UBS uvedla, že Micron čeká „strukturální reset“ ziskovosti kvůli extrémně napjaté nabídce pamětí HBM. Banka zároveň zvýšila odhad EPS Micronu pro fiskální roky 2026 až 2028.
Micron Technology Inc (NASDAQ:MU)'s earnings power looks headed for a structural reset, according to UBS, which pointed to memory supply so tight that Nvidia was forced to de-spec its upcoming VR300 GPU.
UBS said Nvidia was forced to scale back the amount of high bandwidth memory, or HBM, in each VR300 GPU due to tight supply, cutting planned content to 512GB of HBM4E per chip from 768GB. VR300 is part of Nvidia's upcoming Rubin Ultra lineup of AI accelerators. The reduced memory content lets Nvidia build more GPUs with the same constrained memory supply, and the bank said the resulting increase in VR300 shipments is significant enough to lift its overall 2027 HBM consumption estimate to 61.5 billion gigabits, up from a prior 58.7 billion.
The bank also pointed to a re-widening of the price premium between HBM and DDR DRAM, a trend it said it has been highlighting since April. UBS now models 2027 industry blended HBM average selling price up approximately 79% year over year, compared with a prior estimate of 67%, with HBM4E likely to reach more than $30 per gigabyte.
On NAND, UBS said third-quarter contract pricing continues to trend positively as server and storage SSD demand offsets weakness in smartphones and PCs, though the magnitude of quarterly price increases is tracking modestly below its prior expectations. The bank raised its NAND industry bit demand growth forecasts to 23% for 2026 and 26% for 2027, and now forecasts industry NAND revenue of approximately $300 billion in 2026 and $495 billion in 2027.
For Micron specifically, UBS adjusted its earnings per share estimates for fiscal 2026, 2027 and 2028 to $74.13, $184.89 and $265.65, respectively, which it said remain well above consensus. The bank said its estimates reflect Micron EPS staying above $160 in 2029 and the company generating more than $450 billion in cumulative free cash flow through 2028.
UBS maintained its $1,625 price target based on approximately 11 times its estimated 2029 earnings per share of about $165, discounted back one year.
Micron v červenci oslabil o 28,7 % kvůli obavám z konkurence čínských výrobců a slabším reakcím trhu na výsledky a výhled konkurentů v paměťových čipech. V srpnu část ztrát smazal, ale stále je zhruba o 6,6 % níže.
Micron (MU -0.44%) stock got hit with a big pullback in July's trading. The memory-chip leader's share price fell 28.7% in a month that saw the S&P 500 trade roughly flat and the Nasdaq Composite's level fall by 2.6%, according to data from S&P Global Market Intelligence.
On the heels of massive gains across the first half of 2026, Micron stock suffered a huge sell-off in July in response to earnings reports and guidance from South Korean memory chip leaders and potential threats posed by the rise of competition from Chinese companies. In addition to those bearish catalysts, Micron's share price was also pressured by macroeconomic and geopolitical dynamics.
Image source: Getty Images.
July was a brutal month for many AI hardware stocks Micron stock moved lower in July due to broad concerns that artificial intelligence (AI) hardware stocks were overvalued, the market's negative reaction to Samsung's capital expenditures guidance, and fears that competition from Chinese companies could hurt pricing power. Then, South Korea's SK Hynix posted its second-quarter results on July 28 -- and the market was not happy with the results. While the company delivered robust sales and earnings growth in the period, the performance actually fell substantially short of analysts' expectations. SK Hynix is another major player in the memory chip industry, and some investors interpreted the company's sales and earnings miss in Q2 as an indication that expectations for Micron may have been overly lofty as well.
Today's Change
(
-0.44
%) $
-3.90
Current Price
$
877.57
Along with those pressures, Micron stock also lost ground last month due to concerns about the Iran war and inflationary trends. Strikes between the U.S. and Iran reescalated last month, creating another source of volatility for the broader market. While energy prices declined in June thanks to a drawdown in the conflict, they began climbing rapidly again last month. With oil prices rising due to disruptions in shipping through the Strait of Hormuz, investors became fearful of a reacceleration of inflation and potential moves to raise interest rates from the Federal Reserve.
Micron stock has regained some ground in August's trading As of this writing, Micron stock is down roughly 6.6% in August's trading. On the other hand, the company's share price has continued to face pressures connected to fears that its rapid growth could be dampened by the emergence of Chinese competitors offering capable memory chips at significantly lower prices.
Top memory chip companies have enjoyed incredible pricing power as demand for AI processing systems that feature the hardware has continued to skyrocket. While there's currently no indication that Chinese chip companies can deliver HBM solutions that top Micron's when it comes to overall performance, a surge in the availability of capable memory chips could still have a significant adverse impact on the company's pricing power.
The good news for Micron investors is that the demand outlook for high-performance memory chips still looks very strong, and the company has signed long-term contracts at very favorable pricing levels that should continue to support very strong performance through the next several years. It remains to be seen how the competitive dynamics and pricing environment in the memory chip market will evolve going forward, but Micron is likely to retain a forefront position when it comes to high-end chips -- and its stock will continue to play a significant role in influencing the AI trade and movements for the broader market.
Micron se obchoduje asi za 6násobek očekávaného zisku, zatímco poptávka po pamětech DRAM a NAND dál výrazně převyšuje nabídku. Nová kapacita SK Hynix má přijít v prosinci 2028 a červnu 2029.
Memory specialist Micron Technology (MU -0.44%) trades near $878 as of this writing, at about 20 times its trailing earnings but only about 6 times the earnings analysts expect over the coming year. Earnings are climbing so fast that next year's expected number dwarfs the trailing one. And the market is paying about 6 times for it because it assumes the good times end soon.
Memory has always worked that way: High prices attract new supply, and new supply ends the boom.
But last Friday, the supply that is supposed to end this one got a price tag and a schedule. SK Hynix committed about $38 billion to two new fabs -- and the first of them doesn't open a clean room until December 2028.
Image source: Micron.
A boom still accelerating The earnings the market is discounting are not hypothetical. In its fiscal third quarter (ended May 28, 2026), Micron's revenue more than quadrupled year over year to $41.5 billion, up from $23.9 billion just one quarter earlier. Gross margin ran 84.6%, compared to 74.4% in fiscal Q2 and 37.7% a year ago. Operating cash flow, meanwhile, more than quintupled year over year to $25.4 billion.
Management expects more. Guidance calls for fiscal fourth-quarter revenue of about $50 billion, gross margin of about 86%, and earnings per share of about $30.73.
Annualize that guided quarter alone and the stock trades at about 7 times earnings.
Data center demand is driving all of it. Micron's data center revenue exceeded $25 billion in fiscal Q3 (more than $100 billion annualized).
And in prepared remarks for its June earnings call, the company said industry demand for DRAM and NAND "continues to significantly exceed industry supply."
The supply response now has a date For a memory stock, what matters is when supply arrives. On Friday, SK Hynix's board approved 54 trillion won (about $38 billion) for the two new fabs. The bigger piece, 35.2 trillion won, goes to a DRAM plant in Yongin, South Korea, called Y2. The rest, 19.1 trillion won, funds a NAND plant in Cheongju called M17.
I'd argue the schedule matters more than the dollar figure. M17 breaks ground in February 2027 and opens its first clean room in December 2028. Y2 doesn't break ground until July 2027, and its first clean room opens in June 2029.
And a first clean room typically marks the start of equipping a fab, not the start of volume output. Capacity decided on today, in other words, is 2028-and-beyond capacity.
That squares with what Micron itself has been saying. In the same June remarks, Micron said it expects tight conditions "to persist beyond calendar 2027 as a result of AI-driven demand across all segments coupled with structural supply constraints."
Of course, some new supply lands sooner. SK Hynix's first Yongin fab, already under construction, is slated to open its first clean room in February 2027. Micron itself is spending at record levels, too ($7.1 billion of capital expenditures in fiscal Q3 alone).
However, even with all of that in motion, Micron still expects tightness through 2027. The fabs approved last week arrive after that.
Contracts built for the turn Micron has also spent this boom locking in what happens when it ends. The company has signed 16 strategic customer agreements -- take-or-pay contracts, meaning customers commit to buying specific volumes over multiple years. The agreements typically run five years, from calendar 2026 through the end of calendar 2030.
Together, they cover roughly 20% of Micron's DRAM volume and about a third of its NAND volume over that period. Management expects half or more of company revenue to eventually fall under these agreements.
The largest of them generally carry price ceilings set at calendar second-quarter 2026 market prices, with price floors that hold through the term. In a downturn, those floors should put a boundary under how far Micron's contracted revenue can fall.
CEO Sanjay Mehrotra said in the June earnings release that these agreements "will significantly enhance the durability and predictability of Micron's strong financial performance."
Today's Change
(
-0.44
%) $
-3.90
Current Price
$
877.57
Ultimately, the cycle will still turn. Memory cycles always have, and record prices are financing the capacity that could end this one. But at a valuation of about 6 times expected earnings, the stock is priced as if that ending is close.
The construction schedules the industry itself has published put the big additions in 2028 and 2029, and Micron's contracts run through 2030. To me, the business looks likely to keep earning at something like this pace longer than the market is paying for.
The main risk isn't the construction schedule -- memory prices could fall without a single new fab opening if artificial intelligence (AI) demand cools. But based on what the industry has committed to build, the turn arguably sits further away than the price assumes.
Citigroup snížila cílovou cenu pro Micron na 1 150 USD z 1 400 USD a očekává, že ceny pamětí dosáhnou vrcholu ve 2. čtvrtletí příštího roku. Hlavním rizikem zůstává rostoucí čínská konkurence.
Micron Technology, Inc. (NASDAQ:MU) stock gained about 1% in Monday premarket trading as technology stocks moved higher ahead of the opening bell. Nasdaq futures rose 0.41%, while S&P 500 futures gained 0.17%.
The move comes as investors weigh Micron’s longer-term growth prospects against expectations for slowing memory pricing momentum and rising competition from Chinese manufacturers.
On Aug. 7, Citigroup analyst Atif Malik maintained a Buy rating on Micron but lowered his price forecast to $1,150 from $1,400. The firm expects memory pricing momentum to slow over the next year, even as DRAM and NAND prices continue to rise from current levels.
Citi Trims Micron ForecastCiti reduced its valuation multiple and lowered its fiscal 2027 and 2028 earnings estimates.
The firm expects DRAM and NAND prices to continue climbing but sees the pace of gains slowing over the next four quarters. Citi expects memory prices to peak in the second quarter of next year.
The more cautious outlook reflects concerns that the current memory upcycle could lose momentum as supply expands and pricing growth moderates.
China Competition Remains Key RiskCiti identified rising Chinese memory capacity as the biggest long-term risk to its Micron thesis.
The firm said additional NAND and DRAM supply from China could pressure Micron’s pricing power outside the U.S., even if American restrictions limit the Chinese companies’ access to the U.S. market.
Despite those risks, another market strategist sees substantial upside remaining in Micron as the memory cycle progresses.
Parker Sees Micron Doubling By Cycle EndTrivariate Research CEO Adam Parker told CNBC on Friday that Micron, NVIDIA Corp. (NASDAQ:NVDA) and other compute-related stocks could trade meaningfully higher over the next 12 months. However, he expects the group to advance in a steadier grind rather than through another sharp rally.
Parker said Micron could double by the end of the cycle because investors may already be pricing in too much earnings deterioration after the eventual peak.
He also argued that investors are focusing too heavily on Micron’s income statement and not enough on its improving balance sheet. Parker pointed to the company’s revenue outlook, high gross margins and potential to generate substantial free cash flow over the next several years.
Still, Parker said investors should manage their exposure to AI semiconductor stocks through broader diversification because volatility remains elevated.
Earnings And Analyst OutlookMicron’s next major scheduled catalyst is its earnings report, estimated for Sept. 22, 2026.
Analysts expect earnings of $31.29 per share, up sharply from $3.03 a year earlier. Revenue is estimated at $50.82 billion, compared with $11.31 billion in the year-ago period.
Micron trades at a price-to-earnings ratio of about 19.8.
Top ETF ExposureMicron also carries significant weight in several technology and semiconductor exchange-traded funds.
Invesco PHLX Semiconductor ETF (NASDAQ:SOXQ): 8.91% State Street SPDR NYSE Technology ETF (NYSE:XNTK): 8.75% Invesco AI and Next Gen Software ETF (NYSE:IGPT): 8.71% Micron’s sizable weighting means significant inflows or outflows from these ETFs can contribute to buying or selling pressure in the stock.
Price ActionMU Stock Price Activity: Micron Technology shares were down 0.06% at $877.07 during premarket trading on Monday, according to Benzinga Pro data.
Photo via Shutterstock
Read Next
Market News and Data brought to you by Benzinga APIs
SK Hynix a Samsung naznačují Micronu: růst cen paměťových čipů za poslední tři měsíce zaostal za očekáváním. To může znamenat slabší marže i zisky Micronu.
Micron (MU -0.44%), SK Hynix (SKHY -3.92%), and Samsung (SSNLF +0.00%) are some of the highest-flying stocks in the market this year. Their tremendous earnings results have been driven by a massive shortage in memory chips, a market dominated by the three companies. As AI hyperscalers buy up as many chips as possible, memory prices have gone through the roof.
Recent earnings results from SK Hynix and Samsung contain a major warning for Micron investors that could affect not just this quarter's results, but results well into the future. It could have a huge effect on the price investors should be willing to pay for the stock today.
Image source: Micron.
What did SK Hynix and Samsung report? The all-important driver of earnings for the three memory chip stocks over the last year has been pricing. The chipmakers renegotiate pricing for their chips frequently based on supply and demand. It takes years for a new manufacturing plant to start producing chips at scale, which means a spike in demand can send chip prices significantly higher. Once additional supply enters the market or demand falls, prices fall, and with higher operating costs, profits fall even more.
That's the cyclical nature of the memory chip market, but the market understands it well. It's why investors are paying single-digit earnings multiples for the chipmakers today. They expect the earnings cycle to approach its peak in the near future.
What's worrisome in SK Hynix's and Samsung's earnings releases is that peak earnings might be lower than anticipated. That's evidenced by weakness in pricing relative to expectations for both companies over the last three months.
Today's Change
(
-3.92
%) $
-5.62
Current Price
$
137.91
To be sure, SK Hynix still increased DRAM pricing by about 30% sequentially, and Samsung increased DRAM chip pricing by more than 40%. NAND pricing climbed even faster, mid-50% for SK Hynix and high-60% for Samsung.
Still, analysts were expecting better. Goldman Sachs analysts said they were looking for 39% growth for SK Hynix's DRAM chips. The analysts now expect just 19% price improvements for the current quarter. Morningstar's analysts were disappointed by Samsung's pricing, which fell short of their 48% estimate.
The results suggest Micron could also fall short of expectations for its DRAM pricing when it reports its quarterly earnings next month. Still, it's important to look into what might have caused the shortfall and what it means for each company's stock price.
What's weighing on memory chipmakers? Samsung and SK Hynix's lower-than-expected pricing indicates that AI demand may be slowing. That's exacerbated by SK Hynix's report showing slower-than-expected HBM4 shipments last quarter. Management assured investors that it was ramping HBM4 production in the second half of the year, which would positively affect overall pricing.
Perhaps the biggest weight on pricing is the long-term agreements the chipmakers are signing with customers. These agreements lock in pricing for customers for years in advance, leading to lower peak pricing, but they also protect against downside risk. It's a hedge against demand drying up and gives the chipmakers the confidence to build out new manufacturing capacity.
Today's Change
(
-0.44
%) $
-3.90
Current Price
$
877.57
The effect is already showing up, with pricing climbing more slowly than anticipated. Micron said it had covered 20% of its DRAM sales and about one-third of its NAND sales with long-term agreements as of last quarter. Those numbers could continue to climb, but they could also weigh on pricing and earnings.
As such, peak pricing is likely to fall short of analysts' prior expectations. While Micron and its competitors could fetch a slightly higher earnings multiple than in past earnings cycles due to long-term pricing stability, the earnings they'll be multiplying by will be lower. What's more, the potential long-term downside to earnings remains, as long-term agreements could simply pull demand forward, ultimately leading to a prolonged slide in earnings.
NVIDIA vykázala ve 1. fiskálním čtvrtletí roku 2027 tržby 81,615 miliardy USD a tržby z datacenter meziročně vzrostly o 92 % na 75,246 miliardy USD. Micron oznámil tržby 41,456 miliardy USD a HBM4 je již v sériové výrobě.
NVIDIA (NASDAQ:NVDA | NVDA Price Prediction) and Micron Technology (NASDAQ:MU) both just posted quarters that reframe the AI infrastructure story heading into 2027.
NVIDIA delivered $81.615 billion in Q1 FY27 revenue as its compute and networking stack scaled together. Micron answered with $41.456 billion and HBM4 in volume production. One sells the AI factory. The other sells its memory.
Compute Factories Lift NVIDIA. HBM4 Lifts Micron. Jensen Huang framed the quarter bluntly: “The buildout of AI factories, the largest infrastructure expansion in human history, is accelerating at extraordinary speed.” The proof sits inside the segment mix.
Data Center revenue hit $75.246 billion, up 92% YoY, with Data Center Networking surging 199% YoY to $14.8 billion as NVLink and Spectrum-X pulled hyperscalers into full-rack purchases. Guidance of $91 billion for Q2, excluding China compute, tells you demand is not the constraint.
Micron’s ramp is a different kind of shock. Sanjay Mehrotra called it plainly: “In the AI era, memory has become a strategic asset for our customers.” Cloud Memory alone did $13.769 billion, nearly tripling in nine months.
Non-GAAP gross margin jumped to 84.9% from 45.7% at the FY25 close, which is the sharpest memory pricing swing in years. HBM4 is already shipping in volume to a lead accelerator customer, with samples flowing to others.
Business Driver NVIDIA Micron Main Growth Engine Blackwell 300 + NVLink fabric HBM4 on 1-beta DRAM Q1/Q3 Revenue $81.6B $41.5B Gross Margin 75% 84.9% Next Guide $91B $50B Platform Lock-in vs. Scarcity Economics NVIDIA is betting on stack depth. The Vera Rubin platform, Dynamo 1.0 inference software, and named commitments with OpenAI, Meta, and Anthropic push customers deeper into CUDA and NVLink. $119 billion in supply commitments signals that Huang is buying capacity years out. The $80 billion buyback authorization and dividend hike from $0.01 to $0.25 per share signal cash is no longer a scarce input.
Micron plays a narrower, sharper hand. As the only U.S. based memory manufacturer, it has locked in multi-year Strategic Customer Agreements to smooth the notorious memory cycle. HBM4E on 1-gamma DRAM is targeted for volume production in calendar 2027, right when Rubin ramps. That timing is not a coincidence.
The Real Test Is 2027 Supply I will be watching whether NVIDIA’s 50% hyperscaler revenue concentration diversifies as sovereign AI and enterprise demand scale.
For Micron, the question is whether HBM4E ships on time and whether those Strategic Customer Agreements actually blunt the next downcycle. Shares tell part of the story already: NVDA is up 17.56% YTD, while MU has run 209.03%.
Why I Lean NVIDIA for Durability, Micron for Torque If I want a compounder with platform gravity, NVIDIA wins. A forward P/E of 23x against 85% revenue growth is the rare combination in mega-cap tech, and the ecosystem lock keeps competitors chasing.
