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Nvidia says memory pricing is “extreme”… so why is the memory maker priced for a crash?… the bigger waves Wall Street can’t see… where Luke Lango is hunting One week ago, Nvidia (NVDA) delivered a blowout earnings report, punctuated by guidance calling for another 70% of growth ahead.

If you were waiting for proof that the AI build-out is real, durable and still accelerating, that was it. It should have kicked off a new leg higher for the AI infrastructure trade.

Yet, despite a brief surge, the AI complex has gone nowhere since. Over this period, the Nasdaq 100 is down about 1.5% as of this writing.

We see this dynamic even clearer when we zero in on memory, a critical corner of the AI trade. To build its chips, Nvidia buys enormous quantities of high-bandwidth memory – the ultra-fast memory that sits next to an AI processor and feeds it data.

On Nvidia’s earnings call, CFO Colette Kress told analysts why the company’s profit margins are about to dip:

We are experiencing extreme pricing conditions in memory. The magnitude of the price increase has exceeded our prior expectations and are headed even higher into next year.

This is about as bullish a signal as possible for a memory maker like Micron (MU).

So, why did MU fall about 6% the day after Nvidia’s earnings, and remain down about 2.6% over the last week?

What Wall Street refuses to believe As I write on Wednesday, MU is up 199% for the year. It’s one of the best-performing stocks of the entire AI bull market.

And yet it trades at only six times forward earnings.

Across the S&P 500, the typical stock gets somewhere around 20 to 25 times forward earnings. Anything touching AI usually commands far more.

Micron at six means it’s among the very cheapest stocks in the entire index – it’s basically Wall Street’s way of saying “we’re not willing to pay much for the earnings you’re suggesting are on the way.”

Why? After all, those forecasted earnings are enormous.

One word: cyclicality.

For decades, memory has been one of the most boom-and-bust corners of the entire economy. When memory is scarce, prices spike and profits explode. But those fat profits lure manufacturers into building new capacity. Supply floods in, prices crash, and profits collapse just as violently as they rose.

Investors learned the hard way not to pay up for memory earnings, knowing the crash was always coming.

So, even now – with memory profits at record highs – the market is looking past them to the bust it assumes is 18 months away.

Is the market right?

Wall Street can’t have it both ways The bear case begins with Micron signing a wave of long-term contracts with its biggest customers. Those deals lock in prices within a set band – a ceiling and a floor. And the bears argue, reasonably, that the ceiling caps Micron’s upside: if memory prices go parabolic in this shortage, Micron can’t fully cash in, because it’s agreed to sell at capped prices.

Fair enough. But the bears aren’t being consistent…

The very same contract that caps the top also props up the bottom. A price floor doesn’t just limit the windfall – it guarantees a minimum.

And let’s be clear: these aren’t loose handshake deals. Here’s Sumit Sadana, Micron’s Executive Vice President and Chief Business Officer on the most recent earnings call:

…whether they want to purchase the bits or not, they are obligated to pay for the price times the volume…

The price cannot exceed the ceiling no matter what, cannot go below the floor no matter what.

Consequently, the value of these agreements can be readily determined.

“Whether they want to purchase the bits or not.” That’s huge.

These are what’s known as “take-or-pay” agreements – the customer is on the hook to pay for the volume it committed to, even if it decides it doesn’t want the chips.

Micron has signed 16 of these Strategic Customer Agreements, most of which run for five years through the end of calendar 2030. Together, they cover roughly 20% of Micron’s memory (DRAM) volume and about a third of its flash (NAND) volume – and once the planned deals are done, management expects half or more of the company’s total revenue to be locked under them.

Micron now reports about $100 billion in contracted revenue booked at those conservative floor prices, and it says actual revenue should run well above that. Customers have even put roughly $22 billion of cash on the table as collateral.

But here’s the kicker – Micron management says that even at the floor prices, these contracts would deliver gross margins above the peak margins Micron earned in any prior cycle. In other words, the worst case written into the contracts is better than the best case of the old world.

Bears cannot simultaneously argue that these contracts are binding enough to cap Micron’s upside – and pretend they do nothing to cushion its downside.

And that absurd 6x multiple only ever made sense because of the downside – the fear that profits would crater. Blunt that fear, and the discount loses its reason to exist.

Now, let’s be clear – these contracts don’t erase Micron’s cyclicality. Even when all the deals are signed, roughly half of Micron’s revenue still floats with the open market and behaves the old way. So, this isn’t “Micron’s profits can’t fall.” It’s more like “Micron’s profits are becoming less volatile than they’ve ever been – but the market is still pricing them as if nothing has changed.”

That alone is a case for a higher multiple – but it’s not the only reason…

Wall Street is staring at the wave directly upon us – and missing the set behind it Picture a surfer sitting in the lineup, watching a big wave rise in front of him. He’s so fixated on that single wave – will it form? Will it break early? – that he’s missing what’s behind it…

Something even bigger.

That’s Wall Street with the memory trade right now. It’s fixated on the current wave, the AI-memory boom – data centers, AI servers, the memory feeding today’s chatbots – and bracing for it to crash.

It’s missing what’s coming.

Let’s return to Micron’s last earnings call. Here’s CEO Sanjay Mehrotra:

Humanoid robots carry 10 times the amount of memory as an average L2+ vehicle, and we expect a sustained, substantial multi-decade memory demand cycle to begin in the latter part of this decade.

First, let that 10X number sink in. Then recognize that Mehrotra isn’t describing a one-year bump. He’s describing a multi-decade demand cycle – not one, but a series of larger waves rolling in behind the data-center boom.

He also made clear this isn’t a supply problem that fixes itself soon:

We currently do not have line of sight as to when memory supply will be able to catch up with increasing demand.

I don’t want to overhype the upside, so let’s rein it in and just ask one question related to the downside…

Do Mehrotra’s comments sound anything like a traditional memory cycle that’s about to go bust?

Micron is just one example Now, maybe you don’t own Micron, so you’re wondering about the relevance of today’s issue. Fair enough.

But strip the whole AI build-out to its studs and it comes down to three scarce things that you probably do have exposure to: compute, memory, and power. The chips that do the thinking, the memory that feeds them, and the electricity that runs it all. Wall Street’s doubt isn’t really about one memory maker – it’s doubt that demand for those three holds up.

Now, look at what a robot actually is. It’s those same three things – a brain, memory, and power – stood up on two legs and sent out into the world.

Not everything crosses over from today’s AI to tomorrow’s robotics – the data-center cooling names don’t have an obvious robot to sell into. But these three do. And that means the same companies Wall Street is discounting today get a second demand curve tomorrow, from an army of machines that haven’t been built yet.

While Micron is the clearest example of that mispricing, it isn’t the only one. Across compute, memory, and power, the market has met record demand with a shrug – good news, ho-hum stock reactions – as if the whole trade is one bad quarter from unraveling.

I can’t promise you every AI stock will make you money. But the malaise in leading AI stocks isn’t necessarily the trade breaking down – rather, it feels more like an opportunity hiding behind an outdated fear.

So, if this bigger wave really is building – across all three – who gets paid as it rolls in?

For that, I’ll hand you over to a colleague who’s spent months mapping exactly that.

Enter Luke Lango and the “Physical AI” build-out Our technology and hypergrowth expert Luke Lango, editor of Early Stage Investor, has been all over “Physical AI” – the moment intelligence steps out of the cloud and into machines that move, lift, and work in the real world.

He recently wrote a piece noting that the economics of robots is about to cross a line that matters – about “$10 an hour.”

Here’s Luke:

That is roughly what [JPMorgan] believes a humanoid robot could soon cost to operate inside a warehouse or factory. A human worker performing similar work costs closer to $30 per hour.

But the takeaway of Luke’s analysis wasn’t to push readers toward companies that are likely to be selling these robots. Instead, he likes the suppliers underneath them.

For example, he highlights Elon Musk’s Optimus robot at Tesla (TSLA):

Optimus gets the demo-day applause. But watch what Musk is actually assembling around it…

Piece by piece, he’s pulling the entire Physical AI stack under one roof.

And that brings us full circle…

Micron (and much of the AI infrastructure trade) is one of those pieces being assembled – memory is a component no robot empire can build for itself.

Now, “following Musk’s suppliers” has already been lucrative for Luke’s subscribers. By his count, he’s recommended 33 stocks tied to Musk’s businesses in one way or another that later doubled or more – Micron among them.

Today, Luke thinks Musk is opening a brand-new frontier – one big enough to demand a whole new shopping list of suppliers. He’s spent months mapping out who’s on it, and he’s revealing more details in a live presentation one week from today – Wednesday, Sept. 9 at 8 p.m. Eastern, alongside Louis Navellier and Eric Fry. He’ll even give away one name and ticker for free.

I’ll bring you more on this over the coming days, but you can reserve your seat right here.

Looking at the big picture, the risk is that we act like the surfer staring only at the wave that’s right upon us That’s what Wall Street is doing – bracing for a break that Micron’s own contracts are built to prevent, while even bigger waves stack up on the horizon.

I’m not telling you to go all-in on memory or MU. But while Wall Street frets about a potential AI cycle bust, look beyond.

It won’t be a smooth ride higher, but the peak wave of this cycle appears to be far off in the distance.

To see Luke’s full map – and the free name he’s putting on the table – reserve your seat for his September 9 presentation right here.

Have a good evening,

Jeff Remsburg

(Disclosure: I own MU)

Ieq Capital LLC purchased a new position in shares of Micron Technology, Inc. (NASDAQ:MU – Free Report) in the second quarter, according to its most recent filing with the Securities & Exchange Commission. The fund purchased 251,329 shares of the semiconductor manufacturer’s stock, valued at approximately $290,106,000. Micron Technology makes up about 1.3% of Ieq Capital LLC’s holdings, making the stock its 13th biggest holding.

Other institutional investors have also modified their holdings of the company. Heron Bay Capital Management purchased a new position in shares of Micron Technology during the second quarter valued at approximately $1,233,000. Callan Family Office LLC purchased a new stake in Micron Technology in the 2nd quarter worth approximately $56,285,000. Gambit Capital Management LLC acquired a new position in Micron Technology in the 2nd quarter valued at $223,000. Fund Advisors of America Inc FL acquired a new position in Micron Technology in the second quarter valued at $3,646,000. Finally, Manhattan West Asset Management LLC purchased a new stake in Micron Technology in the 2nd quarter valued at about $667,000. Institutional investors and hedge funds own 80.84% of the company’s stock.

Wall Street Analysts Forecast Growth A number of equities research analysts recently issued reports on the stock. BMO Capital Markets began coverage on shares of Micron Technology in a report on Friday, August 21st. They issued an “outperform” rating and a $1,300.00 target price for the company. Stifel Nicolaus boosted their price target on Micron Technology from $550.00 to $1,500.00 and gave the company a “buy” rating in a research report on Thursday, June 18th. Morgan Stanley upped their price target on Micron Technology from $1,050.00 to $1,200.00 and gave the stock an “overweight” rating in a research note on Thursday, June 25th. Royal Bank Of Canada raised their price objective on Micron Technology from $1,200.00 to $1,500.00 and gave the stock an “outperform” rating in a report on Thursday, June 25th. Finally, TD Cowen reaffirmed a “buy” rating on shares of Micron Technology in a research note on Friday, July 10th. Four analysts have rated the stock with a Strong Buy rating, thirty-one have issued 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 price target of $1,295.63.

Get Our Latest Stock Analysis on Micron Technology Micron Technology Trading Down 2.6% NASDAQ:MU opened at $933.44 on Wednesday. The business’s 50-day moving average is $944.21 and its two-hundred day moving average is $724.85. The firm has a market capitalization of $1.05 trillion, a PE ratio of 21.13 and a beta of 2.22. Micron Technology, Inc. has a 12 month low of $114.25 and a 12 month high of $1,255.00. 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 (NASDAQ:MU – Get Free Report) last posted its earnings results on Wednesday, June 24th. The semiconductor manufacturer reported $25.11 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $21.39 by $3.72. The business 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 company’s revenue for the quarter was up 345.8% compared to the same quarter last year. During the same quarter last year, the firm earned $1.91 earnings per share. 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 earnings per share for the current fiscal year.

Micron Technology Dividend Announcement The company also recently declared a quarterly dividend, which was paid on Tuesday, July 21st. Investors of record on Monday, July 6th were issued a dividend of $0.15 per share. This represents a $0.60 dividend on an annualized basis and a yield of 0.1%. The ex-dividend date of this dividend was Monday, July 6th. Micron Technology’s dividend payout ratio (DPR) is presently 1.36%.

