Track market-moving stories before they get noisy

Micron benefits from structural tailwinds as tight DRAM and NAND market conditions are expected to persist until at least post-2028 due to surging AI inference workloads. Long-term strategic customer agreements now cover 20% of DRAM and 33% of NAND volume, stabilizing pricing and driving projected gross margins above 60% by 2030. Emerging Chinese competitors are expanding market share but remain technologically lagged by 2 to 5 years and pose minimal threat as their supply is contained domestically.

Chip stocks were set for a rebound on Thursday as investors stepped back into the AI hardware trade after two brutal sessions of profit-taking.

Micron rose 3.5% in premarket trading to $982.05, while AMD and Intel also gained over 2.5% after recent Wall Street target hikes helped restore some confidence in the sector.

The bounce follows a sharp selloff across Korea, Japan and the US, where investors briefly questioned whether the AI chip rally had run too far, too fast.

The reversal began after one of the sharpest global chip selloffs of the year.

Samsung Electronics reported preliminary second-quarter operating profit of 89.4 trillion won on Tuesday, with sales of about 171 trillion won, confirming a record quarter driven by AI memory demand.

But instead of rallying, Korean chip stocks sold off as investors treated the results as a “sell-the-news” moment.

South Korea’s Kospi fell into technical bear-market territory on Wednesday, down 22.8% from its June 22 peak.

Samsung lost 6.3% and SK Hynix dropped 5.7% in that session, extending a two-day rout tied to fears about stretched AI valuations, higher oil prices and interest-rate risk.

The earlier selling was even more dramatic as the Kospi ended 7.9% lower last week, with SK Hynix down 14.6%, Samsung off 9.1% and Japan’s Kioxia tumbling more than 13.5% as the memory trade unwound.

By Thursday, dip-buying had returned. Kioxia rose 8.3% in Japan, while Samsung and SK Hynix also gained as investors rotated back into memory names ahead of SK Hynix’s US listing.

The reason the rebound has traction is that analysts have not treated the pullback as a break in the AI cycle.

Bank of America’s Vivek Arya reiterated a Buy rating on Micron and kept a $1,550 price target.

Arya argued that global cloud and AI infrastructure spending could reach $1.5 trillion by 2027, with 35%-40% directed toward memory components.

His view is that investors are underestimating how memory is shifting from a deeply cyclical product into a strategic AI resource.

UBS also stayed bullish on memory. The firm raised its DRAM contract-price forecasts, with DDR prices now expected to rise 32% quarter-on-quarter in the third quarter, nearly double its earlier 17% forecast.

AMD has its own bull case as Goldman Sachs analyst James Schneider raised his AMD target to $640 from $450, citing strong AI demand and the rising role of high-performance CPUs in agentic AI workloads.

Intel’s rebound story is more about turnaround as HSBC analyst Frank Lee doubled his Intel target to $200 from $100, saying server CPU growth and the foundry business could deliver more value than investors expect.

HSBC expects design commitments in Intel Foundry to begin in the second half of 2026.

Also read- Intel, AMD stocks outperformed Nvidia in H1: what's next?

The bullish notes do not remove the risks and Intel is the clearest example of the same phenomenon.

HSBC’s $200 target is far above broader Street expectations, and the thesis depends heavily on foundry customers turning early engagement into real design commitments.

There is also a broader valuation issue as Bank of America’s bubble-risk warning for technology and semiconductor stocks earlier this month showed that even bullish analysts are watching how crowded the trade has become.

The next tests arrive quickly. SK Hynix’s Nasdaq ADRs are due to begin trading on July 10, after Reuters reported that the $28 billion US share sale was more than seven times oversubscribed.

That debut will be a real-time measure of investor appetite for AI memory exposure.

Micron Technology (MU +1.24%) put up more staggering results in its fiscal 2026 third quarter, fueled by the surging demand for its artificial intelligence memory chips.

In the period, which ended May 28, Micron generated $41.5 billion in revenue, a 74% increase from the previous quarter and a 346% year-over-year increase. Earnings were equally staggering, with net income up 105% from the previous quarter and up 205% year over year to $28.2 billion. These results shattered analysts' consensus estimates.

The chipmaker also issued guidance for its fiscal Q4 that blew analysts' estimates out of the water. The company expects $50 billion in revenue, up 20% from fiscal Q3, and earnings of $30.73 per share, up 25% from the last quarter. Analysts were expecting $42.5 billion in revenue for the current fiscal quarter.

The driver of all this growth, of course, is the tech sector's insatiable demand for Micron's high bandwidth memory, or HBM chips, which are used in data center servers to store the massive amounts of information required for AI workloads.

Image source: Getty Images.

Micron has not only sold out all of the HBM chips it will be able to manufacture for the rest of 2026, but has also presold its complete production capacity through 2027. And on the fiscal Q3 earnings call, CEO Sanjay Mehrotra said he expects "tight conditions to persist beyond calendar 2027 as a result of AI-driven demand across all segments coupled with structural supply constraints."

Pricing power The combination of wild demand and constrained supply across the memory sector has provided Micron with significant pricing power. Across its cloud memory, data center, and mobile businesses, it has been able to raise prices significantly.

In cloud memory, revenue was up 78% sequentially, and gross margins jumped by 9 percentage points to 83%. Data center revenue rose 103% sequentially, driven by higher pricing and a favorable product mix. Gross margins soared by 12 percentage points to 87%. And in mobile, revenue climbed 49% from the previous quarter, with gross margins rising 9 percentage points to 87%.

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Further, Micron inked what it is calling strategic customer agreements (SCAs) with 16 of its customers. These SCAs will transform its business model, creating contracts with three- and five-year terms, and pricing bands for each client. They are designed to improve cash flow and margins, and increase the company's financial stability.

By the end of the term of those agreements, management believes that at least half of the company's revenue will be locked in under these SCAs.

Micron stock is already up 229% this year, and there are no signs of its business slowing down. The company is benefiting from a large backlog, massive demand for its products, pricing power, and a memory supercycle that is expected to run through at least 2028.

Even after the stock's huge gains, Micron is still a value, thanks to its incredible earnings power. It is trading at just 21 times earnings, 6 times 1-year forward earnings, and it has a minuscule five-year PEG ratio of 0.14. For all these reasons, Micron Technology remains a no-brainer buy right now.

Ford Motor (F - Free Report) ) has quietly become one of the more intriguing turnaround stories in the automotive sector.

Fresh off announcing a long-term strategic partnership with Micron Technology (MU - Free Report) ), Ford has joined its semiconductor partner on the coveted Zacks Rank #1 (Strong Buy) list, thanks to favorable earnings estimate revisions.

The combination of strengthening fundamentals, improving supply-chain security, and growing exposure to next-generation vehicle technology may warrant a closer look from investors.

Ford and Micron Strengthen Their PartnershipEarlier this week, Ford and Micron announced a Strategic Customer Agreement (SCA) designed to secure a long-term supply of automotive memory and storage solutions for Ford's next generation of connected and software-defined vehicles.