For a higher-variance bet, Micron looks more interesting to me. A forward P/E of 5x prices in a cycle rollover that HBM4E and the customer agreements are designed to prevent. Investors weighing Micron should respect the memory cycle history and treat HBM4E execution as the real 2027 catalyst. Both can work. They just require different stomachs.
Contact [email protected] for any questions or corrections.
Akcie Micron Technology klesly v pátek o více než 1,8 % poté, co Citi snížila cílovou cenu na 1 150 USD z 1 400 USD kvůli slabšímu výhledu cen pamětí DRAM a NAND.
Micron Technology MU shares fell more than 1.8% on Friday as investors weighed fresh investment plans from South Korean memory chip maker SK Hynix alongside a more cautious outlook for memory pricing from Citi.
The memory-chip maker has declined about 9% over the past month, although the stock remains up more than 660% over the past 12 months.
Investor attention remains focused on when memory chip supply will catch up with surging demand driven by artificial intelligence infrastructure.
On Friday, SK Hynix said its board approved 54.3 trillion won ($38.15 billion) in investments for new chip fabrication facilities in South Korea.
The announcement follows even larger investment commitments made earlier this year.
In June, SK Hynix and Samsung said they would spend a combined 800 trillion won ($518.58 billion) to build new semiconductor manufacturing hubs in southwest Korea.
However, additional supply is not expected to arrive immediately.
Large semiconductor fabrication plants typically require years to construct.
Micron's own $100 billion manufacturing project in New York, announced in 2022, is not expected to begin production until 2030, while no major new memory manufacturing capacity is expected to come online until roughly next year, with additional capacity planned for 2028.
Citi lowered its price target on Micron to $1,150 from $1,400 while maintaining its Buy rating, reflecting a more moderate outlook for DRAM and NAND pricing over the coming quarters.
The bank reduced its valuation multiple to 8 times revised calendar-year 2027 earnings estimates from 10 times previously.
"We trim MU TP to $1,150 from $1,400 based on 8x P/E vs prior 10x times revised C27 EPS to reflect lower market multiples on mixed memory peer results," the Citi analyst wrote.
The revision followed meetings with memory supply chain participants and third-party experts during the "Future of Memory and Storage" conference.
"We see both DRAM and NAND prices decelerating Q/Q in the next four quarters with prices peaking in 2Q of next year," the analyst said.
Citi now expects DRAM prices to decline 3% in the second half of 2027 compared with its previous expectation for flat pricing.
NAND prices are projected to fall 5% during the same period. The firm also reduced its fiscal 2027 and 2028 earnings estimates by 1% and 2%, respectively.
The bank also expects Micron's profitability to moderate as pricing eases.
"We expect Micron's gross margins to decline from current mid-80s and sustain in mid-70s next year as prices decline from a high base with ~40% DRAM bits under LTA pricing contracts," the analyst wrote.
China expansion remains a longer-term concernBeyond near-term pricing, Citi identified expanding Chinese memory production as its biggest structural concern.
"China competition and capacity additions in both NAND and DRAM markets is the biggest risk to our thesis," the analysts said.
According to Citi, China's leading NAND producer YMTC plans to increase capacity by adding 50,000 to 60,000 wafer starts next year to its existing 200,000-unit capacity and aims to become the world's largest NAND manufacturer by 2030.
DRAM producer CXMT also plans to expand production from roughly 350,000 wafers to around 400,000 next year, with a longer-term target of approximately 600,000 wafers by 2030, although Citi noted that yields remain low.
While US export restrictions limit Chinese-made memory sales into the United States, Citi warned that competition could still affect Micron internationally.
"While US government is unlikely to allow made in China memory sales to US, sales to data centers in other regions like Europe could indirectly impact Micron," analysts wrote.
Micron za posledních 12 měsíců vzrostl téměř o 720 % díky boomu AI, který zvedá poptávku po pamětech HBM a NAND. Analytici čekají, že tržby do fiskálního roku 2028 stoupnou z 37,4 miliardy USD na 263,8 miliardy USD.
Micron (MU -1.31%), one of the world's largest producers of DRAM and NAND memory chips, was once considered a cyclical chip stock. Its growth was tethered to the memory chip market's boom-and-bust cycles, which usually occurred every few years.
But over the past 12 months, Micron's stock surged nearly 720%. What's driving that sudden momentum, and can it head even higher?
Image source: Getty Images.
Why is Micron's stock skyrocketing? In the past, Micron's growth was largely driven by the smartphone and PC markets. But over the past two years, the AI market's rapid expansion boosted its sales of high-bandwidth memory (HBM) DRAM chips and NAND (flash) memory chips for enterprise solid-state drives (SSDs).
Both types of memory chips directly feed data to the processors (including Nvidia's (NVDA -0.10%) GPUs) that power AI accelerator clusters in data centers. HBM chips handle the active GPU compute, while NAND chips expand the pipeline for bulk data transfers.
Today's Change
(
-1.31
%) $
-11.72
Current Price
$
881.47
As Micron pivots more of its production toward AI-driven memory chips, its fabs are running out of bandwidth to manufacture conventional PC, smartphone, and server chips. That shortage, which its industry peers also face, is driving up the prices of conventional DRAM and NAND chips. At the same time, demand for HBM and SSD chips continues to outstrip supply. That crunch is driving up the prices of all of its memory chips.
Micron's stock is soaring because the bulls believe this AI-driven supercycle will last much longer than its prior growth cycles. From fiscal 2025 (which ended last September) to fiscal 2028, analysts expect its revenue to surge more than sevenfold from $37.4 billion to $263.8 billion, while its net income soars from $8.5 billion to $182.0 billion.
Does Micron's stock still have more upside potential? Micron's growth potential is incredible, and its stock still looks undervalued at 12 times this year's earnings. By comparison, Nvidia -- which is expected to grow its revenue and earnings at a slower rate than Micron -- trades at 23 times this year's earnings. That lower multiple indicates the market hasn't fully revalued Micron as a high-growth AI stock.
Yet it still has plenty of irons in the fire. It's increasing its manufacturing capacity in the U.S., Taiwan, and Singapore, and it's locking its major enterprise customers into long-term strategic agreements through 2030 that feature fixed pricing bands with a high price floor. Those deals should shield its bottom line from any abrupt declines in memory chip prices. I believe these catalysts could drive Micron's stock even higher over the next 12 months.
Amazon zvýšil odhad kapitálových výdajů na 220 miliard USD kvůli vyšším nákladům na paměti, ale Micron po výsledcích klesl o 5,9 % mezi 30. a 31. červencem.
In Amazon's 2026 second-quarter earnings call on July 30, CEO Andy Jassy forecast that capital expenditures would likely reach $220 billion for the year. That's up from a previously expected $200 billion, which was attributed to higher memory costs.
Still, Jassy said that increasing spending on artificial intelligence (AI) infrastructure may not be enough to keep up with demand:
Even at that amount, we will still not have enough capacity to meet all the demand we have in 2026, and I believe this dynamic will also be true in 2027, too. In fact, the demand we already have for 2028 is striking.
Seemingly, that would be good news for Micron Technology (MU +0.06%), as its high bandwidth memory offerings play a key role in AI infrastructure, showing that even at higher prices, demand is likely to remain strong.
The Micron stock price, however, didn't benefit after Amazon reported earnings, dipping 5.9% from $874.66 on July 30 to $823.03 on July 31.
Image source: The Motley Fool.
Why the Amazon news didn't move the needle The most likely reason Amazon's increase in capital expenditures didn't help Micron's stock price was that the stock had already rallied, climbing 18.3% from the July 29 closing price of $739 to the July 30 closing price of $874.66. What helped was Samsung Electronics' announcement that strong earnings and forecasted memory chip shortages would persist through 2028.
Broadly, that was bullish news for Micron, which had been suffering a sell-off alongside the rest of the memory chip sector before Samsung's earnings announcement.
In the background, what could also have been weighing on sentiment around Micron is interest rate hikes. The Federal Open Market Committee decided to leave interest rates unchanged on July 29, but three members dissented and favored a quarter-point rate hike. Some investors may have started selling their tech stocks in anticipation of future rate hikes.
Finally, when Micron's shares shot up more than 18% on July 30 and regained some ground, there may have been some profit-taking on July 31. As of this writing, over the last 12 months, the Micron stock price is up more than 660%.
Today's Change
(
0.06
%) $
0.52
Current Price
$
893.19
Micron's business model is shifting Despite the boon AI has been for Micron, there are still fears that, when supply catches up with demand, Micron and other memory stocks will return to a cyclical boom-or-bust pattern.
In that regard, supply is still not expected to catch up to demand until at least 2028. But if that milestone arrives earlier than anticipated, Micron is preparing itself. The company is locking in long-term deals, which may impact margins but offer more predictable cash flow. In Micron's fiscal 2026 Q3 earnings call, it announced that it had signed 16 strategic customer agreements and had $22 billion in cash deposits and related financial commitments.
Micron may still have a few more years with higher margins for its memory and storage offerings, as supply isn't expected to catch up with demand any time soon. Despite the recent sell-off, Micron is likely to continue to do well over the next two years. After that, however, there may be an adjustment period as it shifts to more reliable revenue with lower margins through long-term contracts.
Ultimately, an investment in Micron depends more on the deals it's locking in for long-term revenue, on whether it executes on becoming less known for cyclical results, and on whether the market appreciates its business model shift.
Micron za poslední měsíc klesl o 9,4 %, ale slabost je podle článku hlavně důsledkem tlaku na celý sektor pamětí a realizace zisků. Firma má vyprodánu produkci HBM na kalendářní rok 2026 a část kapacity pro rok 2027 je už rezervována v rámci dlouhodobých smluv. Ve 3. čtvrtletí fiskálního roku 2026 tržby vyskočily o 346 % na 41,46 miliardy USD.
Key Takeaways Micron fell 9.4% in a month, but the pullback reflects sector pressure and profit-taking.MU sold out its 2026 HBM output, with part of 2027 capacity reserved under long-term agreements.Micron's fiscal Q3 revenues rose 346% to $41.46B as margins expanded and AI memory demand surged. Micron Technology, Inc. (MU - Free Report) has lost some of its momentum after a stellar run earlier this year. The stock has fallen 9.4% over the past month, much worse than the Zacks Computer and Technology sector's 2% decline. At first glance, such a sharp pullback may look concerning. However, a closer look suggests that the weakness has more to do with broader market sentiment than any deterioration in Micron's business.
The recent selling has not been limited to Micron. Other memory and storage companies, such as Sandisk (SNDK - Free Report) , Western Digital (WDC - Free Report) and Seagate Technology (STX - Free Report) , have also come under pressure. Over the past month, Sandisk, Western Digital and Seagate Technology have declined 18.2%, 5.6% and 2.7%, respectively. This indicates that investors are trimming exposure to the memory and storage space as a whole rather than singling out Micron.
Micron One-Month Price Return Performance
Image Source: Zacks Investment Research
The sell-off has been driven by two key concerns. First, investors are debating whether hyperscalers will earn attractive returns on their massive AI investments. Second, memory stocks rallied sharply in the first half of 2026, prompting many investors to lock in profits after strong gains.
Despite this negative sentiment, Micron's underlying business remains strong. The company remains one of the biggest beneficiaries of the AI infrastructure boom, and the demand outlook for its products continues to improve.
AI Memory Demand Remains Micron's Biggest Growth DriverAI is transforming the memory industry, and Micron is well positioned to benefit. Training and running advanced AI models require much larger memory capacity and significantly higher bandwidth than traditional computing workloads. This is driving strong demand for high-bandwidth memory (HBM), DDR5 DRAM and advanced data center SSDs, where Micron has built a strong portfolio.
The spending plans of major cloud providers further reinforce this opportunity. Amazon, Microsoft, Alphabet and Meta Platforms are expected to invest nearly $700 billion in capital expenditures during 2026, with AI infrastructure accounting for a significant share of that spending. Every new AI server requires substantially more memory than previous-generation systems, creating a powerful demand tailwind for Micron.
The company has also strengthened its competitive position through product innovation. Its latest HBM solutions deliver higher capacity, better performance and improved power efficiency, making them attractive for AI accelerators used by leading chipmakers and cloud providers. Demand has been so strong that Micron has already sold out its HBM production for calendar year 2026, while a meaningful portion of its 2027 capacity has already been reserved under long-term customer agreements.
As enterprises continue expanding AI deployments, memory content per server is expected to keep rising. This gives Micron a long runway for sustained revenue growth.
MU’s Results Show the AI Opportunity Is Already Paying OffMicron's financial performance clearly shows that AI demand is translating into real business growth.
In the third quarter of fiscal 2026, revenues surged 346% year over year to $41.46 billion. The company also signed 16 strategic customer agreements across the data center, consumer and automotive markets. These agreements cover nearly 20% of expected DRAM volumes and about one-third of NAND volumes over the contract period, providing strong revenue visibility.
The company is also selling a larger mix of premium memory products, allowing profits to grow much faster than shipment volumes. Non-GAAP earnings per share jumped to $25.11 from just $1.91 a year ago, while both revenues and earnings comfortably exceeded analysts' expectations.
Profitability improved sharply as better DRAM and NAND pricing combined with rising shipments of AI-focused memory products. Non-GAAP gross margin expanded to 84.9% from 39% a year earlier. Non-GAAP operating income climbed to $33.68 billion from $2.49 billion, while operating margin rose to an impressive 81.2% from 26.8%.
These numbers highlight Micron's strong pricing power and ability to convert booming AI demand into significantly higher earnings.
At the same time, management continues investing aggressively in advanced manufacturing and next-generation memory technologies. These investments should help Micron defend its technology leadership and meet growing customer demand over the coming years.
Micron Still Looks UndervaluedDespite its strong earnings growth, Micron's valuation remains surprisingly modest. The stock currently trades at a forward 12-month price-to-earnings (P/E) ratio of just 5.88, well below the sector average of 21.26.
Micron Forward 12-Month P/E Ratio
Image Source: Zacks Investment Research
Micron also trades at a discount to several memory peers. Sandisk trades at a forward P/E of 7.45, while Seagate Technology and Western Digital trade at 23.29 and 27.30, respectively.
A low valuation alone is not enough to justify buying a stock. However, when that valuation is backed by explosive earnings growth, expanding margins and powerful long-term industry trends, it becomes much more compelling. Micron checks all of those boxes.
Conclusion: Buy Micron StockGiven Micron’s leadership in AI memory, strong execution, expanding profitability and inexpensive valuation, the recent pullback appears to be a buying opportunity rather than a reason for concern. Investors looking to benefit from the ongoing AI infrastructure buildout should consider buying Micron stock at current levels.
Currently, Micron sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Citadel v červenci výrazně posílil díky oživení rizikových aktiv a levnému nákupu portfolia Situational Awareness po jeho kolapsu. Vlajkový fond Wellington si připsal 5,9 %, což byl nejlepší měsíc od roku 2022.
Ken Griffin's Citadel posted strong gains across its major hedge funds in July, helped by a recovery in risk assets and a discounted purchase of assets from the collapse of Leopold Aschenbrenner's Situational Awareness to end the month, according to a person familiar with the firm's performance.
Citadel's flagship multistrategy Wellington fund, the firm's largest, returned 5.9% in July, marking its best monthly performance since 2022 and pushing 2026 gains to 12%, the person said. The tactical trading fund, which combines discretionary equity investing with quantitative strategies, gained 11.1% in July and is up 27% on the year. The equities fund advanced 14.2% last month, bringing 2026 return to 27%. Tactical fund and equities fund both had its best month ever. The person asked not to be identified discussing confidential performance figures.
The July gains came after Citadel acquired the bulk of the public-stock portfolio formerly held by Situational Awareness late last month, following the hedge fund's rapid unraveling after steep losses triggered margin calls and forced asset sales. Citadel purchased many of the holdings at a significant discount, positioning the firm to benefit as markets rebounded into the month-end.
Situational Awareness, founded by former OpenAI researcher Leopold Aschenbrenner, was forced to unwind many of its positions after a sharp reversal in artificial intelligence trades left it bleeding on both sides of its book. The firm had accumulated sizable stakes in AI infrastructure companies while betting against software stocks, a strategy that backfired as software shares rallied and AI hardware names slumped.
Several of the fund's prime brokers worked to reduce positions in an orderly fashion as Situational Awareness sought to meet margin requirements. Citadel emerged as one of the largest buyers of the portfolio, taking advantage of one of the year's biggest forced liquidations.
Stocks such as Nebius and Micron that Aschenbrenner's fund owned rebounded in the final days of July following a brutal month with many traders saying the fund's near collapse and rescue move by Citadel was a clearing event that caused short sellers to take profits.
Citadel managed about $71 billion in assets as of July 1 and has often used periods of market dislocation to deploy capital into distressed or forced-selling situations.
Micron Technology oznámila rekordní výsledky za 3. fiskální čtvrtletí: tržby 41,5 miliardy USD, hrubá marže 84,6 % a silnější výhled. Poptávka po AI zároveň drží trh s pamětí napjatý.
SummaryMicron Technology, Inc. delivered record fiscal Q3 results with $41.5 billion in revenue, 84.6% gross margins, and stronger guidance ahead.Memory stocks crashed as investors questioned AI spending durability, supply expansion risks, China competition, and elevated market expectations.Micron is transforming memory economics through 16 strategic agreements representing $22 billion in customer commitments and take-or-pay structures.AI demand is reshaping memory markets, with HBM TAM exceeding $100 billion while supply remains structurally constrained through 2027. Vertigo3d/E+ via Getty Images
Introduction Micron Technology, Inc. (MU) has been one of the biggest beneficiaries of the surge in the AI infrastructure ecosystem, but the massive crash in memory stocks highlights the concerns surrounding the viability of
805 Followers
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.
SpaceX's earnings may have sent its shares sharply lower as investors fretted over the rise in AI spending, but CEO Elon Musk delivered a bullish message for one of the semiconductor industry's most volatile segments: memory chips.
Speaking during the company's earnings call, Musk argued that demand for memory chips is rising at a pace far exceeding global production, suggesting prices could remain elevated for years despite aggressive capacity expansion by manufacturers.
His comments reinforce the long-term investment case for companies such as Micron Technology, SK Hynix, and Samsung Electronics, all of which are racing to meet surging demand from artificial intelligence infrastructure.
The remarks also come as investors debate whether the current AI spending boom can sustain strong pricing for memory products, particularly high-bandwidth memory (HBM), which is essential for training and running advanced AI models.
Musk says memory remains the industry's biggest bottleneckMusk made the comments while responding to a question from JP Morgan analyst Doug Anmuth, who asked about supply-demand dynamics and whether SpaceX would be able to maintain its premium pricing.
"Look at the rate at which logic and memory is being produced. One must always consider the limiting factor here. The limiting factor currently is memory," Musk said.
"The memory output is increasing by around 20% per year. Now, normally, that would be fantastically fast and amazing for any large mature industry."
He contrasted that with the pace of demand growth.
"Ask yourself, is the demand increasing by 20% a year? No, the demand is increasing by 200% a year, maybe higher. If you have got demand increasing much faster than supply, Economics 101 would suggest that the price increases. It does not decrease."
The comments come as AI companies continue pouring billions of dollars into data centers equipped with graphics processors and advanced memory chips, creating sustained demand across the semiconductor supply chain.