Micron Technology News Roundup Here are the key news stories impacting Micron Technology this week:

Positive Sentiment: Analyst earnings upgrades and optimism about Micron’s AI memory opportunity supported the bullish case. Bernstein reportedly maintained a Buy rating with a $1,300 price target, while other published targets extend as high as $2,000. Micron Technology Gains Driven by Earnings Upgrades Positive Sentiment: Micron’s latest results significantly exceeded expectations, with quarterly revenue of $41.46 billion and earnings of $25.11 per share. Revenue increased more than 345% year over year, reinforcing confidence in the current memory and AI infrastructure cycle. Positive Sentiment: Reports argue that high-bandwidth memory capacity is sold out through 2026 and supported by long-term customer agreements. This could provide unusually strong revenue visibility and help protect margins despite concerns about new competitors. Why China’s Memory Chip Breakthrough Won’t Crash the Market Positive Sentiment: Investors remain focused on the possibility that AI demand has structurally altered Micron’s historically cyclical memory business. Some commentary describes the recent pullback as an opportunity because demand for AI-related wafer capacity continues to exceed supply. Neutral Sentiment: China’s CXMT reportedly began small-batch production of HBM3E and plans LPDDR6 production, creating a longer-term competitive and geopolitical consideration. However, analysts argue that its initial output is too small to ease the global AI memory shortage in the near term. MU and SNDK Face New China Memory Challenge Neutral Sentiment: Broader semiconductor weakness, higher bond yields, oil-price volatility, and uncertainty surrounding potential tariffs have reduced investors’ willingness to pay elevated valuations for technology stocks. Negative Sentiment: Unions representing roughly two-thirds of Micron’s Taiwan workforce, or nearly 10,000 employees, threatened possible strike action unless the company increases bonuses and profit sharing. A walkout could disrupt manufacturing, raise labor costs, and delay shipments. Micron’s Taiwan Unions Threaten Strike Over Bonus Dispute Negative Sentiment: Micron’s heavy manufacturing exposure to Taiwan adds geopolitical and operational risk, while reports of widespread insider selling may reinforce investor caution after the stock’s substantial run-up. Insider Buying and Selling at Micron Technology In other news, Director Lynn A. Dugle sold 1,300 shares of Micron Technology stock in a transaction dated Tuesday, June 30th. The stock was sold at an average price of $1,150.43, for a total transaction of $1,495,559.00. Following the sale, the director directly owned 17,728 shares of the company’s stock, valued at approximately $20,394,823.04. The trade was a 6.83% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, EVP April S. Arnzen sold 40,000 shares of the business’s stock in a transaction dated Wednesday, July 1st. The stock was sold at an average price of $1,083.94, for a total value of $43,357,600.00. Following the completion of the transaction, the executive vice president owned 85,737 shares in the company, valued at approximately $92,933,763.78. This trade represents a 31.81% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last 90 days, insiders sold 177,204 shares of company stock worth $182,156,264. 0.24% of the stock is currently owned by insiders.

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 Dutch Bros Sell-Off Creates a Growth Opportunity NVIDIA’s MediaTek Bet Shows How It Plans to Defend Its AI Moat Is Abercrombie & Fitch’s Hot Streak Just Getting Started? Medtronic’s Stars Are Aligning for a Price Recovery Want to see what other hedge funds are holding MU? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Micron Technology, Inc. (NASDAQ:MU – Free Report).

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Fund Advisors of America Inc FL purchased a new stake in Micron Technology, Inc. (NASDAQ:MU – Free Report) during the 2nd quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission. The fund purchased 3,158 shares of the semiconductor manufacturer’s stock, valued at approximately $3,646,000. Micron Technology accounts for about 3.3% of Fund Advisors of America Inc FL’s holdings, making the stock its 5th biggest position.

Other hedge funds also recently made changes to their positions in the company. M.E. Allison & CO. Inc. increased its stake in Micron Technology by 0.8% in the second quarter. M.E. Allison & CO. Inc. now owns 1,324 shares of the semiconductor manufacturer’s stock valued at $1,528,000 after acquiring an additional 11 shares during the period. Cherrydale Wealth Management LLC raised its position in Micron Technology by 1.4% in the second quarter. Cherrydale Wealth Management LLC now owns 972 shares of the semiconductor manufacturer’s stock worth $1,122,000 after purchasing an additional 13 shares in the last quarter. Bellevue Asset Management LLC lifted its stake in Micron Technology by 25.5% during the second quarter. Bellevue Asset Management LLC now owns 64 shares of the semiconductor manufacturer’s stock worth $74,000 after purchasing an additional 13 shares during the period. Mowery & Schoenfeld Wealth Management LLC lifted its stake in Micron Technology by 8.8% during the second quarter. Mowery & Schoenfeld Wealth Management LLC now owns 161 shares of the semiconductor manufacturer’s stock worth $186,000 after purchasing an additional 13 shares during the period. Finally, Red Door Wealth Management LLC boosted its holdings in Micron Technology by 0.7% during the second quarter. Red Door Wealth Management LLC now owns 1,914 shares of the semiconductor manufacturer’s stock valued at $2,209,000 after purchasing an additional 14 shares in the last quarter. Institutional investors and hedge funds own 80.84% of the company’s stock.

Insider Activity at Micron Technology In other 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 approximately $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 SEC, which is available through this link. Also, Director Lynn A. Dugle sold 1,300 shares of Micron Technology stock in a transaction dated Tuesday, June 30th. The shares were sold at an average price of $1,150.43, for a total value of $1,495,559.00. Following the completion of the transaction, the director directly owned 17,728 shares of the company’s stock, valued at $20,394,823.04. This represents a 6.83% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last ninety days, insiders have sold 177,204 shares of company stock valued at $182,156,264. 0.24% of the stock is currently owned by company insiders.

Micron Technology Stock Performance NASDAQ:MU opened at $933.44 on Wednesday. Micron Technology, Inc. has a 1 year low of $114.25 and a 1 year high of $1,255.00. The firm has a 50 day moving average of $944.21 and a 200-day moving average of $724.85. The company has a current ratio of 3.42, a quick ratio of 2.98 and a debt-to-equity ratio of 0.05. The stock has a market capitalization of $1.05 trillion, a P/E ratio of 21.13 and a beta of 2.22. Micron Technology (NASDAQ:MU – Get Free Report) last released its quarterly earnings results on Wednesday, June 24th. The semiconductor manufacturer reported $25.11 EPS for the quarter, topping analysts’ consensus estimates of $21.39 by $3.72. Micron Technology had a return on equity of 71.13% and a net margin of 55.91%.The business had revenue of $41.46 billion for the quarter, compared to analyst estimates of $35.91 billion. During the same period in the prior year, the company earned $1.91 EPS. Micron Technology’s revenue for the quarter was up 345.8% on a year-over-year basis. Micron Technology has set its Q4 2026 guidance at 30.000-32.000 EPS. As a group, sell-side analysts anticipate 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. Stockholders of record on Monday, July 6th were issued a dividend of $0.15 per share. This represents a $0.60 annualized dividend and a dividend yield of 0.1%. The ex-dividend date was Monday, July 6th. Micron Technology’s dividend payout ratio is presently 1.36%.

Micron Technology News Roundup Here are the key news stories impacting Micron Technology this week:

Positive Sentiment: Analyst earnings upgrades and optimism about Micron’s AI memory opportunity supported the bullish case. Bernstein reportedly maintained a Buy rating with a $1,300 price target, while other published targets extend as high as $2,000. Micron Technology Gains Driven by Earnings Upgrades Positive Sentiment: Micron’s latest results significantly exceeded expectations, with quarterly revenue of $41.46 billion and earnings of $25.11 per share. Revenue increased more than 345% year over year, reinforcing confidence in the current memory and AI infrastructure cycle. Positive Sentiment: Reports argue that high-bandwidth memory capacity is sold out through 2026 and supported by long-term customer agreements. This could provide unusually strong revenue visibility and help protect margins despite concerns about new competitors. Why China’s Memory Chip Breakthrough Won’t Crash the Market Positive Sentiment: Investors remain focused on the possibility that AI demand has structurally altered Micron’s historically cyclical memory business. Some commentary describes the recent pullback as an opportunity because demand for AI-related wafer capacity continues to exceed supply. Neutral Sentiment: China’s CXMT reportedly began small-batch production of HBM3E and plans LPDDR6 production, creating a longer-term competitive and geopolitical consideration. However, analysts argue that its initial output is too small to ease the global AI memory shortage in the near term. MU and SNDK Face New China Memory Challenge Neutral Sentiment: Broader semiconductor weakness, higher bond yields, oil-price volatility, and uncertainty surrounding potential tariffs have reduced investors’ willingness to pay elevated valuations for technology stocks. Negative Sentiment: Unions representing roughly two-thirds of Micron’s Taiwan workforce, or nearly 10,000 employees, threatened possible strike action unless the company increases bonuses and profit sharing. A walkout could disrupt manufacturing, raise labor costs, and delay shipments. Micron’s Taiwan Unions Threaten Strike Over Bonus Dispute Negative Sentiment: Micron’s heavy manufacturing exposure to Taiwan adds geopolitical and operational risk, while reports of widespread insider selling may reinforce investor caution after the stock’s substantial run-up. Analyst Ratings Changes Several equities research analysts have recently weighed in on the company. ThinkEquity reiterated a “buy” rating on shares of Micron Technology in a research note on Monday, August 3rd. Bank of America raised their target price on Micron Technology from $950.00 to $1,500.00 and gave the stock a “buy” rating in a research report on Tuesday, June 23rd. Deutsche Bank Aktiengesellschaft boosted their price target on Micron Technology from $1,500.00 to $1,550.00 and gave the company a “buy” rating in a research note on Thursday, June 25th. Mizuho dropped their price objective on Micron Technology from $1,375.00 to $1,300.00 and set an “outperform” rating for the company in a research note on Tuesday, August 25th. Finally, Morgan Stanley increased their price objective on Micron Technology from $1,050.00 to $1,200.00 and gave the stock an “overweight” rating in a research note on Thursday, June 25th. Four equities research analysts have rated the stock with a Strong Buy rating, thirty-one have assigned a Buy rating and three have issued a Hold rating to the stock. According to data from MarketBeat.com, the company presently has an average rating of “Buy” and a consensus price target of $1,295.63.

Get Our Latest Stock Report on MU

Micron Technology Company Profile (Free Report)

Micron Technology, Inc is a global semiconductor company that designs and manufactures memory and storage solutions. Its product portfolio includes dynamic random-access memory (DRAM), NAND flash memory, solid-state drives (SSDs), memory modules and embedded memory solutions for a wide range of computing and electronic devices. Micron supplies components used in data centers, enterprise and cloud infrastructure, client computing, mobile devices, automotive systems and industrial applications, and also markets consumer-facing products under the Crucial brand.

Founded in 1978 and headquartered in Boise, Idaho, Micron has grown into an international manufacturer with research, development and production facilities across multiple regions.

Featured Articles Five stocks we like better than Micron Technology Dutch Bros Sell-Off Creates a Growth Opportunity NVIDIA’s MediaTek Bet Shows How It Plans to Defend Its AI Moat Is Abercrombie & Fitch’s Hot Streak Just Getting Started? Medtronic’s Stars Are Aligning for a Price Recovery

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C M Bidwell & Associates Ltd. purchased a new position in Micron Technology, Inc. (NASDAQ:MU – Free Report) during the second quarter, according to the company in its most recent 13F filing with the SEC. The institutional investor purchased 1,341 shares of the semiconductor manufacturer’s stock, valued at approximately $1,548,000.

Several other hedge funds have also recently bought and sold shares of MU. High Note Wealth LLC grew its holdings in 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 purchasing an additional 34 shares during the last quarter. Kohmann Bosshard Financial Services LLC acquired a new position in shares of Micron Technology during the 1st quarter worth $27,000. Bayban purchased a new stake in shares of Micron Technology in the 4th quarter worth about $29,000. Luken Investment Analytics LLC purchased a new stake in shares of Micron Technology in the 4th quarter worth about $31,000. Finally, WealthCollab LLC grew its stake in Micron Technology by 4,500.0% in the 2nd quarter. WealthCollab LLC now owns 276 shares of the semiconductor manufacturer’s stock valued at $34,000 after acquiring an additional 270 shares during the last quarter. 80.84% of the stock is owned by hedge funds and other institutional investors.

Micron Technology Stock Performance Shares of NASDAQ:MU opened at $933.44 on Wednesday. The business has a 50-day moving average of $944.21 and a two-hundred day moving average of $724.85. The firm has a market capitalization of $1.05 trillion, a PE ratio of 21.13 and a beta of 2.22. 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 12 month low of $114.25 and a 12 month high of $1,255.00.

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 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 period in the previous year, the company posted $1.91 EPS. The company’s revenue was up 345.8% compared to the same quarter last year. Micron Technology has set its Q4 2026 guidance at 30.000-32.000 EPS. As a group, research analysts forecast that Micron Technology, Inc. will post 72.93 earnings per share for the current year. Micron Technology Dividend Announcement The firm also recently disclosed a quarterly dividend, which was paid on Tuesday, July 21st. Shareholders of record on Monday, July 6th were paid a dividend of $0.15 per share. This represents a $0.60 annualized dividend and a yield of 0.1%. The ex-dividend date was Monday, July 6th. Micron Technology’s payout ratio is currently 1.36%.

Insider Buying and Selling In related news, CAO Scott R. Allen sold 879 shares of the company’s stock in a transaction on Thursday, July 23rd. The shares were sold at an average price of $1,000.00, for a total transaction of $879,000.00. Following the completion of the sale, the chief accounting officer directly owned 34,958 shares of the company’s stock, valued at approximately $34,958,000. This represents a 2.45% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, CEO Sanjay Mehrotra sold 40,000 shares of the stock in a transaction on Friday, August 21st. The shares were sold at an average price of $968.90, for a total value of $38,756,000.00. Following the completion of the sale, the chief executive officer owned 264,503 shares of the company’s stock, valued at approximately $256,276,956.70. This represents a 13.14% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last ninety days, insiders have sold 177,204 shares of company stock valued at $182,156,264. 0.24% of the stock is owned by corporate insiders.

Wall Street Analyst Weigh In MU has been the subject of several recent research reports. Susquehanna raised their target price on shares of Micron Technology from $1,750.00 to $2,000.00 and gave the company a “positive” rating in a report on Thursday, June 25th. TD Cowen reissued a “buy” rating on shares of Micron Technology in a research report on Friday, July 10th. Seaport Research Partners restated a “buy” rating on shares of Micron Technology in a research report on Friday, August 14th. Rosenblatt Securities increased their price objective on Micron Technology from $1,200.00 to $1,500.00 and gave the company a “buy” rating in a research note on Thursday, June 25th. Finally, Mizuho cut their target price on shares of Micron Technology from $1,375.00 to $1,300.00 and set an “outperform” rating for the company in a research note on Tuesday, August 25th. Four analysts have rated the stock with a Strong Buy rating, thirty-one have given a Buy rating and three have issued a Hold rating to the company. According to data from MarketBeat, Micron Technology currently has an average rating of “Buy” and a consensus target price of $1,295.63.