Under the agreement, Micron will expand production of key automotive memory products while continuing to invest in U.S.-based manufacturing capacity, including its Dynamic Random Access Memory (DRAM) facility in Virginia.

The agreement represents more than just another supplier relationship.

To that point, modern vehicles require much more memory than previous generations as advanced driver-assistance systems (ADAS), infotainment platforms, over-the-air software updates, and AI-powered computing continue to become standard features.

As vehicles increasingly resemble computers on wheels, dependable access to advanced memory chips becomes a competitive advantage.

Ford isn't the only Detroit automaker strengthening ties with Micron. General Motors (GM - Free Report) ), whose stock currently sports a Zacks Rank #2 (Buy), has also collaborated with the memory-chip maker to help secure advanced automotive memory and storage solutions for its next-generation vehicle platforms.

The parallel partnerships highlight how leading automakers are prioritizing resilient semiconductor supply chains as connected vehicles, ADAS, and software-defined architectures require increasingly sophisticated memory technology.

Ford CEO Jim Farley noted that producing the high-volume vehicles of the future requires a resilient domestic supply chain, while Micron CEO Sanjay Mehrotra emphasized that intelligent, data-intensive vehicles will continue driving demand for advanced memory and storage solutions.

Why the Partnership Really MattersThe automotive industry learned a costly lesson during the semiconductor shortages that followed the pandemic.

Production delays and factory shutdowns highlighted the risks of relying on fragmented global supply chains for critical components.

Ford's agreement with Micron seeks to reduce those risks by providing greater supply assurance for future vehicle programs while supporting domestic semiconductor manufacturing.

The partnership should also support Ford's broader transition toward software-defined vehicles, electric vehicles (EVs), and autonomous driving technologies, all of which require significantly greater computing power and memory content than traditional automobiles.

Although the agreement alone won't transform Ford's financial performance overnight, it reduces a key operational risk while positioning the company to better compete as automotive technology continues to evolve.

Ford's Earnings Outlook Is ImprovingPerhaps even more encouraging for investors is Ford's improving earnings outlook.

The stock has recently climbed to a Zacks Rank #1 (Strong Buy) as analysts have become increasingly optimistic about the auto giant’s earnings prospects.

Positive earnings estimate revisions often reflect growing confidence in improving profitability, stronger execution, or favorable business trends, making them one of the more powerful indicators followed by the Zacks Rank system.

Ford now joins Micron in obtaining a strong buy rating, indicating Wall Street has become increasingly constructive on both companies for very different reasons.

For Micron, optimism has centered on booming AI-driven memory demand. For Ford, improving earnings expectations appear to reflect stronger operating fundamentals and increased confidence in management's execution.

As shown below, Ford’s FY26 and FY27 EPS estimates have ticked higher over the last 60 days and have now spiked 31% and 28% from a year ago, respectively. 

The Micron partnership is reason to believe this reassuring trend could continue, especially as Ford’s supply chain and operational execution are likely to strengthen.

Image Source: Zacks Investment Research

Ford’s annual earnings are now expected to spike 50% this year and are projected to increase another 12% in FY27 to $1.83 per share.

Image Source: Zacks Investment Research

Ford Stock Still Offers Intriguing ValueDespite improving sentiment, Ford continues to trade at a relatively inexpensive valuation compared to the broader market.

Ford’s stock remains well below the earnings multiples typically assigned to many technology and growth companies, providing investors with a margin of safety should operating results continue improving, and the company’s outlook is indeed lifted by its Micron partnership.  

Ford also generates meaningful automotive cash flow while investing heavily in EVs, software, and manufacturing modernization.

If management can successfully balance those investments with continued profitability in its traditional truck and commercial vehicle businesses, the current valuation could prove attractive for long-term investors.

At $13 a share, Ford stock trades at 8X forward earnings and just 0.2X forward sales. This is notably beneath its Zacks Automotive-Domestic Industry averages of 18X (P/E) and 0.6X (P/S), respectively, while offering even sharper discounts to the benchmark S&P 500.

Image Source: Zacks Investment Research

While GM trades at a cheaper forward earnings multiple of 5X, Ford's 4% annual dividend yield could make its investment story, including its new partnership with Micron, more compelling for long-term investors. Ford's dividend yield also stands well above the S&P 500's average of roughly 1.03%, with GM’s at 0.95%.

Image Source: Zacks Investment Research

Bottom LineFord's new strategic partnership with Micron is another indication that the automaker is positioning itself for the next generation of intelligent, software-driven vehicles. More importantly, the agreement strengthens supply-chain resilience at a time when advanced semiconductors are becoming increasingly critical to automotive production.

While the Micron partnership alone isn't a reason to buy Ford stock, it complements an improving fundamental outlook. With Ford now joining Micron on the coveted Zacks Rank #1 (Strong Buy) list, supported by favorable earnings estimate revisions, investors looking for an attractively valued industrial turnaround may find that Ford deserves renewed attention.

Micron (MU +1.24%) shares are down over 20% from its all-time high.

*Stock prices used were the afternoon prices of July 6, 2026. The video was published on July 8, 2026.

Parkev Tatevosian, CFA has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Micron Technology. The Motley Fool has a disclosure policy. Parkev Tatevosian is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through his link, he will earn some extra money that supports his channel. His opinions remain his own and are unaffected by The Motley Fool.

Nvidia (NVDA +3.74%) has been on a run of historical projections since the artificial intelligence (AI) build-out began in 2023. If you invested $10,000 in Nvidia's stock at the start of 2023, that sum has now grown to be worth more than $131,170. That's an excellent return in a short time frame, but it's unlikely to deliver that level of return over the next few years. So, many investors are searching for other stocks that can deliver similar returns to Nvidia.

I think I've identified two AI winners at different stages of hypergrowth, and both look like strong stock picks now.

Image source: Getty Images.

Micron Technology Micron Technology (MU +1.24%) has actually been a better investment than Nvidia since 2023. That same $10,000 invested is now worth roughly $181,000, although the bulk of that return has come in the past year. Still, I think Micron is just in the middle phase of its expansion.

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Micron is thriving from the memory chip shortage caused by the massive AI build-out. AI hyperscalers are creating a massive demand that the memory chip industry just isn't built to handle, so supply is low, and demand is high. This is driving prices higher, boosting Micron's revenue and earnings. During its last quarterly earnings report, Micron informed investors that tight market conditions will persist beyond 2027, indicating that there is still more growth on the way.

Furthermore, Micron doesn't command a very high premium for the stock. It can be purchased for just 12.3 times forward earnings, far less than many other AI-centric stocks.

Data by YCharts.

So, with more growth in store and the stock trading for an attractive valuation, Micron stock looks primed to soar higher over the next few years. While the major returns have already occurred, Micron could easily double or triple from here without becoming overvalued. Nvidia likely will not do that anytime soon, so buying Micron now could be like buying Nvidia in late 2024.

