundamental argument has not disappeared.
KeyBanc analyst John Vinh said “memory shortages remain persistent” after supply-chain checks in Asia. Vinh expects tight conditions through 2027.
KeyBanc forecasts DRAM prices will rise 15% to 20% sequentially in the third quarter and another 15% in the fourth. NAND prices could jump 30% to 40% this quarter, followed by another 15% increase.
Micron is heavily exposed to DRAM and high-bandwidth memory used alongside AI accelerators.
SanDisk is centred on NAND flash and enterprise solid-state drives, which store and retrieve the datasets used in AI workloads.
Evercore ISI analyst Amit Daryanani told clients that SanDisk’s long-term customer agreements were creating a “new memory paradigm.”
Those contracts improve visibility into revenue, earnings and cash flow while clean-room capacity remains constrained.
The same shortage supporting prices is encouraging enormous investment.
Samsung and SK Hynix have outlined hundreds of billions of dollars in new manufacturing projects, while Micron recently raised its planned United States investment to more than $250 billion through 2035.
That spending will take years to affect output, but it revives memories of previous cycles when shortages triggered overbuilding and falling prices.
China’s ChangXin Memory Technologies is another concern.
Morgan Stanley estimates China could provide about 30% of net DRAM wafer additions through 2028.
Higher memory prices may also become self-defeating.
Costlier DRAM, HBM and NAND raise the expense of AI infrastructure, increasing pressure on hyperscalers already being asked to prove returns on huge capital budgets.
As Micron Technology, Inc. (Nasdaq: MU) stock experienced selling pressure over the past 30 days, a $1,000 investment in the company a month ago is now down by a double-digit percentage.
A $1,000 investment in MU stock on June 22 is worth approximately $726.85 at the time of reporting, as Micron shares traded at around $880.5 on Monday, July 20, during the pre-market session. Over the past 30 days, MU shares have declined nearly 30%, down from $1,211.38 on June 22.
MU stock 30-day chart. Source: Finbold A month ago, $1,000 fetched about 0.826 MU stock. However, Micron shares have been in a downward trend after confirming a reversal pattern characterized by a double top, lower lows, and lower highs.
As such, an investor who purchased Micron stock a month ago entered during a parabolic peak fueled by the AI boom. Furthermore, MU shares could be in a bear market alongside semiconductor stocks, as Finbold reported.
Already, several analysts, including investment strategist David Woo, have predicted an imminent AI stock market crash over the coming months, as Finbold highlighted.
MU stock forecast amid AI bubble burst fears As Micron stock valuation hovered near $958.8 billion ahead of this week’s Micron dividend payout, Wall Street analysts remained bullish on the company in the long haul. Moreover, 30 Wall Street analysts surveyed by TipRanks have set an average 12-month target of $1,569.29, signaling a potential 84.85% upside.
MU stock forecast. Source: TipRanks In the near term, the Finbold AI Agent – an advanced financial assistance tool – predicted further MU stock sell-off. Specifically, the Finbold AI Agent predicted that MU shares could drop by 11.93% over the next 30 days, reaching $747.75 on August 19, 2026.
MU shares AI forecast. Source: Finbold As such, a $1,000 investment in Micron stock a month ago could incur further losses over the next 30 days if the AI price forecast is met. However, the same portfolio could rebound to profitability over the next 12 months if the average price target from Wall Street analysts is reached.
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Making its debut on 05/08/2007, smart beta exchange traded fund First Trust Large Cap Growth AlphaDEX ETF (FTC - Free Report) provides investors broad exposure to the Style Box - Large Cap Growth category of the market.
What Are Smart Beta ETFs?The ETF industry has traditionally been dominated by products based on market capitalization weighted indexes that are designed to represent the market or a particular segment of the market.
Investors who believe in market efficiency should consider market cap indexes, as they replicate market returns in a low-cost, convenient, and transparent way.
There are some investors, though, who think it's possible to beat the market with great stock selection; this group likely invests in another class of funds known as smart beta, which track non-cap weighted strategies.
Based on specific fundamental characteristics, or a combination of such, these indexes attempt to pick stocks that have a better chance of risk-return performance.