View Our Latest Report on Micron Technology

Key Micron Technology News Here are the key news stories impacting Micron Technology this week:

Positive Sentiment: Analyst earnings upgrades and optimism about Micron’s AI memory opportunity supported the bullish case. Bernstein reportedly maintained a Buy rating with a $1,300 price target, while other published targets extend as high as $2,000. Micron Technology Gains Driven by Earnings Upgrades Positive Sentiment: Micron’s latest results significantly exceeded expectations, with quarterly revenue of $41.46 billion and earnings of $25.11 per share. Revenue increased more than 345% year over year, reinforcing confidence in the current memory and AI infrastructure cycle. Positive Sentiment: Reports argue that high-bandwidth memory capacity is sold out through 2026 and supported by long-term customer agreements. This could provide unusually strong revenue visibility and help protect margins despite concerns about new competitors. Why China’s Memory Chip Breakthrough Won’t Crash the Market Positive Sentiment: Investors remain focused on the possibility that AI demand has structurally altered Micron’s historically cyclical memory business. Some commentary describes the recent pullback as an opportunity because demand for AI-related wafer capacity continues to exceed supply. Neutral Sentiment: China’s CXMT reportedly began small-batch production of HBM3E and plans LPDDR6 production, creating a longer-term competitive and geopolitical consideration. However, analysts argue that its initial output is too small to ease the global AI memory shortage in the near term. MU and SNDK Face New China Memory Challenge Neutral Sentiment: Broader semiconductor weakness, higher bond yields, oil-price volatility, and uncertainty surrounding potential tariffs have reduced investors’ willingness to pay elevated valuations for technology stocks. Negative Sentiment: Unions representing roughly two-thirds of Micron’s Taiwan workforce, or nearly 10,000 employees, threatened possible strike action unless the company increases bonuses and profit sharing. A walkout could disrupt manufacturing, raise labor costs, and delay shipments. Micron’s Taiwan Unions Threaten Strike Over Bonus Dispute Negative Sentiment: Micron’s heavy manufacturing exposure to Taiwan adds geopolitical and operational risk, while reports of widespread insider selling may reinforce investor caution after the stock’s substantial run-up. Micron Technology Company Profile (Free Report)

Micron Technology, Inc is a global semiconductor company that designs and manufactures memory and storage solutions. Its product portfolio includes dynamic random-access memory (DRAM), NAND flash memory, solid-state drives (SSDs), memory modules and embedded memory solutions for a wide range of computing and electronic devices. Micron supplies components used in data centers, enterprise and cloud infrastructure, client computing, mobile devices, automotive systems and industrial applications, and also markets consumer-facing products under the Crucial brand.

Founded in 1978 and headquartered in Boise, Idaho, Micron has grown into an international manufacturer with research, development and production facilities across multiple regions.

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AI Squared Management Ltd purchased a new stake in Micron Technology, Inc. (NASDAQ:MU – Free Report) during the 2nd quarter, according to the company in its most recent filing with the Securities & Exchange Commission. The firm purchased 5,300 shares of the semiconductor manufacturer’s stock, valued at approximately $6,118,000. Micron Technology comprises 3.3% of AI Squared Management Ltd’s portfolio, making the stock its 14th largest holding.

A number of other hedge funds and other institutional investors have also recently added to or reduced their stakes in MU. Heritage Trust Co boosted its position in shares of Micron Technology by 9.7% in the 4th quarter. Heritage Trust Co now owns 15,026 shares of the semiconductor manufacturer’s stock worth $4,289,000 after purchasing an additional 1,323 shares during the last quarter. Castleark Management LLC acquired a new stake in shares of Micron Technology during the first quarter worth $3,709,000. Oppenheimer & Co. Inc. increased its holdings in Micron Technology by 16.0% in the second quarter. Oppenheimer & Co. Inc. now owns 48,520 shares of the semiconductor manufacturer’s stock valued at $56,006,000 after purchasing an additional 6,702 shares during the last quarter. Legacy Wealth Management LLC MS lifted its stake in Micron Technology by 73.3% in the second quarter. Legacy Wealth Management LLC MS now owns 3,544 shares of the semiconductor manufacturer’s stock valued at $4,091,000 after buying an additional 1,499 shares during the period. Finally, Financial Synergies Wealth Advisors Inc. acquired a new position in Micron Technology in the fourth quarter valued at about $1,316,000. 80.84% of the stock is currently owned by institutional investors and hedge funds.

Analyst Upgrades and Downgrades Several equities analysts have recently issued reports on MU shares. KeyCorp restated an “overweight” rating on shares of Micron Technology in a research report on Monday, July 20th. Raymond James Financial lifted their price objective on shares of Micron Technology from $1,100.00 to $1,500.00 and gave the stock an “outperform” rating in a research note on Thursday, June 25th. BMO Capital Markets started coverage on shares of Micron Technology in a report on Friday, August 21st. They set an “outperform” rating and a $1,300.00 price objective for the company. Morgan Stanley upped 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 research note on Thursday, June 25th. Finally, Sanford C. Bernstein set a $1,300.00 target price on shares of Micron Technology in a report on Monday, June 22nd. Four analysts have rated the stock with a Strong Buy rating, thirty-one have issued a Buy rating and three have issued a Hold rating to the company’s stock. Based on data from MarketBeat.com, the company has a consensus rating of “Buy” and an average target price of $1,295.63.

Read Our Latest Analysis on Micron Technology Insider Activity In related news, CEO Sanjay Mehrotra sold 40,000 shares of the stock in a transaction dated Friday, August 21st. The stock was sold at an average price of $968.90, for a total transaction of $38,756,000.00. Following the completion of the transaction, the chief executive officer directly owned 264,503 shares in the company, valued at approximately $256,276,956.70. This trade represents a 13.14% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, EVP Sumit Sadana sold 15,000 shares of the company’s stock in a transaction that occurred on Tuesday, August 18th. The stock was sold at an average price of $934.29, for a total value of $14,014,350.00. Following the transaction, the executive vice president directly owned 191,021 shares of the company’s stock, valued at approximately $178,469,010.09. This trade represents a 7.28% decrease in their position. The SEC filing for this sale provides additional information. In the last 90 days, insiders have sold 177,204 shares of company stock worth $182,156,264. 0.24% of the stock is currently owned by insiders.

Micron Technology News Roundup Here are the key news stories impacting Micron Technology this week:

Positive Sentiment: Analyst earnings upgrades and optimism about Micron’s AI memory opportunity supported the bullish case. Bernstein reportedly maintained a Buy rating with a $1,300 price target, while other published targets extend as high as $2,000. Micron Technology Gains Driven by Earnings Upgrades Positive Sentiment: Micron’s latest results significantly exceeded expectations, with quarterly revenue of $41.46 billion and earnings of $25.11 per share. Revenue increased more than 345% year over year, reinforcing confidence in the current memory and AI infrastructure cycle. Positive Sentiment: Reports argue that high-bandwidth memory capacity is sold out through 2026 and supported by long-term customer agreements. This could provide unusually strong revenue visibility and help protect margins despite concerns about new competitors. Why China’s Memory Chip Breakthrough Won’t Crash the Market Positive Sentiment: Investors remain focused on the possibility that AI demand has structurally altered Micron’s historically cyclical memory business. Some commentary describes the recent pullback as an opportunity because demand for AI-related wafer capacity continues to exceed supply. Neutral Sentiment: China’s CXMT reportedly began small-batch production of HBM3E and plans LPDDR6 production, creating a longer-term competitive and geopolitical consideration. However, analysts argue that its initial output is too small to ease the global AI memory shortage in the near term. MU and SNDK Face New China Memory Challenge Neutral Sentiment: Broader semiconductor weakness, higher bond yields, oil-price volatility, and uncertainty surrounding potential tariffs have reduced investors’ willingness to pay elevated valuations for technology stocks. Negative Sentiment: Unions representing roughly two-thirds of Micron’s Taiwan workforce, or nearly 10,000 employees, threatened possible strike action unless the company increases bonuses and profit sharing. A walkout could disrupt manufacturing, raise labor costs, and delay shipments. Micron’s Taiwan Unions Threaten Strike Over Bonus Dispute Negative Sentiment: Micron’s heavy manufacturing exposure to Taiwan adds geopolitical and operational risk, while reports of widespread insider selling may reinforce investor caution after the stock’s substantial run-up. Micron Technology Price Performance NASDAQ MU opened at $933.44 on Wednesday. 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 has a market cap of $1.05 trillion, a price-to-earnings ratio of 21.13 and a beta of 2.22. The business has a 50 day simple moving average of $944.21 and a 200 day simple moving average of $724.85. Micron Technology, Inc. has a 52-week low of $114.25 and a 52-week high of $1,255.00.

Micron Technology (NASDAQ:MU – Get Free Report) last released its quarterly earnings results on Wednesday, June 24th. The semiconductor manufacturer reported $25.11 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 company had revenue of $41.46 billion during the quarter, compared to analysts’ expectations of $35.91 billion. During the same quarter in the prior year, the company earned $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 anticipate that Micron Technology, Inc. will post 72.93 earnings per share for the current fiscal year.

Micron Technology Announces Dividend The company also recently announced a quarterly dividend, which was paid on Tuesday, July 21st. Shareholders of record on Monday, July 6th were issued a dividend of $0.15 per share. This represents a $0.60 dividend on an annualized basis and a yield of 0.1%. The ex-dividend date was Monday, July 6th. Micron Technology’s dividend payout ratio is 1.36%.

Micron Technology Company Profile (Free Report)

Micron Technology, Inc is a global semiconductor company that designs and manufactures memory and storage solutions. Its product portfolio includes dynamic random-access memory (DRAM), NAND flash memory, solid-state drives (SSDs), memory modules and embedded memory solutions for a wide range of computing and electronic devices. Micron supplies components used in data centers, enterprise and cloud infrastructure, client computing, mobile devices, automotive systems and industrial applications, and also markets consumer-facing products under the Crucial brand.

Founded in 1978 and headquartered in Boise, Idaho, Micron has grown into an international manufacturer with research, development and production facilities across multiple regions.

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Key Takeaways AI-driven HBM demand could keep memory supplies tight through 2027. Memory makers could gain from higher prices, while electronics firms face costs.VLUE, SHOC, DRAM and EWY offer ETF exposure to the AI-driven memory boom. The artificial intelligence (AI) boom is creating a bottleneck for the semiconductor industry. As hyperscalers continue spending billions of dollars on AI data centers, the demand for high-bandwidth memory (HBM) used alongside advanced AI processors has surged, diverting production away from smartphones, PCs and other electronics.

In January, Synopsys CEO Sassine Ghazi warned that the chip crunch could persist through 2026 and 2027, as memory manufacturers need at least two years to bring new capacity online, as quoted on CNBC.

The supply constraint is particularly important because companies such as Samsung, SK Hynix (SKHY - Free Report) and Micron Technology (MU - Free Report) are directing a growing share of available memory capacity toward AI infrastructure.

SK Hynixsaid on Aug. 27, 2026, that it expects the memory shortage to persist through 2030, while announcing a $4-billion Indiana facility for next-generation HBM4E packaging, per BENZINGA, as quoted on Yahoo Finance.

Gainers & Losers From This Crisis The immediate beneficiaries are memory manufacturers. With supply tight and AI customers willing to pay for high-performance HBM, pricing power has shifted toward producers. This could support earnings and margins for companies such as Micron Technology, while sustained AI spending provides visibility for the broader semiconductor supply chain.

For investors, however, the opportunity extends beyond memory manufacturers. Producing increasingly sophisticated AI chips requires advanced semiconductor manufacturing and equipment, meaning sustained AI infrastructure investment can benefit chip designers, foundries and equipment makers as well.

At the same time, the shortage creates challenges for consumer electronics companies. Higher memory costs can raise the bill of materials for smartphones, PCs and laptops, potentially forcing manufacturers to increase prices.

The memory shortage could extend the current semiconductor cycle rather than allowing the industry to quickly return to its traditional boom-and-bust pattern. If AI data center spending remains strong, HBM demand could keep memory producers operating in a favorable pricing environment, while chip equipment and manufacturing companies benefit from efforts to expand capacity.

But the risk is that semiconductor valuations may already reflect a large portion of the AI growth story. A slowdown in AI infrastructure spending, weaker consumer-electronics demand or a faster-than-expected expansion in memory capacity could ease pricing pressure.

ETFs to WatchAgainst this backdrop, investors can play MU, SKHY and Samsung-heavy ETFs that should benefit from the above-mentioned trends.

iShares MSCI USA Value Factor ETF (VLUE - Free Report) tracks the performance of the MSCI USA Enhanced Value Index that measures the performance of U.S. large- and mid-capitalization stocks with value characteristics and relatively lower valuations, before fees and expenses.

VLUE holds a massive weightage of 20.45% of MU in its portfolio. It has assets under management worth $9.72 billion and an expense ratio of 0.15%. The fund trades at an average daily volume of 1.24 million shares.

Strive U.S. Semiconductor ETF (SHOC - Free Report) is a focused semiconductor ETF that gives investors exposure to U.S.-listed semiconductor companies, particularly firms benefiting from AI, data-center expansion and rising chip demand. The fund holds 13.57% of MU, enjoying the second spot in its portfolio.

