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Micron (MU)

Buy MU. The thesis is durable HBM/advanced DRAM pricing power: hyperscaler demand is outstripping foundry cleanroom + advanced packaging capacity through 2027, and next-gen HBM4 bit pricing could double in CY2027 contract talks—supporting gross margin expansion and a beat-and-raise setup into the Sept 30 quarter.

Key Risk: AI memory demand falls faster than supply constraints ease, forcing MU to cut prices and margins despite capacity bottlenecks.

HBM supply chain (ASML)

Buy ASML (ASML). Second-order: if HBM4 pricing and volumes rise, the whole bottleneck shifts to lithography and leading-edge equipment spend. More advanced memory ramps mean more EUV/High-NA demand and stronger order visibility for ASML even if MU’s stock is already priced for earnings.

Key Risk: HBM capex slows because hyperscalers delay AI infrastructure spending, reducing leading-edge equipment orders.

Micron MU shares are extending gains on Monday morning after a senior Stifel analyst said they are worth buying ahead of the company’s much-anticipated fiscal Q4 earnings.

In his research note, Brian Chin maintained his Buy rating on the memory chips specialist, with a $1,500 price target indicating significant upside potential from current levels.

His bullish call is particularly significant given Micron stock has been in a sharp uptrend in 2026, currently trading at more than 3x its price at the start of this year.  

At the heart of Stifel’s continued conviction is Micron’s formidable “pricing power” within High Bandwidth Memory (HBM) and advanced DRAM markets.

Chin recommends owning MU shares because average selling prices (ASPs) are experiencing an enduring tailwind as enterprise demand from hyperscalers significantly outstrips available foundry cleanroom capacity and advanced packaging lines.

Stifel highlighted that bit pricing for next-gen architectures like HBM4 could potentially double during upcoming CY2027 contract negotiations, providing a solid gross margin expansion catalyst.

Unlike prior cyclical downturns where sudden inventory gluts eroded profitability, the current AI infrastructure buildout has locked in robust pricing power well into the medium term, guaranteeing exceptional revenue acceleration.

Market jitters regarding competitive risks – such as recent headlines surrounding mass production milestones from Chinese manufacturer ChangXin Memory Technologies (CXMT) – haven’t done much to derail Stifel’s long-term thesis.

According to its analyst Brian Chin, severe lithography equipment lead times, rigorous technical qualification hurdles, and completely sold-out global HBM capacities through 2027 effectively insulate Micron shares from near-term market share displacement.

Unless industry-wide wafer supply growth unexpectedly accelerates beyond 40%, the structural deficit in high-performance memory chips will persist.

This formidable bottleneck immunizes Micron Technology Inc against external pricing pressures, ensuring that the firm’s revenue streams remain fiercely defended by insurmountable technological barriers to entry, he added.

As Wall Street ticks down the final days to Micron Technology’s highly anticipated September 30th  quarterly print, expectations are reaching a fever pitch for a decisive beat-and-raise performance.

Consensus is for the artificial intelligence chipmaker to record $31.24 per share of earnings (EPS) for its fiscal quarter, which would represent about a 10x growth on a year-over-year basis.

Beyond immediate trading catalysts, such as broader macroeconomic tailwinds following recent Federal Reserve rate cuts and steady short-covering momentum, institutional sentiment remains firmly anchored by the multi-year visibility of Micron's operational runway.

While high-beta tech names remain inherently susceptible to macroeconomic volatility, MU stock's indispensable position at the epicenter of the global AI hardware revolution sets the stage for a resilient finish to fiscal 2026 and an exceptionally lucrative trajectory into the years to come.

Micron Technology (NASDAQ: MU) and SanDisk (NASDAQ: SNDK) investors face a new test on Monday after China’s CXMT moved its latest DRAM technology into mass production, challenging one of the assumptions behind this year’s powerful memory-stock rally.

CXMT says its fifth-generation process can produce at least 50% more dies per wafer than its previous platform while improving power efficiency and manufacturing economics.

The immediate competitive threat is greater for Micron, whose business remains heavily tied to DRAM.

SanDisk’s exposure is less direct, but CXMT is also preparing a separate push into NAND.

CXMT’s announcement matters because the company is no longer merely demonstrating advanced DRAM in a laboratory.