Nebius Group Nebius Group (NBIS +11.49%) is in a far earlier stage than either Micron or Nvidia. It's a neocloud company, which means it's focused on AI-first cloud computing. It has a wildly popular platform, and it's growing rapidly as a result. In Q1 alone, Nebius' revenue skyrocketed 684% year over year. That's part of a larger growth trend, as Wall Street analysts project 544% growth in 2026 and 234% in 2027.

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Few stocks have the growth upside Nebius offers, making it well positioned to deliver incredible returns over the next few years. However, Nebius is facing one challenge it hasn't faced in a while: profitability. Nebius is an early-stage company and doesn't have any other businesses to fund its AI build-out. This means it must seek outside investors to become shareholders or take on debt to fund its expansion. Nvidia is actually one of those, and has invested alongside Nebius to ensure it has the most up-to-date products available first. Nvidia interacts with nearly every AI company on the market, and if it's choosing to invest in Nebius, that should tell you a lot about its potential.

However, until Nebius reaches profitability, it's always going to present a major execution risk. Fortunately, several cloud companies are already generating a ton of profits, so there is a pathway. It could be several years before investors see profitability, as Nebius builds out as much computing space as possible while the industry is hot. Investing in Nebius now could be like investing in Nvidia two decades ago, and the upside is immense. However, it could also flop if it cannot get to profitability. I'm still bullish on Nebius, but the risk is far greater than investing in Nvidia itself or Micron.

Citi Wealth’s CIO Weekly Bulletin flags a subtle but important shift in the global memory landscape: China’s domestic memory chips are now "gaining international recognition." 

SNDK stock is moving. See the chart and price action here.  Citi Warns On Global Pricing PressureAs buyers start to view Chinese DRAM and NAND as acceptable alternatives rather than last‑resort substitutes, pricing power at established leaders could erode.

Citi points directly to global price pressure risk: China’s chips "gaining international recognition" could "pressure global memory pricing." 

In practice, that means hyperscalers and other customers suddenly have more credible suppliers to play off against Micron and SanDisk in contract negotiations. 

Even if Chinese producers remain a step behind on power efficiency or density, their willingness to compete aggressively on price can cap upside in contract DRAM and NAND, particularly in commoditized segments like client SSDs, mobile LPDDR, and mid‑range enterprise storage. 

When the memory cycle turns down, additional low‑cost capacity from China makes each downturn harsher and delays the usual healing via disciplined supply cuts, warns Citi. 

From Oligopoly to Margin OverhangFor Micron and SanDisk, the threat is less about an overnight loss of share and more about a persistent "margin overhang" narrative. 

Investors have historically paid up when a handful of global champions could consolidate supply, ride demand shocks from AI and cloud, and then restore profitability through controlled capital spending. 

A world in which Chinese DRAM and NAND become standard line items for global procurement desks complicates that playbook. It suggests lower peak margins in up‑cycles, deeper troughs in down‑cycles, and more volatile returns on incremental fabs and technology transitions. 

The Citi bulletin captures this asymmetry: recognition for China’s memory producers is a positive development for the new entrants, but it is a valuation headwind for incumbents whose earnings power rests on the assumption that the supply remains tight.

Going forward, a key question for Micron and SanDisk is whether they can differentiate enough to offset the pressure coming from China’s newly recognized memory chip suppliers.

Photo: Quality Stock Arts / Shutterstock

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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?

Let's take a look at what these Wall Street heavyweights have to say about Micron (MU - Free Report) before we discuss the reliability of brokerage recommendations and how to use them to your advantage.

Micron currently has an average brokerage recommendation (ABR) of 1.31, 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 1.31 approximates between Strong Buy and Buy.

Of the 42 recommendations that derive the current ABR, 33 are Strong Buy and five are Buy. Strong Buy and Buy respectively account for 78.6% and 11.9% of all recommendations.

Brokerage Recommendation Trends for MU

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

The ABR suggests buying Micron, but making an investment decision solely on the basis of this information might not be a good idea. According to several studies, brokerage recommendations have little to no success guiding investors to choose stocks with the most potential for price appreciation.

Do you wonder why? As a result of the vested interest of brokerage firms in a stock they cover, their analysts tend to rate it with a strong positive bias. According to our research, brokerage firms assign five "Strong Buy" recommendations for every "Strong Sell" recommendation.

In other words, their interests aren't always aligned with retail investors, rarely indicating where the price of a stock could actually be heading. Therefore, the best use of this information could be validating your own research or an indicator that has proven to be highly successful in predicting a stock's price movement.

With an impressive externally audited track record, our proprietary stock rating tool, the Zacks Rank, which classifies stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), is a reliable indicator of a stock's near-term price performance. So, validating the Zacks Rank with ABR could go a long way in 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.

Broker recommendations are the sole basis for calculating the ABR, which is typically displayed in decimals (such as 1.28). The Zacks Rank, on the other hand, is a quantitative model designed to harness the power of earnings estimate revisions. It is displayed in whole numbers -- 1 to 5.

Analysts employed by brokerage firms have been and continue to be overly optimistic with their recommendations. Since the ratings issued by these analysts are more favorable than their research would support because of the vested interest of their employers, they mislead investors far more often than they guide.

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.

In addition, the different Zacks Rank grades are applied proportionately to all stocks for which brokerage analysts provide current-year earnings estimates. In other words, this tool always maintains a balance among its five ranks.

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 a Good Investment?Looking at the earnings estimate revisions for Micron, the Zacks Consensus Estimate for the current year has increased 23.8% 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 #1 (Strong 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.

Tech retakes command of markets for Wednesday's trading session, which @CharlesSchwab's Nathan Peterson points to as the most important corner of Wall Street. He talks about the rampant volatility gripping single stocks like Micron (MU) and ETFs like the PHLX Semiconductor Index (SOX) to explain why he sees "bias to the upside.

This post may contain links from our sponsors and affiliates, and Flywheel Publishing may receive compensation for actions taken through them.

President Trump rang the opening bells of the NYSE and NASDAQ from the Oval Office on July 4, 2026, officially launching Trump Accounts. Two days later, he told reporters: “If we have a good market like we do now, they’re going to become actually very rich. They’ll have hundreds of thousands of dollars. Think of that.” As of launch, more than 6 million accounts have been opened, and 1.4 million children will receive the $1,000 federal pilot contribution.

The claim is achievable but depends on assumptions most families will not meet. Here is what the math actually says.

What a Trump Account Actually Is Created under the One Big Beautiful Bill Act signed July 4, 2025, Trump Accounts (also called 530A accounts) are a form of traditional IRA opened on behalf of a child. Any US citizen under age 18 with a Social Security number is eligible. Contributions go in with after-tax dollars, earnings grow tax-deferred, and withdrawals are taxed as ordinary income.

Money must be invested in mutual funds or ETFs tracking the S&P 500 or another primarily US equity index, with expense ratios capped at 0.10%. The default fund is the State Street SPDR Portfolio S&P 500 ETF (NYSEARCA:SPYM), with a 0.02% expense ratio. Parents open one through IRS Form 4547 or the TrumpAccounts.gov app, and each child can have only one.