SHOC has assets under management worth $234.2 million and an expense ratio of 0.40%. The fund trades at an average daily volume of 19,049 shares.

Roundhill Memory ETF (DRAM - Free Report) is the basic memory technology behind modern computing, while HBM is its high-speed, AI-focused evolution. Samsungholds a massive weightage of 25.25%, along with MU having 25.10%, and SK Hynix holds a 21.80% weightage.

DRAM has assets under management worth nearly $26 billion and an expense ratio of 0.65%. The fund trades at an average daily volume of 60.22 million shares.

iShares MSCI South Korea ETF (EWY - Free Report) is one of the main U.S.-listed ETFs for gaining broad exposure to South Korean equities with a major memory-chip component.

Samsungholds a massive weightage of 21.96%, while SK Hynix holds 20.86% weightage. EWY has assets under management worth $27.98 billion and an expense ratio of 0.59%. The fund trades at an average daily volume of 21.71 million shares.

Memory prices have been exploding higher over the past year, and with it so have the stocks of DRAM (dynamic random access memory) makers Micron Technology (MU +1.19%) and SK Hynix (SKHY +0.89%). However, the memory market is notoriously cyclical, and many investors are already questioning how long the good times will last for these AI stocks.

The typical memory cycle tracks a pattern of booming prices, followed by customers over-ordering, manufacturers increasing capacity, and then prices collapsing. The up cycle generally lasts a year or two, with DRAM makers seeing surging revenue and ballooning gross margins, followed by steep revenue and margin declines as new capacity floods the market.

Image source: The Motley Fool.

However, this does not look like your ordinary DRAM cycle. Past DRAM supercycles have historically been driven by surging demand for personal devices that use DRAM, such as smartphones and computers. The current DRAM supercycle is directly linked to the AI build-out. Unlike demand for personal devices, which cools off as consumer adoption matures, AI memory demand is being fueled by an arms race where tech giants must continuously expand compute capacity just to stay competitive.

The reason for this is that graphics processing units (GPUs) and other AI chips need to be packaged with high bandwidth memory (HBM), a special form of DRAM, to reduce latency and optimize performance. As such, demand for HBM is moving in lockstep with demand for overall AI computing power, which continues to surge. With the big three DRAM makers, which also include conglomerate Samsung Electronics in addition to SK Hynix and Micron, all focused on increasing HBM capacity, the overall DRAM market remains undersupplied.

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At the same time, there are a few obstacles keeping DRAM makers from quickly ramping up capacity. First, the critical components of HBM and advanced logic chips, like GPUs, both use extreme ultraviolet lithography (EUV) in the manufacturing process, and there is only one company in the world, ASML Holding, that makes these machines. With foundries and DRAM makers both needing EUV machines, there is a limit to how much DRAM capacity can increase.

On top of that, HBM requires upwards of three times the wafer capacity as ordinary DRAM, which slows down capacity additions, as well. Clean room space also takes years to be built out, and foundries also need to build out more advanced packaging capabilities.

Peak earnings? Right now, analysts have Micron's earnings peaking at $170.70 per share in fiscal 2028 ending August 2028, before falling to $121.77 per share in fiscal 2029 and then settling around a normalized level of around $50 per share. SK Hynix earnings are expected to hit $42.21 per share in 2028, and there aren't any outer-year estimates for its ADRs. However, SK Hynix management has said it does not see DRAM supply catching up to demand until at least 2030 at the earliest.

Now, another wrinkle to the market is that the big memory makers have all started to sign long-term, multi-year contracts for the first time ever. SK Hynix recently inked contracts worth $750 billion to supply customers with memory chips, including $500 billion from Nvidia. It and Nvidia will also work to co-develop next-generation memory linked to the chip giant's AI infrastructure roadmap.

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Overall, the big three DRAM makers are all now looking to sign three- to five-year deals. Micron has said it has signed non-cancellable, long-term deals with 16 customers running through 2030 with defined price ranges that have a floor and ceiling. These contracts represent about 40% of its revenue. SK Hynix, meanwhile, reportedly does not have a price cap with its agreements.

How well Micron and SK Hynix perform in the coming years will largely be based on the length of the memory cycle and how soft the landing is. The new long-term contracts and source of demand from AI should make this cycle different from any in the past, as it is coming with a structural shift, but it is still likely a cycle.

In my view, the DRAM cycle is likely to extend a little longer than most analysts are anticipating, which should bode well for the stocks. Meanwhile, given its HBM leadership and ties to Nvidia, I think SK Hynix looks like the best memory stock to own over the long run.

The recommendations of Wall Street analysts are often relied on by investors when deciding whether to buy, sell, or hold a stock. Media reports about these brokerage-firm-employed (or sell-side) analysts changing their ratings often affect a stock's price. Do they really matter, though?

Before we discuss the reliability of brokerage recommendations and how to use them to your advantage, let's see what these Wall Street heavyweights think about Micron (MU - Free Report) .

Micron currently has an average brokerage recommendation (ABR) of 1.29, on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) made by 42 brokerage firms. An ABR of 1.29 approximates between Strong Buy and Buy.

Of the 42 recommendations that derive the current ABR, 34 are Strong Buy and four are Buy. Strong Buy and Buy respectively account for 81% and 9.5% of all recommendations.

Brokerage Recommendation Trends for MU

Check price target & stock forecast for Micron here>>>

While the ABR calls for buying Micron, it may not be wise to make an investment decision solely based on this information. Several studies have shown limited to no success of brokerage recommendations in guiding investors to pick stocks with the best price increase potential.

Are you wondering why? The vested interest of brokerage firms in a stock they cover often results in a strong positive bias of their analysts in rating it. Our research shows that for every "Strong Sell" recommendation, brokerage firms assign five "Strong Buy" recommendations.

This means that the interests of these institutions are not always aligned with those of retail investors, giving little insight into the direction of a stock's future price movement. It would therefore be best to use this information to validate your own analysis or a tool that has proven to be highly effective at predicting stock price movements.

Zacks Rank, our proprietary stock rating tool with an impressive externally audited track record, categorizes stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), and is an effective indicator of a stock's price performance in the near future. Therefore, using the ABR to validate the Zacks Rank could be an efficient way of making a profitable investment decision.

ABR Should Not Be Confused With Zacks RankAlthough both Zacks Rank and ABR are displayed in a range of 1--5, they are different measures altogether.

The ABR is calculated solely based on brokerage recommendations and is typically displayed with decimals (example: 1.28). In contrast, the Zacks Rank is a quantitative model allowing investors to harness the power of earnings estimate revisions. It is displayed in whole numbers -- 1 to 5.

It has been and continues to be the case that analysts employed by brokerage firms are overly optimistic with their recommendations. Because of their employers' vested interests, these analysts issue more favorable ratings than their research would support, misguiding investors far more often than helping them.

On the other hand, earnings estimate revisions are at the core of the Zacks Rank. And empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

Furthermore, the different grades of the Zacks Rank are applied proportionately across all stocks for which brokerage analysts provide earnings estimates for the current year. In other words, at all times, this tool maintains a balance among the five ranks it assigns.

Another key difference between the ABR and Zacks Rank is freshness. The ABR is not necessarily up-to-date when you look at it. But, since brokerage analysts keep revising their earnings estimates to account for a company's changing business trends, and their actions get reflected in the Zacks Rank quickly enough, it is always timely in indicating future price movements.

Is MU Worth Investing In?Looking at the earnings estimate revisions for Micron, the Zacks Consensus Estimate for the current year has increased 0% over the past month to $73.86.

Analysts' growing optimism over the company's earnings prospects, as indicated by strong agreement among them in revising EPS estimates higher, could be a legitimate reason for the stock to soar in the near term.

The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #2 (Buy) for Micron. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

Therefore, the Buy-equivalent ABR for Micron may serve as a useful guide for investors.

NVIDIA, Micron, and SanDisk are dominating the AI trade in 2026, but each stock tells a completely different story about what it takes to beat Wall Street's targets over the next 12 months.

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Memory and AI compute stocks have been the loudest trade of 2026, and three names keep dominating the conversation: NVIDIA, Micron, and SanDisk. All three are riding the same wave, but the setups look different. Let me walk through what it would take for each to punch through Wall Street’s consensus over the next 12 months.

NVIDIA’s Path to $350 NVIDIA (NASDAQ:NVDA | NVDA Price Prediction) closed at $220.78 on August 31, up 18.52% year to date and 26.92% over one year. Wall Street’s consensus target is $323.42. A round $350 target would sit modestly above that.

On FY28 EPS consensus of $13.13, $350 implies roughly 27x forward earnings, hardly stretched for a company that just posted $96 billion in Q2 revenue and guided $108 billion, plus or minus 2% for Q3.

CEO Jensen Huang told investors “customers’ forecasts point to our growth doubling next year” even as NVIDIA remains supply constrained. FY28 revenue is guided to grow approximately 70%, with hyperscaler CapEx pointing toward $1.3 trillion in 2027.

FY27 EPS estimates have drifted up from $8.92 ninety days ago to $9.05 today, with zero downward revisions in the past 30 days. NVIDIA has also strung together five straight EPS beats.

Micron’s Case for $1,600 Micron Technology (NASDAQ:MU) has been the year’s most explosive semi story, up 236.12% year to date to $958.73. Consensus target is $1,513.41. A $1,600 bull target is roughly 67% above spot. Against FY27 EPS consensus of $155.03, that is only about 10x forward earnings.

Fiscal Q3 revenue jumped 346% year over year to $41.5 billion, gross margin hit 84.9%, and Q4 is guided to $50 billion with $31 EPS. CEO Sanjay Mehrotra said “DRAM and NAND industry demand continues to significantly exceed industry supply” and expects tight conditions to persist beyond calendar 2027.

Sixteen Strategic Customer Agreements lock in roughly $100 billion of minimum revenue. FY27 EPS estimates have climbed from $102.72 ninety days ago. Micron has beaten estimates seven quarters in a row.

SanDisk’s Route to $2,500 SanDisk (NASDAQ:SNDK) trades at $1,566.70, up 560% year to date. Consensus target is $2,125.09. A round $2,500 target implies about 60% upside and roughly 12x FY27 EPS consensus of $214.10.

Fiscal Q4 revenue rose 372% year over year to $8.97 billion, gross margin reached 84.6%, and Q1 FY27 is guided to $10.3 to $10.8 billion with $44 to $46 EPS.

CEO David Goeckeler said “demand from our customers is growing faster than our supply” and expects bits to remain on allocation beyond calendar year 2027. Data center exited FY26 at 38% of bits, up from 12% a year earlier.

New Business Model agreements now total $93.9 billion in minimum revenue. FY27 EPS consensus has climbed from $175.38 ninety days ago.

Bottom Line on These Three Targets For NVIDIA to hit $350, Micron $1,600, and SanDisk $2,500, the AI infrastructure cycle needs to run hot through 2027. Memory pricing has to hold, hyperscaler CapEx has to land near NVIDIA’s $1.3 trillion projection, and estimate revisions need to keep pointing higher.

The chipmakers are only one slice of that spend, though: the power, cooling, and networking suppliers behind the data centers are the other half, and we rounded up seven of them in a free report.

Risks are real: NVIDIA excludes China data center revenue from its outlook, memory pricing is cyclical, and valuations already reflect optimism. Returns like these should not be expected every year, but the blueprint is on the table.

Contact [email protected] for any questions or corrections.

David Tepper is one of the greatest hedge fund managers of all time. He started Appaloosa Management in 1993 and went on to produce annualized returns of about 25% through mid-2019, at which point he had returned most of his outside investors' money.

Tepper has continued to produce excellent returns, now mostly managing his own money, taking concentrated and often contrarian positions to drive results. Appaloosa generated a massive 32% gross return in the first half of 2026 alone.

So, it's worth paying attention to the moves Tepper's making -- and you can, because he, like everyone who manages more than $100 million in assets, is required to disclose his fund's end-of-quarter holdings via a Form 13F four times a year.

Appaloosa's 13F for the second quarter (filed on schedule about 45 days after that period ended) showed that during the quarter, he sold two of the hottest stocks in the market: Micron (MU -2.64%) and Sandisk (SNDK -1.90%). Not only that, but he also bought put options (the right to sell shares at a set price within a preset period) on one of their biggest customers, which may suggest he sees something the market doesn't.

David Tepper, founder of Appaloosa Management. Image source: Getty Images.

Big moves in Tepper's portfolio Tepper has been an investor in Micron for years, establishing a position in late 2016 and holding the memory-chip maker's stock through multiple earnings cycles. It's been his portfolio's largest single holding on multiple occasions. He made a big bet on the stock in the fourth quarter, adding 1 million shares to his position and call options controlling an additional 250,000 shares. He added even more shares in the first quarter. But after the huge run-up in the stock price, he cut his stake by 41% last quarter.

It's worth noting that Micron remained the second-largest position in the portfolio at the end of the quarter -- about 15% of Appaloosa's publicly traded equity portfolio. That said, the stock has accounted for up to 29% of Tepper's portfolio in the past. This suggests that he sees better investment opportunities now, or at least, sees the need to diversify away from memory-chip makers.

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That sentiment is bolstered by the fact that he completely disposed of Appaloosa's position in Sandisk. That stake was 3% of the portfolio at the end of the first quarter, but disappeared in the second-quarter filing.

Both Micron and Sandisk have benefited from growing demand for memory due to the rapid pace of the artificial intelligence data center build-out. Because the supply of memory is limited by foundry capacity (which takes quite some time to increase), prices for their memory chips have soared, creating tremendous profit growth for both companies.