Its G5 platform has entered mass production, using quadruple patterning to achieve an active-area half-pitch of 11.95 nanometres. Two new 24Gb LPDDR5X products are also being produced on the platform.

CXMT says the process lifts gross dies per wafer by at least 50% from its fourth-generation technology, potentially lowering unit costs as production scales.

The company is already becoming harder to ignore. Its share of global DRAM revenue reached about 9.5% in the second quarter, according to industry data, making it the fourth-largest supplier.

Yet better technology does not mean immediate customer displacement.

Lynx Equity Research analyst KC Rajkumar, quoted by Investing.com after an earlier CXMT-related selloff, called that reaction “an overreaction”, citing qualification gaps, supply constraints and weaker yields.

Micron’s extraordinary rerating has rested partly on the view that AI demand will keep DRAM and NAND supply tight even as manufacturers expand capacity.

UBS analyst Timothy Arcuri’s latest checks still support that argument.

TipRanks quoted Arcuri as saying pricing dynamics were “strengthening” across both core DRAM and NAND, with shortages potentially lasting through calendar 2027 and even into 2028, particularly for DRAM.

That is precisely the assumption CXMT is beginning to test.

The Chinese producer does not need to flood global markets tomorrow to matter for Micron’s valuation.

If its wafer productivity improves sharply and market share keeps climbing, investors may start shortening the period over which they expect scarcity-driven pricing to last.

For now, conditions remain unusually tight. Intel Chief Executive Lip-Bu Tan recently said memory prices had risen five- to sevenfold as AI demand strained supply, with pressure expected to persist.

The near-term bull case therefore remains intact. CXMT’s significance lies in what it could do to the duration of that cycle.

SanDisk’s exposure requires more caution. CXMT is not yet mass-producing NAND.

Reuters reported on September 18 that the company plans an R&D production line at a new Beijing facility and has spoken with prospective customers, but the timetable for commercial-scale output remains unclear.

That still matters because NAND economics have improved dramatically.

Counterpoint data cited by Barron’s put SanDisk’s second-quarter global NAND share at about 11%, while Chinese rival YMTC already controlled roughly 14%.

JPMorgan analyst Harlan Sur has argued that SanDisk is “uniquely positioned” to benefit from a structural increase in NAND demand driven by AI inference.

His bullish thesis also rests on long-term customer agreements that reduce cyclicality and support higher margins.

A well-funded new Chinese entrant would eventually test both assumptions.

CXMT is unlikely to erase the memory shortage overnight. Micron still benefits from tight DRAM supply, while SanDisk has AI-driven demand and multiyear contracts behind it.

But the weekend announcement changes what investors must watch: how quickly Chinese capacity can make that scarcity less durable tomorrow.

Micron Technology MU shares rose on Friday as RBC Capital Markets said the memory-chip maker's valuation does not fully reflect its exposure to the artificial intelligence-driven memory boom.

Micron stock gained as much as 3.12%. RBC analyst Srini Pajjuri reiterated an Outperform rating and a $1,500 price target.

Pajjuri pointed to rising memory requirements from AI workloads, including the shift towards more memory-intensive agentic AI applications.

RBC said memory demand continues to exceed available supply, with several structural constraints contributing to the imbalance.

These include rapid growth in high-bandwidth memory (HBM), limited clean-room capacity and tight availability of extreme ultraviolet (EUV) equipment.

HBM has become increasingly important for AI accelerators because it can provide high memory bandwidth for demanding AI workloads.

The expansion of agentic AI could further increase memory requirements as AI systems become capable of operating with greater autonomy and handling multiple tasks.

A Seeking Alpha report also argued that AI is changing the historical cyclicality of memory demand.

Memory consumption has traditionally been driven by equipment volumes and increasing memory content per device, making the industry sensitive to hardware replacement cycles.

However, Micron's margins have shown a prominent upward trend since 2022, while the company has also repeatedly exceeded market expectations in recent quarters.

Micron is scheduled to report its next results on September 30.

Despite the tight supply-demand environment, RBC said Micron's valuation remains relatively modest.

According to Pajjuri, Micron trades at approximately 6.5 times expected forward earnings. He said this valuation gives limited credit to the company's Strategic Customer Agreements and floor pricing agreements.