Methodologies like equal-weighting, one of the simplest options out there, fundamental weighting, and volatility/momentum based weighting are all choices offered to investors in this space, but not all of them can deliver superior returns.
Fund Sponsor & IndexThe fund is managed by First Trust Advisors. FTC has been able to amass assets over $1.3 billion, making it one of the average sized ETFs in the Style Box - Large Cap Growth. FTC, before fees and expenses, seeks to match the performance of the Nasdaq AlphaDEX Large Cap Growth Index.
The NASDAQ AlphaDEX Large Cap Growth Index is an enhanced index which employs the AlphaDEX stock selection methodology to select stocks from the NASDAQ US 500 Large Cap Growth Index.
Cost & Other ExpensesFor ETF investors, expense ratios are an important factor when considering a fund's return; in the long-term, cheaper funds actually have the ability to outperform their more expensive cousins if all other things remain the same.
Operating expenses on an annual basis are 0.58% for FTC, making it on par with most peer products in the space.
It's 12-month trailing dividend yield comes in at 0.15%.
Sector Exposure and Top HoldingsEven though ETFs offer diversified exposure that minimizes single stock risk, investors should also look at the actual holdings inside the fund. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has heaviest allocation in the Information Technology sector - about 31% of the portfolio. Industrials and Consumer Discretionary round out the top three.
Taking into account individual holdings, Micron Technology, Inc. (MU) accounts for about 2.05% of the fund's total assets, followed by Sandisk Corporation (SNDK) and Dell Technologies Inc. (class C) (DELL).
The top 10 holdings account for about 15.15% of total assets under management.
Performance and RiskThe ETF has gained about 10.29% so far this year and is up roughly 15.41% in the last one year (as of 07/20/2026). In the past 52-week period, it has traded between $148.93 and $194.14
The fund has a beta of 1.13 and standard deviation of 19.12% for the trailing three-year period, which makes FTC a medium risk choice in this particular space. With about 188 holdings, it effectively diversifies company-specific risk .
AlternativesFirst Trust Large Cap Growth AlphaDEX ETF is an excellent option for investors seeking to outperform the Style Box - Large Cap Growth segment of the market. There are other ETFs in the space which investors could consider as well.
Vanguard Growth Index Fund ETF Shares (VUG) tracks CRSP U.S. Large Cap Growth Index and the Invesco QQQ (QQQ) tracks NASDAQ-100 Index. Vanguard Growth Index Fund ETF Shares has $220.64 billion in assets, Invesco QQQ has $465.53 billion. VUG has an expense ratio of 0.03% and QQQ changes 0.18%.
Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the Style Box - Large Cap Growth
Bottom LineTo learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
When the artificial intelligence (AI) boom started gathering momentum in early 2023, Micron Technology (MU +0.04%) stock was trading at around $50. Last month, it peaked at $1,213, representing a staggering 2,070% gain over the past three and a half years.
Micron's high-bandwidth memory (HBM) for the data center is a critical component in the AI hardware stack, and demand currently exceeds supply, which is driving explosive growth in the company's revenue and earnings. However, recent reports suggest some businesses are curbing their AI software spending, which could affect future demand for chips and other hardware components.
As a result, Micron stock has plummeted by 30% from its recent high and closed at $848 on Friday, July 17. Should investors buy it while it's trading under $1,000? Read on for the surprising answer.
Image source: Getty Images.
Micron's HBM is crucial to the AI revolution AI training and inference workloads require an astronomical amount of computing power, which is delivered by specialized data center chips called graphics processing units (GPUs). HBM stores information in a ready state for when GPUs are ready to process it, which keeps workloads flowing smoothly. Without sufficient memory capacity, GPUs would have to pause while they wait for more data, creating a sluggish experience for anyone using an AI chatbot or agent.
Micron recently started shipping its new HBM4 chips for the data center, which provide a 60% increase in capacity and a 20% improvement in energy efficiency over its previous HBM3E chips. In other words, HBM4 is designed to maximize processing speeds and minimize costs, which is why Nvidia has adopted this solution for its new Vera Rubin GPU systems.