The Free Money Is the Unambiguous Win The federal government is depositing a one-time $1,000 pilot contribution for US citizens born between January 1, 2025 and December 31, 2028, and it does not count against the annual contribution limit. On July 4, the administration seeded over 500,000 eligible children’s accounts.

Private money is stacking on top. The Michael & Susan Dell Foundation committed $6.25 billion to give $250 to every child under age 11 in qualifying ZIP codes, up to 25 million children. Micron Technology (NASDAQ:MU | MU Price Prediction) committed $250 million, and the Dalio Foundation is contributing $250 for select children in Connecticut. In NYC alone, roughly 754,200 children are eligible for the Dell grant, worth $188.5 million. Philanthropic and government contributions do not count toward the annual cap.

Three Scenarios, Three Very Different Outcomes All figures below are projections from TrumpAccounts.gov using the S&P 500’s historical average return of roughly 10% annually. For context, the S&P 500 has returned about 253% over the past ten years, but future returns are not guaranteed.

Seed money only. Just the $1,000 at birth, no additional contributions. Projected value: about $6,000 by age 18, $15,000 by age 27, and $243,000 by age 55. Modest at 18. Meaningful retirement money at 55 if left alone. Seed plus maximum contributions. $1,000 seed plus $5,000 per year until age 18. Projected: $271,000 by age 18, $742,000 by age 27, $13 million by age 55. Life-changing, but requires $90,000 in total family contributions over 18 years. Median US household income is about $80,000, so $5,000 per year is about 6% of gross income. For most families, that is unrealistic. Seed plus $50 per month. $1,000 seed plus $600 per year for 18 years. Approximate outcome: $35,000 to $40,000 at age 18, and $500,000 to $600,000 by age 55 if untouched. This is the realistic middle path. The Tax Detail Almost Nobody Is Explaining Only out-of-pocket contributions from parents and family create tax basis. The government’s $1,000 seed, employer contributions, and nonprofit contributions are fully taxable on withdrawal, along with every dollar of earnings.

The example from the account rules: an account funded with $4,000 from parents and $1,000 from the government grows to $40,000. Only $4,000 comes out tax-free. The remaining $36,000 is fully taxable as ordinary income. Contributions are not tax-deductible, and withdrawals before age 59 and a half trigger income tax plus a 10% penalty, with exceptions for education and first-time home purchases.

When Trump Accounts Win, and When They Don’t For education funding, a 529 plan wins because qualified education withdrawals are completely tax-free. For a teenager with a paycheck, a custodial Roth IRA wins with tax-free growth, tax-free qualified withdrawals, a $7,500 contribution limit, and broader investment choices. Against doing nothing, Trump Accounts win if the child qualifies for the federal $1,000 or the Dell $250.

One overlooked risk, per J.P. Morgan Wealth Management: “Parents and guardians should assess their comfort level with the child gaining full control of the funds at age 18, this involves predicting whether their newborn will be ready to manage what could be a five- or six-figure sum in their teen years.”

The Verdict and the Action Step Trump’s $13 million figure is technically achievable with 18 straight years of $5,000 contributions, roughly historical market returns, and a child who leaves the account untouched until 55. The realistic middle scenario produces meaningful money at 18 and genuine retirement wealth at 55 if left alone.

If your child qualifies for the federal $1,000 or the Dell $250, open the account now. Free money compounding for 18 years is always worth claiming.

Contact [email protected] for any questions or corrections.

Micron stock is in a technical bear market, meaning it is more than 20% down from its recent closing high.

As July begins, Sandisk (SNDK 7.26%) and Micron Technology (MU 5.25%) both stand out among memory semiconductor stocks with potential for sharp stock appreciation. Three distinct but interconnected developments are unfolding as earnings season comes into focus, reinforcing structural demand for AI memory and storage products.

These factors -- rooted in industry supply dynamics, corporate investment decisions, and sustained hyperscaler infrastructure spending -- create a favorable setup for Micron and Sandisk.

Image source: The Motley Fool.

1. SK Hynix is going public on the Nasdaq on July 10 On July 10, SK Hynix is scheduled to list on the Nasdaq through an initial public offering (IPO) of American depositary receipts (ADRs). The offering involves issuing approximately 17.9 million new shares targeting gross proceeds of roughly $28 billion. SK Hynix will use the capital to fund aggressive expansion efforts in high-bandwidth memory (HBM) and advanced packaging technologies critical for AI accelerators.

Listing on a major U.S. exchange brings heightened visibility and liquidity to one of the world's leading memory producers. Positive market reception for SK Hynix's debut will likely lift sentiment across the entire AI memory ecosystem, including direct peers such as Micron and suppliers of complementary NAND storage solutions like Sandisk. A successful offering should help reduce perceived risks around cyclicality in the memory sector, potentially drawing incremental capital flows into related names.

2. Trillions of dollars are pouring into memory capacity A number of memory manufacturers recently announced commitments to large-scale expansions, reflecting optimism in sustained AI-driven demand.

In late June, the South Korean government announced that Samsung Electronics and SK Hynix will invest a combined $520 billion to construct four new memory fabrication plants in the southwestern region of the country. This initiative stems from a longer-term plan in which Samsung and SK Hynix plan to invest $2 trillion across related megaprojects.

Meanwhile, Micron recently broke ground on a $9 billion expansion of its facility in western Japan. The project targets to ramp production of high-bandwidth memory (HBM) chips as demand continues to skyrocket. Additionally, Micron is investing $200 billion for new fabs in the states of New York, Idaho, and Virginia.

I see these coordinated investments as evidence of a robust, multiyear demand cycle for AI memory. New capacity requires years to come online, meaning near-term shortages for dynamic random-access memory (DRAM), NAND, and HBM are likely to persist. For Micron, these expansions directly enhance its ability to capture additional HBM and DRAM share in ongoing hyperscale data center build-outs. For Sandisk, broader industry capacity growth should support stable pricing and volume in enterprise NAND flash storage.

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3. Watch for capex plans as earnings season approaches Earnings season is fast approaching. As usual, the spotlight on the technology sector will focus primarily on capital expenditure (capex) plans from the hyperscalers. The dominant theme over the last couple of years has been accelerating AI infrastructure spending by Amazon, Microsoft, Alphabet, and Meta Platforms. This trajectory is expected to continue because products ranging from graphics processing units (GPUs), application-specific integrated circuits (ASICs), memory and storage, networking equipment, and high-capacity switches have become central to big tech's competitive positioning and long-term AI strategy.

AMZN Capital Expenditures (TTM) data by YCharts.

Since the hyperscalers face intense pressure to deliver more capable AI services to their customers, delaying or scaling back growth roadmaps risks ceding ground in a market where first-mover advantages in model performance and inference efficiency translate directly into revenue and profits. As a result, I think capex guidance will likely remain elevated or potentially increase, sustaining demand for related HBM, DRAM, and NAND offerings.