RBC believes the combination of sustained AI demand, structural supply constraints, and customer agreements could support an expansion in Micron's valuation multiple.

Long-term contracts are becoming increasingly important in the memory industry.

Micron and its peers are securing agreements that establish future purchasing commitments for DRAM and NAND products.

These arrangements can provide greater visibility into future demand while reflecting the tight conditions across the memory market.

The memory industry's supply response is constrained by the time required to expand physical capacity.

New facilities require construction, equipment installation, qualification, and increases in production throughput, which can extend the period before additional supply becomes available.

There is also high barriers to entry and a relatively small number of competitors with global scale and experience through previous industry downturns.

Capital allocation decisions have increasingly been driven by expected returns rather than attempts to gain market share through higher production volumes.

This dynamic has contributed to a gap between memory supply and demand and supported higher memory prices.

AI workloads could add another structural source of demand as larger models, wider context windows and more advanced reasoning capabilities require greater memory capacity.

For Micron, the combination of AI-driven consumption, tight industry capacity and longer-term customer agreements remains central to the outlook ahead of its September 30 earnings report.

Steve Eisman thinks the real winners of the AI arms race are not the chip designers everyone is fighting over but the suppliers equipping both sides of the battle. Five stocks have already lapped Nvidia in 2026, and Eisman ranks…

Steve Eisman highlighted a subscriber email arguing the safest way to play the AI buildout is owning upstream suppliers rather than betting on any one chip designer. The key insight: “In this knife fight you want to be the one selling the knives.” The picks: ASML (NASDAQ:ASML | ASML Price Prediction), KLA (NASDAQ:KLAC), Lam Research (NASDAQ:LRCX), Applied Materials (NASDAQ:AMAT), Micron (NASDAQ:MU) and SK Hynix.

Micron is up 241.54% year to date; Applied Materials up 78.46% YTD; Lam Research up 75% YTD; ASML up 59.77% YTD; KLA up 49.35% YTD, all outpacing NVIDIA (NASDAQ:NVDA)’s 17.36% YTD gain. Eisman’s caveat: “The current AI ecosystem is dependent, almost completely dependent on the health of Anthropic and OpenAI,” and “if OpenAI fails within a year there will be a massive correction in the stock market.”

Here is our ranking of the five knife-sellers powering the AI capex cycle, judged on AI-driven revenue growth, backlog visibility, margin expansion, capacity plans and guidance direction.

5. KLA: Process Control’s Quiet Compounder KLA anchors the yield-management layer every advanced fab depends on. The stock is up 49.35% YTD, though down 13.08% in the past month. As leading-edge logic and DRAM ramp, inspection intensity rises with every node shrink, keeping KLA as the default process-control pick.

4. Lam Research: Etch and Deposition Beneficiary Lam sits directly in the DRAM and HBM buildout, where etch and deposition steps multiply with 3D memory scaling. Shares are up 75% YTD. The concern: a pullback has begun, and Lam’s memory concentration means an OpenAI-style shock to AI capex would hit here first.

3. Tokyo Electron: The Non-U.S. Diversifier Tokyo Electron (OTC: TOELY) rounds out the WFE oligopoly with meaningful share in coater/developer, etch and deposition. It offers exposure to the same AI capex tailwinds without the U.S. export-control overhang that periodically weighs on American peers.

2. Applied Materials: Record Quarter, Rising 2027 Visibility Applied Materials delivered fiscal Q3 2026 revenue of $9.12B, up 24.8% year over year, with non-GAAP EPS of $3.50 beating the $3.39 consensus. DRAM share of Semi Systems rose to 26% from 22%, and the company logged its 13th consecutive quarter of YoY gross margin expansion. Q4 guidance calls for revenue of roughly $10.25B and non-GAAP EPS of about $4.02. CEO Gary Dickerson said “we expect another strong record year in 2027” backed by plans to double quarterly system output by 2028. Shares trade at a forward P/E of 23 with an analyst target of $640.89 versus the current $427.91. AMAT is down 16.71% in the past month.