But the memory-chip market is historically cyclical. High demand prompts the leading memory-chip makers to build new production capacity, which usually results in too much new supply hitting the market after a few years. Meanwhile, chip demand has also historically been cyclical, and when a supply glut meets weakening demand, prices fall and profits drop. That's why both of these stocks still trade at relatively low valuations. Even a single-digit earnings multiple can look expensive for these stocks when they are near peak earnings during a boom period.

A bet against one of their biggest customers Tepper may believe Sandisk and Micron will continue to exhibit strong cyclicity; at the same time, the pressure on pricing from AI demand could negatively impact one of their largest customers. Tepper bought put options on Apple (AAPL +2.61%), which uses chips from both companies in its consumer devices for short-term memory and long-term storage.

Tepper's put options give him the right to sell 835,000 shares of Apple worth $242 million at the end of last quarter, just over 3% of Appaloosa's portfolio. That's a big bet against the iPhone maker. During Apple's third-quarter earnings call, outgoing CEO Tim Cook noted that rising memory prices will continue to pressure the company's gross margin in the coming quarters.

Investors have piled into Apple stock amid fears that hyperscalers are overspending on their AI build-outs. The big tech company has chosen not to build a massive data center operation, and thus has kept its capital expenditures far lower than those of the hyperscalers and leading AI labs, yet it has still produced strong earnings recently. That has resulted in considerable cash flow for the business.

As such, investors see it as an alternative to the leading AI stocks. But share price growth has pushed its valuation to 36 times forward earnings, which is quite high for a company that's not growing at the breakneck speed of the chipmakers or hyperscalers.

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Tepper may see that valuation as too high for Apple. However, the 13F Form doesn't disclose short positions, so those Apple puts may be just half of a trade that's overall bullish or neutral on the stock.

Tepper's moves make sense in the context of his portfolio. As mentioned, Micron remains a large position in Appaloosa's equity holdings after the strong run-up in share price. Meanwhile, he sees better opportunities as uncertainty about the future of the memory chip industry remains high.

Investors should consider taking gains on Micron and Sandisk at their current prices as well. With regards to Apple, betting against it has rarely worked out for investors. Unless you think you can manage a bearish position on the stock better than Tepper (hint: you can't), I wouldn't buy puts on Apple stock.

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Historically, September has been a bad month for the stock market. It has the most down months of any month for the S&P 500 (^GSPC -0.71%), and is one of the few months of the year to average a negative return over the long term. Still, I think there are plenty of reasons to invest right now, and several stocks look like they're offering investors prime buying opportunities.

Three at the top of my shopping list for September are Nvidia (NVDA -1.51%), Amazon (AMZN -1.87%), and Micron (MU -2.64%), and I think investors would be smart to buy them as soon as possible.

Image source: Getty Images.

Nvidia Nvidia is still one of the top AI stocks to buy, and it showed that last week by reporting incredible earnings for the second quarter of its fiscal 2027 (which ends in January 2027). It blew away all expectations and grew revenue at a 106% year-over-year pace. Nvidia is the world's largest company, making it hard to fathom how it could keep doubling its revenue year over year, but that's exactly what it's doing.

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Investors are worried about what future demand for its GPUs will look like, but Nvidia's management team calmed these fears. CFO Colette Kress noted on the conference call that management expects 70% revenue growth for fiscal 2028, which is well above what Wall Street analysts projected.

That kind of growth rate is simply incredible, and few companies can match it. As a result, I think Nvidia is well worth buying now, as the market hasn't really done a lot with that new information.

Micron Micron is another company cashing in on the AI build-out. It manufactures memory chips, which are currently in short supply due to demand far exceeding the combined production capacity of all memory-chip makers. This has caused prices to skyrocket, benefiting Micron and its peers.

Micron hasn't sat idle and let this supply-demand imbalance fuel its profits. Instead, it's working on building new production facilities that will come online sometime in 2027 and 2028. However, Micron also believes that the tightness in the memory chip market won't be alleviated before 2028, leaving plenty of time for investors to profit from its shares.

Micron's stock is very cheap right now -- it trades for a mere 6 times fiscal year 2027 earnings -- because the market doesn't know what its future holds. However, once elevated prices and demand in excess of supply are confirmed for a longer period, the stock could start soaring. Based on its current bargain price tag, Micron's a stock well worth buying right now.

MU PE Ratio (Forward 1y) data by YCharts.

Amazon Last is Amazon, which may not be at the top of an AI investor's list, but it should be. Amazon is spending big on its cloud computing division, Amazon Web Services (AWS), with up to $220 billion in capital expenditures this year. The heavy investments it has been making in infrastructure are starting to deliver revenues and earnings, as AWS' growth rate is accelerating.

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In Q1, AWS grew at a 28% pace. In Q2, that figure increased to 37% year-over-year growth. As more computing power comes online, this growth rate will continue to accelerate.

With AWS making up 60% of Amazon's operating income in Q2 versus just 21% of revenue, this accelerating growth rate will push Amazon's profits higher at a quicker rate than revenue. I think this outcome will push Amazon's stock higher over the next few years, making right now an excellent time to invest in Amazon stock before the market catches on to this growth rate trend.

Micron Technology MU slipped 2% Tuesday as labor tensions at its Taiwan operations raised concerns about a possible strike, with employee groups seeking changes to compensation and profit-sharing arrangements.

The unions involved represent nearly 10,000 workers at Micron's Taoyuan and Taichung sites, covering roughly two-thirds of the company's employees at those facilities. Their demands center on higher bonuses and a greater portion of company profits.

A survey conducted in August showed more than 80% of participating union members would support strike action unless Micron revises its current bonus structure. The result adds pressure on management as it addresses labor relations at two of its key Taiwan locations.

Micron has substantial operations in Taiwan, making any disruption potentially relevant to production and investor sentiment. The reports did not indicate that a strike had begun, leaving the outcome dependent on discussions between the company and worker representatives.

The labor dispute could weigh on Micron shares if negotiations deteriorate or a work stoppage threatens operations.

Micron (MU -2.93%) has been an incredible performer in 2026, rising by over 200% so far this year. But that could just be the beginning. Micron's stock still looks cheap and could surge to a new high as we progress through the rest of 2026 and into 2027. In fact, I wouldn't be surprised if Micron shares -- which closed trading Monday at $958.73 -- reach over $3,000 by the end of 2027.

That would be a major move, but when you look at the math behind the premise, it makes sense.

Image source: Getty Images.

The memory chip market shows no signs of calming Micron makes both NAND and DRAM memory, and supplies of both are well below demand due to the AI build-out eating up so much of what the memory-chip foundries can produce. This has caused prices for memory to surge, and Micron is benefiting from it big time. Its upward revenue trend over the past year is astounding, trouncing any demand wave it has seen before.

MU Revenue (Quarterly) data by YCharts.

It's not done, either. For its fiscal 2026 fourth quarter (which ends Sept. 3), Micron is guiding for $50 billion in revenue.

However, investors should take that figure with a grain of salt, because Micron has been massively outperforming projections. Wall Street analysts expect this strength to carry over into the new fiscal year, with 85% revenue growth expected. On top of that, they project $155 in earnings per share.

Currently, Micron trades at 21 times earnings, a fairly normal valuation for it, aside from the spikes it experiences during demand downturns.

MU PE Ratio data by YCharts.

If Micron only hits Wall Street's expectations (even though it has commonly outperformed them in recent quarters), at a 21-times-earnings valuation, the stock would be priced at $3,255 per share. That's well over a triple in just a year, making it a no-brainer investment.

However, there's one caveat.

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The memory chip market has historically been highly cyclical, going through alternating phases of high and low demand relative to production capacity. The current boom is the biggest one Micron or any of its peers have ever seen. If it lasts for a few more years, Micron could be worth the investment. However, if the memory market's supply-and-demand imbalance starts to be relieved following fiscal 2027, then Micron stock could be in trouble.

It's up to investors to decide how long they believe the memory chip shortage will last, as memory market conditions will dictate where Micron's stock actually goes by the end of 2027. If the shortage lasts into late 2028, early 2029, or beyond, this stock price projection could be accurate. If memory supplies loosen up in 2028, Micron's earnings and its earnings multiple might come up short of what would be required for this price projection to pan out.

Micron Technology MU stock fell 3% on Tuesday as concerns over a potential strike by its Taiwan-based workforce added pressure to the memory-chip maker’s shares.

Labor unions representing Micron employees in Taoyuan and Taichung said they were moving toward possible strike action unless the company overhauls its bonus system and increases profit-sharing with employees.

The unions told Reuters that they have nearly 10,000 members among Micron’s roughly 15,000 employees in the two cities.

More than 80% of participating union members backed strike action in an internal online survey conducted in August, according to the unions.

The labor dispute comes as Micron faces strong demand for memory chips used in artificial intelligence hardware and as Taiwan remains a critical manufacturing base for the company.

The unions are seeking changes to Micron’s Incentive Pay Plan, arguing that the existing system does not adequately reflect the company’s profitability.

For fiscal 2026, the unions are seeking an additional one-off bonus payment that they estimate would amount to about 83 months of salary for each Taiwan-based employee.

From fiscal 2027, the unions want Micron to replace the existing system with one that allocates 15% of operating profit to employee bonuses. They are also seeking quarterly rather than annual bonus payments.

Micron’s current Incentive Pay Plan calculates annual bonuses using company and individual performance measures.

The unions have questioned how the company-performance component is calculated, arguing that it appears to track revenue growth more closely than profitability.

Micron said its compensation structure differs from the profit-sharing model proposed by the unions.

The company said employee compensation includes base salary, annual performance incentives, operational bonuses and equity programs such as stock-purchase and restricted-stock plans.

Micron’s Taiwan office also said this year’s performance-bonus payout would be the highest in the company’s history and that it would continue engaging with employees through existing channels while respecting applicable legal processes.

Taiwan is Micron’s largest manufacturing base, according to authorities in Taipei. The company has invested NT$1.4 trillion, or about $43.9 billion, on the island and produces DRAM and high-bandwidth memory chips there.

The Central Taiwan Science Park administration said it was monitoring the dispute and had assigned staff to facilitate communication between Micron and the unions.

It also said a strike could affect workers, Micron’s operations and potentially Taiwan’s semiconductor supply chain and wider economy.

The dispute comes as global demand for memory chips used in AI hardware has tightened supply and supported strong sector profits.

Micron reported record fiscal third-quarter revenue of $41.46 billion and net income of $28.24 billion for the quarter ended May 28.

Micron’s labor dispute echoes developments at other major Asian semiconductor manufacturers.

At Samsung Electronics in South Korea, a planned strike involving as many as 48,000 union members was called off in May following last-minute negotiations.

That agreement established a special bonus pool worth 10.5% of the chip division’s operating profit, subject to profitability targets.

Micron’s Taiwan unions said profit-sharing arrangements at Samsung and SK Hynix had widened the gap between Micron employees and their South Korean counterparts.

The dispute also comes as Taiwan seeks to reinforce its position as a reliable global semiconductor production hub.

Taiwan President Lai Ching-te said the island’s semiconductor industry had been built through specialization and long-term cooperation and that Taiwan had consistently supplied global markets and honored its commitments.

Key Takeaways SK Hynix controls ~55% of the global HBM market.The company has expanded its gross profit margins amid a tight memory supply market.SK Hynix broke ground on a $4 billion advanced HBM packaging facility backed by CHIPS Act funding. SK Hynix Company Overview Zacks Rank #2 (Buy) stock SK Hynix ((SKHY - Free Report) ) is a South Korean semiconductor giant that manufactures memory chips. The company is South Korea’s second-largest company and the world’s largest memory chip supplier. SK Hynix specializes in manufacturing the highly sought-after dynamic random-access memory (DRAM) and NAND flash memory chips. These chips are used in electronics such as smartphones and personal computers. Additionally, SK Hynix is experiencing exploding demand from AI data centers.

With ~55% market share, SK Hynix is the dominant player in the rapidly growing High Bandwidth Memory (HBM) market. The company is the leading memory supplier for artificial intelligence hardware providers like NVIDIA ((NVDA - Free Report) ). SK Hynix’s lightning-fast, vertically stacked HBM chips sit next to graphics processing units (GPUs), enabling more efficient artificial intelligence training and inference in data centers.

SK Hynix Experiences Insatiable DemandA massive memory bottleneck is driving the AI revolution. With only a handful of other global memory giants like Samsung and Micron (MU), the company has leveraged its pricing power and gross profit margins to a juicy 70%+. Meanwhile, in 2025, SKHY’s earnings per share more than doubled as annual revenue jumped 42% year-over-year.

NVIDIA Partnership Provides Visibility Last week, AI leader NVIDIA delivered one of the most impressive earnings reports in history. The company reportedly earned a staggering $1 billion in daily revenue. Meanwhile, NVIDIA boosted its outlook and Zacks Consensus Analyst Estimates suggest that it will grow in the high double-digits through 2028. As a major NVIDIA supplier, this gives Wall Street investors crystal-clear long-term visibility into compute demand.

Image Source: Zacks Investment Research

SK Hynix Benefits from U.S. OnshoringAs trade tensions between the U.S. and China reach a tipping point, the U.S. is working to ensure complex chip manufacturing gets onshored in the next few years. On August 27th, SK Hynix broke ground on a $4B HBM facility in West Lafayette, Indiana, with mass production of next-gen HBM targeted for late 2029. The project is backed by ~$458M in CHIPS Act funding and $500M in loans.

SKHY Technical ViewSKHY shares are carving out a classic IPO base structure.

Image Source: TradingView

Bottom Line

As artificial intelligence workloads continue to stretch data center capabilities to their limits, memory bandwidth remains the single critical hurdle in hardware performance. SK Hynix has positioned itself at the center of the AI supply ecosystem.