Memory stocks remain volatile despite improving outlookMusk's statement comes at a time when memory stocks have experienced significant volatility in recent weeks.
Micron shares were down around 2% in premarket trading on Wednesday after gaining ground over the previous two sessions, while SK Hynix slipped roughly 3%.
Investor concerns have centred on whether hyperscale cloud providers could eventually slow their AI spending and whether Chinese memory producer CXMT could emerge as a stronger competitor.
Sentiment, however, has improved this week following stronger-than-expected earnings from Amazon, Microsoft, and Google, whose cloud businesses continued to report accelerating AI demand.
Broader market optimism surrounding easing tensions in the Middle East has also supported semiconductor stocks.
Industry forecasts continue to suggest that memory supply will struggle to keep pace with demand despite record investment.
According to Deloitte, the world's three largest memory manufacturers- Micron, Samsung, and SK Hynix- are expected to increase their combined capital expenditure by nearly 340% between 2024 and 2027 to expand production.
Memory-related investment could account for roughly half of total semiconductor industry capital expenditure by 2026.
Even so, Deloitte noted that additional capacity will take years to come online because new fabrication plants typically require three to five years to build and ramp up production.
The consulting firm expects hyperscale cloud providers to allocate around 30% of their 2026 data-centre investments to memory, with that share projected to rise to 36% in 2027.
Memory components also account for roughly one-quarter of the bill of materials for high-end AI server racks.
As a result, Deloitte forecasts global memory sales could exceed $1 trillion in 2027, compared with approximately $230 billion in 2025.
"The current memory supply tightness and elevated prices may persist until 2029 or even 2030, assuming continued demand among hyperscalers for memory chips. Other customers that need memory for devices such as PCs, smartphones, and other consumer electronics, as well as for non-AI data centres, will likely also need to contend with high memory prices," Deloitte said.
Musk's comments closely align with a bullish note issued by Bank of America this week, in which the brokerage reiterated its Buy rating on Micron and maintained a price target of $1,550, implying roughly 72% upside from Tuesday's closing price.
Analyst Vivek Arya acknowledged that memory pricing and margins would eventually normalise as new capacity enters the market between mid-2027 and 2028.
However, he argued that investors have become overly focused on a future downturn despite continued improvement in current industry fundamentals.
Bank of America also noted that GPU rental rates remain close to record highs and that none of the major cloud providers has indicated memory shortages are constraining AI deployments.
The brokerage further dismissed concerns over Chinese manufacturer CXMT, arguing the company remains focused on commodity DRAM and does not currently pose a significant competitive threat in high-bandwidth memory used for AI workloads.
Micron Technology shares MU surged more than 8% on Tuesday after Bank of America reaffirmed its bullish stance on the memory-chip maker, arguing that the recent weakness in semiconductor stocks presents an "enhanced buying opportunity" rather than a deterioration in the company's long-term outlook.
The rally also reflected improving sentiment across Wall Street, with the S&P 500 climbing about 1.5% to a fresh record after upbeat earnings from companies including Palantir Technologies and Caterpillar, while easing oil prices further boosted investor appetite for risk assets.
The brokerage maintained its Buy rating on Micron and reiterated a price target of $1,550, implying more than 72% upside from current trading levels.
AI demand remains the key driverIn a note to clients, Bank of America analyst Vivek Arya said investors have become overly focused on the possibility of future pricing pressure in the memory market, even though current fundamentals continue to improve.
Arya acknowledged that memory prices and profit margins are likely to normalize eventually as additional supply enters the market between mid-2027 and 2028.
However, he argued that the recent sell-off reflects investor positioning ahead of a potential downturn rather than any meaningful deterioration in demand.
According to the brokerage, the ongoing wave of artificial intelligence investments by major cloud providers continues to support demand for advanced memory products, particularly high-bandwidth memory used in AI servers.
Bank of America also noted that GPU rental rates remain close to record highs, while none of the major hyperscale cloud companies has indicated that memory availability is limiting AI deployments.
That, Arya said, suggests pricing power across the semiconductor memory industry remains intact.
Earnings outlook remains resilientThe brokerage's bullish thesis is underpinned by its earnings expectations.
Bank of America projects Micron could generate earnings per share of roughly $150 in fiscal 2028.
Even under a bearish scenario in which DRAM and NAND prices decline in line with previous industry downturns, the brokerage believes earnings could still remain near $100 per share.
That would be substantially higher than Micron's previous cycle peak of around $12 per share recorded in 2018.
According to the brokerage, the stock is currently valued at only about eight to nine times its projected bear-case earnings, suggesting investors are assigning little value to the company's AI-related businesses, including its high-bandwidth memory segment.
Bank of America also pointed to the increasing use of long-term supply agreements, which it expects could eventually account for between 50% and 70% of industry capacity.
While such agreements cannot eliminate cyclical downturns, they could reduce pricing volatility compared with previous memory cycles.
Micron has faced significant volatility in recent weeks as investors questioned whether aggressive AI spending by hyperscale cloud companies would eventually slow and whether rising competition from China could erode the company's market position.
Concerns intensified after Chinese memory-chip maker ChangXin Memory Technologies, or CXMT, completed its initial public offering and reports emerged that the company was considering building a second DRAM fabrication facility in Beijing.
CXMT has rapidly expanded its presence in the global memory market.
According to Counterpoint Research, the company held an 8% share of the global DRAM market in the first quarter, compared with just 3% a year earlier.
BofA argued China's CXMT is still "not a threat in AI," as it primarily serves commodity DRAM rather than high-bandwidth memory.
Samsung Electronics, SK Hynix and Micron together still account for nearly 90% of the global DRAM market and continue to dominate the advanced high-bandwidth memory segment used in AI applications.
While investors remain wary of future industry supply increases, Bank of America believes the current pullback has created an attractive entry point for long-term investors betting on continued AI infrastructure spending and sustained demand for advanced memory chips.
Micron stock surged after Bank of America reaffirmed its Buy rating, citing strong AI demand, a resilient earnings outlook, and limited threat from China's CXMT.
Michael Burry has increased bearish bets on Nvidia, Micron and the semiconductor sector, challenging Wall Street’s confidence in the artificial-intelligence boom.
In a July 30 update on his personal Substack, Burry said he added Nvidia put options expiring on December 18, 2026, increased a Micron short near $880 and expanded an iShares Semiconductor ETF short around $506.
Unlike a 13F filing, the update does not reveal position sizes, option premiums or hedges.
Burry’s Nvidia puts carry strike prices in the low $100s, far below Monday’s $206.64 close.
Nvidia does not need to fall below those strikes for them to gain as falling shares, higher volatility or weaker expectations could lift them before expiry.
His concern extends beyond valuation. Burry has questioned hyperscaler spending, circular financing between chipmakers and customers, and whether hardware improvements make costly processors obsolete before buyers recover their investment.
Micron represents a more cyclical wager as Burry added to his short near $880, while the shares closed Monday at about $829.11.
That addition is below its reported entry level, although his total exposure, average cost and borrowing expenses remain unknown.
Nvidia and Micron rose on Monday. Expanding bearish exposure into that rebound suggests Burry believes sentiment has not resolved the industry’s deeper risks.
The risk remains customer concentration as higher borrowing costs or disappointing AI returns could force cash-rich technology groups to become more selective.
The strongest challenge comes from Nvidia’s customers. Jefferies analysts said Microsoft and Amazon’s latest results offered evidence that AI investment can produce tangible returns.
The firm believes worsening sentiment towards semiconductor stocks may have bottomed.
If cloud growth and margins keep accelerating, hyperscalers will have less reason to reduce spending on Nvidia processors and data-centre infrastructure.
Morningstar equity analyst Brian Colello is also bullish. Business Insider reported that Morningstar values Nvidia at $280 and considers the shares undervalued, although it gives the stock a “very high” uncertainty rating.
Colello said Nvidia’s prospects remain underestimated because technology customers should sustain AI spending.
Morningstar also expects internally designed chips from Amazon, Google and others to complement, rather than replace, Nvidia’s broader hardware-and-software platform.
Micron may provide the clearer verdict because memory shortages have historically encouraged investment that eventually creates oversupply.
Bank of America analyst Vivek Arya argues that memory is becoming a strategic AI resource rather than an ordinary commodity.
Barron’s reported that he expects memory to represent 35% to 40% of global cloud and AI infrastructure spending in 2027. He retained a Buy rating and $1,550 target.
TD Cowen analyst Krish Sankar has also forecast favourable pricing into 2027, according to MarketWatch, supported by higher memory content and high-bandwidth memory’s tighter supply structure.
Yet capacity is expanding. Micron has raised its investment plans, Samsung and SK Hynix are adding production, and China’s CXMT is pursuing further growth.
Akcie paměťových čipů v pondělí oslabily poté, co Reuters uvedl, že CXMT zvažuje druhý závod v Pekingu. Trh se bojí dalšího růstu nabídky a tlaku na ceny.
Memory-chip stocks came under renewed pressure on Monday after a Reuters report said China's largest DRAM manufacturer, ChangXin Memory Technologies (CXMT), is considering building a second memory-chip fabrication plant in Beijing as it looks to expand production during a global semiconductor shortage fueled by artificial intelligence spending.
Micron Technology and SK Hynix each fell about 6% in early trading, though both reduced losses.
Sandisk slipped roughly 2.5% before slipping into the green later in the session.
Storage firms Seagate Technology and Western Digital posted steeper declines of more than 7%.
The sell-off came even as the broader US stock market rallied after President Donald Trump called off planned strikes against Iran, easing geopolitical tensions and sending oil prices lower.
The Dow Jones Industrial Average gained more than 1.1%, while the S&P 500 advanced over 0.7% and the Nasdaq Composite rose about 1%.
Reuters reported that CXMT is in financing discussions with a technology manufacturing hub backed by the Beijing municipal government to support construction of another memory-chip facility, citing two people familiar with the matter.
The proposed investment comes as the company seeks to increase output to capitalize on surging demand for memory chips used in AI servers and data-center infrastructure.
CXMT is currently the world's fourth-largest manufacturer of dynamic random-access memory (DRAM), with an 8% share of the global market during the first quarter, according to Counterpoint Research.
That compares with just 3% during the same period a year earlier, highlighting the pace at which the Chinese company has expanded.
Despite that growth, the company remains significantly smaller than Samsung Electronics, SK Hynix and Micron Technology, whose combined market share approached 90% during the first quarter, according to Counterpoint Research.
Reuters had previously reported that CXMT is already constructing new facilities in Shanghai and Hefei while also exploring additional expansion projects in other Chinese cities.
Once completed, those projects could double the company's manufacturing capacity to more than 600,000 wafers per month.
Monday's decline follows another bout of weakness in memory-chip stocks last month after CXMT completed the largest mainland Chinese semiconductor initial public offering on record.
The company raised 57.92 billion yuan, or roughly $8.6 billion, after pricing shares at 8.66 yuan each, giving it fresh capital to support its aggressive manufacturing expansion plans.
The combination of fresh funding and continued capacity additions has revived investor concerns that China could eventually increase memory-chip supply enough to pressure pricing across the industry.
Those worries have periodically weighed on shares of Micron and other memory manufacturers, particularly as investors assess how quickly Chinese suppliers can narrow the technology gap with global leaders.
Analysts say technology gap remains significantDespite the latest expansion plans, analysts continue to argue that CXMT is unlikely to meaningfully challenge the industry's dominant players in the near term.
"Listing doesn’t change the outlook for the big three or the industry as demand continues to exceed supply for everyone," David Gibson, senior analyst at MST Financial, said in a CNBC report last month.
A key limitation remains access to advanced semiconductor manufacturing equipment.
Because of US-led export restrictions, Chinese memory manufacturers do not have access to the latest extreme ultraviolet (EUV) lithography systems, which are widely viewed as essential for manufacturing cutting-edge memory chips efficiently.
Without those machines, Gibson noted, CXMT requires roughly 30% more semiconductor wafers than its global competitors to produce the same amount of memory.
That structural disadvantage makes it difficult for the company to match the manufacturing efficiency of Samsung, SK Hynix and Micron, even as it expands capacity.
Domestic strength, but AI opportunity remains limitedCXMT has established a growing presence within China's domestic electronics industry, supplying memory chips to several Chinese smartphone manufacturers while gradually expanding into the country's PC and server markets.
However, analysts say its product lineup remains concentrated in mainstream and mid-range applications rather than the high-performance memory increasingly required for AI workloads.
Ellie Wang, an analyst at TrendForce, previously told CNBC that while CXMT continues to strengthen its domestic position, its capabilities remain relatively limited in high-capacity server memory and advanced products designed for AI servers.
That leaves global leaders such as Micron, Samsung and SK Hynix with a substantial advantage in supplying the rapidly expanding AI infrastructure market, even as Chinese manufacturers continue to build capacity and narrow the gap in conventional memory products.
Micron klesl od svého maxima o 39 %, protože trh se obává návratnosti investic do AI a makroekonomiky. Firma ale dál těží z vysoké poptávky po paměťových čipech a ceny ve 3. fiskálním čtvrtletí vzrostly v průměru o více než 60 % oproti předchozím třem měsícům.
Micron Technology (MU -5.90%) has been one of the biggest beneficiaries of the booming demand for artificial intelligence (AI) compute. It's one of just a handful of companies that make memory chips, which have proven to be one of the biggest bottlenecks to expanding large language models and improving their performance. The company has seen its profit soar during the past few quarters as hyperscalers pay premium prices for its chips.
But the market has sold off Micron along with other semiconductor stocks since late June due to a mix of concerns about returns on AI spending and macroeconomic trends. The stock has fallen as much as 39% from its high. As a result, some investors may see an opportunity to invest in the stock. Here's what a $5,000 investment today could be worth in about two years.
Image source: Micron Technologies.
How much higher can Micron's earnings climb? As mentioned, Micron has seen its earnings soar in recent quarters due to higher prices for its memory chips. Prices climbed more than 60% on average compared to just three months prior during its fiscal third quarter (ended May 28).
The reason it can raise prices so much is that the market can absorb it. Hyperscalers have committed to hundreds of billions of dollars in capital expenditures this year alone. They've signed contracts to take hundreds of billions more in chips, infrastructure, and energy services during the next few years. The huge demand severely outstrips the current supply of memory chips across the entire industry, and Micron's management doesn't expect that shortage to abate until 2028 at the earliest.
But more supply is coming. Micron will spend more than $250 billion adding manufacturing capacity during the next decade. Its Virginia facility recently began producing legacy DRAM chips. Its first Idaho facility will begin producing high-end chips in mid-2027, with another facility coming in late 2028. Its New York facility broke ground this year and could start production in 2030.
Today's Change
(
-5.90
%) $
-51.63
Current Price
$
823.03
The competition is also adding capacity. SK Hynix and Samsung are combining to spend more than $1.3 trillion on production facilities during the next decade. Both are adding capacity to existing facilities and accelerating new fabrication plants that could increase production significantly by 2028. Additionally, Chinese competitor CXMT recently completed its initial public offering (IPO), raising up to $10 billion to expand its DRAM production capacity.
As more production capacity comes online, price increases will slow and eventually drop. Revenue growth will slow, and operating costs will rise as Micron and the competition invest more in production. That will lead to an earnings decline. The drop could be more severe if there's an oversupply, which could worsen if AI spending doesn't continue climbing as expected. As it stands, analysts expect Micron's earnings to peak in 2028 at about $178 per share. That's nearly 2.5 times the earnings estimated for fiscal 2026.
How much will a $5,000 investment today be worth in two years? Micron shares historically trade between 3 and 8 times earnings depending on the company's cyclical earnings peaks. That's because investors become increasingly aware of the potential drop in profit during the coming quarters as Micron approaches the peak of the cycle. A low-single-digit earnings multiple will quickly turn into a very high earnings multiple in the near future as earnings fall.
That's quite a wide range, though, and the multiple depends on how severe investors expect the drop in earnings will be. Micron and its competitors have taken steps to alleviate the cyclicality of their businesses by signing long-term agreements with some of their customers. Micron says its agreements cover about 20% of its DRAM volume and a third of its NAND volume from last quarter, and it's looking to sign more. That puts a floor on its volume and pricing in the future (and a ceiling on it in the present).
As such, Micron likely won't trade for a multiple at the low end by the time it hits its peak. A multiple in the middle, about 5 or 6 times earnings, is a fair estimate. That would put its stock price at about $1,000 by mid-2028. With the stock recently trading for just $740 per share, a $5,000 investment could be worth about $6,750 in two years.
To be sure, there's a broad range of possible outcomes. Personally, I want a wider margin of safety before buying Micron shares due to the high level of uncertainty facing the company. But for investors who think the current cycle could push earnings even higher or last longer than analysts currently expect, or that the downcycle won't be too severe, right now could be an opportunity to add shares.
In its fiscal third quarter (ended May 28, 2026), memory specialist Micron Technology (MU -5.90%) booked $41.5 billion of revenue -- more than it generated in any full fiscal year in its history. Its best year ever, fiscal 2025, brought in $37.4 billion.
The market spent Thursday deciding the story has further to run. Shares jumped 18.4% to $874.66 after Samsung told investors it expects the memory shortage to worsen in 2027 and continue into 2028. Micron's market value stood near $988 billion at Thursday's close, and the stock would need a climb of more than 40% to revisit its high of $1,255.
So, where could the stock realistically be in 2030? I think the honest answer has to take memory's history as seriously as its moment.
Image source: Micron.
What the boom is delivering The scale here is worth spelling out. Revenue of $41.5 billion was up nearly 350% year over year, from $9.3 billion, and up from $23.9 billion just one quarter earlier.
Profits are keeping pace. GAAP net income came in at $28.2 billion, helped by a gross margin of 84.6%. Operating cash flow was $25.4 billion, up from $11.9 billion the prior quarter and $4.6 billion in the year-ago period.
And even after $7.1 billion of capital expenditures, Micron generated $18.3 billion of adjusted free cash flow in a single quarter.
Even more, management expects a bigger quarter ahead. Guidance for the fiscal fourth quarter calls for roughly $50 billion of revenue, give or take a billion, at a gross margin near 86% -- with earnings of about $30.73 per share. Annualize that guided pace, and Micron is running at about $123 of earnings per share. At Thursday's close, the stock trades at about 7 times its guided earnings power. Measured against the past 12 months instead, shares go for about 20 times earnings. The distance between those two numbers is the market saying it doesn't trust the boom to hold.
The company also argues that this cycle is built differently.
"We believe our multi-year Strategic Customer Agreements will significantly enhance the durability and predictability of Micron's strong financial performance," said CEO Sanjay Mehrotra in the fiscal third-quarter earnings release.
Locked-in customer commitments, plus HBM4 (Micron's latest high-bandwidth memory for artificial intelligence (AI) accelerators) already shipping in high volume and its successor, HBM4E, pointed at 2027, form the case for this boom outlasting past ones.
What the cycle says about 2030 Zoom out, however, and memory's history argues for caution. In fiscal 2023, an oversupplied market roughly halved Micron's revenue to $15.5 billion, and the company lost $5.8 billion. That was three years ago -- same company, same industry. After all, booms in this business have always financed the supply that eventually ends them, and prices like today's are an open invitation for rivals to add capacity.
So build the range from both truths.