1. ASML: The Only EUV Game in Town ASML tops the list because the AI logic and DRAM roadmap cannot advance without its EUV systems. Q2 2026 revenue hit $10.65B, up 21.3% YoY, with operating margin expanding to 37.1% from 34.6%. Management raised full-year 2026 guidance to $49.11B-$51.40B revenue at 54-56% gross margins and plans to add 30% to low-NA EUV capacity for 2027. CFO Roger Dassen said “For 2027, we are now close to being fully covered with orders for low NA EUV,” and CEO Christophe Fouquet described DRAM conditions as “the perfect storm for ASML on DRAM this year and most probably the next few years to come.” Backlog reached $45.06B, and a $12B share buyback program runs 2026-2028. The stock trades at a forward P/E of 26 against a $2,135.91 analyst target versus the current $1,641.46. ASML is down 8.96% in the past month.

Closing the Loop on the Knife-Sellers The ranking reflects industry structure: ASML at the top on EUV monopoly and multi-year order coverage, Applied Materials second on record DRAM and HBM exposure, then Lam, Tokyo Electron and KLA. All five have outpaced NVIDIA in 2026. The one-month pullbacks in AMAT, KLA and Lam suggest the market is testing how much hyperscaler spending is truly durable. For readers who want to look beyond the fabs themselves, we profiled seven other AI-buildout suppliers, from power to cooling, in a free report you can grab here.

Contact [email protected] for any questions or corrections.

Key Takeaways DRAM prices have risen more the 3x over the last year.Memory is 47% of AI capex in 2026, projected to be 68% in 2027. Earlier this summer, I thought the memory trade had run its course. The stocks had gone vertical, the July chip selloff pushed Micron, Samsung and SK Hynix into bear-market territory, and it looked like the easy money was gone.

I've changed my mind. Not only because the stocks bounced, but because the numbers underneath them keep getting stronger. When you put this shortage in context, it isn't a normal memory cycle. It's one of the biggest supply squeezes the chip industry has seen, and reviewing the setup can help elucidate why it may be a prolonged cycle.

Here's the big picture, and how investors may play it through Micron Technology ((MU - Free Report) ) and Sandisk Corporation ((SNDK - Free Report) ).

The Roundhill Memory ETF (DRAM) forms a clear consolidation following the summer correction.

Image Source: TradingView

How Big Is This Shortage?Let’s start with what memory costs. According to TrendForce, regular DRAM contract prices jumped about 90%–95% in the first quarter of 2026, another 58%–63% in the second quarter, and are on track for a further 13%–18% increase in the third quarter. Stack those moves together and a DRAM chip that cost $1 in January costs roughly $3.50 today. NAND flash, the storage used in SSDs, is up about 3x over the same stretch.

For perspective, in a "good" memory upcycle, prices might rise 20%–40% over an entire year. This is a multiple of that in just nine months.

So why is this happening?

The first reason is that AI chips consume enormous amounts of memory. Every Nvidia GPU or custom AI accelerator ships with stacks of high-bandwidth memory, or HBM. HBM also uses considerably more wafer capacity than conventional memory, with roughly three wafers of normal DRAM capacity given up for every one wafer devoted to HBM.

At the same time, suppliers entered this cycle lean. After the 2023–2024 memory glut, Samsung, SK Hynix and Micron all cut production sharply. That meant the industry entered the AI boom without much excess capacity just as demand began accelerating.

Finally, new supply cannot come online quickly. A new memory fab takes roughly three years to build and ramp. SK Hynix's first Yongin fab and Micron's first new Idaho fab are not expected to meaningfully add output until mid-to-late 2027. Samsung's giant P5 fab is more of a 2028 story, while Micron's New York fabs are even further out.

IDC expects 2026 supply growth of only about 16% for DRAM and 17% for NAND, well below what AI demand requires.

And there are still signs the shortage isn't over. In past cycles, spot prices, or chips bought for immediate delivery, tend to crack first and fall below contract prices before the cycle turns. Right now, it is the opposite.

Recent Korean press reports put HBM spot prices at roughly four to five times long-term contract levels. Buyers who think prices are about to fall generally do not pay that kind of premium. They wait.

On top of that, suppliers are locking customers into multi-year agreements, some reportedly stretching toward 2030 and beyond, with prepayments included.

That's not what a peak normally looks like.

Micron Stock is the Cleaner Way to Own the ShortageMicron's last quarter, fiscal Q3 ended in May, was one of the most remarkable prints I have seen from a large-cap company.