These growth tailwinds mitigate the cyclical narrative for memory and storage stocks The three catalysts discussed above converge to create a compelling setup for Micron and Sandisk. The SK Hynix listing validates the memory sector's growth narrative and will likely attract newfound attention. The synchronized capacity expansions demonstrate that industry leaders are confident in sustained demand over the coming years and are strategically positioning supply. Lastly, expanding hyperscaler AI capex budgets provides a floor supporting the shift in memory consumption from primarily consumer-driven cycles toward enterprise AI infrastructure.

As of this writing (July 6), Micron and Sandisk are the top-two performing stocks in the Nasdaq-100 this year. While both stocks have risen sharply, Micron trades at a modest forward price-to-earnings (P/E) multiple of 6.4, while Sandisk's forward P/E is a bit richer at 26.7. Nevertheless, both multiples are muted when compared to peak levels that other leading AI chip stocks witnessed throughout the AI revolution.

This setup favors continued upside for Micron and Sandisk in the near term, while the underlying tailwinds appear more durable than traditional memory cycles. As a result, I think this leaves room for further valuation expansion in AI memory stocks as these catalysts continue to materialize throughout the AI infrastructure era.

© William Potter / Shutterstock.com

On the June 27 episode of the Animal Spirits podcast, Michael Batnick and Paul Schroeder of Invesco spent a segment on something that should annoy anyone who thinks they understand the NASDAQ 100. As of that date, Micron (NASDAQ:MU | MU Price Prediction) carried a 5.7% weighting in QQQ (NASDAQ:QQQ) while Meta (NASDAQ:META) sat at just 2.6%, even though Meta’s total market cap was far larger. Batnick called it a head-scratcher.

Schroeder had a clean answer. The NASDAQ 100 uses a free-float-adjusted methodology, not raw market cap, and Mark Zuckerberg’s stake reduces what actually counts.

The Micron Over Meta Head-Scratcher Micron Technology is having a year that forces indexers to notice. Fiscal Q3 revenue hit $41.46 billion, up 345.7% year over year, beating consensus by 17.6%. Non-GAAP EPS of $25.11 ran past the $20.28 estimate. Guidance for Q4 came in at $50 billion in revenue with gross margin around 86%. Shares are up 666% year to date and 707% over the last twelve months. Market cap sits around $1.04 trillion.

Meta Platforms is the bigger company. Market cap of roughly $1.33 trillion, trailing twelve month revenue near $215 billion, and Q1 EPS that beat consensus by 56.79%. Its QQQ weight is less than half of Micron’s. If you assumed the index tracked raw market cap, this is nonsense. So the methodology is doing something.

What Free Float Actually Means Free float is the share count actually available for outside investors to trade. Founder holdings, family trusts, and long-locked insider positions do not count toward the calculation. Schroeder told Batnick that Meta’s free float sits around 80 to 85%. Zuckerberg’s Class B super-voting stake plus other insider holdings shave what the NASDAQ committee counts when it calculates the weighting. Meta insider ownership sits at 10.2% of shares outstanding.

Meanwhile, Micron insiders own about 0.253% of the company, so the whole float is essentially available for the index to count. That is why a smaller company can outweigh a giant, and it is why Micron’s rerating flows straight into index weight without getting sanded down.

The Walmart Parallel Nobody Talks About Batnick reached for Walmart (NYSE:WMT) as the cleaner illustration. The Walton family owns so much of Walmart that its full market cap is not reflected in index weightings. Walmart is not in the NASDAQ 100, but the same free-float mechanic applies wherever it is used.

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Alpha Vantage reports Walmart insider ownership at 44.85%, with only about 4.37 billion shares in the true float out of roughly 7.96 billion outstanding. Walmart’s $880 billion market cap is real. For weighting purposes, only about half of it counts.

What You Actually Own When You Buy QQQ Schroeder made a second point worth chewing on. Quarterly rebalances re-rank existing constituents. They do not add or drop names. QQQ and QQQM turn over roughly 6 to 8% annually, and most of that churn comes from the annual reconstitution rather than the intra-year rebalances. The weight gap you see today is roughly the weight gap you will live with for a while.

Which brings up the practical point most retail investors miss. QQQ is often described as a market-cap index, but it uses a modified market-cap methodology with free-float adjustments and rebalancing caps applied by the index committee. Apple (NASDAQ:AAPL), with a market cap around $4.62 trillion and negligible insider ownership, sees its weight track its size closely.

Meta does not get that treatment because Zuckerberg does not sell. Micron gets the opposite treatment, with a nearly-100% tradeable float amplifying its rally into a weighting that dwarfs a company worth hundreds of billions more.

The takeaway is uncomfortable if you like tidy stories. Judging your QQQ exposure by market cap alone will mislead you. The full mechanics live in the Micron 8-K and its peers, and in the index prospectus itself. Weightings change every quarter. Whatever the current Micron to Meta gap looks like when you check tomorrow, the mechanism producing it will still be there.

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Contact [email protected] for any questions or corrections.

© Arsenii Palivoda / Shutterstock.com

The chip trade is having one of those days where every bull’s favorite narrative and every bear’s favorite chart are both correct at the same time. On Tuesday’s CNBC Morning Call Sheet segment, Steve Grasso, Warren Pies, and Doug Boneparth all zeroed in on the same signal. Samsung posted blowout earnings yet its stock fell 7%, dragging the whole semiconductor sector lower.

Samsung is not US-listed and neither is SK Hynix, but the read-through hit everything from NVIDIA (NASDAQ:NVDA | NVDA Price Prediction) to Micron Technology (NASDAQ:MU). Micron fell 6.32% intraday. Advanced Micro Devices (NASDAQ:AMD) fell 6.12%. Even Qualcomm (NASDAQ:QCOM), which barely participates in the AI training cycle, slid 2.13%.

Why Great Earnings Still Sank the Stock The panel’s argument is that the selloff was about margins and valuation exhaustion, not revenue weakness. Consider what “peak margins” actually looks like on the tape. Micron just reported GAAP gross margin of 84.6%, up from 37.7% the year prior, on revenue that grew 345.72% year over year. Management guided next quarter to $50 billion in revenue and roughly 86% gross margin. These are numbers you dream about at the top of a cycle, and that is exactly the problem. When a memory maker is earning 80-plus cents on every dollar of revenue, the market’s next question is always the same. Where does margin go from here? Not higher, usually. Grasso’s framing on the panel captures it. This is a commodity-style cycle, and you buy commodity semis at the trough or mid-cycle, not at 80% margins near the peak.

Valuation exhaustion is the technical name for that instinct. A stock can beat earnings, raise guidance, and still fall because the beat was already priced in. Reddit sentiment on Micron caught the tension in real time, with the dominant thread reading “I’m more confused by yesterday’s sell-off than the earnings.”

The Cycle Argument and the Summer Danger Zone Warren Pies added the macro overlay. South Korean chip costs are up around 90 to 100% this year, mostly Samsung and SK Hynix, and trees don’t grow to the sky. Parabolic moves invite sharp pullbacks even when the earnings back them up. His seasonal tell is worth writing down. The momentum factor has been down each of the last five Julys, so July into August will likely be nasty as the market level-sets the big semi trade.