If contracted pricing holds and AI demand keeps absorbing supply into the decade, earnings power in the $120-per-share range could persist or even grow. Give that a multiple of 10 to 12 (arguably modest for a business this profitable), and the stock sits somewhere around $1,200 to $1,500 by 2030.
Today's Change
(
-5.90
%) $
-51.63
Current Price
$
823.03
If the cycle turns the way it always has historically, however, the math changes completely. Suppose earnings settle toward a mid-cycle level -- call it $40 to $60 per share, somewhere between fiscal 2025's $7.59 and today's triple digits. At 10 to 12 times, that's a stock somewhere between $400 and $700.
Split the difference, and the expected range is about $800 to $1,100, close to where the stock already trades. The midpoint of this range implies only modest returns from Thursday's $874.66. The market, it seems, has priced the middle path: several more boom quarters, then a slide toward normal.
That framing shapes what I'd do. I'd consider owning Micron here, but only modestly. The contracts and the product lineup make this boom sturdier than the last one, and 7 times guided earnings is not a price that requires perfection.
But memory has never gone in one direction for long, and I don't expect 2030 to arrive without another turn of the cycle. My base case is that the stock lands in the $800 to $1,100 range by then, with plenty of room to be wrong in either direction. If the fiscal fourth-quarter report (likely this fall) shows the supply agreements holding prices the way management promises, the higher end gets more believable.
Micron Technology za červenec oslabila o 20,25 %, takže investice 1 000 USD na začátku měsíce má nyní hodnotu asi 797 USD. Akcie 31. července klesly téměř o 6 % v jedné seanci.
Micron Technology (NASDAQ: MU) delivered a painful month for late buyers, with the stock falling more than 20% between July 1 and July 31.
As a result, a $1,000 investment made at the start of the month would now be worth about $797.
Micron stock closed at $1,032 on July 1 and finished July 31 at $823, representing a decline of approximately 20.25% over the month.
MU one-month stock price chart. Source: Google Finance Based on that move, a $1,000 investment made at the start of July would have lost roughly $203, leaving investors with about $797 by month-end.
The decline follows a historic rally that transformed Micron into one of the biggest beneficiaries of the artificial intelligence boom.
The company surged to record highs after reporting fiscal third-quarter 2026 results on June 24. Revenue climbed to $41.46 billion, up 346% year over year, while adjusted earnings per share reached $25.11, comfortably ahead of Wall Street expectations.
Micron’s profitability also reached unprecedented levels. Gross margin expanded to approximately 84.6%, up from 37.7% a year earlier, driven by soaring demand for high-bandwidth memory (HBM), DRAM, and NAND products used in AI infrastructure.
Following the earnings report, Micron stock briefly traded near $1,255, marking an all-time high before retreating throughout July.
Despite record earnings and bullish guidance, investors took profits after the stock’s rapid advance.
Meanwhile, the broader technology sector experienced increased volatility during July, weighing on several AI-linked names. Concerns about future AI spending growth and elevated expectations following Micron’s explosive rally added to the selling pressure.
The weakness culminated on July 31, when Micron shares fell nearly 6% in a single session.
Micron’s bullish run Even after the recent correction, Micron remains one of the market’s strongest long-term performers, having gained several hundred percent over the past year while maintaining a market capitalization approaching $1 trillion.
Although Micron stock performance disappointed investors over the past month, the company’s underlying fundamentals remain exceptionally strong.
The memory maker guided for fiscal fourth-quarter revenue of approximately $50 billion, significantly above analyst expectations. Adjusted earnings per share are projected to reach roughly $31, while gross margin is expected to approach 86%.
At the same time, demand for AI memory products continues to outpace supply. Micron has indicated that its HBM production for 2026 is fully sold out, with portions of 2027 capacity already committed.
The company has also secured 16 strategic customer agreements backed by approximately $22 billion in customer deposits and more than $100 billion in minimum revenue commitments, providing greater earnings visibility than the memory industry has historically enjoyed.
Although investors who bought at the beginning of July are sitting on losses, Wall Street continues to view Micron favorably.
Micron Technology ve 3. fiskálním čtvrtletí meziročně více než čtyřnásobně zvýšila tržby a pro 4. čtvrtletí čeká 50 miliard USD. Akcie jsou po výsledcích více než 27 % pod historickým maximem.
Wall Street knows that Micron Technology (MU -5.90%) more than quadrupled its revenue year over year in its fiscal 2026 third quarter. It also notes that Micron guided to $50 billion in revenue for the fiscal fourth quarter, suggesting more than 20% sequential growth.
The stock has plunged since Micron reported earnings, and it's more than 27% off all-time highs. It's a sign that Wall Street continues to underestimate Micron. Here's why the bears are wrong.
Image source: Getty Images
Multiyear deals break the cyclical narrative The biggest hurdle for Micron is that it operates in a cyclical industry. Memory chip shortages can quickly turn into inventory gluts that erode profit margins and cause revenue to crater.
Today's Change
(
-5.90
%) $
-51.63
Current Price
$
823.03
Wall Street is worried about a repeat of Micron's fiscal 2023. During that fiscal year, consumer demand for smartphones and PCs plunged, and memory chip shortages turned into inventory gluts. That resulted in a sharp decrease in memory chip prices, which translated into Micron reporting a nearly 50% year-over-year revenue decline.
The big fear is that AI infrastructure will slow down, and Micron's sales will plunge. Guidance suggests the opposite, but investors are more worried about fiscal 2027 and fiscal 2028.
However, Wall Street seems to be overlooking Micron's new multiyear Strategic Customer Agreements, which "significantly enhance the durability and predictability of Micron's strong financial performance," per the company's Q3 FY26 press release.
AI demand is still in its early innings Tech giants are scrambling to build their own data centers, secure long-term leases for existing data centers, and raise their capital expenditures whenever they can. This activity does not suggest artificial intelligence spending is slowing down anytime soon. In fact, it implies the opposite.
Artificial intelligence already powers products like ChatGPT and Gemini, which attract many users. This technology is also the bedrock for humanoid robots and autonomous vehicles. As demand for any of those products increases, tech leaders will have to buy more of Micron's chips.
The artificial intelligence market is projected to maintain a 30.6% compound annual growth rate (CAGR) through 2033. While rampant AI capital expenditures are relatively new and Wall Street wonders how long the music will last, Micron has already implied there are multiple years left.
One important thing to note is that AI is already producing products and services people use. Many people are upgrading to paid versions of AI models like Claude and Grok. Agentic AI is gaining momentum because it's a valuable resource for enterprises and consumers.
Micron's memory chips put it at the center of the AI boom. The industry is set to grow, affect many sectors, and introduce new products and services that can quickly become mainstream. That's not the type of opportunity Wall Street should bet against for long.
Čínský výrobce DRAM CXMT při debutu na burze v Šanghaji vyskočil o 466 % a získal nejméně 8,6 miliardy USD. Firma chce polovinu kapitálu použít na rozšíření výroby DRAM.
It's not unusual for an IPO to "pop" on its first day of trading. Underwriters typically price new issues conservatively to guarantee adequate demand. But newly listed shares of Chinese DRAM supplier ChangXin Memory Technologies (SHSE: 688825), better known as CXMT, rocketed 466% higher on their first day of trading on the Shanghai exchange.
That price performance is just another indication of the excitement around memory chip stocks like Micron Technology (MU +18.36%) and SK Hynix (SKHY +17.52%). And investors in leading memory chipmakers may be wondering how the Chinese competitor could affect them after its recent capital injection.
Image source: Getty Images.
The fourth mega memory chipmaker While it seemingly left money on the table, the CXMT IPO raised at least $8.6 billion for the company. If the company exercises its option to sell additional shares, it could push that total close to $10 billion.
CXMT is capitalizing on the severe DRAM chip shortage driven by massive demand from artificial intelligence (AI) build-outs. As SK Hynix, Micron, and Samsung dedicate more capacity to high-bandwidth memory (HBM), which is essentially stacks of DRAM chips, CXMT has been able to increase its prices and gain market share. Its bit share of the DRAM market expanded to 8% in the first quarter, up from 3% in the first quarter of 2025, according to Counterpoint Research.
As a result, profits soared to approximately $3.66 billion in the first quarter as revenue increased 7.5-fold. Additionally, it signed long-term deals with ByteDance and Tencent totaling $10 billion.
That is to say, CXMT has growing cash reserves. How CXMT uses that cash could have a meaningful impact on its competition. In its IPO prospectus, CXMT says it plans to use half its fresh capital to upgrade and expand its DRAM production, but makes no mention of plans to expand its HBM efforts, which currently account for a small single-digit percentage of its total production.
CXMT has been playing with a handicap. Import restrictions prevent it from using the most advanced wafer-fabrication equipment, resulting in a significant gap between its chips and those of the competition. CXMT has made technological innovations to close the gap created by its physical limitations, but further improvements may come more slowly. That's especially true, given that advanced HBM chip production requires cutting-edge equipment that's impossible to acquire in China. CXMT is expected to ship HBM3 chips this year, approximately four years behind SK Hynix.
That's important for Micron, SK Hynix, and Samsung. The current demand cycle is driven by HBM chips, which are packaged with GPUs and AI accelerators for deployment in data centers. CXMT appears focused on the near-term opportunity to improve its DRAM production capacity and lower its costs, thereby maximizing its profits as it takes DRAM market share. Its HBM efforts may be confined to meeting the needs of Chinese AI companies, limiting its opportunities.
Today's Change
(
18.36
%) $
135.66
Current Price
$
874.66
Over the long run, however, CXMT could have a meaningful impact on the memory chip market. It's already expected to rival Micron in wafer capacity this year, and it's growing significantly quicker than its other competitors. If it overcomes physical manufacturing limitations or gains access to more advanced production equipment in the future, it could meaningfully increase the global supply of advanced HBM chips.
Apple uvedl, že ceny pamětí rostou tak prudce, že za ně v červnovém čtvrtletí zaplatil víc než v březnovém, a v zářijovém čtvrtletí čeká další zdražení. To podporuje Micron, protože omezená nabídka drží ceny DRAM i NAND vysoko.
Micron Technology NASDAQ:MU has received an unlikely boost from Apple after Tim Cook described the surge in memory prices as a “100-year flood.”
The remarks strengthened the argument that today’s shortage reaches beyond artificial-intelligence data centres.
Apple’s chief executive said exponential memory-cost increases had contributed to reluctant price rises.
Apple paid more for memory in the June quarter than in March and expects another increase during the September quarter, with market prices continuing to climb beyond that period.
For Micron, the comments provide evidence that limited supply is supporting pricing across DRAM and NAND.
Yet Cook also said Apple was “evaluating all options” for sourcing, highlighting how extreme prices could eventually encourage customers to seek alternatives.
Apple’s warning carries unusual weight because the iPhone maker has enormous purchasing power and a supply chain.
If it cannot fully shield itself from memory inflation, smaller electronics customers are likely facing tougher conditions.
The shortage reflects a shift in manufacturing priorities. Producers are directing more wafer capacity towards high-bandwidth memory and server products used in AI systems.
That leaves less conventional DRAM and NAND for smartphones, personal computers and industrial equipment, even as memory requirements increase.
Micron’s latest results already captured this imbalance. Fiscal third-quarter revenue reached a record $41.46 billion, compared with $23.86 billion in the previous quarter.
Management said AI demand and structural supply constraints should keep conditions tight beyond calendar 2027.
The company has signed 16 strategic customer agreements spanning data centres, consumer devices and automobiles.
Micron said these arrangements provide committed supply and could place at least half of company revenue under longer-term agreements when its target programme is completed.
The shortage is not simply a company forecast or a story about Nvidia-linked HBM. It is affecting mainstream electronics and giving established suppliers greater negotiating power across a wider portfolio.
“The memory trade is alive and well,” Cantor Fitzgerald analyst C.J. Muse said in comments reported by MarketWatch.
Muse expects DRAM and NAND to remain undersupplied through 2028 and argues that AI demand, restricted capacity and stronger contracts may permanently improve long-term earnings power.
Morgan Stanley analyst Joseph Moore offered a similar warning.
“There’s no quick fix to the memory shortage,” he wrote, according to Yahoo Finance, suggesting constraints could persist for another two to three years.
Raymond James analyst Melissa Fairbanks called Micron “one of the best beneficiaries of the current memory cycle”, MarketWatch reported.
She said AI was lifting demand not only for HBM but also conventional DRAM and enterprise solid-state drives.
Cook noted that DRAM supply is primarily controlled by Samsung, SK Hynix and Micron and more suppliers would improve availability and could help pricing.
That creates the long-term risk for incumbents. Severe price increases can encourage customers to redesign products, reduce memory specifications, postpone purchases or support emerging competitors.
Apple has reportedly examined sourcing from China’s CXMT, although Cook did not confirm a decision.
New manufacturing capacity could restore supply and send selling prices lower, repeating the pattern that has historically made memory cyclical.
Micron acknowledges that capacity growth without matching demand could hurt pricing and financial performance.
Analytici tvrdí, že u Micron zůstává nabídka paměťových čipů napjatá a poptávka silná, což podporuje celý sektor po nedávném propadu. Přebytek nabídky podle nich nemusí přijít dřív než v roce 2028.
Micron remains central to the memory trade as analysts point to tight supply, strong demand and pricing trends as the key factors shaping the sector after a sharp pullback.
Analysts Say Supply Remains TightCaso said Micron recently delivered what he viewed as one of its strongest reports, supported by robust memory demand. He said memory suppliers remain severely supply constrained because they cannot quickly add production, which supports Wolfe’s bullish view on the group.
Caso also said oversupply risk looks unlikely in the near term because the industry lacks enough physical space to produce the semiconductors customers want. He said any potential oversupply cycle may not emerge before 2028 at the earliest because new capacity requires new buildings that take time to complete.
Pricing Trends Become The Next CatalystHosseini said the “easy money” in memory stocks has largely been made, although he remains constructive on the industry’s longer-term outlook.
For investors without exposure to the sector, Hosseini recommended waiting rather than chasing recent weakness. “I think you’re going to have better pricing over the next month or two,” he said, adding that investors typically return to the memory sector in late summer.
While memory stocks have surrendered a significant portion of their recent gains over the past month, Hosseini noted they continue to outperform levels seen three months ago.
The comments come after a volatile month for memory-chip makers, including Micron, as investors reassess whether pricing gains fueled by artificial intelligence demand can continue.
The stock trades at about 16.7 times earnings. Analysts maintain a Buy consensus with an average price forecast of $1,548.86. Recent analyst actions include:
KeyBanc Capital Markets: Overweight; price forecast raised to $1,750 on July 14. Cantor Fitzgerald: Overweight; price forecast raised to $2,000 on June 29. Cantor Fitzgerald: Overweight; $1,500 price forecast reiterated on June 25. Technical AnalysisMicron remains in a long-term uptrend, although its short-term momentum has weakened.
The stock trades 21.2% below its 20-day simple moving average and 23.8% below its 50-day SMA. However, it remains 1.1% above its 100-day SMA and 42.8% above its 200-day SMA. The shares have gained 544.06% over the past 12 months.
The 20-day SMA sits below the 50-day SMA, signaling weaker near-term momentum. However, the 50-day SMA remains above the 200-day SMA, suggesting the longer-term uptrend is still intact.
Traders may look for the stock to hold above its 100-day SMA as a sign the recent pullback remains under control.
Momentum indicators also point to caution. The moving average convergence divergence, or MACD, remains below its signal line, indicating buying momentum has weakened.
Key resistance stands near $818.50. Key support is around $652.
Price ActionMU Stock Price Activity: Micron Technology shares were down 1.15% at $730.50 during premarket trading on Thursday, according to Benzinga Pro data.
Image via Shutterstock
Market News and Data brought to you by Benzinga APIs
UBS říká, že výprodej polovodičů je přehnaný a obavy z „circular financing“ u AI projektů jsou mylné. Podle banky financování táhne celý dodavatelský řetězec čipů, ne hyperscaleři.
Semiconductors are caught in a selloff UBS thinks is overblown.
The bank argues that fears over "circular financing" in AI infrastructure deals misread who's actually cashing in on the buildout, and it's the chip supply chain, not the hyperscalers, footing the bill.
The commentary follows a wave of investor inquiries about data center deals from Nvidia Corp (NASDAQ:NVDA, XETRA:NVD) and Advanced Micro Devices Inc (NASDAQ:AMD, XETRA:AMD). Recent media reports indicated Nvidia is backing up to $50 billion in lease agreements for a Hut 8 site in Texas and is working on deals worth $750 billion in total, including a $250 billion arrangement with OpenAI, according to Bloomberg. AMD, together with an undisclosed neocloud partner, signed a deal with Core Scientific for up to 2.5 gigawatts of capacity, starting with 500 megawatts in 2027.
UBS identified four drivers behind the recent correction: concerns about open source models weighing on frontier model providers' growth, questions about the memory cycle's sustainability, perceived "circular" financing arrangements, and crowded investor positioning in semis.
The bank pushed back on the first three. It sees the rise of open source models as a net positive for Nvidia, pointing to Artificial Analysis data showing new open models sit between prior and current-generation frontier offerings. It also maintained its view that NAND pricing will roll over in late calendar 2027 and DRAM in mid-2028, with nothing so far to change that call.
On financing, UBS disputed Street estimates that free cash flow for Amazon, Google, Meta and Microsoft will fall below $100 billion in 2027. The bank's own hyperscaler capex projection of roughly $1.4 trillion for that year implies the four companies' combined free cash flow would instead be slightly negative, around negative $60 billion including Oracle. That gap is largely due to rising memory prices, which UBS said are set to require about $550 billion in incremental capex between 2026 and 2027, nearly the entire projected year-over-year increase for that period.
Against that backdrop, UBS estimates Nvidia will generate approximately $900 billion in free cash flow through the end of 2028, with Micron Technology Inc (NASDAQ:MU) generating about $450 billion and AMD about $90 billion, all within its US coverage universe. In UBS's view, the supply chain is generating all of the cash, which the bank says makes sense.
That dynamic, UBS argued, explains why cash-generating suppliers are helping underwrite the buildout, and suggested Nvidia may be shifting toward a more vertically integrated model.
The bank also said hyperscalers' capex increases largely reflect higher memory prices rather than added compute, meaning supply and demand for compute itself has tightened further.
As memory prices normalize, UBS expects hyperscaler spending to ease and free cash flow to improve, a trend it views as ultimately positive for the AI trade despite any near-term drag on semis.
Micron ve čtvrtletí vykázal tržby 41,46 miliardy USD, meziročně o 345,72 % více, a hrubou marži podle GAAP 84,6 %. Firma zároveň čeká ve 4. čtvrtletí tržby 50 miliard USD a non-GAAP EPS 31 USD.
Micron Technology (NASDAQ:MU | MU Price Prediction) just did something no memory company has done before. It reported $41.46 billion in a single quarter, up 345.72% year over year, with GAAP gross margins running at 84.6%.
CEO Sanjay Mehrotra called memory a “defining strategic asset in the AI era.” Shares are up 187.67% year to date. The question: can Micron hit $2,000 per share by 2030 if revenue really does triple again?
Why Micron Shares Are Stuck Despite Blowout Numbers Despite the record earnings report, Micron is down 15.48% over the past week and 27.53% over the past month, sliding from over $1,132 to $820.53.