Revenue reached $41.5 billion, up from $9.3 billion a year ago, meaning sales more than quadrupled. Gross margin expanded to roughly 85%, compared with 39% a year earlier, while adjusted EPS jumped to $25.11 from $1.91. Adjusted free cash flow reached an extraordinary $18.3 billion in a single quarter.

Guidance for fiscal Q4 is even stronger, with management calling for roughly $50 billion in revenue, an 86% gross margin and approximately $31 in EPS. Micron reports on September 30.

There are several reasons I prefer Micron here.

Most importantly, DRAM is the tighter side of the memory market. Roughly four-fifths of Micron's revenue comes from DRAM, and that is the segment TrendForce expects to remain supply constrained into 2027.

Micron is also shipping HBM4 in high volume for its lead AI customer, with HBM4E planned for 2027. Meanwhile, the company's growing use of multi-year customer agreements should make earnings somewhat more durable than they have been during previous memory cycles.

The balance sheet has also improved considerably. Micron has paid down a meaningful amount of debt and now holds roughly $30 billion in cash and investments.

Micron currently trades at about 6x forward earnings. That looks absurdly cheap, but cyclical stocks always look cheapest at peak earnings. The real question isn't the multiple, but how long these margins last. My sense is that it’ll be longer than the market thinks, because new supply doesn't show up in size until late 2027.

Analysts appear to be in agreement, with Micron enjoying a Zacks Rank #2 (Buy) rating.

The stock sits roughly 20–25% below its high going into a report where management has a chance to extend the tightness narrative into 2027–2028. That's a compelling setup.

Sandisk Stock Represents a Higher Beta TradeSandisk is the pure-play NAND bet, and it has been the bigger winner of the two.

In its fiscal fourth quarter, which ended in early July, revenue reached $8.97 billion, up 51% sequentially. Roughly two-thirds of that increase came from higher pricing and another third from higher volumes. Adjusted EPS reached $39.25.

For the full year, revenue climbed to $20.25 billion, an increase of 175%, while data center revenue surged more than 400%.

Guidance for fiscal Q1 calls for $10.3 billion to $10.8 billion in revenue and adjusted EPS between $44 and $46. Management believes the total NAND market could exceed $300 billion in 2026, roughly triple last year's level, and has said customer demand continues to outrun available supply.

The bull case here is that Sandisk has signed about ten "New Business Model" agreements, multi-year deals with big customers, some including prepayments. That's a real change for a business that used to live and die by the spot market. Enterprise SSDs for AI inference are a genuine growth driver.

Alternatively, Sandisk has no DRAM to fall back on. If TrendForce is right that NAND loosens in the back half of 2027, Sandisk feels it first and hardest.

MU stands out as the core holding for the shortage. SNDK is the higher-octane add-on for investors who believe AI inference keeps soaking up storage through 2027.

Should Investors Buy Shares in MU and SNDK?The memory shortage is bigger, broader and more durable than a typical chip cycle. Prices have roughly tripled this year, memory is eating a growing share of Big Tech's AI budget, and real new supply is still more than a year away.

That doesn't make these stocks a one-way bet. The pace of price gains is slowing, and memory cycles end eventually. But the signals that usually mark a top (falling spot prices, excess inventory, customers walking away) aren't here yet. Until they show up, I'd stay with the shortage: Micron as the core, Sandisk as the aggressive kicker, and a close watch on Micron's September 30 report for confirmation.

The Nasdaq Composite index comprises more than 3,000 stocks that trade on the Nasdaq exchange. In terms of weight, it's heavily tilted toward industry-leading megacap technology companies.

While the Nasdaq Composite includes Nvidia and every other company in the "Magnificent Seven," there's another growth stock on track to be even more important for the broader market this month. Here's why Micron (MU +5.52%) is the top tech stock to watch in September.

Image source: Getty Images.

Micron's Sept. 30 earnings report will be a big event for the stock market After the market closes on Sept. 30, Micron will report results for the fourth quarter of its fiscal 2026, which ended Aug. 31. No other quarterly report released this month is likely to have a bigger impact on the stock market's momentum.

Micron is a leading provider of memory chips that are used in graphics processing units (GPUs) and other hardware that powers data centers used for artificial intelligence (AI) and other high-performance computing applications. Due to the company's crucial role in the artificial intelligence hardware supply chain, Micron's business results have become a bellwether for the AI industry and sentiment across the broader stock market.