Micron just posted a productivity figure so extreme that analysts are scrambling to explain whether it reflects a structural shift in the memory business or a cycle that could turn just as violently as it spiked.

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Micron Technology‘s (NASDAQ:MU | MU Price Prediction) earnings revealed a productivity figure that reframes the entire memory cycle. Revenue per employee reached $1,703 in May 2026, and the trajectory that got there is the story.

$1.7 Million Per Employee in Nine Months Micron’s revenue per employee climbed from $838 in November 2025 to $1,703 in May 2026, a doubling that capped a nine-month sprint from the start of fiscal 2026. The metric had grown gradually from $338 in August 2023 before inflecting sharply late in calendar 2025. This is a productivity figure derived from reported revenue against headcount, not a management-disclosed KPI, and Micron did not break out an employee count in its fiscal Q3 2026 conference call.

What It Means for Micron’s Operating Model The doubling is the byproduct of pricing power meeting a fixed cost base. Fiscal Q3 revenue landed at $41.456 billion, up 345.72% year over year, while operating expenses moved only to $1.738 billion from $1.215 billion in the comparable quarter two years earlier. GAAP gross margin expanded to 84.6% from 37.7% a year ago. DRAM prices rose in the low-60% range sequentially and NAND prices in the mid-80% range, both driven by tight industry conditions. When each additional dollar of revenue carries roughly 85 cents of gross profit, every existing worker becomes more valuable.

The revenue sequence tells the same story: $13.643 billion in Q1, $23.860 billion in Q2, and $41.456 billion in Q3. Free cash flow moved from $803 million in Q4 2025 to $18.304 billion in Q3 2026.

Market Reaction: Shares Up 706% in a Year Micron closed at $958.73 on August 31, 2026. That is +706.89% over one year, +236.12% year to date, and +16.49% over the trailing month. Shares rose 2.77% in the most recent session. Market capitalization now sits near $1.08 trillion.

Bull Case: A Memory Shortage That Won’t Ease Quickly CEO Sanjay Mehrotra told analysts Micron does not currently have “line of sight as to when memory supply will be able to catch up with increasing demand,” and management expects tight DRAM and NAND conditions to persist beyond calendar 2027. That backdrop is reinforced by supplier behavior across the industry, with Samsung locking up 70% of HBM capacity through 2031, an industry signal that the constrained supply cycle has years left to run.

Micron has signed 16 Strategic Customer Agreements covering data center, consumer, automotive, and industrial markets, with contracted revenue at minimum floor prices totaling approximately $100 billion over the remaining terms and $22 billion in cash deposits and letters of credit expected. HBM4 has already generated over $1 billion in revenue and is ramping twice as fast as HBM3E 12-high. Mehrotra framed the setup bluntly: “AI is still in very, very early innings.” The same buildout is pulling in the power, cooling, and networking suppliers behind the data centers, which we profiled in a free report on seven AI infrastructure names that aren’t chipmakers.

Analysts have chased the numbers higher. The fiscal 2027 EPS consensus stands at $155.03, up from $102.72 ninety days ago, on 39 analyst estimates. Forward P/E sits at 6x.

Bottom Line: $50 Billion Guide Is the Next Test For retirement-focused holders, the productivity figure matters because it captures operating leverage in a form that is hard to fake. When revenue per worker roughly doubles in nine months without a matching expense build, the incremental margin flows to cash. Micron returned capital along the way, with a 30% dividend increase approved in Q2 and $650 million in buybacks through the nine months ended May 28, 2026.

The forward catalyst is fiscal Q4, guided to $50.0 billion ± $1.0 billion in revenue and non-GAAP EPS of $31.00 ± $1.00 at approximately 86% gross margin. If Micron delivers, the $1.7 million per employee mark will look like a waypoint on the way higher.

Contact [email protected] for any questions or corrections.

Allworth Financial LP acquired a new position in Micron Technology, Inc. (NASDAQ:MU – Free Report) in the 2nd quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission. The firm acquired 47,578 shares of the semiconductor manufacturer’s stock, valued at approximately $54,919,000.

Several other institutional investors have also added to or reduced their stakes in MU. M.E. Allison & CO. Inc. increased its stake in shares of Micron Technology by 0.8% in the second quarter. M.E. Allison & CO. Inc. now owns 1,324 shares of the semiconductor manufacturer’s stock worth $1,528,000 after purchasing an additional 11 shares in the last quarter. Cherrydale Wealth Management LLC lifted its stake in shares of Micron Technology by 1.4% during the 2nd quarter. Cherrydale Wealth Management LLC now owns 972 shares of the semiconductor manufacturer’s stock valued at $1,122,000 after buying an additional 13 shares in the last quarter. Bellevue Asset Management LLC lifted its stake in shares of Micron Technology by 25.5% during the 2nd quarter. Bellevue Asset Management LLC now owns 64 shares of the semiconductor manufacturer’s stock valued at $74,000 after buying an additional 13 shares in the last quarter. Mowery & Schoenfeld Wealth Management LLC lifted its stake in shares of Micron Technology by 8.8% during the 2nd quarter. Mowery & Schoenfeld Wealth Management LLC now owns 161 shares of the semiconductor manufacturer’s stock valued at $186,000 after buying an additional 13 shares in the last quarter. Finally, Red Door Wealth Management LLC boosted its holdings in Micron Technology by 0.7% in the 2nd quarter. Red Door Wealth Management LLC now owns 1,914 shares of the semiconductor manufacturer’s stock worth $2,209,000 after buying an additional 14 shares during the period. 80.84% of the stock is owned by hedge funds and other institutional investors.

Insider Buying and Selling In other Micron Technology news, EVP Sumit Sadana sold 15,000 shares of Micron Technology stock in a transaction that occurred on Tuesday, August 18th. The shares were sold at an average price of $934.29, for a total transaction of $14,014,350.00. Following the completion of the sale, the executive vice president directly owned 191,021 shares in the company, valued at $178,469,010.09. The trade was a 7.28% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, CEO Sanjay Mehrotra sold 40,000 shares of the business’s stock in a transaction that occurred on Friday, August 21st. The stock was sold at an average price of $968.90, for a total transaction of $38,756,000.00. Following the completion of the transaction, the chief executive officer directly owned 264,503 shares of the company’s stock, valued at approximately $256,276,956.70. This represents a 13.14% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 177,204 shares of company stock valued at $182,156,264 in the last 90 days. 0.24% of the stock is owned by company insiders.

Micron Technology Price Performance NASDAQ:MU opened at $958.73 on Tuesday. Micron Technology, Inc. has a 52-week low of $114.25 and a 52-week high of $1,255.00. The stock has a fifty day moving average of $946.58 and a 200 day moving average of $721.17. 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 $1.08 trillion, a price-to-earnings ratio of 21.71 and a beta of 2.19. Micron Technology (NASDAQ:MU – Get Free Report) last announced its earnings results on Wednesday, June 24th. The semiconductor manufacturer reported $25.11 earnings per share for the quarter, topping analysts’ consensus estimates of $21.39 by $3.72. Micron Technology had a return on equity of 71.13% and a net margin of 55.91%.The business had revenue of $41.46 billion for the quarter, compared to analyst estimates of $35.91 billion. During the same period in the prior year, the company 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 expect that Micron Technology, Inc. will post 72.93 EPS for the current fiscal year.

Micron Technology Dividend Announcement The firm also recently disclosed a quarterly dividend, which was paid on Tuesday, July 21st. Stockholders of record on Monday, July 6th were issued a dividend of $0.15 per share. 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 payout ratio is presently 1.36%.

Analysts Set New Price Targets A number of research analysts recently weighed in on the stock. KeyCorp reiterated an “overweight” rating on shares of Micron Technology in a research note on Monday, July 20th. Weiss Ratings restated a “buy (b)” rating on shares of Micron Technology in a research report on Friday, August 7th. Deutsche Bank Aktiengesellschaft lifted their price target on Micron Technology from $1,500.00 to $1,550.00 and gave the company a “buy” rating in a research report on Thursday, June 25th. Raymond James Financial boosted their price objective on Micron Technology from $1,100.00 to $1,500.00 and gave the company an “outperform” rating in a research note on Thursday, June 25th. Finally, Bank of America increased their price objective on Micron Technology from $950.00 to $1,500.00 and gave the stock a “buy” rating in a report on Tuesday, June 23rd. Four equities research analysts have rated the stock with a Strong Buy rating, thirty-one have assigned a Buy rating and three have issued a Hold rating to the company. According to data from MarketBeat, the company presently has a consensus rating of “Buy” and an average target price of $1,295.63.

View Our Latest Analysis on Micron Technology

Micron Technology News Roundup Here are the key news stories impacting Micron Technology this week:

Positive Sentiment: Investor optimism is being driven by expectations that hyperscalers are committing billions of dollars through supply and capacity agreements, potentially giving Micron more predictable cash flow and reducing the historical cyclicality of its memory business. AI-related demand for high-bandwidth memory (HBM) and next-generation “agentic AI” infrastructure is viewed as a major growth catalyst. Micron: Hyperscalers Bought The Fab, Bears Bought Fairy Tales Positive Sentiment: Several reports characterize MU as attractive after its pullback from the June peak. Technical analysts point to long-term trend support, while bullish investors cite a low forward earnings multiple relative to projected revenue growth and rising memory prices. A break above roughly $971 could improve momentum and open the possibility of a move toward $1,057. Micron Stock Flashing Intriguing Buy the Dip Signal Positive Sentiment: Government and industry attention is also supportive: President Trump called Micron one of the world’s “hottest” companies and highlighted its planned $10 billion research investment, reinforcing expectations for U.S. semiconductor support and long-term AI infrastructure spending. Trump Praises Nvidia CEO Jensen Huang, Calls Micron One of the World’s Hottest Companies Neutral Sentiment: Momentum has weakened below the $971 breakout level, leaving the stock vulnerable to another failed breakout even though it remains above longer-term support. Investors are also awaiting fiscal fourth-quarter results on September 30 for confirmation that elevated memory pricing and AI demand are translating into sustainable earnings. Micron Is Stuck Below $971 Negative Sentiment: China’s CXMT has reportedly begun producing small quantities of HBM3E and is advancing in smartphone memory, raising concerns about future pricing pressure, market-share losses and supply shocks. Potential semiconductor tariffs could likewise increase costs for AI customers and complicate Micron’s expansion plans. Micron Under Threat as China’s CXMT Delivers Cutting-Edge Chip Negative Sentiment: Risks include heavy capital spending, elevated insider selling and the possibility that memory deflation, technological substitution or stronger competition after 2027 could compress margins and reduce MU’s valuation multiple. (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.

Recommended Stories Five stocks we like better than Micron Technology Securing AI: 5 Most-Upgraded Stocks From the Q2 Reporting Season Insiders Are Betting Big on These 3 Healthcare Stocks 3 Stocks for Investors Who Still Believe Cash Is King Dollar General and Dollar Tree Are Recovering, But Not for the Same Reason Want to see what other hedge funds are holding MU? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Micron Technology, Inc. (NASDAQ:MU – Free Report).

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Altman Advisors Inc. bought a new stake in Micron Technology, Inc. (NASDAQ:MU – Free Report) in the 2nd quarter, according to the company in its most recent filing with the Securities and Exchange Commission (SEC). The institutional investor bought 2,637 shares of the semiconductor manufacturer’s stock, valued at approximately $3,044,000. Micron Technology comprises approximately 1.1% of Altman Advisors Inc.’s investment portfolio, making the stock its 29th largest position.

Several other hedge funds and other institutional investors have also added to or reduced their stakes in the company. Clay Northam Wealth Management LLC bought a new position in shares of Micron Technology during the 2nd quarter worth approximately $523,000. Vise Technologies Inc. purchased a new stake in shares of Micron Technology during the second quarter valued at approximately $66,138,000. August Group Capital Ltd bought a new stake in Micron Technology during the second quarter worth $1,267,000. E Fund Management Co. Ltd. purchased a new position in Micron Technology in the second quarter worth $136,460,000. Finally, Oriental Harbor Investment Master Fund purchased a new position in Micron Technology in the second quarter worth $170,358,000. 80.84% of the stock is currently owned by hedge funds and other institutional investors.