The trigger was Chinese DRAM maker CXMT’s 466% Shanghai debut, which pushed its market cap past Intel. Investors dumped everything memory. SanDisk fell 9%, Western Digital fell 8%, and Micron fell 7% in the sector sell-off.
Morgan Stanley’s Mike Wilson noted the correction in semiconductor and storage stocks is “pretty well advanced”. With a beta of 2.14, MU amplifies every macro shudder. CXMT competes in commodity DDR5, not HBM, but the market is painting all memory names with the same brush.
Wall Street Sees 84% Upside. My Model Says More The Wall Street consensus target is $1,507.38, backed by 9 Strong Buys, 31 Buys, 4 Holds, and just 1 Strong Sell. That is 89% bullish. Our internal base case is $922.59 (12.44% upside) with a one-year bull case of $1,329.44 and confidence rated 90%.
Wall Street models Micron’s revenue peaking near $269 billion in 2029 and declining to $240 billion by 2030. Nomura’s DRAM forecast tells the opposite story: DRAM revenue growing 63% from $1.261 trillion in 2027 to $2.06 trillion in 2030. If Nomura is right, consensus is modeling the wrong cycle shape.
The Path to $2,000 Per Share Reaching $2,000 from today’s price of $820.53 would require a gain of 143.7%. With forward EPS of $64.97, a $2,000 price implies a forward P/E of 31x. Our base case of $922.59 already implies 18x, meaning the bold target needs roughly 13x of additional multiple expansion, or continued EPS growth that compresses that ratio naturally.
Act now: the analyst who called NVIDIA in 2010 just named his top 10 AI stocks — and Micron Technology didn't make the cut. Grab the names FREE today.
Micron’s Q4 guidance calls for $50 billion in revenue and $31 non-GAAP EPS. Mehrotra said Micron’s “multi-year Strategic Customer Agreements will significantly enhance the durability and predictability of Micron’s strong financial performance.”
The company can fulfill only 50% to two-thirds of key customer demand. HBM4 is in volume shipment for NVIDIA Vera Rubin, and HBM4E ramps in calendar 2027.
The primary risk: a rerun of the 2023 memory trough, when revenue collapsed to $15.5 billion and gross margin went negative.
Where Micron Trades Today vs Its Earnings Power At $820.53 against forward EPS of $64.97, MU trades at roughly 13x forward earnings. For a company posting 345.72% revenue growth with 84.6% gross margins, that is a value multiple.
The stock sits 20% below its 52-week high of $1,254.81 and miles above the 52-week low of $103.21. The 10-year total return of 6,025.12% proves this stock can compound when the cycle turns in its favor.
Is $2,000 Realistic? My Verdict Hitting $2,000 requires a 143.7% gain. That is a stretch, but not a fantasy.
Three things need to break right: HBM4E must ramp cleanly through 2027, Strategic Customer Agreements must prove they extend the cycle past Wall Street’s 2028 rollover call, and CXMT must stay contained in commodity DDR5. What derails it: a hyperscaler capex reset that punctures memory pricing before HBM4E ships. We’ve outlined the blueprint for how Micron could reach $2,000 in 2030.
Act now: the analyst who called NVIDIA in 2010 just named his top 10 AI stocks — and Micron Technology didn't make the cut. Grab the names FREE today.
Micron Technology MU shares held firm in premarket trading on Wednesday, even as South Korean memory giant SK Hynix suffered a sharp selloff following its second-quarter earnings.
The move suggests investors may be distinguishing between short-term earnings disappointment and the longer-term outlook for artificial intelligence-driven memory demand.
SK Hynix shares plunged more than 9% in Seoul after the company reported record quarterly earnings and revenue but failed to meet the exceptionally high expectations that had been built into one of the market's biggest AI beneficiaries.
The weakness spread across South Korea's semiconductor sector, with Samsung Electronics falling more than 5% and dragging the broader Kospi index sharply lower.
Yet Micron, the largest US memory-chip maker, largely escaped the selling pressure.
Its shares fluctuated between modest gains and losses in premarket trading on Wednesday, and were up about 0.5% around 7:25 am ET.
After two days of heavy selling, some investors appeared to buy the dip, helping keep Micron shares relatively resilient.
Micron has lost about 13% over the past five trading sessions and roughly 28% over the last month, although the stock remains about 160% higher for the year.
The recent decline has prompted several analysts to argue that investors are overreacting to concerns surrounding AI infrastructure spending.
Kumquat Research on Seeking Alpha on Wednesday upgraded Micron from Buy to Strong Buy, arguing that the recent weakness presents a buying opportunity rather than signalling deterioration in the company's business.
The analyst pointed to Micron's latest quarterly guidance, noting that the company projected fourth-quarter revenue of $50 billion, gross margins of 86%, and adjusted earnings per share of $31, all comfortably ahead of Wall Street expectations.
According to the analyst, the AI boom has fundamentally altered the industry's earnings profile.
"Because of the AI supercycle, the company is earning a decade's worth of profits in just one quarter," the report said.
While semiconductor companies continue investing heavily in new manufacturing capacity, analysts argue that memory demand is still growing faster than supply.
Capital expenditure is accelerating across Micron, Samsung Electronics, and SK Hynix, but new fabrication facilities require years to build and ramp up production.
As a result, the market continues to face constrained supplies of advanced memory products required for AI servers.
The analyst argued that the recent correction has done little to alter the industry's underlying fundamentals.
"In fact, if anything, the demand case has been reaffirmed."
The report highlighted Nvidia's recently announced long-term memory supply agreement with SK Hynix, valued at approximately $750 billion, including roughly $500 billion tied to Nvidia and another $250 billion allocated to other US companies involved in AI infrastructure.
It also pointed to Alphabet's latest earnings, where the Google parent increased its 2026 capital expenditure guidance to roughly $200 billion, reinforcing expectations that hyperscalers continue expanding AI infrastructure despite investor concerns about returns.
The conclusion, according to the report, is that demand remains robust while supply remains tight, making the recent correction more reflective of changing investor sentiment than weakening industry fundamentals.
Despite the market reaction, SK Hynix delivered one of the strongest quarters in its history.
Operating profit surged more than sixfold from a year earlier to a record level, supported by booming demand for high-bandwidth memory used in AI systems.
However, revenue and operating profit still fell short of elevated analyst forecasts.
The company said delays in shipments of certain advanced products weighed on pricing gains for its core DRAM business.
Melvin, an AI analyst at Milk Road AI, argued that investors had focused too heavily on the earnings miss while overlooking the broader picture.
"The headline numbers aren't pretty, but revenue came in at $54.6B against estimates of $57.7B, a miss of about 5.4%, and operating profit landed at $41.6B versus the $44.2B expected, even with a still massive 76.3% operating margin. But here's why I'm not losing sleep over it...," he said.
He noted that average selling prices for DRAM rose roughly 30% quarter over quarter, while NAND flash prices climbed by the mid-50% range.
"That's not a company losing pricing power but rather a company still riding one of the strongest pricing cycles memory has ever seen," he said.
Analysts remain confident in long-term outlookSK Hynix also projected mid-20% annual DRAM demand growth next year and high-teen growth for NAND memory.
Management added that smartphone and PC shipments were constrained largely because manufacturers could not obtain sufficient memory supplies, rather than because end-market demand had weakened.
Melvin said that distinction was crucial.
"That's a supply constraint story, not a demand problem and supply constraints are exactly what keeps pricing power intact."
He added that major cloud companies continue expanding AI infrastructure and increasing memory procurement, while SK Hynix already has long-term supply agreements with ten customers.
"Hyperscalers aren't pulling back, they're fighting each other for the same limited memory supply."
"A miss against inflated estimates during a supply constrained, price surging market is a very different animal than a miss because nobody wants the product," he concluded.
Industry analyst Patrick Moorhead, chief executive of Moor Insights & Strategy, also dismissed concerns over the earnings miss.
"I think we've lost our minds to think that this performance wasn't a blowout performance," he wrote on X.
"Revenue +257% and profits +557% and this is bad? Estimates are BS when you are in mega growth."
"The decade-long AI build out thesis still stands," he added.
Amundi lifted its stake in shares of Micron Technology, Inc. (NASDAQ:MU – Free Report) by 19.7% in the first quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission. The institutional investor owned 5,970,808 shares of the semiconductor manufacturer’s stock after buying an additional 981,408 shares during the quarter. Micron Technology makes up about 0.5% of Amundi’s investment portfolio, making the stock its 26th largest holding. Amundi owned approximately 0.53% of Micron Technology worth $2,017,178,000 as of its most recent filing with the Securities and Exchange Commission.
A number of other hedge funds and other institutional investors have also made changes to their positions in the stock. Norges Bank acquired a new stake in Micron Technology during the fourth quarter valued at approximately $6,433,456,000. AQR Capital Management LLC lifted its stake in Micron Technology by 411.9% during the third quarter. AQR Capital Management LLC now owns 3,627,022 shares of the semiconductor manufacturer’s stock worth $606,873,000 after purchasing an additional 2,918,535 shares during the last quarter. Arrowstreet Capital Limited Partnership boosted its holdings in Micron Technology by 1,340.6% in the fourth quarter. Arrowstreet Capital Limited Partnership now owns 2,820,986 shares of the semiconductor manufacturer’s stock worth $805,148,000 after purchasing an additional 2,625,169 shares during the period. Vanguard Group Inc. boosted its holdings in Micron Technology by 1.9% in the fourth quarter. Vanguard Group Inc. now owns 106,608,094 shares of the semiconductor manufacturer’s stock worth $30,427,016,000 after purchasing an additional 1,954,644 shares during the period. Finally, Employees Provident Fund Board bought a new stake in Micron Technology during the fourth quarter valued at $519,639,000. Institutional investors own 80.84% of the company’s stock.
Insiders Place Their Bets In other Micron Technology news, CAO Scott R. Allen sold 879 shares of the company’s stock in a transaction on Thursday, July 23rd. The stock was sold at an average price of $1,000.00, for a total value of $879,000.00. Following the transaction, the chief accounting officer owned 34,958 shares of the company’s stock, valued at approximately $34,958,000. This represents a 2.45% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, Director Lynn A. Dugle sold 1,300 shares of the stock in a transaction on Tuesday, June 30th. The shares were sold at an average price of $1,150.43, for a total value of $1,495,559.00. Following the sale, the director owned 17,728 shares of the company’s stock, valued at $20,394,823.04. This trade represents a 6.83% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last three months, insiders sold 204,179 shares of company stock worth $190,836,321. Company insiders own 0.24% of the company’s stock.
Key Headlines Impacting Micron Technology Here are the key news stories impacting Micron Technology this week:
Positive Sentiment: Potential U.S. tariffs or restrictions on Chinese memory chips could strengthen Micron’s domestic competitive position, pricing power and margins by limiting lower-cost competition from ChangXin Memory Technologies (CXMT) and Yangtze Memory Technologies. Chips & Clips: Memory Tariffs Rewire Tech Supply Chains Positive Sentiment: Micron’s latest results remain a fundamental support: quarterly revenue reached $41.46 billion, up 345.8% year over year, while earnings per share of $25.11 exceeded consensus by $3.72. Analysts and some commentary continue to view AI-driven demand, high-bandwidth memory and contracted customer agreements as evidence this cycle may be structurally stronger than prior memory booms. Micron: The Boom And Bust Memory Cycle Could Finally Be Dead Neutral Sentiment: CME Group launched nearly round-the-clock single-stock futures, including contracts linked to Micron. The move may improve access and liquidity but also allows investors to react more quickly to overnight semiconductor news. CME launches single stock futures enabling investors to trade SpaceX, Micron 23 hours a day Negative Sentiment: Investors are reducing exposure to the AI trade amid fears of an AI bubble, expensive data-center financing and concerns that semiconductor valuations and spending expectations have become excessive. Micron was among the weakest performers in the Philadelphia Semiconductor Index as memory stocks extended their pullback. Chip Stocks Extend Pullback Amid AI Bubble Fears Negative Sentiment: CXMT’s blockbuster Shanghai IPO and reports of advances in China’s domestic semiconductor equipment heightened fears that Chinese manufacturers could rapidly expand DRAM production, narrow the technology gap and pressure Micron’s future pricing and market share. Why Micron Stock Just Dropped Again Negative Sentiment: Profit-taking is also significant after Micron’s extraordinary year-long rally. A chief accounting officer’s sale of 879 shares at approximately $1,000 per share added a minor insider-selling signal, though the transaction represented only about 2.45% of that executive’s holdings. Analysts Set New Price Targets A number of analysts have weighed in on MU shares. Sanford C. Bernstein set a $1,300.00 target price on shares of Micron Technology in a report on Monday, June 22nd. DA Davidson lifted their target price on Micron Technology from $1,500.00 to $2,000.00 and gave the company a “buy” rating in a research note on Thursday, June 25th. Cantor Fitzgerald restated an “overweight” rating and set a $1,500.00 price target on shares of Micron Technology in a research report on Thursday, June 25th. KeyCorp reaffirmed an “overweight” rating on shares of Micron Technology in a report on Monday, July 20th. Finally, Weiss Ratings reiterated 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 assigned a Hold rating to the company’s stock. According to data from MarketBeat, the stock presently has an average rating of “Buy” and a consensus target price of $1,268.93.
View Our Latest Stock Report on Micron Technology
Micron Technology Stock Performance MU opened at $820.53 on Wednesday. The company has a market capitalization of $926.70 billion, a price-to-earnings ratio of 18.58 and a beta of 2.14. The company has a debt-to-equity ratio of 0.05, a current ratio of 3.42 and a quick ratio of 2.98. Micron Technology, Inc. has a 1-year low of $103.38 and a 1-year high of $1,255.00. The business has a 50 day moving average price of $973.08 and a two-hundred day moving average price of $632.05.
Micron Technology (NASDAQ:MU – Get Free Report) last issued its quarterly earnings results on Wednesday, June 24th. The semiconductor manufacturer reported $25.11 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $21.39 by $3.72. The firm 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 quarterly revenue was up 345.8% on a year-over-year basis. During the same period last year, the company posted $1.91 EPS. Micron Technology has set its Q4 2026 guidance at 30.000-32.000 EPS. Research analysts predict that Micron Technology, Inc. will post 72.93 EPS for the current fiscal year.
Micron Technology Announces Dividend The firm also recently announced a quarterly dividend, which was paid on Tuesday, July 21st. Investors of record on Monday, July 6th were issued a $0.15 dividend. This represents a $0.60 dividend on an annualized basis and a dividend yield of 0.1%. The ex-dividend date was Monday, July 6th. Micron Technology’s payout ratio is presently 1.36%.
About Micron Technology (Free Report)
Micron Technology, Inc is a global semiconductor company that designs and manufactures memory and storage solutions. Its product portfolio includes dynamic random-access memory (DRAM), NAND flash memory, solid-state drives (SSDs), memory modules and embedded memory solutions for a wide range of computing and electronic devices. Micron supplies components used in data centers, enterprise and cloud infrastructure, client computing, mobile devices, automotive systems and industrial applications, and also markets consumer-facing products under the Crucial brand.
Founded in 1978 and headquartered in Boise, Idaho, Micron has grown into an international manufacturer with research, development and production facilities across multiple regions.
Further Reading Five stocks we like better than Micron Technology These 3 Stocks Have Soared in 2026—Can They Keep Climbing? Hasbro’s Earnings Beat Shows Why This Is No Longer Just a Toy Story Rambus: Another AI Phoenix Ready to Rise From the Ashes of Correction Chips & Clips: Memory Tariffs Rewire Tech Supply Chains 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).
Receive News & Ratings for Micron Technology Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Micron Technology and related companies with MarketBeat.com's FREE daily email newsletter.
Generální ředitel společnosti Micron Sanjay Mehrotra prodal v pátek 24. července akcie za zhruba 37,3 mil. USD v rámci předem připraveného plánu. Akcie Micronu jsou přitom v červenci níže o více než 29 %.
Micron chief executive Sanjay Mehrotra sold shares worth about $37.3 million on Friday as the memory-chip maker suffers its steepest monthly slide in years.
The transaction covered 40,000 shares and preceded Micron’s 8.9% fall on Tuesday to $820.53.
The stock is down more than 29% in July and 32% from its June peak, reflecting fears over Chinese competition, AI infrastructure financing and the durability of the memory boom.
Yet the disposal followed instructions established months before the semiconductor rout, making it weaker evidence of a sudden change in Mehrotra’s outlook.
The July 24 disposal was executed through a Rule 10b5-1 plan adopted on January 30.
Micron said the arrangement allowed the Mehrotra Family Trust to sell as many as 200,000 shares between May 1, 2026, and May 1, 2027.
Such plans establish trading instructions in advance and are intended to reduce concerns that corporate insiders are acting on undisclosed information.
They do not make a transaction irrelevant, but they distinguish a scheduled sale from a spontaneous decision during a market decline.
The latest transaction followed sizeable planned disposals in May and June.
Mehrotra sold stock worth about $21.5 million on May 1, roughly $36 million in late May and approximately $46.3 million in late June. Including Friday’s trade, gross proceeds have exceeded $140 million since early May.
That merits scrutiny after Micron’s extraordinary rally. However, “cashes out” should not be confused with a complete exit.
TipRanks reported that Mehrotra continues to hold an economic interest in the company, leaving his wealth tied to Micron’s performance.
The filing landed during a sector-wide retreat rather than an isolated Micron problem.
Investors are reassessing China’s progress in memory production and chipmaking equipment, the possibility of cheaper conventional DRAM supply and whether hyperscalers can sustain AI capital-expenditure programmes.
Mizuho managing director Daniel O’Regan wrote on July 24 that the question he was hearing most was why the semiconductor complex was lagging so badly.
He saw no single “smoking gun”, pointing instead to several explanations weighing on sentiment.
Micron has become unusually important to that debate.
Trivariate Research called it “the most important stock in the market” in a July 16 report, describing the shares as a proxy for the AI cycle and investors’ willingness to take risk.
That role magnifies the optics of an insider sale.
When traders treat Micron as a barometer for AI infrastructure, a large disposal by its chief executive can reinforce anxiety even when the transaction was planned.
The bearish interpretation centres on scale and timing.
Mehrotra has realised more than $140 million while investors debate whether memory prices, hyperscaler spending and the sector’s valuation have approached unsustainable levels.
Additional sales could deepen the impression that executives are monetising an exceptional rally.
The bullish counterargument is rooted in Micron’s changing business structure.
UBS analyst Timothy Arcuri has argued that longer customer agreements, committed volumes and partially fixed pricing could give the company better visibility and a smoother earnings profile than in previous memory cycles.
Arcuri said the market could eventually place a more “normal” multiple on Micron as evidence emerges that AI has structurally changed the memory industry.
Micron has also disclosed 16 multiyear strategic customer agreements intended to improve predictability.
Those fundamentals matter more than one filing.
Genuine warning signs would include weakening HBM orders, falling contract prices, cuts to hyperscaler spending or faster-than-expected Chinese capacity additions.
Akcie čipových firem v pondělí prudce oslabily poté, co zprávy uvedly, že čínská státní firma začala sériově vyrábět domácí DUV litografické stroje. ASML klesla o více než 7 %.
Shares of major chipmakers fell sharply on Monday after reports that a state-backed Chinese firm has begun mass-producing domestic deep ultraviolet (DUV) lithography machines.