In its fiscal Q3 report (released in June), Micron issued strong guidance for Q4, forecasting sales of roughly $50 billion and a gross margin of roughly 86%. For the stock to experience significant gains following the Q4 report, it will likely need to hit the gross margin target and deliver a meaningful beat on sales.

Micron Technology

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Even more importantly, Micron will need to deliver strong guidance for the new fiscal year. Given the company's stellar pricing power and guidance from Nvidia suggesting that demand for AI GPUs remains very strong, the memory chip specialist will likely issue guidance for strong sales expansion and margins. Micron has also inked a number of long-term chip supply contracts that should help it maintain its pricing power for several years and ensure robust sales performance. 

On the other hand, expectations for growth and margins are already high -- merely beating its own guidance and the average Wall Street analyst estimates may not be enough to spur a rally for its stock or for other players in the broader AI space. However, Micron is now arguably the second-most important company for assessing the health of the AI trade, trailing only Nvidia -- and maybe Taiwan Semiconductor Manufacturing, depending on how you view things -- and its upcoming earnings report will likely have ripple effects across the stock market.

Keith Noonan has positions in Micron Technology. The Motley Fool has positions in and recommends Micron Technology, Nvidia, and Taiwan Semiconductor Manufacturing. The Motley Fool has a disclosure policy.

Micron Technology stock NASDAQ:MU has surged 226% this year, powered largely by spectacular earnings growth as booming artificial intelligence demand has driven memory-chip prices higher.

But the next phase of the rally could depend less on further earnings expansion and more on whether investors become willing to pay a higher valuation multiple for each dollar of Micron’s profits.

The stock remains unusually cheap despite its strong performance.

Micron trades at about 5.77 times estimated earnings for the next calendar year, making it the fifth-lowest valued S&P 500 component by that measure, according to Dow Jones Market Data.

TD Cowen analyst Krish Sankar believes that could change.

Sankar said Micron shares could undergo a “rerating” as investors gain confidence that the current memory-chip cycle can remain durable even if profit margins stop expanding at their recent pace, MarketWatch reported.

His $1,600 price target is based on a price-to-earnings multiple of 9 times his 2027 earnings estimates.

That compares with Micron’s current multiple of 5.77 times and is about 73% above the stock’s Wednesday's close.

The outlook comes as investors increasingly question how much further Micron’s margins can expand after an extraordinary period of earnings growth.

Sankar estimates the company is about 80% through its typical 18-month margin-expansion cycle.

That could mean earnings estimates may not rise as rapidly in the near term as they have recently.

Micron’s latest results demonstrate just how powerful the current cycle has been.

With memory-chip prices elevated, earnings per share jumped 1,215% in its most recently reported quarter.

Sankar nevertheless sees a potential scenario in which earnings decline from peak levels while “the stock keeps grinding higher.”

The reason is his expectation that investors will become increasingly confident that the memory cycle is “more durable than the margin path implies.”

Demand for dynamic-random-access memory, or DRAM, used extensively in AI systems, has surged as companies invest heavily in data-centre infrastructure.

That demand profile differs from previous memory cycles, when consumer electronics played a larger role.

Sankar noted that in downturns such as those in 2019 and 2022, “supply moved ahead of demand.”

This time, sustained AI-related demand could help prevent the same imbalance and provide greater visibility for memory manufacturers.

Sankar compared Micron’s potential valuation shift with steelmaker Nucor, whose multiple expanded significantly after 2022.

In that case, the driver was not simply earnings growth but “greater confidence in cycle durability and US policy support.”

Micron could also benefit from its position as the “only major US DRAM manufacturer,” according to Sankar.

He estimates that Micron’s US wafer production could account for roughly half of the industry’s total US capacity by the end of 2030.

That domestic manufacturing footprint could further strengthen investor confidence in the company’s longer-term demand outlook as Washington encourages semiconductor production within the United States.

The next major catalyst is Micron’s earnings report, scheduled for September 30.

Sankar expects shareholder returns to be a major focus of the earnings call and believes Micron could authorize a share-buyback programme in the low-$20 billion range.

However, the company would likely not begin repurchasing shares before December.