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The prediction markets already agree. Polymarket puts the odds of NVIDIA closing above $200 on July 7 at just 2.2%, and the composite sentiment index on the stock has fallen 12.13 points over seven days. Micron is now trading well below its 50-day moving average of $852.09, with the stock down 20% over the past five days alone. The AI infrastructure buildout that Jensen Huang described in Nvidia’s Q1 filing as “the largest infrastructure expansion in human history” is still real. The long-term thesis staying intact and the near-term trade being dangerous are not contradictory positions. They coexist all the time.

How Not to Get Caught Doug Boneparth’s advice was the practical one. Be very careful taking new positions at these prices; for those not yet in, dollar-cost average rather than chase, because FOMO bites hardest right before vicious short-term drawdowns. If you already own the AI winners, the question is whether you trim into strength. If you don’t own them, chasing a stock that has run 300.3% in the past year, as AMD has, means paying today’s price for tomorrow’s guidance. AMD’s trailing P/E sits at 207x, and its bearish Reddit signal peaked on July 1 with a post titled “+$75k on AMD puts.”

Averaging in across weeks or months protects against the exact scenario the panel described. You may miss the last leg of the melt-up, but you won’t buy the peak of a parabolic move on a Monday and wake up down 15% by Friday. Watch what NVIDIA does next. Data Center Networking grew 199% year over year last quarter. If July gets nasty and that number holds in August, the level-set becomes the buying opportunity.

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Contact [email protected] for any questions or corrections.

After starting the week strong, Micron (MU 5.87%) stock tumbled an unlucky 7.7% through 10:55 a.m. ET.

Blame Samsung for that.

Image source: Micron.

Korea sends the semi market South South Korean technology giant Samsung reported its Q2 2026 earnings last night. The news was objectively good -- sales up 28% sequentially, and more than double last year's Q2 revenue. Operating profit surged 19-fold, rising to $58.4 billion.

And yet Samsung stock sold off 7% today. Why?

The results beat analyst forecasts, but in a quirk of this overheated artificial intelligence-fueled stock market, investors expected Samsung to beat expectations. This triggered a "buy the rumor, sell the news" phenomenon in which investors sold Samsung stock despite its numbers being better than "expected" -- and despite Samsung confirming computer memory prices are still rising, and its profits are continuing to climb.

Today's Change

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What this means for Micron stock So how does all of this affect Micron, and why is it sparking a sell-off today?

Well, consider: Samsung is the world's biggest supplier of DRAM computer memory, used to make high-bandwidth memory (HBM) used in AI data centers. It's got a 38% share of the global market. SK Hynix, No. 2 in DRAM, is No. 1 in HBM with more than a 50% market share. Micron makes both NAND and DRAM memory, and its DRAM share is smaller -- about 22%, still enough for third place.

If things stay as they are, with prices rising and demand insatiable, Micron should do quite well. The problem is alongside announcing powerful profits, Samsung also said that it is building "massive semiconductor fabrication plants" to add supply to the market -- growing its market share, eating away at Micron's, and potentially closing the supply demand gap in the process.

This, in a nutshell, is why Micron stock is selling off today.

Rich Smith has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Micron Technology. The Motley Fool has a disclosure policy.

For today's Big 3, @Theotrade's Don Kaufman explains why Home Depot (HD) is going through a “necessary rotation,” sees a possibility for eBay (EBAY) shares to spike, and tilts bearish on Micron (MU) after its stellar surge. Don offers example options trades for his picks while Rick Ducat walks us through key levels to watch in the stock charts.

SK Hynix's Nasdaq listing can not only reset the AI memory trade but also accelerate it. The company is weaponizing Wall Street to ensure it retains its leadership position in the hottest market since the AI boom started booming.

With control of approximately 60% of the high-bandwidth memory (HBM) market, which is critical for advanced computing, the opportunity is for investors to gain share in a leading memory pure-play at a discount to its peers. Estimates have SK Hynix Korean listing trading at approximately 8x forward earnings compared to Micron’s NASDAQ: MU 13.5x, suggesting an easy double-digit upside immediately upon listing.

While the upside potential for SK Hynix's U.S. listingis robust, there are a few things for investors to consider, the primary one being volatility. The listing will include the issuance of new shares, representing approximately 2.5% of the existing share count, which will provide a slight headwind for price action.

Get Micron Technology alerts:

The offset will likely be massive institutional backing, with several high-profile firms committing to large stakes. Institutional backers include Situational Awareness Partners, an investment firm founded by a former OpenAI researcher, and Coatue Management, a U.S.-based firm focused on technology.

SK Hynix Throws Down the Gauntlet, Micron Will RespondSK Hynix's U.S. listing is expected to raise as much as $28 billion in new capital. The money will be used to accelerate expansion plans and buy new equipment, both critical to meeting demand and maintaining product timelines.

The company is strengthening ties with NVIDIA NASDAQ: NVDA, ensuring it can deliver next-gen products when needed, including HBM4. HBM4 is critical to AI, as it breaks down the memory wall by enabling skyrocketing bandwidth with low power consumption, doubling the speed of HBM3 versions, and offering approximately 75% more memory capacity. The impact on AI will be tremendous.

Catalysts for SK Hynix's share price include the robust demand for HBM products, which are sold out through 2027, and pricing power. HBM memory pricing is up by high double digits, underpinning growth for SK Hynix and Micron, and is expected to remain hot for the foreseeable future. SK Hynix removed pricing caps that had been in place, allowing it to capture maximum upside while the HBM shortage persists.

Micron Technology Today

MU

Micron Technology

$922.66 -62.09 (-6.31%)

As of 02:45 PM Eastern

This is a fair market value price provided by Massive. Learn more.

52-Week Range$103.38▼

$1,255.00Dividend Yield0.07%

P/E Ratio20.90

Price Target$1,263.76

Micron, however, is not sitting idly by, allowing SK Hynix to gain share. It is actively expanding its own manufacturing capacity and HBM4 technology, including a major HBM4 hub in Japan, and realigning its die process to more closely align with NVIDIA standards so it can capture a larger share.

The likely outcome is that Micron breaks SK Hynix's near-monopoly with NVIDIA while cementing its position in the industry. Micron is also capitalizing on its unique position as the U.S.'s only domestic-based memory manufacturer, expanding facilities in Idaho and New York.

Micron May Experience Headwinds—Sell-Side Data Says Buy the DipWhile Micron’s outlook is equally bullish, there is potential for its share price action to lag SK Hynix, at least in the near- to mid-term. The risk is that investors will take profits and reduce their holdings of MU in order to shift capital into SK Hynix. In this scenario, the best-case is that MU’s stock price moves sideways within a range near existing highs, while the worst-case is that it experiences a more robust correction than it already has. Down more than 20% from its post-earnings highs as of early July, Micron’s share price could shed another 30% before hitting solid support.