ASML Holding NV (NASDAQ:ASML, XETRA:ASME) dropped more than 7% as China's progress in domestic DUV production threatens the Dutch company's sales of older-generation tools in the region. Advanced Micro Devices Inc (NASDAQ:AMD, XETRA:AMD) also fell 7.3% and Micron Technology Inc (NASDAQ:MU) was down nearly 5% by midday.
China has been unable to obtain extreme ultraviolet (EUV) lithography machines from ASML, the sole global manufacturer, after export controls blocked access starting in 2019. But Chinese firms stockpiled a large fleet of older DUV machines before restrictions tightened, and companies including SMIC and Huawei have used multi-patterning techniques on those tools to produce near-frontier chips.
The export control regime was designed to keep China several years behind at the leading edge. DUV multi-patterning is slower, lower-yield and more expensive than EUV production, but it is proving sufficient for near-frontier chips, unsettling policymakers and investors who had assumed China faced tighter constraints.
The declines also reflect broader valuation concerns, as high expectations tied to AI infrastructure spending have left sector rallies vulnerable to profit-taking amid shifting macroeconomic conditions.
CXMT po debutu v Šanghaji získala 8,6 miliardy USD, které mohou urychlit expanzi v DRAM a zvýšit tlak na ceny i marže Micronu. Analytici čekají, že její podíl na výrobě DRAM vzroste do konce roku 2028 zhruba na 18 %.
Micron faces a longer-term competitive challenge after CXMT’s Shanghai debut gave the Chinese memory-chip maker access to billions that could fund a rapid expansion in conventional DRAM.
MU closed at $920.95 on Friday, down 6.9%, before CXMT started trading on Monday.
CXMT opened 470% higher at 49.50 yuan, against an IPO price of 8.66 yuan, briefly lifting its valuation to about 3.3 trillion yuan, or $487 billion.
The company raised 57.92 billion yuan, or $8.6 billion, in Asia’s largest IPO of 2026.
The opening gain matters less for Micron than the capital behind it.
CXMT can use the proceeds to build factories, develop DRAM processes and support Beijing’s campaign to reduce China’s dependence on overseas memory suppliers.
Nomura initiated coverage with a Buy rating and a 116-yuan target based on 2028 earnings.
“The global supply of memory is unlikely to ease in the coming years,” analyst Donnie Teng wrote in a note.
The bank expects CXMT’s share of DRAM production to increase from about 10% to roughly 18% by the end of 2028.
Such growth would bring the Chinese producer closer to Samsung Electronics, SK Hynix and Micron, while giving it greater influence over industry supply.
CXMT’s first-day valuation does not make it Micron’s technological equal.
The more important signal is that public-market funding and government support could sustain several years of investment, even if memory prices and investment returns weaken during the next downturn.
SemiAnalysis estimates that CXMT’s production capacity could reach about 350,000 wafer starts per month by the end of 2026, only modestly below Micron’s estimated 385,000.
Ranked by wafer capacity, that would place CXMT close to becoming the industry’s third-largest supplier.
Most of CXMT’s output is directed towards conventional DDR and LPDDR memory used in smartphones, personal computers and mainstream servers.
These are markets where additional supply can influence prices more quickly than in technically demanding AI products.
That creates Micron’s hidden risk, as CXMT does not need to match Micron’s leading processes immediately.
Producing enough acceptable memory to replace imports in China and compete in price-sensitive markets could still pressure global commodity-DRAM prices, market share and margins.
Yet CXMT is not currently a low-cost rival.
SemiAnalysis estimates that its DDR5 cost per bit remains more than 30% above Micron, Samsung and SK Hynix. It said recent margin gains reflected unusually strong selling prices more than a structural improvement in manufacturing efficiency.
Micron remains better protected in high-bandwidth memory and data-centre DRAM, where qualification barriers, manufacturing complexity and customer relationships are stronger.
The company has said HBM4E development is progressing, with volume production expected in calendar 2027.
CXMT remains a small HBM supplier.
SemiAnalysis estimates that it held about 1% of global HBM wafer supply in 2025, but projects that share could reach 12% by 2028 as China channels more capacity towards domestic AI infrastructure.
Morgan Stanley analyst Joseph Moore recently described memory as becoming “increasingly THE bottleneck” for AI and agentic-computing systems.
That shortage supports Micron’s near-term pricing, earnings and capacity utilisation, making an immediate derailment of its AI-led cycle unlikely.
CXMT začne v pondělí obchodování na Star Market po IPO za zhruba 8,5 miliardy USD a valuaci kolem 85 miliard USD. Pro Micron to znamená hlavně silnější budoucí nabídku DRAM.
On Monday, the global DRAM industry gets a fourth publicly traded heavyweight. ChangXin Memory Technologies, the Chinese DRAM maker known as CXMT, begins trading on Shanghai's Star Market after an initial public offering (IPO) that raised about $8.5 billion and valued the company at roughly $85 billion. It is the largest listing ever by a Chinese semiconductor company on a mainland exchange.
For shareholders of Micron Technology (MU -7.24%), the world's third-largest DRAM producer, the debut lands at a sensitive moment. Memory stocks have swung hard this month between fears that the AI (artificial intelligence) memory boom is peaking and evidence that it isn't. Micron itself fell about 7% on Friday. Now the industry's fastest-growing challenger is about to have a public currency and a war chest.
Here's what CXMT's arrival actually changes for Micron -- and what it doesn't.
Image source: Micron.
The challenger is moving faster than expected CXMT is no longer a fringe player. The company's share of the global DRAM market reached 7.6% in the first quarter of 2026, up from 4.7% just one quarter earlier, according to Omdia figures reported by the Seoul Economic Daily. That leap came as CXMT absorbed demand the three incumbents couldn't supply during the AI-driven memory shortage. Samsung, SK Hynix, and Micron held roughly 39%, 29%, and 22% of the market, respectively, in the same period.
However, the composition of CXMT's business matters as much as its growth. More than 98% of the company's revenue last year came from conventional DRAM, the commodity chips that go into servers and phones. It has effectively no presence in high-bandwidth memory (HBM), the premium product stacked next to AI accelerators, where the three incumbents retain a technological edge measured in years.
That distinction is the whole story for Micron investors. The memory boom's richest profits are concentrated exactly where CXMT isn't.
Micron's boom doesn't run through CXMT's market -- yet Micron's most recent quarter shows what the high end of this cycle looks like. Revenue for the fiscal third quarter of 2026 (the period ended May 28, 2026) reached $41.5 billion, more than quadrupling year over year from $9.3 billion. Net income was $28.2 billion. Operating cash flow hit $25.4 billion, up from $11.9 billion just one quarter earlier. And for the fiscal fourth quarter, management's forecast points to revenue of $50 billion, give or take $1 billion, with a gross margin of about 86%.
Numbers like those come from selling advanced memory into a shortage, at prices commodity producers can't touch. CXMT's IPO likely doesn't change that math for this quarter, or for next year.
What it changes is the supply picture further out. CXMT is earmarking its proceeds for production line upgrades and next-generation DRAM development. And the roughly $8.5 billion raised, which could approach $10 billion if the overallotment is exercised, is nearly double what the company had originally planned to invest.
Memory prices move on supply, and supply is exactly what CXMT is now funded to add. Memory booms have typically ended the same way: capacity built during the good years arriving all at once. Monday's listing doesn't guarantee a repeat. But it funds one.
Today's Change
(
-7.24
%) $
-71.69
Current Price
$
918.52
Micron's own history shows how violent those turns can be. The company posted a $5.8 billion net loss as recently as fiscal 2023, when the last downturn crushed memory prices -- and now it earns nearly five times that in a single quarter. The same operating leverage cuts in both directions, and memory investors have seen both sides of it inside three years.
So what's the right way for Micron shareholders to handle Monday's debut? Calmly, I'd argue. At about $920 per share, Micron trades at a price-to-earnings ratio of about 21, a multiple that already treats the current earnings explosion as temporary. The market, of course, has never believed this boom would last forever, CXMT or no CXMT.
Micron Technology za poslední měsíc klesl asi o 25 % kvůli obavám z valuace, budoucí nabídky paměťových čipů a vybírání zisků po prudké rally. To i přes rekordní tržby, zisk a hrubou marži. Společnost přitom v poslední době vykázala rekordní čtvrtletní tržby 41,46 miliardy USD, upravený zisk na akcii 25,11 USD, hrubou marži zhruba 85 % a management odhadl tržby za fiskální čtvrté čtvrtletí asi na 50 miliard USD.
Micron Technology (NASDAQ: MU) has suffered a sharp correction over the past month, with shares falling about 25%.
Notably, MU shares have declined from a record high near $1,255 in late June 2026 to about $920 at press time.
MU one-month stock price chart. Source: Google Finance The drop comes despite the company reporting record revenue, earnings, and margins, highlighting growing investor concerns about the sustainability of the AI-driven memory boom.
The decline has surprised many investors given Micron’s strong financial performance. However, the sell-off reflects concerns over future memory chip supply growth, valuation risks, profit-taking after an extraordinary rally, and broader weakness across the semiconductor sector.
The downturn began shortly after Micron reported exceptional fiscal third-quarter 2026 results.
The company posted record quarterly revenue of $41.46 billion, up 346% year-over-year, while adjusted earnings per share reached $25.11, well above Wall Street estimates. Gross margins climbed to roughly 85%, and management projected fiscal fourth-quarter revenue of about $50 billion.
Why Micron stock has plunged Despite the strong results, Micron faced heavy profit-taking after a rally that saw the stock gain more than 700% over the past year on booming AI memory demand. Following the earnings-driven surge, many investors opted to lock in gains, accelerating the sell-off.
Another key concern is the cyclical nature of the memory industry. In this line, Micron has benefited from shortages of HBM, DRAM, and NAND chips used in AI infrastructure, pushing prices and margins to record levels.
However, investors fear the industry may be nearing a cycle peak. Historically, strong profitability attracts new capacity, eventually leading to oversupply, lower prices, and weaker margins.
As a result, the market is questioning whether Micron’s current earnings strength can be sustained over the long term.
Meanwhile, concerns about future supply have intensified as Samsung Electronics and SK Hynix ramp up investments to expand memory production capacity.
Their aggressive spending plans have fueled expectations that current shortages could ease in the coming years. Meanwhile, Chinese memory maker CXMT is emerging as a competitive threat, with reports suggesting some customers are exploring alternative suppliers, raising concerns about Micron’s future pricing power.
The sell-off has also coincided with broader weakness across semiconductor and AI-related stocks. Investors are increasingly scrutinizing AI infrastructure spending and questioning whether hyperscalers can generate sufficient returns from massive data center investments.
Concerns about slower AI spending growth and the development of custom chips by major technology companies have further weighed on sentiment toward AI hardware stocks.
Despite the correction, investors remain wary of assigning premium valuations to earnings they view as cyclical.
After a rally of more than 700% over the past year, even modest concerns about future profitability triggered a sharp reassessment of the stock.
Micron stock outlook On the other hand, Micron’s near-term outlook remains strong. The company has secured long-term supply agreements backed by billions of dollars in customer commitments while continuing to invest in advanced memory technologies and new U.S. fabrication facilities.
Management expects memory market conditions to remain tight through at least 2027, with only gradual supply improvements thereafter.
Apple údajně tlačí na Trumpovu administrativu, aby mohla nakupovat levnější paměť od čínské ChangXin Memory Technologies (CXMT), i když je firma na amerických sankčních seznamech. Spor ukazuje napětí kolem cen pamětí a marží Micronu.
The AI boom has transformed semiconductors from a cyclical business into one of the world’s most strategically important industries. Memory chips, once viewed as commodity components, have become a bottleneck for everything from smartphones to AI servers. That has given suppliers unusual pricing power while forcing customers to rethink their supply chains.
Nowhere is that tension more visible than in Apple‘s (NASDAQ:AAPL | AAPL Price Prediction) reported push to buy lower-cost memory from China’s ChangXin Memory Technologies (CXMT), even though the company has been blacklisted by the U.S. government because of its ties to the Chinese military and state. The dispute says as much about the future of the memory industry as it does about Apple.
Apple Wants Cheaper Memory, but the Politics Are Expensive According to multiple media reports, Apple is lobbying the Trump administration for permission to source memory from CXMT. Buying chips from the company is reportedly not outright illegal, but doing so without government approval could expose Apple to political criticism and reputational damage because of CXMT’s placement on U.S. restricted-entity lists.
Apple’s reported argument is straightforward. It claims Micron Technology (NASDAQ:MU) is taking advantage of today’s tight memory market by charging excessive prices. That criticism comes after Micron’s gross margins climbed above 80% as AI demand continues to outpace supply.
Ironically, Apple has long been known for charging premium prices itself. Just weeks ago, CEO Tim Cook announced price increases of roughly 20% across several MacBook and iPad models, saying Apple could no longer absorb higher component costs. Cook even described today’s memory shortage as a “100-year flood” event.
That makes Apple’s accusations of price gouging harder to separate from its own efforts to protect product margins.
The company’s argument is that large device makers, including Apple, spent years squeezing suppliers for lower prices. Those aggressive negotiations hurt profitability across the memory industry and discouraged investment in new manufacturing capacity. When generative AI suddenly sent demand soaring, the industry did not have enough supply.
Micron argues that today’s higher prices reflect genuine scarcity and tens of billions of dollars being invested in new fabrication plants, including major U.S. manufacturing projects supported by the CHIPS Act.
Act now: the analyst who called NVIDIA in 2010 just named his top 10 AI stocks — and Apple didn't make the cut. Grab the names FREE today.
Company AI Memory Products Highest-Margin Business Micron HBM, DDR5, LPDDR5X High-bandwidth memory (HBM) CXMT DDR5, LPDDR5X, LPDDR4X, RDIMM, MRDIMM Conventional DRAM That distinction matters. CXMT manufactures mainstream DRAM used in PCs, smartphones, and enterprise servers. It does not produce high-bandwidth memory (HBM), the advanced chips powering Nvidia‘s (NASDAQ:NVDA) AI accelerators.
Because HBM commands much higher prices and margins than commodity DRAM, it remains the engine behind Micron’s earnings growth.
The Bigger Story Isn’t Apple Surprisingly, this dispute has less to do with Apple than with how valuable advanced memory has become.
Apple wants lower-cost conventional DRAM to protect margins on consumer devices. Micron wants pricing that supports years of capital spending needed to expand production. Meanwhile, the fastest-growing part of the industry — HBM — faces little competitive pressure because only a handful of companies can manufacture it at scale.
That leaves Micron in an enviable position. Even if Apple eventually receives approval to buy some lower-cost conventional memory from CXMT, it would do little to weaken Micron’s leadership in AI memory, where demand continues to outstrip supply.
Key Takeaway In short, Apple’s reported campaign highlights the growing tension between technology companies trying to control costs and semiconductor manufacturers finally earning healthy returns after years of razor-thin profitability. Granted, Apple has every incentive to lower its bill of materials. But accusing suppliers of gouging rings hollow when Apple has long charged premium prices for its products and raised its own prices by roughly 20% while defending those increases as necessary.
For investors, the bigger investment thesis hasn’t changed. Conventional DRAM pricing may fluctuate as new suppliers emerge, but HBM remains the profit center that matters most. As long as AI infrastructure spending continues at today’s pace, Micron’s competitive advantage rests far less on commodity memory pricing than on its ability to supply the premium chips powering the AI revolution. Ultimately, that’s the market smart investors should be watching.
Act now: the analyst who called NVIDIA in 2010 just named his top 10 AI stocks — and Apple didn't make the cut. Grab the names FREE today.
Bank of Nova Scotia ve 1. čtvrtletí snížila podíl ve společnosti Micron Technology o 64,7 % a prodala 2 269 995 akcií. Po prodeji držela 1 237 399 akcií.
Bank of Nova Scotia trimmed its position in Micron Technology, Inc. (NASDAQ:MU – Free Report) by 64.7% during the 1st quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The fund owned 1,237,399 shares of the semiconductor manufacturer’s stock after selling 2,269,995 shares during the quarter. Micron Technology comprises 0.7% of Bank of Nova Scotia’s investment portfolio, making the stock its 24th biggest position. Bank of Nova Scotia owned 0.11% of Micron Technology worth $418,043,000 at the end of the most recent quarter.
Several other hedge funds have also made changes to their positions in MU. Gibbs Wealth Management increased its holdings in shares of Micron Technology by 108.8% during the 1st quarter. Gibbs Wealth Management now owns 1,516 shares of the semiconductor manufacturer’s stock worth $512,000 after buying an additional 790 shares during the last quarter. Sei Investments Co. lifted its holdings in Micron Technology by 39.5% in the first quarter. Sei Investments Co. now owns 802,106 shares of the semiconductor manufacturer’s stock valued at $270,980,000 after acquiring an additional 227,276 shares during the last quarter. MWA Asset Management lifted its holdings in Micron Technology by 105.1% in the first quarter. MWA Asset Management now owns 1,487 shares of the semiconductor manufacturer’s stock valued at $502,000 after acquiring an additional 762 shares during the last quarter. State of Wyoming purchased a new position in Micron Technology in the first quarter worth approximately $335,000. Finally, Cetera Investment Advisers increased its stake in Micron Technology by 13.9% during the first quarter. Cetera Investment Advisers now owns 385,997 shares of the semiconductor manufacturer’s stock worth $130,405,000 after acquiring an additional 47,064 shares during the last quarter. Hedge funds and other institutional investors own 80.84% of the company’s stock.
Insider Buying and Selling at Micron Technology In other news, Director Steven J. Gomo sold 2,000 shares of the company’s stock in a transaction on Monday, May 11th. The stock was sold at an average price of $787.03, for a total transaction of $1,574,060.00. Following the sale, the director owned 17,139 shares of the company’s stock, valued at approximately $13,488,907.17. This represents a 10.45% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, EVP April S. Arnzen sold 40,000 shares of the 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 completion of the sale, the executive vice president owned 85,737 shares in the company, valued at approximately $92,933,763.78. The trade was a 31.81% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last three months, insiders have sold 163,300 shares of company stock worth $152,667,204. 0.24% of the stock is currently owned by insiders.
Analysts Set New Price Targets A number of equities research analysts have commented on the company. Melius Research began coverage on Micron Technology in a research report on Monday, April 27th. They issued a “buy” rating and a $700.00 target price on the stock. Sanford C. Bernstein set a $1,300.00 price objective on Micron Technology in a research report on Monday, June 22nd. The Goldman Sachs Group boosted their price objective on shares of Micron Technology from $900.00 to $1,100.00 and gave the company a “neutral” rating in a report on Thursday, June 25th. UBS Group upped their target price on shares of Micron Technology from $535.00 to $1,625.00 and gave the company a “buy” rating in a research report on Tuesday, May 26th. Finally, Stifel Nicolaus increased 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 note on Thursday, June 18th. Four investment analysts have rated the stock with a Strong Buy rating, thirty have assigned a Buy rating and three have assigned a Hold rating to the company. Based on data from MarketBeat, the company currently has an average rating of “Buy” and an average target price of $1,268.93.
Read Our Latest Stock Analysis on MU
Micron Technology Stock Up 3.2% Shares of MU opened at $990.21 on Friday. The stock has a market capitalization of $1.12 trillion, a PE ratio of 22.42 and a beta of 2.14. Micron Technology, Inc. has a 1 year low of $103.38 and a 1 year high of $1,255.00. The company has a debt-to-equity ratio of 0.05, a quick ratio of 2.98 and a current ratio of 3.42. The company’s 50-day simple moving average is $962.35 and its 200-day simple moving average is $620.46.