The market for data center HBM was worth $35 billion last year, but Micron expects it to nearly triple to $100 billion by 2028, so this is a significant financial opportunity. But it isn't Micron's only opportunity in the AI space, because it also supplies memory and storage chips for personal computers, smartphones, cars, and even robots.
AI models are slowly becoming more efficient, so computers and smartphones can run them locally without relying on external computing power from data centers, as long as they have an appropriate amount of memory. Furthermore, the average car with even basic autonomous driving capabilities needs more than five times the memory capacity of a regular car -- and Micron says humanoid robots need 10 times more memory than the average autonomous car.
Simply put, this could be one of the longest demand cycles for memory that Micron has ever experienced, so its stock looks like a screaming buy from that perspective. But there is room for caution, and I'll explain why in a moment.
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Micron's sales are growing at a mind-boggling rate Micron delivered a record $41.4 billion in revenue during its fiscal 2026 third quarter (ended May 28), a whopping 346% increase from the year-ago period. AI-related memory fueled that strong result across all four of the company's business segments, led by cloud memory, which contributed the most revenue thanks to booming HBM sales.
Micron's earnings also rocketed higher by 1,368% year over year to $24.67 per share during the quarter. Management's forecast for the current fourth quarter (which ends in late August) points to more record results, with $50 billion in revenue and $30.73 per share in earnings potentially in the cards.
The global memory shortage is giving Micron and its competitors the ability to dictate prices, which is significantly boosting the company's revenue and profit margins. But every major memory company is frantically building more manufacturing capacity, so supply will eventually catch up to demand, which will make it very difficult for the likes of Micron to maintain its current level of earnings. As a result, its stock isn't a clear-cut buy based on its recent financial results alone.
As memory supply inevitably increases over the next couple of years, it might run into a simultaneous decrease in demand. Soaring infrastructure costs have forced AI providers such as Anthropic and Microsoft to implement passive price increases for the use of their models and software, so many of their customers are rethinking their usage.
A recent survey from investment bank UBS Group found that 60% of businesses are curbing their AI spending by routing some tasks to cheaper, more efficient models. Even the biggest companies are feeling the pinch; Walmart, Amazon, and Uber Technologies have recently capped AI usage for their employees to prevent budget blowouts.
Uber's chief operating officer recently said it's getting harder to justify AI spending, after his company burned through its entire 2026 budget in just four months by using Anthropic's Claude Code. This doesn't bode well for long-term semiconductor demand.
Micron stock looks like a bargain given its price-to-earnings (P/E) ratio is just 19.2, making it substantially cheaper than the Nasdaq-100 index which has a P/E of 33.4. Plus, based on Wall Street's earnings estimate for fiscal 2027, Micron's forward P/E is just 5.6. In my opinion, that suggests investors aren't totally convinced the memory boom has legs, because a company growing this fast would normally command a premium valuation compared to the broader market, not a steep discount.
Micron stock could deliver a positive return from here over the next five years or so, once physical AI segments such as autonomous vehicles and robotics are commercialized at scale. But there could be some major volatility in the near term as additional memory supply comes online and the demand picture becomes more uncertain, so I'm in no hurry to buy Micron's recent dip.
Micron Technology (MU) is rated Buy, with upside driven by expanding HBM demand beyond Nvidia, particularly from hyperscaler custom AI accelerators. MU targets maintaining a ~22% HBM market share, matching its DRAM share, as custom ASICs become a larger HBM demand source. Micron's HBM4 is in volume production, with qualification samples sent to multiple customers, but a named non-Nvidia win remains a key inflection point.
Semiconductors have been one of the best-performing industries this year. The iShares Semiconductor ETF (SOXX 1.64%), which closely tracks the industry, is up a staggering 73.1% year-to-date (YTD) but is down over 20% from its June 22 all-time high.
Here's why semiconductor stocks are selling off, and why the Vanguard Information Technology ETF (VGT 1.00%) is a better buy than the iShares Semiconductor ETF.
Image source: Micron.
The memory chip bottleneck The all-time high in the iShares Semiconductor ETF occurred when many memory chip stocks, including Micron Technology (MU +0.04%) and Sandisk, hit all-time highs. Those rallies have been fueled by surging earnings growth.