The caveat is that sell-side interest, as reflected in the analysts and institutional data, remains very bullish on Micron, with a triple-strength tailwind in place. MarketBeat data reveal 38 analysts covering the name, a 92% Buy-side bias in the Buy consensus, and more than 35% upside potential relative to early-July support targets, with coverage rising, sentiment firming, and price targets trending higher over the near-, mid-, and long-term. It is not the consensus figures that matter but the trends, which are leading to the high range and suggest more than 100% is still ahead.

Micron’s stock price action reflects market strength, with a bullish MACD convergence. The MACD, or moving average convergence/divergence, measures market strength and momentum and, in this case, shows a strong, strengthening market more likely to retest its recent highs and move higher than to continue moving lower. The only question is the timing, and that may be by year’s end. Upcoming catalysts include Micron’s fiscal Q4 earnings release in September, along with reports from NVIDIA and Advanced Micro Devices NASDAQ: AMD, which are expected to confirm that AI demand continues to grow.

Should You Invest $1,000 in Micron Technology Right Now?Before you consider Micron Technology, you'll want to hear this.

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Micron Technology (NASDAQ:MU | MU Price Prediction) has become the memory story of the AI cycle. Cloud Memory revenue hit $13.769 billion in fiscal Q3 2026 alone, and non-GAAP gross margin ballooned to 84.9%. CEO Sanjay Mehrotra called it plainly: “Micron’s record fiscal Q3 financial results and even stronger outlook for Q4 reflect the strategic value of memory in the AI era.”

Shares are up 241.97% year to date, yet the stock just pulled back sharply. So can MU push through to $1,500 in 2027? Let’s do the math.

Why Micron Shares Just Got Hit Despite Blowout Numbers The pullback is real. MU fell 19.61% in the past week and 8.32% over the past month, even as YTD gains sit near 242%.

Two headlines drove the reversal. Michael Burry disclosed a short at $1,051.87, arguing the rally reflects “AI hype and FOMO rather than fundamentals”. Wall Street veteran Jordi Visser flagged the sell-off as a warning of a “mid-cycle slowdown” in the AI trade.

Add a beta of 2.142 and an ongoing class-action lawsuit alleging price fixing, and volatility becomes the price of admission. This is a stock that moves twice as hard as the tape in both directions.

Wall Street Sees Big Upside. Our Model Sees Fair Value. Analysts are unusually aligned. The consensus target is $1,486, with 9 Strong Buys, 31 Buys, 4 Holds, and just 1 Strong Sell. Bullish sentiment sits at 89%. Our own base case lands at $979.86, essentially flat, with a bull case of $1,335.98 and bear case of $713.77. Confidence is 90%.

My take: analysts are closer to right than our conservative base. When earnings acceleration is this violent (345.72% revenue growth), a P/E model built on trailing numbers understates the earnings trajectory.

The Path to $1,500 Per Share Reaching $1,500 from today’s price of $975.56 would require a gain of 53.8%. With forward EPS of $64.97, a price of $1,500 implies a forward P/E of 23x. Our base case of $979.86 already implies 22x, meaning the bold target requires roughly 1.5x of additional multiple expansion.

That target is achievable if the AI capex build holds. Q4 26 guidance already calls for $50 billion in revenue and non-GAAP EPS of $31. Cloud Memory quadrupled from $5.284 billion in Q1 to $13.769 billion in Q3. Mehrotra says “multi-year Strategic Customer Agreements will significantly enhance the durability and predictability” of results.

HBM4 is in high-volume shipments, HBM4E is targeting calendar 2027 volume, and a $9 billion Japan expansion adds supply. Cramer captured the shift: “Micron’s Become a Secular Growth Story, Not a Cyclical Story.” The risk: memory has always been cyclical, and Burry is betting that history rhymes.

Where Micron Trades Today vs Its Earnings Power At $975.56, MU trades at roughly 15x forward EPS of $64.97. Alpha Vantage pegs the forward P/E even lower at 7x on updated estimates. Either way, that is cheap relative to peers in the AI supply chain.

Shares sit between a 52-week high of $1,255 and a low of $103.23. The 10-year return of 7,903.59% shows the payoff when memory cycles turn. This is a compounding story if pricing power holds.

Is $1,500 Realistic? My Verdict $1,500 by 2027 means a 53.8% gain and a 23.1x forward multiple. That is a stretch, but a reasonable one.

Three things need to go right: HBM4 pricing must hold through the ramp, Strategic Customer Agreements need to convert into visible FY27 revenue, and the AI capex cycle cannot roll over. A demand air pocket from hyperscalers would derail it fast. Returns at this level shouldn’t be expected every year, but we’ve outlined the blueprint for how Micron could reach $1,500 in 2027.

Contact [email protected] for any questions or corrections.

HomeIndustriesComputers/ElectronicsTech StocksTech Stocks‘Most investor feedback continues to point to a skittish AI tape,’ one analyst saysJuly 7, 2026, 10:29 a.m. ET

Micron Technology’s stock is falling hard on Tuesday as investors look past a massive profit boom at memory rival Samsung Electronics.

Shares of Micron MU are down 7.5%, while Sandisk’s stock SNDK is off 11% Tuesday morning. Storage makers Western Digital WDC and Seagate Technology STX are seeing their shares fall 10% and 7.6%, respectively, following big gains on Monday.

Micron Technology, Inc. has delivered over 5x returns since coverage began last September. Acceleration in both top- and bottom-line results underpins continued bullish momentum for MU. AI-driven markets remain a key catalyst, and MU stock is still attractively valued if demand holds.

Shorting AI Infrastructure is a ‘Joke’In a scathing social media post, Gerber firmly dismissed Burry’s bearish outlook on the semiconductor manufacturer. “Burry. What a joke going short my top position,” Gerber wrote on X, referencing his firm’s heavy investment in the tech stock.

Gerber did not hold back on personal criticisms regarding the famous investor’s track record, claiming Burry “manages almost nothing” and merely “made a great call 20 years ago.”

Pointing to the underlying fundamentals driving the current tech market rally, Gerber argued that Micron is in an “epic position to profit from the expansion of AI services and products.”

Burry Sees a ‘Destroyer of Capital’The public clash follows Burry’s recent Substack disclosure, where he revealed a short position against Micron despite the stock already facing a slight pullback.

The famous bear characterized the AI’s memory trade— MU is a structural “destroyer of capital,” arguing that retail and institutional investors are currently caught in a highly psychological market bubble.

According to Burry, the stock’s extension over its 200-day moving average surpasses even the most extreme peaks of the dot-com era. He pointed to Micron’s historical financials, citing a median return on invested capital of just 4% over the last 42 years.

Burry warned that bulls are falling into a dangerous “scarcity bias trap” over High Bandwidth Memory chips.

The Bullish MathWhile Burry sees a cyclical commodity heading for a brutal correction, Gerber remains hyper-bullish on the stock‘s future.

He previously outlined a clear path for Micron shares to reach $1,140, utilizing “simple” math: applying a 20-times market multiple to an expected $57 in earnings per share for 2026.