More Micron Technology News Here are the key news stories impacting Micron Technology this week:

Positive Sentiment: Investor optimism is being driven by expectations that hyperscalers are committing billions of dollars through supply and capacity agreements, potentially giving Micron more predictable cash flow and reducing the historical cyclicality of its memory business. AI-related demand for high-bandwidth memory (HBM) and next-generation “agentic AI” infrastructure is viewed as a major growth catalyst. Micron: Hyperscalers Bought The Fab, Bears Bought Fairy Tales Positive Sentiment: Several reports characterize MU as attractive after its pullback from the June peak. Technical analysts point to long-term trend support, while bullish investors cite a low forward earnings multiple relative to projected revenue growth and rising memory prices. A break above roughly $971 could improve momentum and open the possibility of a move toward $1,057. Micron Stock Flashing Intriguing Buy the Dip Signal Positive Sentiment: Government and industry attention is also supportive: President Trump called Micron one of the world’s “hottest” companies and highlighted its planned $10 billion research investment, reinforcing expectations for U.S. semiconductor support and long-term AI infrastructure spending. Trump Praises Nvidia CEO Jensen Huang, Calls Micron One of the World’s Hottest Companies Neutral Sentiment: Momentum has weakened below the $971 breakout level, leaving the stock vulnerable to another failed breakout even though it remains above longer-term support. Investors are also awaiting fiscal fourth-quarter results on September 30 for confirmation that elevated memory pricing and AI demand are translating into sustainable earnings. Micron Is Stuck Below $971 Negative Sentiment: China’s CXMT has reportedly begun producing small quantities of HBM3E and is advancing in smartphone memory, raising concerns about future pricing pressure, market-share losses and supply shocks. Potential semiconductor tariffs could likewise increase costs for AI customers and complicate Micron’s expansion plans. Micron Under Threat as China’s CXMT Delivers Cutting-Edge Chip Negative Sentiment: Risks include heavy capital spending, elevated insider selling and the possibility that memory deflation, technological substitution or stronger competition after 2027 could compress margins and reduce MU’s valuation multiple. Insider Buying and Selling at Micron Technology In other news, EVP April S. Arnzen sold 40,000 shares of the firm’s stock in a transaction on Wednesday, July 1st. The shares were sold at an average price of $1,083.94, for a total transaction of $43,357,600.00. Following the sale, the executive vice president owned 85,737 shares in the company, valued at approximately $92,933,763.78. This trade represents a 31.81% decrease in their position. The transaction was disclosed in a filing with the SEC, which can be accessed through this link. Also, CEO Sanjay Mehrotra sold 40,000 shares of Micron Technology stock in a transaction on Friday, August 21st. The stock was sold at an average price of $968.90, for a total transaction of $38,756,000.00. Following the sale, the chief executive officer directly owned 264,503 shares of the company’s stock, valued at $256,276,956.70. This represents a 13.14% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold a total of 177,204 shares of company stock valued at $182,156,264 over the last quarter. Company insiders own 0.24% of the company’s stock. Micron Technology Price Performance NASDAQ:MU opened at $958.73 on Tuesday. The firm has a market capitalization of $1.08 trillion, a price-to-earnings ratio of 21.71 and a beta of 2.19. Micron Technology, Inc. has a 52-week low of $114.25 and a 52-week high of $1,255.00. The stock has a fifty day moving average of $946.58 and a 200 day moving average of $721.17. 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 announced its earnings results on Wednesday, June 24th. The semiconductor manufacturer reported $25.11 earnings per share for the quarter, topping analysts’ consensus estimates of $21.39 by $3.72. Micron Technology had a return on equity of 71.13% and a net margin of 55.91%.The business had revenue of $41.46 billion for the quarter, compared to analyst estimates of $35.91 billion. During the same period in the prior year, the company 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 expect that Micron Technology, Inc. will post 72.93 EPS for the current fiscal year.

Micron Technology Dividend Announcement The business also recently announced a quarterly dividend, which was paid on Tuesday, July 21st. Investors of record on Monday, July 6th were paid a $0.15 dividend. This represents a $0.60 dividend on an annualized basis and a yield of 0.1%. The ex-dividend date of this dividend was Monday, July 6th. Micron Technology’s dividend payout ratio (DPR) is currently 1.36%.

Analyst Upgrades and Downgrades A number of research firms have recently commented on MU. Citigroup lowered their target price on Micron Technology from $1,400.00 to $1,150.00 and set a “buy” rating on the stock in a research note on Friday, August 7th. Deutsche Bank Aktiengesellschaft lifted their price objective on shares of Micron Technology from $1,500.00 to $1,550.00 and gave the stock a “buy” rating in a research report on Thursday, June 25th. The Goldman Sachs Group increased their target price on shares of Micron Technology from $900.00 to $1,100.00 and gave the company a “neutral” rating in a research report on Thursday, June 25th. BMO Capital Markets initiated coverage on shares of Micron Technology in a report on Friday, August 21st. They issued an “outperform” rating and a $1,300.00 price target on the stock. Finally, Cantor Fitzgerald reiterated an “overweight” rating and issued a $1,500.00 price objective on shares of Micron Technology in a research note on Thursday, June 25th. Four investment analysts have rated the stock with a Strong Buy rating, thirty-one have issued a Buy rating and three have given a Hold rating to the stock. Based on data from MarketBeat, the stock currently has a consensus rating of “Buy” and a consensus price target of $1,295.63.

View Our Latest Analysis 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.

Read More Five stocks we like better than Micron Technology Securing AI: 5 Most-Upgraded Stocks From the Q2 Reporting Season Insiders Are Betting Big on These 3 Healthcare Stocks 3 Stocks for Investors Who Still Believe Cash Is King Dollar General and Dollar Tree Are Recovering, But Not for the Same Reason

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Advisors Capital Management LLC purchased a new position in shares of Micron Technology, Inc. (NASDAQ:MU – Free Report) during the 2nd quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The fund purchased 4,640 shares of the semiconductor manufacturer’s stock, valued at approximately $5,356,000.

Other institutional investors and hedge funds also recently added to or reduced their stakes in the company. Andar Capital Management HK Ltd lifted its holdings in Micron Technology by 856,960.3% in the second quarter. Andar Capital Management HK Ltd now owns 34,282,413 shares of the semiconductor manufacturer’s stock valued at $39,571,847,000 after acquiring an additional 34,278,413 shares during the period. Norges Bank acquired a new position in shares of Micron Technology during the 4th quarter worth $6,433,456,000. AQR Capital Management LLC grew its stake in shares of Micron Technology by 411.9% during the 3rd 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 period. Arrowstreet Capital Limited Partnership increased its holdings in shares of Micron Technology by 1,340.6% in the 4th quarter. Arrowstreet Capital Limited Partnership now owns 2,820,986 shares of the semiconductor manufacturer’s stock valued at $805,148,000 after purchasing an additional 2,625,169 shares in the last quarter. Finally, Amundi increased its holdings in shares of Micron Technology by 65.0% in the 4th quarter. Amundi now owns 4,989,400 shares of the semiconductor manufacturer’s stock valued at $1,424,025,000 after purchasing an additional 1,965,319 shares in the last quarter. Hedge funds and other institutional investors own 80.84% of the company’s stock.

Insider Activity In other Micron Technology news, EVP Sumit Sadana sold 15,000 shares of the firm’s stock in a transaction dated Tuesday, August 18th. The stock was sold at an average price of $934.29, for a total value of $14,014,350.00. Following the sale, the executive vice president directly owned 191,021 shares of the company’s stock, valued at approximately $178,469,010.09. This trade represents a 7.28% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, EVP April S. Arnzen sold 40,000 shares of Micron Technology stock in a transaction dated 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 of the company’s stock, valued at $92,933,763.78. This trade represents a 31.81% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold a total of 177,204 shares of company stock valued at $182,156,264 in the last three months. Company insiders own 0.24% of the company’s stock.

Micron Technology Stock Up 2.8% MU opened at $958.73 on Tuesday. The firm has a market cap of $1.08 trillion, a P/E ratio of 21.71 and a beta of 2.19. The business’s fifty day simple moving average is $946.58 and its 200 day simple moving average is $721.17. Micron Technology, Inc. has a 52 week low of $114.25 and a 52 week high of $1,255.00. The company has a quick ratio of 2.98, a current ratio of 3.42 and a debt-to-equity ratio of 0.05. Micron Technology (NASDAQ:MU – Get Free Report) last announced its earnings results on Wednesday, June 24th. The semiconductor manufacturer reported $25.11 earnings per share for the quarter, beating the consensus estimate of $21.39 by $3.72. The firm had revenue of $41.46 billion during the quarter, compared to the consensus estimate of $35.91 billion. Micron Technology had a net margin of 55.91% and a return on equity of 71.13%. The firm’s revenue for the quarter was up 345.8% on a year-over-year basis. 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. As a group, equities research analysts anticipate that Micron Technology, Inc. will post 72.93 EPS for the current fiscal year.

Micron Technology Dividend Announcement The firm also recently announced a quarterly dividend, which was paid on Tuesday, July 21st. Investors of record on Monday, July 6th were given a dividend of $0.15 per share. The ex-dividend date was Monday, July 6th. This represents a $0.60 annualized dividend and a yield of 0.1%. Micron Technology’s dividend payout ratio is 1.36%.

Trending Headlines about Micron Technology Here are the key news stories impacting Micron Technology this week:

Positive Sentiment: Investor optimism is being driven by expectations that hyperscalers are committing billions of dollars through supply and capacity agreements, potentially giving Micron more predictable cash flow and reducing the historical cyclicality of its memory business. AI-related demand for high-bandwidth memory (HBM) and next-generation “agentic AI” infrastructure is viewed as a major growth catalyst. Micron: Hyperscalers Bought The Fab, Bears Bought Fairy Tales Positive Sentiment: Several reports characterize MU as attractive after its pullback from the June peak. Technical analysts point to long-term trend support, while bullish investors cite a low forward earnings multiple relative to projected revenue growth and rising memory prices. A break above roughly $971 could improve momentum and open the possibility of a move toward $1,057. Micron Stock Flashing Intriguing Buy the Dip Signal Positive Sentiment: Government and industry attention is also supportive: President Trump called Micron one of the world’s “hottest” companies and highlighted its planned $10 billion research investment, reinforcing expectations for U.S. semiconductor support and long-term AI infrastructure spending. Trump Praises Nvidia CEO Jensen Huang, Calls Micron One of the World’s Hottest Companies Neutral Sentiment: Momentum has weakened below the $971 breakout level, leaving the stock vulnerable to another failed breakout even though it remains above longer-term support. Investors are also awaiting fiscal fourth-quarter results on September 30 for confirmation that elevated memory pricing and AI demand are translating into sustainable earnings. Micron Is Stuck Below $971 Negative Sentiment: China’s CXMT has reportedly begun producing small quantities of HBM3E and is advancing in smartphone memory, raising concerns about future pricing pressure, market-share losses and supply shocks. Potential semiconductor tariffs could likewise increase costs for AI customers and complicate Micron’s expansion plans. Micron Under Threat as China’s CXMT Delivers Cutting-Edge Chip Negative Sentiment: Risks include heavy capital spending, elevated insider selling and the possibility that memory deflation, technological substitution or stronger competition after 2027 could compress margins and reduce MU’s valuation multiple. Wall Street Analyst Weigh In A number of analysts recently commented on the stock. Weiss Ratings reissued a “buy (b)” rating on shares of Micron Technology in a report on Friday, August 7th. Raymond James Financial increased their target price on shares of Micron Technology from $1,100.00 to $1,500.00 and gave the company an “outperform” rating in a report on Thursday, June 25th. Seaport Research Partners reiterated a “buy” rating on shares of Micron Technology in a research report on Friday, August 14th. Morgan Stanley boosted their price target on Micron Technology from $1,050.00 to $1,200.00 and gave the stock an “overweight” rating in a research note on Thursday, June 25th. Finally, Cantor Fitzgerald restated an “overweight” rating and issued a $1,500.00 price target on shares of Micron Technology in a report on Thursday, June 25th. Four equities research analysts have rated the stock with a Strong Buy rating, thirty-one have given a Buy rating and three have issued a Hold rating to the company’s stock. According to data from MarketBeat.com, Micron Technology presently has an average rating of “Buy” and an average price target of $1,295.63.

Read Our Latest Analysis on MU

(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 Securing AI: 5 Most-Upgraded Stocks From the Q2 Reporting Season Insiders Are Betting Big on These 3 Healthcare Stocks 3 Stocks for Investors Who Still Believe Cash Is King Dollar General and Dollar Tree Are Recovering, But Not for the Same Reason

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With shares up by roughly 1,200% over the last five years, Micron Technology (MU -1.80%) is a standout performer in the generative artificial intelligence (AI) megatrend. But the company's rocketship rally has come under threat. And shares are down around 23% from their all-time high of $1,213 reached on June 25th as investors grow nervous about competition and the sustainability of its high margins.

Let's dig deeper into Micron's pros and cons to decide whether the dip is a long-term buying opportunity or a sign of more trouble to come.

Image source: Getty Images.

A 47-year-old growth stock Usually, large corporations find their raison d'etre early in their life cycles. But Micron has been a late bloomer. The company has spent most of the last few decades providing memory hardware for consumer markets, such as personal computers and smartphones, where it has endured brutal competition and low margins. Shares barely budged in the two decades between the dot-com bubble and the COVID-19 pandemic.

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However, the arrival of generative AI gave the company a new lease on life as data center operators quickly realized that high bandwidth memory had become one of the primary bottlenecks in creating more powerful large language models (LLMs).

Hardware shortages ensued, allowing Micron to enjoy the biggest operational boom in its history. Third-quarter revenue soared by an eye-popping 346% year over year to $41.5 billion, driven by higher prices and volumes across Micron's product portfolio. And the company now boasts a gross margin of 85%.

Is this time different? Micron now boasts sky-high growth and margins, which are typically the catalyst for a stock to trade at an inflated valuation as investors bet that its current profits will be much bigger in the future. However, Micron stock turns this familiar dynamic on its head. With a forward price-to-earnings (P/E) multiple of just 6, the stock trades for a shocking discount.

The only real explanation for this is that investors don't expect the current boom to last very long. And there are very good reasons to be skeptical. Unlike an Nvidia chip (which relies on proprietary CUDA software) or a branded social media platform, Micron's memory business doesn't have a very strong economic moat to protect it from competition.

Memory chips tend to be commoditized, meaning specific chips aren't well differentiated from one another, and customers generally respond only to price. Historically, this has led to a repeating boom-and-bust cycle in the industry as supply eventually catches up to demand and suppliers enter a destructive race to the bottom to maintain market share.

Micron's CEO thinks this time will be different because of the sheer scale of AI-related demand. That said, it's hard to see this as true, given the massive amount of new production capacity that will come online over the coming years.

Micron is investing an eye-popping $250 billion in research and U.S. manufacturing capacity. And Micron's rivals aren't sitting still either, with China's YMTC aiming to become the world's top NAND memory producer by the end of 2027. The soaring levels of memory production could eventually overwhelm even AI-related demand over the next few years, leading to falling prices across the industry.