Micron's stock price is up 629% in the past year. To the company's credit, its earnings are also up 483% -- with analysts projecting more room to run.
MU data by YCharts
AI workflows require massive amounts of computing power from logic chips such as graphics processing units (GPUs), central processing units (CPUs), and custom application-specific integrated circuits (ASICs) such as Alphabet's Tensor Processing Units. But high-powered AI computing clusters won't perform at optimal levels without memory chips such as high-bandwidth memory, a form of dynamic random-access memory.
The memory shortage has given Micron and others incredible pricing power that has fueled margin expansion and an earnings surge. Micron CEO Sanjay Mehrotra said the following on Micron's June earnings call:
AI systems are powered by GPU, ASIC, and CPU designs from an increasingly broad set of suppliers. However, they all share one important characteristic -- AI system performance is architecturally dependent on memory subsystem performance and capacity. This has given rise to a more complex memory hierarchy that is providing greater differentiation opportunities for Micron than at any time in our history. It has also elevated the role of memory in the AI world to a strategic asset.
The rapid increase in memory chip stocks has pole-vaulted Micron to one of the largest holdings in the iShares Semiconductor ETF, with a 7.6% weighting. Semiconductor equipment makers Applied Materials, KLA Corp., Lam Research, and ASML collectively make up 17.3% of the ETF, with all four stocks more than doubling in the past year.
In sum, the iShares Semiconductor ETF is heavily weighted toward stocks that have recently surged. But concentration is a double-edged sword, as high allocations to hot stocks have accelerated the sell-off in the iShares Semiconductor ETF over the last month.
iShares Trust - iShares Semiconductor ETF
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A better-structured growth stock ETF The semiconductor industry has also been a driving force behind the sustained outperformance of the tech sector relative to the S&P 500 (^GSPC 1.01%) and the Nasdaq-100 in recent years. In fact, semiconductors, semiconductor materials, and semiconductor equipment now make up 46.4% of the Vanguard Tech ETF, an ultra-low-cost ETF that tracks the broader tech sector.
There are plenty of reasons to buy the Vanguard Tech ETF over the iShares Semiconductor ETF. For starters, it sports a lower expense ratio of just 0.09%, compared with 0.34% for the iShares Semiconductor ETF.
Second, the Vanguard Tech ETF provides investors with exposure to key tech stocks such as Apple and Microsoft that aren't in the iShares Semiconductor ETF. And although other industries, such as software and hardware, have been lagging somewhat as of late, they have provided the Vanguard Tech ETF with greater diversification than the iShares Semiconductor ETF.
If the memory bottleneck is solved and a balance between supply and demand is restored, margins will compress for memory chip companies like Micron. The value could shift to companies building and using AI tools, rather than the companies providing AI computing, memory, networking, and infrastructure. So long-term investors may prefer to get exposure to the entire tech sector rather than betting on sustained momentum from semiconductor companies alone.
The size of non-semiconductor stocks such as Apple and Microsoft helps balance out the weightings of Vanguard Tech ETF components. Whereas rapid run-ups in certain stocks can shift the iShares Semiconductor ETF's balance. For example, Intel now holds a 5.4% weighting in the iShares Semiconductor ETF -- ahead of Taiwan Semiconductor at 4.4% -- even though Intel's market cap is $477.7 billion, compared with $2.07 trillion for Taiwan Semiconductor.
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A more balanced way to bet big on semiconductor stocks Investors seeking maximum semiconductor exposure may prefer the iShares Semiconductor ETF over the Vanguard Information Technology ETF. But given nearly half of the Vanguard Tech ETF is in semiconductor stocks, it stands out as a better buy for investors looking for a more balanced growth stock alternative with lower fees.
It's worth noting that the Vanguard Tech ETF still has significantly larger exposure to the memory chip boom than the Nasdaq-100 or S&P 500. Micron, for example, now makes up 5% of the Vanguard Tech ETF, compared with 4.3% of the Nasdaq-100 and 1.4% of the S&P 500.
All told, the Vanguard Tech ETF is an excellent way to get heightened exposure to semiconductor stocks without diving in headfirst with a pure-play industry fund like the iShares Semiconductor ETF.