How Has MU Performed In 2026?Micron shares have surged 245.03% year-to-date, 13.97% over the last month, and 705.26% over the year. It closed 0.94% higher at $984.75 apiece on Monday, and it was down 4.99% in premarket on Tuesday.

Benzinga’s Edge Stock Rankings indicate that MU maintains a strong price trend in the long, short, and medium terms, with a good quality score.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

Image via Shutterstock

Market News and Data brought to you by Benzinga APIs

© 2026 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

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Micron Technology (MU +1.18%) has been a great stock to own for the first half of 2026. It has risen around 240%, easily ranking it among the best-performing stocks in the market. After a run-up like that, before taking a position in the stock, investors must ask themselves what catalyst will sustain the stock's incredible momentum.

Well, Micron's management team delivered that news to shareholders a few weeks ago during its earnings announcement, and it could easily propel Micron to new heights.

Image source: The Motley Fool.

The memory chip crunch isn't going to wane anytime soon Micron makes memory chips, which are vital for nearly all computing devices. It makes both NAND and DRAM memory, which have different use cases. Both are heavily used in data centers, and Micron and its peers in the memory chip industry weren't ready for the surge in demand. As a result of spiking demand and limited supply, prices have risen. Consumers have felt this with rising PC prices and potentially rising phone prices. While consumers may be feeling the squeeze, Micron isn't, as it's a major beneficiary.

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Its revenue has soared alongside chip prices. In the second quarter of Micron's fiscal year 2026 (ending Feb. 26), Micron generated $23.9 billion in revenue and gave a bold projection that its Q3 revenue would be around $33.5 billion. For Q3 (ending May 28), Micron blew well beyond that projection, delivering $41.5 billion in revenue. For Q4, Micron dropped the bombshell that it expects a whopping $50 billion in revenue. That's a major spike in just a handful of quarters, and it's the driving force behind Micron's rise.

But here's the thing: Micron's stock still isn't all that expensive.

MU PE Ratio (Forward) data by YCharts

At 14 times forward earnings, Micron still trades at a discount to its peers because the market worries that memory demand will drop in the near future and that all of its gains will go with it. While that's a valid concern, Micron's management informed investors that it expects a "tight" memory market through at least 2027. As for now, the memory chip crunch remains active, and Micron will thrive in it.

Despite its massive gains already, I think investors are OK taking a position in the stock right now, as long as they can monitor the AI situation closely to see whether memory chip supply remains tight. If it is, Micron is an excellent stock to buy and hold. If there are signs of relief, then it's time to get out.

Micron stock was falling even after the announcement of its latest long-term supply deal.

Micron trades at ~13x FY1 and ~6–7x FY2 earnings, implying peak-cycle normalization despite structural AI demand shifts. $22B customer deposits and SCAs create pricing floors absent in prior memory cycles, reducing downside amplitude risk. HBM integration shifts memory from commodity pricing to design-win economics tied to accelerator architecture lock-in.

Samsung Electronics ve druhém čtvrtletí více než zdvojnásobil tržby a vykázal devatenáctinásobný růst zisku, přesto jeho akcie prudce oslabily. Investoři totiž od společností stojících v centru boomu umělé inteligence očekávají stále výraznější překvapení. Analytici přitom upozorňují, že nedostatek paměťových čipů by měl přetrvat minimálně do roku 2027, což Samsungu i jeho konkurentům zajišťuje mimořádně silnou cenovou pozici a rekordní ziskové marže.

Tržby Samsung Electronics se více než zdvojnásobily na 171 bilionů wonů. Zisk ve druhém čtvrtletí narostl 19násobně a převyšuje souhrnný zisk za poslední tři roky. Je to zároveň třetí rekordní fiskální čtvrtletí po sobě. Přesto nezvládl ohromit investory zvyklé na raketová čísla růstu dodavatelů čipů. Akcie proto klesly o více než 10 %, což vedlo k propadu jihokorejského benchmarku Kospi, jenž musel i krátkodobě pozastavit obchodování. Společnost Samsung by měla zveřejnit kompletní finanční výkaz, včetně čistého zisku a rozdělení podle divizí, kolem konce měsíce.

Investoři už do značné míry počítali s vysokými ziskovými maržemi z budování AI infrastruktury po celém světě. „Čísla, ačkoli jsou v absolutním vyjádření mimořádná, nejsou o moc lepší než to, co trh modeloval pro akcie nacházející se v epicentru nejžhavějšího sektoru na celém trhu,“ řekl Adam Crisafulli, zakladatel společnosti Vital Knowledge.

"Velmi příznivé hospodářské výsledky společnosti Samsung se všeobecně očekávaly a trh je do značné míry už zohlednil v ceně akcií, které před jejich zveřejněním posílily," uvedl Albert Yong, řídící partner společnosti Petra Capital Management, která akcie Samsungu vlastní. "Investoři nadále vyjadřují obavy ohledně udržitelnosti rozmachu umělé inteligence a rizika, že velké americké technologické firmy zpomalí výdaje na infrastrukturu pro tuto technologii," dodal.

Analytici očekávají, že nedostatek pamětí potrvá minimálně do roku 2027, což Samsungu a jeho konkurentům SK Hynix a Micron Technology propůjčuje obrovskou cenovou sílu. Prodejní ceny DRAM vzrostly v dubnovém až červnovém čtvrtletí o více než 40 % oproti předchozím třem měsícům, zatímco ceny NAND vzrostly o více než 50 %, uvádí HSBC.

Průměrná provozní zisková marže těchto tří výrobců čipů se v červnovém čtvrtletí pravděpodobně pohybovala kolem 75 % až 80 %, uvádí průzkumná společnost Counterpoint. To může vyvolat obavy z nadměrného zisku ze strany výrobců pamětí a vést k regulačnímu tlaku, pokud situace bude pokračovat, uvádí se ve zprávě.

„Nemyslím si, že trh dostatečně chápe, jak dobrá jsou tato čísla,“ řekl ředitel společnosti Counterpoint Tom Kang. Růst cen pamětí byl ke konci druhého čtvrtletí ještě strmější ve srovnání se začátkem čtvrtletí, řekl. „Boom bude v nadcházejících čtvrtletích rozhodně pokračovat.“

Akcie Samsungu zaostávají za konkurenční SK Hynix, která se více zaměřuje na paměti s vysokou šířkou pásma určené pro výpočetní potřeby umělé inteligence. Letos vzrostl o přibližně 150 % ve srovnání se zhruba 250% ziskem SK Hynix.

Tito dva výrobci čipů hrají klíčovou roli v ambicích Jižní Koreje předběhnout ostatní země a ujmout se vedoucího postavení v oblasti umělé inteligence a jsou pod tlakem, aby zvýšili dodávky pamětí. Obě společnosti plánují postavit dva závody na výrobu čipů na jihozápadě země za celkovou investici 800 bilionů wonů, aby rychle rozšířily svou kapacitu. Korea si klade za cíl do pěti let zdvojnásobit svou výrobní kapacitu pamětí. Samotný Samsung letos plánuje vynaložit více než 70 miliard dolarů na rozšíření výrobní kapacity a výzkum.