Micron Technology (NASDAQ:MU – Get Free Report) last announced its quarterly earnings data on Wednesday, June 24th. The semiconductor manufacturer reported $25.11 earnings per share for the quarter, 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 in the previous year, the business posted $1.91 earnings per share. The business’s quarterly revenue was up 345.8% compared to the same quarter last year. Micron Technology has set its Q4 2026 guidance at 30.000-32.000 EPS. 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 declared a quarterly dividend, which was paid on Tuesday, July 21st. Shareholders of record on Monday, July 6th were paid a $0.15 dividend. The ex-dividend date was Monday, July 6th. This represents a $0.60 annualized dividend and a dividend yield of 0.1%. Micron Technology’s payout ratio is 1.36%.
Micron Technology News Roundup Here are the key news stories impacting Micron Technology this week:
Positive Sentiment: Alphabet’s stronger capital-expenditure outlook for 2026 eased fears of an AI spending slowdown, which is lifting Micron and other memory-chip names on expectations for sustained demand. Micron stock gains 3%: how is the company benefiting from Alphabet and Tesla earnings Positive Sentiment: Elon Musk publicly thanked Micron during Tesla’s earnings call, adding to bullish sentiment around the company and helping fuel the stock’s recent rebound. Micron Technology Stock (MU) Is Recovering. Thank Elon Musk Positive Sentiment: Investor enthusiasm for the broader semiconductor and memory complex remains strong, with articles highlighting tight DRAM supply, rising memory prices, and heavy inflows into memory-focused ETFs. DRAM ETF inflows rise as Micron, SanDisk, SK Hynix, Samsung lead rally amid risks Positive Sentiment: Recent commentary also points to Micron’s strong margins and earnings momentum, reinforcing the view that the company is benefiting from a powerful AI-driven memory upcycle. Jim Cramer Still Loves Micron. Here Is the 1 Number That Shows Why He Is Right. 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.
Read More Five stocks we like better than Micron Technology Premium Retail’s Stress Test Is Separating Winners From Losers D-Wave Quantum or a Quantum ETF: Which Is the Better Bet? GE Vernova Just Sent a Mixed AI Signal to Investors Alphabet Crushed Earnings, But One Number Spooked the Market
Receive News & Ratings for Micron Technology Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Micron Technology and related companies with MarketBeat.com's FREE daily email newsletter.
Micron zrychluje výrobu HBM4 pro AI a už z ní vygeneroval tržby přes 1 miliardu USD. Firma říká, že náběh výroby 12-high běží dvakrát rychleji než u HBM3E.
Key Takeaways Micron is accelerating HBM4 production as rising AI workloads drive demand for high-bandwidth memory.HBM4 revenues topped $1B, while the 12-high ramp-up is progressing twice as fast as the HBM3E transition.Faster yield gains, added packaging capacity and customer deals could strengthen Micron's market position. Micron Technology, Inc. (MU - Free Report) is strengthening its position in the fast-growing artificial intelligence (AI) memory market by accelerating the production of its HBM4 products. As AI models become larger and more complex, demand for high-bandwidth memory (HBM) continues to rise.
The faster HBM4 ramp-up could help Micron Technology capture a larger share of this expanding market while supporting higher revenues and profitability. According to a Counterpoint Research report, MU ended the first quarter of 2026 with a 21% market share in the HBM space, trailing SK Hynix’s (SKHY - Free Report) 58%.
The company's momentum is already visible. During the third quarter of fiscal 2026, Micron Technology generated record revenues of $41.46 billion, up 346% year over year, while non-GAAP earnings reached $25.11 per share compared with $1.91 in the year-ago quarter. AI-driven demand was a major contributor, with annualized data center revenues exceeding $100 billion and data center SSD revenues more than doubling sequentially.
HBM4 is emerging as Micron Technology's biggest growth catalyst. The company has already shipped more than $1 billion in HBM4 revenues, and management said the 12-high HBM4 ramp-up is progressing twice as fast as the earlier HBM3E 12-high transition. Micron Technology also expects HBM4 to achieve mature manufacturing yields much faster, improving production efficiency and profitability. Qualification samples have been delivered to multiple customers, while high-volume shipments are already underway for its lead AI platform.
Industry conditions also remain favorable. Micron Technology expects DRAM and NAND demand to exceed supply beyond calendar year 2027 as AI adoption expands across data centers, enterprise computing and edge devices. Combined with its advanced 1-gamma DRAM technology, expanding packaging capacity and long-term customer agreements, the faster HBM4 ramp-up could help Micron Technology strengthen its competitive position against rivals and remain one of the biggest beneficiaries of the AI memory boom.
The Zacks Consensus Estimate for Micron Technology’s fiscal 2026 revenues is currently pegged at $129.61 billion, indicating robust year-over-year growth of approximately 247%.
How Do Micron’s Rivals Compare in the AI Memory Race?SK Hynix remains Micron Technology's biggest rival in the HBM market, while SanDisk (SNDK - Free Report) competes in NAND flash and enterprise storage.
SK Hynix has established an early lead in HBM by supplying memory for leading AI accelerators and continues to expand production to meet surging demand. SK Hynix created the HBM market by jointly developing the very first generation with AMD in 2013. When the generative AI boom arrived, SK Hynix leveraged this head start to become the primary memory supplier for NVIDIA's AI processors.
SanDisk is benefiting from the recovery in NAND pricing and rising demand for high-capacity enterprise SSDs used in AI data centers. In the third quarter of fiscal 2026, the company’s revenues surged 251% year over year to $5.95 billion. However, its growth is tied primarily to flash storage rather than HBM, making it less exposed to the fastest-growing segment of AI infrastructure.
In contrast, Micron Technology is gaining from both HBM and NAND demand, giving it a broader AI opportunity. As AI adoption accelerates, MU's faster HBM4 ramp-up, expanding advanced packaging capacity and balanced exposure across DRAM and NAND could help it strengthen its competitive position against both SK Hynix and SanDisk while supporting long-term revenue and margin growth.
Micron’s Price Performance, Valuation and EstimatesShares of Micron have surged around 248.4% year to date compared with the Zacks Computer and Technology sector’s return of 13.2%.
From a valuation standpoint, MU trades at a forward price-to-earnings ratio of 6.66, significantly lower than the sector’s average of 23.73.
Micron Technology 12-Month Forward P/E Ratio
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Micron’s fiscal 2026 and 2027 earnings implies a year-over-year increase of 791% and 114%, respectively. Bottom-line estimates for fiscal 2026 have been revised upward in the past 30 days and revised northward over the past seven for fiscal 2027.
Image Source: Zacks Investment Research
Micron currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Arrowstreet Capital v 1. čtvrtletí snížil svůj podíl v Micron Technology o 12,0 % a prodal 339 340 akcií. Po transakci držel 2 481 646 akcií v hodnotě 838,4 mil. USD.
Arrowstreet Capital Limited Partnership cut its stake in Micron Technology, Inc. (NASDAQ:MU – Free Report) by 12.0% in the first quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission. The firm owned 2,481,646 shares of the semiconductor manufacturer’s stock after selling 339,340 shares during the quarter. Arrowstreet Capital Limited Partnership owned approximately 0.22% of Micron Technology worth $838,379,000 at the end of the most recent reporting period.
Other hedge funds and other institutional investors have also made changes to their positions in the company. High Note Wealth LLC increased its stake 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 valued at $25,000 after purchasing an additional 34 shares in the last quarter. Kohmann Bosshard Financial Services LLC purchased a new stake in shares of Micron Technology in the first quarter valued at approximately $27,000. Steigerwald Gordon & Koch Inc. raised its stake in shares of Micron Technology by 4,800.0% during the 4th quarter. Steigerwald Gordon & Koch Inc. now owns 98 shares of the semiconductor manufacturer’s stock worth $28,000 after buying an additional 96 shares during the period. Bayban purchased a new position in shares of Micron Technology during the 4th quarter valued at approximately $29,000. Finally, GHP Investment Advisors Inc. lifted its position in shares of Micron Technology by 91.2% during the 4th quarter. GHP Investment Advisors Inc. now owns 109 shares of the semiconductor manufacturer’s stock valued at $31,000 after buying an additional 52 shares in the last quarter. Institutional investors and hedge funds own 80.84% of the company’s stock.
Insider Activity In other news, CEO Sanjay Mehrotra sold 28,506 shares of Micron Technology stock in a transaction that occurred 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 sale, the chief executive officer owned 355,997 shares of the company’s stock, valued at approximately $409,140,232.16. The trade was a 7.41% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. Also, Director Steven J. Gomo sold 2,000 shares of the stock in a transaction that occurred on Monday, May 11th. The stock was sold at an average price of $787.03, for a total value of $1,574,060.00. Following the completion of the transaction, the director owned 17,139 shares of the company’s stock, valued at $13,488,907.17. The trade was a 10.45% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold 163,300 shares of company stock worth $152,667,204 over the last quarter. 0.24% of the stock is currently owned by corporate insiders.
Micron Technology Stock Performance NASDAQ MU opened at $990.21 on Friday. The company has a debt-to-equity ratio of 0.05, a quick ratio of 2.98 and a current ratio of 3.42. The stock’s fifty day moving average is $962.35 and its two-hundred day moving average is $620.46. The firm has a market capitalization of $1.12 trillion, a P/E ratio of 22.42 and a beta of 2.14. Micron Technology, Inc. has a fifty-two week low of $103.38 and a fifty-two week high of $1,255.00.
Micron Technology (NASDAQ:MU – Get Free Report) last posted 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. Micron Technology had a return on equity of 71.13% and a net margin of 55.91%.The business had revenue of $41.46 billion for the quarter, compared to analyst estimates of $35.91 billion. During the same quarter in the previous year, the firm earned $1.91 EPS. The company’s quarterly revenue was up 345.8% compared to the same quarter last year. Micron Technology has set its Q4 2026 guidance at 30.000-32.000 EPS. On average, research analysts anticipate that Micron Technology, Inc. will post 72.93 earnings per share for the current year.
Micron Technology Announces Dividend The company also recently declared a quarterly dividend, which was paid on Tuesday, July 21st. Stockholders of record on Monday, July 6th were paid a $0.15 dividend. The ex-dividend date of this dividend was Monday, July 6th. This represents a $0.60 annualized dividend and a dividend yield of 0.1%. Micron Technology’s dividend payout ratio is 1.36%.
Micron Technology News Roundup Here are the key news stories impacting Micron Technology this week:
Positive Sentiment: Alphabet’s stronger capital-expenditure outlook for 2026 eased fears of an AI spending slowdown, which is lifting Micron and other memory-chip names on expectations for sustained demand. Micron stock gains 3%: how is the company benefiting from Alphabet and Tesla earnings Positive Sentiment: Elon Musk publicly thanked Micron during Tesla’s earnings call, adding to bullish sentiment around the company and helping fuel the stock’s recent rebound. Micron Technology Stock (MU) Is Recovering. Thank Elon Musk Positive Sentiment: Investor enthusiasm for the broader semiconductor and memory complex remains strong, with articles highlighting tight DRAM supply, rising memory prices, and heavy inflows into memory-focused ETFs. DRAM ETF inflows rise as Micron, SanDisk, SK Hynix, Samsung lead rally amid risks Positive Sentiment: Recent commentary also points to Micron’s strong margins and earnings momentum, reinforcing the view that the company is benefiting from a powerful AI-driven memory upcycle. Jim Cramer Still Loves Micron. Here Is the 1 Number That Shows Why He Is Right. Wall Street Analysts Forecast Growth A number of research firms have weighed in on MU. Stifel Nicolaus upped their price objective 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. Raymond James Financial lifted their price objective on Micron Technology from $1,100.00 to $1,500.00 and gave the stock an “outperform” rating in a report on Thursday, June 25th. Wolfe Research set a $1,500.00 target price on Micron Technology in a report on Thursday, June 25th. Barclays lifted their price target on Micron Technology from $1,175.00 to $2,000.00 and gave the stock an “overweight” rating in a research note on Thursday, June 25th. Finally, Cantor Fitzgerald restated an “overweight” rating and issued a $1,500.00 price objective on shares of Micron Technology in a report on Thursday, June 25th. Four 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 stock. According to data from MarketBeat.com, Micron Technology currently has an average rating of “Buy” and a consensus price target of $1,268.93.
Check Out Our Latest Report on Micron Technology
Micron Technology Company Profile (Free Report)
Micron Technology, Inc is a global semiconductor company that designs and manufactures memory and storage solutions. Its product portfolio includes dynamic random-access memory (DRAM), NAND flash memory, solid-state drives (SSDs), memory modules and embedded memory solutions for a wide range of computing and electronic devices. Micron supplies components used in data centers, enterprise and cloud infrastructure, client computing, mobile devices, automotive systems and industrial applications, and also markets consumer-facing products under the Crucial brand.
Founded in 1978 and headquartered in Boise, Idaho, Micron has grown into an international manufacturer with research, development and production facilities across multiple regions.
Featured Articles Five stocks we like better than Micron Technology Premium Retail’s Stress Test Is Separating Winners From Losers D-Wave Quantum or a Quantum ETF: Which Is the Better Bet? GE Vernova Just Sent a Mixed AI Signal to Investors Alphabet Crushed Earnings, But One Number Spooked the Market 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).
Receive News & Ratings for Micron Technology Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Micron Technology and related companies with MarketBeat.com's FREE daily email newsletter.
Kimi K3 od Moonshot AI ukazuje, že levnější AI může zvýšit poptávku po pamětech; podle článku to podporuje tezi pro Micron. Nedostatek pamětí v datových centrech navíc přetrvává až do roku 2028.
Micron stock's next catalyst may be coming from the Chinese model that initially unsettled semiconductor investors.
MU closed Thursday at $990.21, up 3.2%, after Alphabet raised its 2026 capital-spending forecast and revived confidence in data-centre demand.
Another signal is emerging from Moonshot AI’s Kimi K3. The low-cost, open-weight model was viewed as a threat to expensive Western infrastructure, but its popularity quickly strained computing capacity.
That reversal supports a Wall Street argument that cheaper AI may reduce the cost of each task while increasing the number of tasks, deployments and memory chips required.
Kimi K3 is a mixture-of-experts model with 2.8 trillion parameters and 50 billion active.
Its performance and low API prices revived comparisons with DeepSeek, raising fears that US technology groups were overspending on processors and data centres.
Demand then produced the opposite warning. Moonshot said usage pushed its infrastructure to capacity, forcing it to pause new subscriptions so customers could retain access.
For Micron, the point is not a confirmed order from Moonshot.
No such purchase has been disclosed, but the signal is that large, inexpensive models still consume memory when deployed at scale.
Bank of America analyst Vivek Arya said Chinese pricing reflects “business-model choices” rather than lower hardware costs, MarketWatch reported.
He added that model weights and active parameters can require “the same or more memory.” BofA reiterated its Buy rating and $1,550 target.
Open-weight models can transfer infrastructure spending from the developer to businesses operating them.
Deployments require servers, DRAM and storage even when access to the model is cheap.
The investment case resembles the Jevons paradox: when technology becomes cheaper, total consumption can rise because more customers adopt it and existing users run more workloads.
Wedbush analyst Matt Bryson said larger models require more memory to hold their parameters, either increasing memory content per accelerator or forcing larger chip clusters.
Continued adoption of Chinese models could therefore be “arguably good for memory vendors,” he said.
Micron, SK Hynix and Samsung are suppliers of high-bandwidth memory used alongside AI accelerators.
Wider deployment can also lift demand for DRAM and NAND storage needed to serve models and retain data.
Kimi K3 strengthens the demand thesis without proving that Micron will sell directly into China. Export restrictions, local suppliers and procurement arrangements make that conclusion premature.
The signal matters because data-centre memory supply is already tight.
Morgan Stanley analyst Joseph Moore said shortages “show no signs of abating,” according to MarketWatch, and expects prices to rise at least 25% from the second quarter to the third.
Moore argued that weakness in PCs, smartphones or consumer products could become a misleading “false flag” because AI data centres are absorbing so much DRAM.
Cloud customers are paying premiums to secure supply, while shortages are expected to persist through 2028.
Micron has reinforced that outlook by signing 16 multiyear customer agreements expected to generate about $22 billion in cash deposits and related financial commitments.
Micron uvedl, že silná poptávka po pamětech má pokračovat i po roce 2027 kvůli AI a omezené nabídce. Firma zároveň uzavřela 16 strategických dohod až do roku 2030.
The hottest artificial intelligence (AI) stocks this year are not names like Nvidia and Palantir Technologies, which have put on a clinic in recent years and generated phenomenal returns for shareholders. This year, parts of the AI supply chain have come into focus, propping up lesser-known companies and even some legacy tech names that had been overlooked until recently.
Two of those companies are Micron Technology (MU -1.05%) and Sandisk (SNDK +0.69%), which are up 240% and 570%, respectively, this year (as of July 22). Can the rally last through 2027?
Image source: Getty Images.
Why Micron and Sandisk are booming Micron and Sandisk both make different types of memory, which feed the graphics processing units (GPUs) data that makes AI reasoning possible.
Sandisk is focused on NAND flash memory, which is essentially longer-term, cheaper storage that maintains data even when an operating system's power is turned off. In AI, NAND is used to store massive data sets and AI models that can be quickly transferred to GPUs when they begin a task.
Micron makes NAND flash memory, too, but it also makes dynamic random-access memory (DRAM). This type of memory is more expensive and loses data when the operating system's power turns off. But it is also the key to making AI possible. DRAM delivers data to GPUs incredibly quickly, enabling AI models to process, respond, and provide solutions in real time.
Today's Change
(
-1.05
%) $
-10.22
Current Price
$
960.60
Companies like Micron have been able to stack DRAM die vertically to create high-bandwidth memory (HBM), which makes AI workloads even faster by providing greater bandwidth.
Naturally, as GPU clusters and data centers have scaled, demand for NAND, DRAM, and HBM has surged, driving higher prices and, in turn, higher revenue and earnings for companies like Micron and Sandisk.
The interesting thing about memory stocks is that they have historically been quite cyclical.
That's because there is typically a timing imbalance between supply and demand. What often happens is that by the time memory companies catch up to demand, demand has fallen, and they overshoot, leading to a supply glut.
But the AI supercycle is unlike anything investors have ever seen, and most analysts expect it to be a while before supply catches up with demand.
On the company's most recent earnings call, Micron CEO Sanjay Mehrotra said he expects high demand to continue past 2027, due to AI demand and "structural supply constraints."
Furthermore, Micron announced 16 strategic customer agreements (SCAs), many of which are long-term, running from this year through 2030. These deals include fixed pricing, price floors, and ceilings. This is atypical for memory companies and does suggest a potentially new dynamic for these cyclical companies.
Ethan Tan, a memory consultant, is forecasting price hikes in the 40% to 45% range next year, and consumers are already feeling the impact. Apple recently announced higher prices for many of its core products due to high memory costs.
In May, Sandisk CEO David Goeckeler said he expects a supply shortage for memory "for a long period of time." He also said he wants to reduce the company's cyclicality, if possible.