Daniel Foelber has positions in ASML. The Motley Fool has positions in and recommends ASML, Alphabet, Apple, Applied Materials, Intel, KLA, Lam Research, Micron Technology, Microsoft, Taiwan Semiconductor Manufacturing, and iShares Trust-iShares Semiconductor ETF. The Motley Fool has a disclosure policy.
Micron Technology (MU +0.04%) trades about 30% below its 52-week high of $1,255 as of this writing, after memory stocks dragged the chip sector into a bear market this month. The sell-off has erased more than $400 billion of Micron's market value -- from a company that just guided for the biggest quarter in its history.
The whole chip complex is hurting. Global chip stocks have given up about $3.3 trillion of market value in about a month. But memory has taken the worst of it, with Micron and its Korean rivals Samsung and SK Hynix all down more than 20% from their highs.
The strange part? The underlying business has never been better.
Image source: Micron.
What the sell-off is pricing in Micron's results for its fiscal third quarter (the period ended May 28) were extraordinary. Revenue more than quadrupled year over year to $41.5 billion, up from $9.3 billion, driven by surging memory demand from AI (artificial intelligence) data centers. The company's two data-center-focused segments produced $25.3 billion of that revenue, up from about $4.9 billion a year earlier. Non-GAAP (adjusted) gross margin reached 84.9%, up from 39% a year earlier, and adjusted earnings per share came in at $25.11. Adjusted free cash flow hit a record $18.3 billion.
And management expects more. Guidance calls for about $50 billion of revenue in the fiscal fourth quarter, up roughly 21% sequentially, with a gross margin near 86% and adjusted earnings per share of about $31.
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So the sell-off isn't about the numbers. It's about how long numbers like these can last. Memory has always been a brutally cyclical business, and record margins have historically invited the same response: competitors add supply until prices crack. Investors appear to be betting that this quarter, or the next one, is the top of the cycle -- and that today's margins won't last.
The valuation shows just how much pessimism is baked in. At about $885 per share, Micron trades at roughly 20 times earnings and only about 7 times the annualized earnings implied by its own fiscal fourth-quarter guidance. Multiples that low are the market's way of saying it doesn't believe the earnings will stick.
That's the bet on both sides of this divergence. If memory pricing holds into 2027 as AI demand continues to outrun supply, the stock is cheap, and the bear market in memory shares will likely look like an overreaction. If this is the cycle's peak quarter, today's earnings are the trap the market suspects. For now, though, the slowdown the market is trading on shows up nowhere in the company's own numbers.
Daniel Sparks and his clients do not have positions in any of the stocks mentioned. The Motley Fool has positions in and recommends Micron Technology. The Motley Fool has a disclosure policy.
The artificial intelligence (AI) race is far from over, and plenty of cloud computing capacity still needs to be built to support it. AI isn't even close to being used everywhere yet, and the amount of computing capacity that will be necessary to handle an AI-first economy is hard to imagine.
I think that bodes well for a handful of companies, and those that stand to benefit from increased data center construction top the list of my favorite investments now. I think investors should consider loading up on Nvidia (NVDA 1.97%), Micron Technology (MU +0.04%), and Alphabet (GOOG 2.06%) (GOOGL 2.05%), since these three are bound to benefit from major AI spending increases.
Image source: Getty Images.
Nvidia Nvidia has been the big name in AI investing since the infrastructure-building boom kicked off in 2023: Its products sit at the center of nearly every data center constructed. Its GPUs have dominated the AI computing market for their flexibility and reliability, and countless companies choose them to run their workloads.
The chipmaker's dominance looks sustainable. It reported an 85% revenue increase last quarter, and Wall Street analysts project nearly 100% growth next quarter. All of that growth is without chip sales to China, and Nvidia could be able to reenter that market in a meaningful way soon.
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As a cherry on top, management has already told investors that it expects $1 trillion in data center capital expenditures (capex) from the big four AI hyperscalers next year, up from $650 billion this year. That's an indication that the data center construction trend is alive and well, which will benefit the other two companies on this list as well. Alphabet has also confirmed this on its end: It told investors to expect "significantly" higher capex in 2027.