Is the dip a buying opportunity? Micron has been one of the most rewarding tech investments of the last few years. And the stock's rock-bottom valuation suggests a big crash is unlikely (most of the potential future bad news is already priced in).

That said, investors who buy Micron stock now are late to the party. Shares probably won't sustain their explosive multi-bagger growth as memory supplies continue to increase and management continues to pour cash into capital expenditures that could take several years to pay off. It might make more sense to hunt for the next best thing rather than buy the dip.

Micron Technology and SanDisk stocks slipped in premarket trading on Tuesday as fresh evidence of China’s progress in memory chips revived concerns about competition.

Micron was down about 1.9% before the bell, while SanDisk fell roughly 3%. Both stocks entered September after 2026 gains driven by AI spending, tight supply and memory prices.

The immediate concern is ChangXin Memory Technologies, or CXMT, which has begun producing small quantities of HBM3E.

CXMT’s progress matters because high-bandwidth memory has become critical to AI computing.

The Chinese company is producing HBM3E in small quantities and plans to expand output in 2027.

Alibaba’s T-Head and Cambricon are testing the memory alongside their processors, with potential adoption next year if testing succeeds.

Micron, Samsung Electronics and SK Hynix are already moving into HBM4, leaving CXMT behind the leaders. Production scale and yields also remain hurdles, as Micron has been shipping HBM4 in volume since the first quarter.

That is why Bank of America analyst Vivek Arya remains bullish on Micron. TipRanks reported that Arya sees “limited competition” from CXMT in advanced AI memory because the Chinese supplier remains more exposed to consumer and commodity DRAM.

BofA retained a Buy rating and a $1,550 price target on Micron.

The risk is not that CXMT suddenly displaces Micron, but China is moving from lower-value memory into products generating the industry’s strongest margins.

For SanDisk, the more direct competitive issue is NAND flash.

Yangtze Memory Technologies, or YMTC, captured about 14% of global NAND bit shipments in the second quarter, according to Counterpoint Research, placing it third by shipment volume.

YMTC is targeting the top spot globally by the end of 2027 and is seeking 33 billion yuan, or about $5 billion, in an IPO to fund production upgrades and research.

That matters because additional NAND supply can influence global pricing even if Chinese producers remain restricted in the US.

Citi analyst Atif Malik has called Chinese capacity additions the biggest long-term risk to the memory thesis.

The analyst expects “both DRAM and NAND prices decelerating Q/Q in the next four quarters,” with prices potentially peaking around the second quarter of 2027.

This is a key issue for SanDisk investors. YMTC does not need to dominate enterprise storage to affect the broader NAND market.

Current fundamentals remain more supportive than the China angle suggests.

Mizuho said in an August research note that memory remains the “key bottleneck” in the semiconductor supply chain as aggregate DRAM demand rises.

The firm maintained Outperform ratings on Micron and SanDisk, with targets of $1,300 and $1,875.

There is also a reminder from last month’s selloff. When Micron and SanDisk dropped on reports that Apple could eventually source Chinese memory, Lynx Equity Research analyst KC Rajkumar called the reaction “an overreaction,” according to Investing.com.

Rajkumar pointed to supply constraints and customer qualification hurdles limiting the immediate threat from Chinese suppliers.

That distinction remains important. CXMT’s HBM3E output is still small, while Micron and its global peers are advancing into HBM4. YMTC has gained meaningful NAND volume, but remains more exposed to lower-value products than established rivals.

Micron Technology's (MU.O) ‌labour unions in Taiwan said on Tuesday they were moving towards possible strike action unless the U.S. memory-chip maker overhauls its bonus system and shares more of its profits with employees.

The unions, representing Micron workers in Taoyuan and Taichung, said in a written response to Reuters that they had nearly 10,000 members among Micron's roughly 15,000 employees in the two cities.

More ​than 80% of members who took part in an internal online survey in August backed strike action, they said.

Micron's Taiwan office said in ​response to a request for comment that this year's performance-bonus payout would be the highest in the company's history.

It said ⁠it would continue to engage with employees through existing channels while respecting applicable legal processes.

The strike threat comes as booming demand for memory chips used in ​artificial intelligence hardware has tightened global supply and lifted profits across the sector.

Micron, the world's third-largest memory-chip maker, reported record revenue of $41.46 billion and net income of $28.24 billion for ​its fiscal third quarter ended May 28, as demand for its products surged. The company's market value was about $1.10 trillion on Tuesday.

A strike at Micron would be highly disruptive because Taiwan is the company's largest manufacturing base, according to authorities in Taipei. They say Micron has invested NT$1.4 trillion ($43.9 billion) in the island and produces DRAM and high-bandwidth memory chips there.

The government-run ​Central Taiwan Science Park administration said last month it was closely monitoring the dispute and had assigned staff to help facilitate contacts between Micron and the ​unions.

It said a strike could affect workers' livelihoods, Micron's operations and potentially Taiwan's semiconductor supply chain and wider economy, adding that it could launch labour-management negotiations or mediation if ‌needed.

The dispute ⁠echoes a showdown at Samsung Electronics (005930.KS) in South Korea, where a planned 18-day strike involving as many as 48,000 union members was called off in May after last-minute negotiations.

That deal created a special bonus pool worth 10.5% of the chip division's operating profit, subject to profitability targets.

Micron's Taiwanese unions said profit-sharing arrangements at Samsung and SK Hynix (000660.KS) had widened the gap between Micron workers and their South Korean counterparts.

UNIONS SEEK PROFIT-LINKED BONUSES
For fiscal 2026, the unions are seeking an additional one-off bonus payment, arguing ​that Micron's existing Incentive Pay Plan (IPP) does ​not adequately reflect the company's ⁠profitability.

The unions said their proposal would amount to about 83 months' salary for each Taiwan-based employee.

From fiscal 2027, they want the IPP replaced with a system that allocates 15% of operating profit to bonuses and distributes payments quarterly rather than ​annually.

Micron's IPP determines annual bonuses using company and individual performance measures. The unions said the company had not fully ​explained how its company-performance ⁠metric was calculated and argued that it appeared to track revenue growth more closely than profit.

The unions said Micron had indicated it would keep the existing IPP for this year's bonus payments while delaying negotiations.

Micron said its compensation structure differs from the profit-sharing model sought by the unions. According to the company, employee pay packages include ⁠base salary, ​annual performance incentives, operational bonuses and equity programmes, including stock-purchase and restricted-stock plans.

The dispute comes as ​Taiwan seeks to reinforce its reputation as a reliable hub for global chip production.

President Lai Ching-te said on Tuesday that the island's semiconductor sector had been built through specialisation and long-term cooperation, and that ​Taiwan had consistently supplied the global market and honoured its commitments.

The latest earnings season has been a solid one for artificial intelligence (AI) semiconductor companies, as healthy demand for data center infrastructure has driven impressive growth among chipmakers and chip designers.

This explains why the latest quarterly reports of Nvidia (NVDA +1.49%) and Advanced Micro Devices (AMD +1.10%) exceeded expectations. However, the market's attention will now turn to Micron Technology (MU +2.77%), which will release its fiscal 2026 fourth-quarter results on Sept. 30. While there is still some time to go before Micron releases its quarterly report, I think that this semiconductor stock could be the biggest mover among AI companies in September.

Let's look at the reasons why.

Image source: Micron Technology.

Nvidia and AMD's results clearly indicate that the AI trade is alive The past couple of months have been turbulent for Micron stock investors. It has dropped 11% since releasing its fiscal Q3 results on June 24. However, recent results from AMD, Nvidia, and other semiconductor companies clearly indicate that AI infrastructure demand remains robust.

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Nvidia reported a 106% year-over-year increase in revenue for the second quarter of fiscal 2027. What's more, the semiconductor bellwether notes that its revenue growth could land at a healthy 70% in fiscal 2028, well above the consensus estimate of 44%. However, Nvidia's growth could be stronger than that, as the company notes its forecast accounts for supply chain constraints.

AMD, on the other hand, posted a year-over-year jump of 50% in Q2 revenue. It projects a 41% increase in revenue for the current quarter. Importantly, AMD management believes that its long-term revenue could "grow substantially above our prior target of greater than 35%, and we expect to significantly exceed our $20 annual EPS target within our strategic timeframe."

AMD management also added that demand for high-performance computing could grow at an annual rate of 40% over the long term, presenting a $2 trillion revenue opportunity for chipmakers in 2030.

These sunny forecasts from AMD and Nvidia bode well for Micron. After all, Micron sells a critical component that helps the AI chips designed by Nvidia and AMD to perform tasks seamlessly. The dynamic random access memory (DRAM) chips that Micron manufactures help transport massive amounts of data rapidly to AI accelerators while maintaining low power consumption.

So, Nvidia and AMD's chips don't have to sit idle and wait for data, thanks to Micron's chips. Not surprisingly, these chip designers are packing large amounts of high-bandwidth memory (HBM) into their chips. Nvidia's NVL72 rack-scale server system carries more than 20 terabytes (TB) of HBM. AMD, on the other hand, is offering 31 TB of HBM on its Helios rack-scale system.

Strong shipments of these AI server racks should ensure that the demand for Micron's memory remains solid, especially because manufacturing HBM requires nearly 4x more wafer capacity over traditional memory chips. Also, Nvidia noted on the latest earnings call that the capital expenditures of the top five U.S. hyperscalers could increase from $800 billion this year to $1.3 trillion in 2027.

As such, the stage seems set for a strong rally in Micron stock in September, ahead of its earnings report. A big reason that's likely to be the case is its extremely attractive valuation.

Micron's valuation suggests that the stock is poised for a breakout in September Micron is priced like a value stock even though it has been clocking exponential growth. Analysts are expecting its revenue to jump by a whopping 348% year over year in fiscal Q4 to $50.8 billion. Earnings per share, meanwhile, could increase by more than 10x year over year to $31.28.

However, Micron's price-to-earnings ratio is just 21, suggesting the market isn't pricing in its tremendous growth potential. The forward earnings multiple of 6 is even cheaper. For a company that's expected to clock triple-digit earnings-per-share growth over the long run, Micron's valuation clearly suggests that it could make a parabolic move.

Moreover, Micron is expected to clock significantly faster growth than Nvidia and AMD, and it is way cheaper than both.

Data by YCharts

All this makes Micron a top AI stock to buy right now, as September could bring about a turnaround in its fortunes.

China’s memory-chip ambitions are moving into the heart of the artificial-intelligence supply chain. CXMT has begun producing small quantities of HBM3E, an advanced high-bandwidth memory used in AI chipsets, according to Reuters.

The company plans to expand production in 2027, while Chinese chip designers including Alibaba Group Holding Ltd’s (NYSE:BABA) T-Head and Cambricon are testing the memory with their processors.

The development could reshape the competitive landscape for Micron Technology Inc (NASDAQ:MU), SK Hynix Inc (NASDAQ:SKHY) and Samsung, while creating new opportunities across a growing group of ETFs targeting the global memory boom.

• Where are DRAM shares going?

CXMT Is Moving Beyond Conventional DRAMCXMT is already the world’s fourth-largest DRAM producer, with roughly 7% of global DRAM market share, according to Counterpoint research. Its first-half 2026 revenue jumped 874%, underscoring how rapidly the company has scaled alongside the global memory shortage.

Its move into HBM3E is potentially more important. HBM is the stacked DRAM technology that sits alongside AI accelerators and enables them to process massive volumes of data. The market is currently dominated by Samsung, SK Hynix and Micron.

CXMT’s current HBM production is small, so it is not yet a peer competitor to those companies. But plans to scale in 2027 and testing by Chinese chip designers suggest Beijing wants a domestic memory supply chain capable of supporting its growing AI ecosystem.

Four ETFs, Four Ways to Play the Memory BoomFor investors, the development extends beyond one ETF.

Roundhill Memory ETF (BATS:DRAM) is the most direct memory-producer play. It owns global companies involved in HBM, DRAM, NAND and storage, including Micron, Samsung and SK Hynix, while also gaining economic exposure to CXMT. While Micron, Samsung and SK Hynix hold about 72% of the portfolio, cumulatively, CXMT is also a part of the holdings, with almost 5% weightage.

Tuttle Capital Concentrated Memory Stack ETF (BATS:HBMX) takes a broader approach. At least 80% of assets must be invested in memory-stack companies, with exposure spanning memory manufacturers, advanced packaging, substrates, testing and equipment. The fund recently added CXMT exposure through a total return swap.

Tema Memory ETF (NYSE:DISK) may offer the most direct CXMT angle. It established a 10.56% position in CXMT when the Chinese company went public in July. CXMT currently accounts for 7.6% of DISK, alongside SK Hynix, SanDisk Corp (NASDAQ:SNDK) and Micron.

Then there is KraneShares China Technology & Semiconductor STAR Market 50 ETF (NYSE:KSTR). Unlike the pure-play memory funds, KSTR provides broader exposure to China’s semiconductor ecosystem. But CXMT has become a direct holding following its STAR Market debut, making KSTR another way for investors to participate in China’s domestic memory push.

The Bigger Opportunity Is the Memory BottleneckThe investment case is therefore bigger than just Micron versus CXMT.

AI models need increasingly powerful processors, but those processors also need enormous amounts of high-speed memory. As HBM, DRAM and NAND demand rises, companies supplying the memory, and the equipment and infrastructure needed to manufacture it, stand to benefit.

CXMT’s HBM3E breakthrough just adds another layer to that story. The global AI race is becoming a memory race, and investors now have several ETFs offering different ways to capture it.

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