Today's Change
(
0.69
%) $
10.95
Current Price
$
1,600.35
"Or at least when the cyclicality comes, have different techniques to deal with it than we have in the past," he told investors at the time.
Now, it's always dangerous for investors to think this time is different because history has a nasty way of catching up with investors, even if it doesn't always repeat itself exactly.
Investors should also remember that the market pulls growth forward, so Micron and Sandisk's prices likely reflect, at least to some extent, the massive demand expected for memory this year and in 2027.
Both companies should continue to deliver strong results in 2027, but the slightest hint that supply is catching up to demand could trigger a big sell-off in these stocks. I don't know if or when it will happen, but it's something investors should be on high alert for.
Arvest Bank Trust Division ve 1. čtvrtletí snížila podíl v Micron Technology o 48,8 % a prodala 41 176 akcií. Po prodeji držela 43 135 akcií v hodnotě 14 573 000 USD.
Arvest Bank Trust Division cut its holdings in shares of Micron Technology, Inc. (NASDAQ:MU – Free Report) by 48.8% during the 1st quarter, according to its most recent Form 13F filing with the SEC. The institutional investor owned 43,135 shares of the semiconductor manufacturer’s stock after selling 41,176 shares during the quarter. Arvest Bank Trust Division’s holdings in Micron Technology were worth $14,573,000 at the end of the most recent quarter.
A number of other large investors also recently added to or reduced their stakes in the business. Petra Financial Advisors Inc. lifted its stake in Micron Technology by 4.3% in the first quarter. Petra Financial Advisors Inc. now owns 967 shares of the semiconductor manufacturer’s stock worth $327,000 after acquiring an additional 40 shares during the period. WealthCollab LLC lifted its position in shares of Micron Technology by 11.0% in the 1st quarter. WealthCollab LLC now owns 353 shares of the semiconductor manufacturer’s stock worth $119,000 after purchasing an additional 35 shares during the period. Acumen Wealth Advisors LLC lifted its position in shares of Micron Technology by 456.4% in the 1st quarter. Acumen Wealth Advisors LLC now owns 3,333 shares of the semiconductor manufacturer’s stock worth $1,127,000 after purchasing an additional 2,734 shares during the period. Marin Bay Wealth Advisors LLC bought a new stake in shares of Micron Technology during the 1st quarter valued at about $527,000. Finally, Saturna Capital Corp boosted its stake in shares of Micron Technology by 83.7% during the 1st quarter. Saturna Capital Corp now owns 1,778 shares of the semiconductor manufacturer’s stock valued at $601,000 after purchasing an additional 810 shares in the last quarter. Hedge funds and other institutional investors own 80.84% of the company’s stock.
Analysts Set New Price Targets MU has been the topic of several research reports. The Goldman Sachs Group lifted their price target on Micron Technology from $900.00 to $1,100.00 and gave the company a “neutral” rating in a research report on Thursday, June 25th. Morgan Stanley boosted their target price on shares of Micron Technology from $1,050.00 to $1,200.00 and gave the company an “overweight” rating in a report on Thursday, June 25th. DA Davidson upped their target price on shares of Micron Technology from $1,500.00 to $2,000.00 and gave the stock a “buy” rating in a research report on Thursday, June 25th. Bank of America increased their price target on shares of Micron Technology from $950.00 to $1,500.00 and gave the stock a “buy” rating in a research note on Tuesday, June 23rd. Finally, Erste Group Bank raised shares of Micron Technology from a “hold” rating to a “buy” rating in a research report on Thursday, June 25th. Four research analysts have rated the stock with a Strong Buy rating, thirty have given a Buy rating and three have issued a Hold rating to the company. Based on data from MarketBeat, the stock has an average rating of “Buy” and an average target price of $1,268.93.
View Our Latest Stock Report on Micron Technology
Insider Buying and Selling In related news, EVP April S. Arnzen sold 40,000 shares of the firm’s stock in a transaction on Wednesday, July 1st. The stock was sold at an average price of $1,083.94, for a total value of $43,357,600.00. Following the completion of the sale, the executive vice president directly owned 85,737 shares in the company, valued at $92,933,763.78. This trade represents 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 hyperlink. Also, Director Steven J. Gomo sold 2,000 shares of Micron Technology stock in a transaction on Monday, May 11th. The stock was sold at an average price of $787.03, for a total transaction of $1,574,060.00. Following the transaction, the director directly owned 17,139 shares of the company’s stock, valued at $13,488,907.17. The trade was a 10.45% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last quarter, insiders sold 163,300 shares of company stock worth $152,667,204. 0.24% of the stock is owned by company insiders.
Micron Technology Trading Up 12.2% Shares of MU stock opened at $970.82 on Wednesday. Micron Technology, Inc. has a 52-week low of $103.38 and a 52-week high of $1,255.00. The company has a debt-to-equity ratio of 0.05, a quick ratio of 2.98 and a current ratio of 3.42. The firm has a market capitalization of $1.10 trillion, a PE ratio of 21.98 and a beta of 2.14. The stock has a fifty day simple moving average of $954.95 and a two-hundred day simple moving average of $610.96.
Micron Technology (NASDAQ:MU – Get Free Report) last issued its earnings results on Wednesday, June 24th. The semiconductor manufacturer reported $25.11 earnings per share (EPS) for the quarter, beating the consensus estimate 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 last year, the company earned $1.91 EPS. Micron Technology has set its Q4 2026 guidance at 30.000-32.000 EPS. On average, analysts predict that Micron Technology, Inc. will post 72.93 EPS for the current fiscal year.
Micron Technology Dividend Announcement The business also recently declared a quarterly dividend, which was paid on Tuesday, July 21st. Investors of record on Monday, July 6th were given a $0.15 dividend. The ex-dividend date was Monday, July 6th. This represents a $0.60 annualized dividend and a yield of 0.1%. Micron Technology’s dividend payout ratio (DPR) is currently 1.36%.
Key Headlines Impacting Micron Technology Here are the key news stories impacting Micron Technology this week:
Positive Sentiment: Micron is benefiting from a broad rebound in memory stocks, with SanDisk, SK Hynix, and Western Digital also bouncing as investors bet the recent slump was overdone. MU, SNDK, SKHY: Memory Stocks Rip Higher as Key Names Lead a Buy-the-Dip Comeback Positive Sentiment: Bank of America’s bullish take that low-cost AI models could increase memory demand helped revive sentiment around Micron and other chip stocks. Micron stock jumps 12%: what is driving the memory stock today Positive Sentiment: Multiple notes highlighted that the recent memory-stock selloff may have created an attractive entry point, with analysts saying data-center shortages and AI spending should keep demand firm. Why Micron and other chip stocks are bouncing back so strongly Positive Sentiment: Wall Street commentary remained constructive, with reports that Micron was added to “best investment ideas” lists and that analysts still see strong profitability from the AI memory cycle. NVIDIA Isn’t Leading AI Stocks in 2026 – These 2 Are Up Over 180% Neutral Sentiment: Some coverage also noted that traders are watching upcoming Big Tech earnings for clues on AI infrastructure spending, which could either extend the rally or cool it off. Micron and SK Hynix Stocks Jump. Watch for This Memory-Related Catalyst. Negative Sentiment: A few articles warned that valuations may already reflect a lot of the AI boom, and that customers could eventually push back against soaring memory costs, creating a risk of more volatility. Micron and SK Hynix Stocks Jump. Watch for This Memory-Related Catalyst. Micron Technology Profile (Free Report)
Micron Technology, Inc is a global semiconductor company that designs and manufactures memory and storage solutions. Its product portfolio includes dynamic random-access memory (DRAM), NAND flash memory, solid-state drives (SSDs), memory modules and embedded memory solutions for a wide range of computing and electronic devices. Micron supplies components used in data centers, enterprise and cloud infrastructure, client computing, mobile devices, automotive systems and industrial applications, and also markets consumer-facing products under the Crucial brand.
Founded in 1978 and headquartered in Boise, Idaho, Micron has grown into an international manufacturer with research, development and production facilities across multiple regions.
Featured Articles Five stocks we like better than Micron Technology Confidence Is Back, But Earnings Show the Consumer Is Being Picky AeroVironment’s Stock Is Down, But Drone Demand Is Taking Off 3M’s Redemption Arc: Can Q2 Earnings Change the Narrative? 3 Photonics Companies Making Quantum Tech Possible 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).
Receive News & Ratings for Micron Technology Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Micron Technology and related companies with MarketBeat.com's FREE daily email newsletter.
Morgan Stanley očekává, že ceny pamětí z 2. na 3. čtvrtletí vzrostou nejméně o 25 % kvůli silné poptávce datových center po AI. To poslalo Micron, Western Digital a Sandisk v úterý o 12 % až 14 % výše.
Tuesday was the day the memory trade turned back around. Micron Technology (MU +12.26%), Western Digital (WDC +12.60%), and Sandisk (SNDK +14.33%) rose 12%, 12.5%, and 14.3%, respectively, in Tuesday's session. It was a violent reversal for three stocks that entered the day down 31%, 39%, and 41% from their 52-week highs.
The biggest catalyst was a single forecast. In a Monday note, Morgan Stanley reportedly told clients it expects memory prices to rise at least 25% from the second quarter to the third, with artificial intelligence (AI) data-center demand keeping supply tight. The firm's checks reportedly found no sign the shortage is easing, and it said shortages could grow even more severe in 2027 and 2028. The group started climbing on the note Monday. On Tuesday, the buying turned into a surge.
For a group of stocks that had spent two weeks selling off on fears the memory boom was ending, that was the whole argument. If prices are still rising, the boom isn't over. Here's what the forecast means for each of the three.
Image source: Micron.
Micron has the broadest exposure Micron is the biggest of the three and the most watched. The company sells both major categories of memory chips (DRAM and NAND flash), plus the high-bandwidth memory that AI accelerators depend on. So a rising price forecast touches nearly everything it ships.
Its latest results show what that leverage already looks like. Revenue for Micron's fiscal third quarter (the period ended May 28) more than quadrupled year over year to $41.5 billion, the company's fifth consecutive quarterly revenue record. Net income came in at $28.2 billion. And operating cash flow more than doubled sequentially, to $25.4 billion from $11.9 billion the prior quarter.
Today's Change
(
12.26
%) $
106.13
Current Price
$
971.59
"Micron's record fiscal Q3 financial results and even stronger outlook for Q4 reflect the strategic value of memory in the AI era," CEO Sanjay Mehrotra said in the company's June earnings release.
Even after Tuesday's move, the stock trades at about 20 times earnings, a multiple that says investors still doubt numbers like these can last.
Western Digital rode along Western Digital is the odd one out: it doesn't sell memory chips at all. The company makes hard disk drives, the slower, cheaper storage tier that data centers deploy in enormous volumes. Its leverage to a memory-price forecast is indirect.
Its own supply picture, however, is just as tight. Revenue for its fiscal third quarter (the period ended April 3) rose 45% year over year to $3.3 billion, and guidance calls for 36% to 44% year-over-year growth in the fiscal fourth quarter.
Today's Change
(
12.60
%) $
61.43
Current Price
$
548.85
"The demand drivers are clear: Virtually every AI workload, from training, inference, agentic AI to physical AI, creates data that is stored persistently and cost-efficiently on HDDs," Western Digital CEO Irving Tan said in the company's April earnings release.
When every tier of data-center storage is scarce at once, the market trades the group as one bet on AI's appetite for capacity. Tuesday showed as much.
Sandisk is the purest play Sandisk sells NAND flash, the exact product whose price Morgan Stanley expects to jump. That arguably makes it the most direct way to own the forecast.
Its results show what rising NAND prices do to a focused producer. Sandisk's fiscal third-quarter revenue rose 251% year over year to $5.95 billion, and non-GAAP (adjusted) gross margin reached 78.4%, up more than 55 percentage points from a year earlier. When the price of a company's core product surges, most of the increase lands in gross profit.
Today's Change
(
14.33
%) $
199.31
Current Price
$
1,590.26
The company is also locking in demand, signing five multiyear supply agreements under a new business model built on firm customer commitments. And its guidance calls for $7.75 billion to $8.25 billion of revenue in its just-ended fiscal fourth quarter, or roughly 34% sequential growth at the midpoint.
One forecast, three different bets So which of the three has the most direct leverage to rising memory prices? Arguably, Sandisk, whose entire business is the product in question. Micron is close behind, with broader exposure across DRAM, NAND, and high-bandwidth memory. Western Digital benefits at one remove, through the same data-center scramble that is straining storage supply of every kind.
Of course, a forecast is still just a forecast, and memory remains the most cyclical corner of the chip industry. The same operating leverage that multiplies profits on the way up works in reverse when prices roll over. The roughly 30% to 40% drawdowns these stocks carried into Tuesday existed precisely because investors understand this risk.
Ultimately, I wouldn't chase Tuesday's move. If Morgan Stanley is right about the third quarter, these companies' results will do the talking soon enough. And if it's wrong, this group has demonstrated in recent weeks just how fast it can reprice in either direction.
Samsung, SK Hynix a Micron dávají přednost pamětem pro AI, takže ceny běžné DRAM prudce rostou. TrendForce uvádí, že kontraktní ceny běžné DRAM v 1. čtvrtletí vyskočily o 93 % až 98 % a ve 2. čtvrtletí o dalších 58 % až 63 %.
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
Market News and Data brought to you by Benzinga APIs
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
1.58K Followers
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.
TSMC a ASML potvrdily, že poptávka po HBM zůstává mimořádně silná, zatímco kapacita EUV je až do roku 2028 plně vytížená. To omezuje růst nabídky v celém odvětví.
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
17.4K Followers
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.
Andar Capital Management HK Ltd v prvním čtvrtletí nově nakoupila 4 000 akcií Micron Technology za zhruba 1,351 milionu USD. Micron je nyní 12. největší pozicí fondu.
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.
Featured Articles Five stocks we like better than Micron Technology The Ugliest Stocks in the Market Just Got a Very Expensive Vote of Confidence Is Domino’s Stock Serving Up a Buying Opportunity? A $1T Black Hole: SpaceX Eyes Pentagon AI to Break Free Why Gold Miners Could Be the Market’s Biggest Comeback Story 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).
Receive News & Ratings for Micron Technology Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Micron Technology and related companies with MarketBeat.com's FREE daily email newsletter.
Bank of America zvýšila cílovou cenu Micron na 1 550 USD a ponechala doporučení Buy, což znamená zhruba 83% potenciál růstu oproti závěrečné ceně 848,95 USD. Firma zároveň uvedla rekordní výsledky za fiskální Q3 a výhled tržeb na fiskální Q4 ve výši 50,0 miliardy USD plus minus 1,0 miliardy USD.
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.
Boston Common Asset Management v 1. čtvrtletí snížila podíl v Micron Technology o 10,5 % na 18 864 akcií. Firma zároveň vykázala tržby 41,46 miliardy USD a EPS 25,11 USD, nad odhady.
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.
Featured Stories 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).
Receive News & Ratings for Micron Technology Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Micron Technology and related companies with MarketBeat.com's FREE daily email newsletter.
Eaton Cambridge Inc. ve 1. čtvrtletí koupila nový podíl ve společnosti Micron Technology: 864 akcií za zhruba 292 000 USD. Institucionální investoři nyní drží 80,84 % akcií společnosti.
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.
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
Receive News & Ratings for Micron Technology Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Micron Technology and related companies with MarketBeat.com's FREE daily email newsletter.
« PREVIOUS HEADLINEBroderick Brian C Has $8.52 Million Position in Eli Lilly and Company $LLY
NEXT HEADLINE »Micron Technology, Inc. $MU Shares Acquired by Dimensional Fund Advisors LP
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.
Today's Change
(
0.04
%) $
0.37
Current Price
$
853.57
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 a SanDisk v předobchodní fázi obchodování rostly po prudkém výprodeji polovodičů, který přiměl investory znovu nakupovat paměťové akcie. KeyBanc stále očekává přetrvávající nedostatek paměťových čipů až do roku 2027.
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.
Jensen Huang na CES 2026 řekl, že paměť je novým úzkým hrdlem AI. Micron i SanDisk od té doby těží z rostoucí poptávky po paměťových a úložných čipech.
CES, held annually in January, is one of the most important trade shows where tech companies go to unveil innovations and showcase bold ideas for the future.
At the 2026 event, Nvidia CEO Jensen Huang offered something that has been just as impactful: his insights about the growing memory needs of artificial intelligence (AI). And based on where the stock prices of Micron Technology (MU +0.04%) and Sandisk (SNDK 3.99%) have gone since then, his understand of the situation was right on the money.
Nvidia CEO Jensen Huang. Image source: Nvidia.
The AI memory crunch Large language models are being asked to deliver on requests promptly, but there's also a growing expectation that these tools will preserve users' older requests and conversations as time savers to provide context for the new ones. That requires increasingly higher memory capacity in the data centers that power those AIs, which Huang alluded to in his January CES speech:
We would like this AI to stay with us our entire lives and remember every single conversation we've ever had with it, right? Every single lick of research that I've asked for. Of course, the number of people sharing the supercomputer will continue to grow. And so, this context memory, which started out fitting inside an HBM, is no longer large enough.
Over the last year, as Micron and Sandisk have kept reporting surging revenue figures in their respective quarterly reports, Huang's insight on the expanding demand for memory and storage for AI has proven true.
Today's Change
(
0.04
%) $
0.37
Current Price
$
853.57
AI boosts revenue In Micron's fiscal 2026 third quarter, it reported total revenue of $41.4 billion, which was a significant increase for the company; its full-year revenue in 2025 was just $37.3 billion. That rapid revenue growth is thanks to its cloud and data center divisions.
Quarter
Cloud Memory Revenue
Core Data Center Revenue
Q3 2025
$3.3 billion
$1.5 billion
Q3 2026
$13.7 billion
$11.5 billion
Data source: Micron.
Sandisk's top line is smaller than Micron's, but it's still growing significantly. Its total revenue in its fiscal 2026 third quarter was $5.9 billion, up 251%. Its data center and edge divisions (providing memory storage for things like drones and car sensors) have been key revenue drivers.
Quarter
Data Center Revenue
Edge Revenue
Q3 2025
$197 million
$927 million
Q3 2026
$1.4 billion
$3.6 billion
Data source: Sandisk.
Why sales can keep growing The AI infrastructure build-out isn't expected to slow down anytime soon, and as long as it continues, demand for memory and storage chips will remain robust. But each of these companies is signing longer-term deals with customers that lock in prices and supply agreements for multiple years. This should eventually help them offset some of the cyclicity that the memory and data storage industry is known for.
Micron signed 16 strategic customer agreements in its fiscal third quarter, with cash deposits and financial commitments totaling $22 billion to date. Meanwhile, in its third quarter, Sandisk signed three contracts with total contractual revenue of at least $42 billion.
Today's Change
(
-3.99
%) $
-56.26
Current Price
$
1,354.82
The stock prices for both have pulled back over the past few days, but those retrenchments came on the back of strong runs upward. Thus far in 2026, while Nvidia shares have climbed by 11%, shares of Micron have performed much better; Micron's stock price is up nearly 200%, while shares of Sandisk have skyrocketed by almost 500%.
The short term looks a little uncertain amid an AI sector sell-off. Still, as there appears to be no end in sight to the deep mismatch between memory and storage supply and demand, both stocks could keep rewarding investors over the next several years.