Despite its incredible recent results and a rock-solid outlook, Nvidia trades for only 23.7 times forward earnings, just barely over the S&P 500's forward P/E ratio of 21.7.
NVDA PE Ratio (Forward), data by YCharts; PE = price to earnings.
That's a minor premium to pay for one of the best stocks in the market, and with long-term growth tailwinds, it's a no-brainer buy at these levels.
Micron Micron makes memory chips, which are in huge demand for AI data centers. More specifically, it makes NAND and DRAM memory, which have different use cases in servers. The company and its peers don't have sufficient production capacity to satisfy soaring demand, and constructing new foundries will take time. As a result, memory prices have skyrocketed, boosting Micron's revenue and profits.
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This trend will likely persist for some time. Micron management told investors that it foresees the "tightness" in the memory chip market lasting beyond 2027. That's great news for Micron investors and will lead to major profit and revenue increases over the next few years.
Trading at a mere 12.3 times forward earnings, it's a top AI stock to buy now.
Alphabet Micron and Nvidia are both beneficiaries of increased AI infrastructure spending, while Alphabet is one of the companies doing the major spending. In that light, it may seem like an odd inclusion on this list, but it's important to look at the bigger picture.
Alphabet isn't spending hundreds of billions of dollars a year on data centers for the fun of it. Instead, it's building a cloud computing empire where its clients run traditional and AI workloads on its servers. Last quarter, revenues from its Google Cloud segment soared 63% year over year, and with more computing capacity coming online each quarter, I would expect the rapid increases to continue for some time.
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That will boost the stock over the long term and transform the makeup of the business, since Google Cloud is growing so much faster than every other division. If Alphabet can keep up this growth rate and maintain its profit margins, its heavy spending on AI computing power will be justified, and investors will receive an incredible return. I think Alphabet is one of the best AI hyperscalers to own, and it makes plenty of sense to buy now.
Apple (AAPL +0.26%) recently raised prices on many of its devices to offset rising memory prices, but it may have found a fix for soaring costs. A recent CNBC report said the company is in talks with an AI start-up that reduces on-device memory demands by 15x.
Squeezing vastly more memory processing capabilities from the same amount of memory could be bad news for Micron Technology (MU +0.04%). Here's what both Apple and Micron investors should know.
Image source: The Motley Fool.
Apple is trying to fix a stubborn problem Apple recently increased the prices of many of its devices to keep pace with soaring memory costs. Demand for memory chips has risen sharply as tech giants continue their massive build-out of AI data centers.
Apple wants to keep the high margins it commands on its products. To maintain them amid rising memory chip costs, it raised its computer prices by $200 or more. And it could increase iPhone prices for the same reason later this year.
It's no wonder, then, that Apple is on the hunt for a fix for its memory problems. And it may have found it in an AI start-up called PrismML. The company says its technology reduces memory usage for AI models by up to 15x while delivering responses up to 8x faster.
There's no concrete deal or partnership between Apple and PrismML right now. Still, if Apple ends up using the technology, or something similar, it could help the company deliver advanced on-device Siri AI features without adding more expensive memory.
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Tech companies are very motivated to reduce memory costs Micron has enjoyed a surge in demand for memory for AI data centers, causing a shortage of memory processors. That shortage, in turn, has allowed Micron to charge more for its memory chips.
The result has been soaring profits for Micron, with non-GAAP (generally accepted accounting principles) earnings per share skyrocketing more than 1,200% to $25.11 per share in the third quarter of 2026.
If PrismML and Apple (or another company) eventually implement technology across tech devices that increased efficiency and reduces memory demand, it could threaten Micron's profit margins, which are currently at an enviable 74%.
Still, it's probably too early for investors to worry. For one, the technology would have to be implemented across a wide range of devices from many different tech companies for it to impact Micron's business.
What's more, and potentially most importantly, even if Apple and others implement more memory efficiencies, memory demand could still rise. The memory processor market is estimated to increase to more than $1 trillion next year, up from $230 billion in 2025.
Micron's management believes that autonomous vehicles and robotics will drive a new wave of demand for memory. In short, even if more efficient memory processing is around the corner, there are already growing tech markets that could keep demand high.
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Apple and Micron investors should watch this space I suspect we'll see a lot more technology in the next few years aimed at addressing memory demands. Apple has received a lot of attention for raising product prices, but all tech giants are feeling the effects of rising memory costs right now and are looking for a fix.
It's unlikely that Apple will want to continue making big price hikes for its devices. So, it'll either need to figure out how to make memory work more efficiently or absorb the rising costs. My money is on the former.
For Micron investors, the latest news is a good reminder that some of the impressive earnings growth the company has enjoyed likely won't last forever. I still think Micron has many long-term growth opportunities, but it's unrealistic to assume profit growth can maintain its rapidly accelerating pace.
Chip stocks have taken a hit this week, and Micron Technology (NASDAQ:MU | MU Price Prediction) sits at the center of the pullback. After a historic run through the first half of 2026, shares have surrendered ground on TSMC capex worries, Chinese competitor CXMT’s planned IPO, and chatter about potential HBM export controls.
Our 24/7 Wall St. price target for Micron is $928.59, implying 8.84% upside from Thursday’s close of $853.20. Recommendation: Buy at high confidence.
24/7 Wall St. Price Target Summary Metric Value Current Price $853.20 24/7 Wall St. Price Target $928.59 Upside 8.84% Recommendation BUY Confidence Level 90% A Blockbuster Quarter Followed by a Sharp Reset Micron is down 13.96% over the past week and 16.4% over the past month, yet still sits on a 199.12% year-to-date gain and trades 19% below its 52-week high of $1,254.81.
Fiscal Q3 2026, reported June 24, 2026, delivered revenue of $41.46 billion (up 345.7% year over year), non-GAAP EPS of $25.11, and gross margin of 84.9%. Q4 guidance points to $50 billion in revenue and roughly 86% gross margins. The selling reflects sentiment shifts while fundamentals remain strong.
The Case for $1,300 or Higher The bull case rests on a structural memory shortage. CEO Sanjay Mehrotra told analysts “DRAM and NAND industry demand continues to significantly exceed industry supply. We expect tight conditions to persist beyond calendar 2027.”
Micron has already shipped over $1 billion in HBM4 revenue, with 16 Strategic Customer Agreements covering roughly $100 billion in remaining performance obligations.
KeyBanc raised its target to $1,750 during the pullback. The bull scenario reaches $1,330.10 within twelve months, a 55.9% return if HBM pricing and SCA volumes track management’s plan.
The Risks Worth Watching The bear case starts with valuation reset risk. Alpha Vantage sentiment flagged Micron’s 8.2% drop on July 16 tied to CXMT’s $8.5 billion IPO and rumored HBM export restrictions. Micron disclosed a $325 million debt prepayment loss and $7.83 billion in Q3 capex, with full-year fiscal 2026 capex tracking to about $27 billion.
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Insider activity has skewed toward net selling. Bulls counter that capex funds cleanroom capacity for the 2027 tightness Mehrotra flagged, and SCA floor prices lock in “gross margins at the floor will be well beyond the peaks we experienced in prior cycles.” Our bear-case scenario points to $677.88.
How Micron Compares to Peers The cleanest US-listed memory comps are Sandisk (NASDAQ:SNDK) and Western Digital (NASDAQ:WDC). Sandisk’s Q3 fiscal 2026 non-GAAP EPS of $23.41 with revenue up 251% year over year and gross margin at 78.4% confirms the industry-wide pricing surge Micron is capturing.
Western Digital, now HDD-only after the Sandisk spin, posted revenue up 45.5% to $3.34 billion with gross margin crossing 50% for the first time in years. Both ride the same AI storage tailwind and grow more slowly than Micron. Against peers running smaller absolute businesses at lower margins, our target looks conservative.
Micron Price Prediction 2026-2030 The 24/7 Wall St. price target of $928.59 reflects an 8.84% expected return, a buy at high confidence. The tipping factor is the SCA book: roughly half of forward revenue anchored by multi-year floor prices removes the cyclical volatility that historically capped memory multiples.
The bull thesis strengthens if Q4 confirms the $50 billion revenue guide and HBM4 yields hold. The thesis weakens materially if CXMT’s IPO accelerates DRAM supply into 2027.
Year 24/7 Wall St. Price Target 2026 $928.59 2027 $947.68 2028 $1,010 2029 $1,069.49 2030 $1,130 These projections assume Micron executes on HBM4E, cleanroom capacity ramps as planned in Idaho and New York, and AI memory demand stays tight. Significant upside or downside could come from export controls, CXMT scaling, or a demand air pocket in 2028.
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Nvidia (NVDA 1.97%) is a $5.1 trillion company, roughly six times the size of AMD (AMD 0.66%). But in the $45 billion iShares Semiconductor ETF (SOXX 1.64%), the chipmaker no longer sits on top.
As of July 15, AMD was the fund's largest holding at 8.51% of assets, with Nvidia second at 8.35% and Micron Technology (MU +0.04%) close behind at 7.73%, according to the fund's own holdings data. Broadcom sits fourth at 7.32%, packing the top four into a spread of just over one percentage point. The gaps are thin enough that a single trading day could reorder them.
A year ago, that ordering would have been hard to imagine. Micron traded below $120 per share last July. As of this writing, the stock is up more than 600% over the past 12 months, and AMD has gained more than 200%. Nvidia, over the same stretch, has risen about 22%.
Of course, the fund isn't making a judgment about which company is best. Its math is mechanical. But that math is worth understanding, because it measures where the semiconductor rally's gains have actually landed over the past year.
Image source: Nvidia.
A cap that levels the giants The exchange-traded fund (ETF) tracks the NYSE Semiconductor Index, which holds the 30 largest U.S.-listed semiconductor companies and weights them by float-adjusted market capitalization -- with a catch. The five largest stocks are capped at 8% of the index when weights are reset, and every other holding at 4%. The index rebalances quarterly, most recently after the third Friday of June.
That cap is arguably the most important thing to understand about the fund. Left to pure market-cap math, Nvidia's $5.1 trillion valuation would run several times the 8% limit and dominate the entire fund. Instead, Nvidia gets pinned at the ceiling alongside anything else that outgrows it. Between resets, weights simply drift with share prices.
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So the top of this fund doesn't rank company size. It ranks share-price momentum since the last reset. AMD's stock has outrun Nvidia's since the June rebalance, and that is the entire reason it now sits on top. Come the index's September reconstitution, anything riding above the cap gets pinned right back at 8%, and the drift starts over.
What the reshuffle actually measures The reshuffle's real message is in the stock charts -- and in the results behind them.
Micron reported revenue of $41.5 billion for its fiscal third quarter of 2026 (the period ended May 28, 2026), up from $23.9 billion the prior quarter and $9.3 billion in the year-ago period. It was a record quarter, and net income reached $28.2 billion. Micron's high-bandwidth memory (the stacked chips that feed artificial intelligence (AI) accelerators) is at the center of that demand, and its newest generation is already shipping in high volume.
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"Micron's record fiscal Q3 financial results and even stronger outlook for Q4 reflect the strategic value of memory in the AI era," said CEO Sanjay Mehrotra in the company's fiscal third-quarter earnings release.
AMD's run has a similar shape. First-quarter revenue rose 38% year over year to $10.3 billion, with data center revenue up 57% to $5.8 billion as its Instinct graphics processing units (GPUs) ramp. Management guided for about $11.2 billion of revenue in the second quarter, which would be an acceleration.
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And Nvidia? Its business hasn't slowed at all. Revenue for its fiscal first quarter of 2027 (the period ended April 26, 2026) rose 85% year over year to a record $81.6 billion, with data center revenue up 92% to $75.2 billion. The slip in the fund is not a slip in the business.
What changed is everything around Nvidia. A year ago, it was the AI trade. Now the trade has widened -- to the memory makers feeding the data centers and to a second source of AI accelerators -- and the widening shows up as faster stock appreciation everywhere else in the fund.
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For Nvidia shareholders, however, I don't think the demotion is a sell signal. The company just posted 85% growth on record revenue of $81.6 billion. But the leaderboard is a useful reminder that the AI buildout now has more than one way to win, and more than one way to cool.
Sure, Nvidia lost its spot at the top of the fund. But I don't believe the investment case for the stock changed with it.