The numbers suggest Micron may be leaving its old boom-and-bust memory cycle behind. Summary

Wall Street expects roughly $50.4 billion in quarterly revenue

Memory-chip maker Micron Technology Inc. (MU, Financials) is heading toward results with a lot greater challenge than whether it can surpass Wall Street projections.

Has the business really been altered by AI? That question is hard to overlook with Micron's third-quarter figures. Revenue increased to $41.46 billion from $9.30 billion a year earlier while gross margin increased to 84.9% from 39%.

Adjusted earnings came to $25.11 per share.

Management is guiding for fourth-quarter revenue of approximately $50 billion and gross margin of 86%. Wall Street is already in agreement, with consensus projections at about $50.4 billion in revenue and $30.89 in adjusted earnings per share.

That implies surpassing expectations may not be enough by itself. The larger clue may be Micron's guidance for high-bandwidth memory, pricing and fiscal 2027.

This time, says investor Sharon McArd, AI has made memory a more strategic aspect of the data-center infrastructure. Micron has also signed about $22 billion in client agreements, including take-or-pay contracts that give more visibility into demand.

Expectations are already high, and Sept. 30 will put Micron's outsized stats to the test: are they just another memory bubble, or something more permanent?

Disclosures I/we have no positions in any stocks mentioned, and have no plans to buy any new positions in the stocks mentioned within the next 72 hours.

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Micron Technology (MU +0.45%) is poised to release its fiscal 2026 fourth-quarter results on Sept. 30, and the market will be eagerly awaiting its report to understand the health of the memory industry.

After all, the strong demand and tight memory supply have been driving stunning growth in Micron's revenue and earnings in recent quarters. The rapid increase in memory prices has led to a big jump in Micron stock over the past year, and the sustainability of that rally will be put to the test when the company releases results.

However, the good news for Micron investors is that the comments from Nvidia (NVDA +1.31%) and SK Hynix, two key players in the artificial intelligence (AI) ecosystem, suggest that Micron's impressive growth is here to stay. Let's see why.

Image source: Micron Technology.

Nvidia and SK Hynix point toward further hikes in memory prices When Nvidia released its fiscal 2027 second-quarter results last month, the company remarked that memory price hikes are here to stay. The semiconductor bellwether expects margin pressure due to higher component costs, especially memory. According to Nvidia CFO Colette Kress:

As you are already aware, 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.

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Nvidia expects its gross margin to drop over the next couple of quarters. It expects a slight improvement in the next fiscal year, driven by higher chip prices. So, Nvidia management's comments indicate that Micron's primary catalyst -- strong memory pricing -- isn't going anywhere.

Similarly, South Korean memory giant SK Hynix expects the memory shortage to worsen next year. The company estimates that memory demand could outstrip supply beyond 2030, even as it brings more capacity online. In fact, Korean investment firm KB Securities estimates that SK Hynix is sitting on memory inventory of just 10 days.

Additionally, the aggressive jump in hyperscalers' capital spending on AI infrastructure suggests that memory demand will remain robust. Nvidia, for instance, estimates that the capex of the top five hyperscalers could increase to $1.3 trillion in 2027, up from $800 billion this year.

So, there is a strong chance Micron's quarterly numbers will exceed expectations, as the severe memory shortage is likely to send prices even higher. Moreover, the tight demand-supply environment bodes well for Micron's fiscal 2027 guidance.

Micron's valuation makes it a no-brainer buy Micron's revenue in fiscal 2027, which has just begun, is poised to increase by 88% to $244.5 billion, according to consensus estimates. Its earnings per share, meanwhile, could jump by 112% to $156.07. However, don't be surprised to see Micron's fiscal Q1 guidance suggesting stronger growth rates due to the reasons discussed above.

Moreover, Micron is trading at just 6.6 times forward earnings. Ideally, it shouldn't be trading at such a steep discount given its phenomenal earnings growth. The S&P 500 index, for comparison, has a forward earnings multiple of 21. So, I won't be surprised to see this AI stock taking off after Sept. 30 on account of stronger-than-expected numbers and guidance, as Micron's ability to clock consistently strong growth could inflate its valuation.

Micron Technology has more than tripled this year, yet the stock looks cheaper than much of the US market compared with the broader market today.

Shares have gained 224% in 2026, but Micron trades at roughly 6.3 times forward earnings ahead of its September 30 fiscal fourth-quarter results. The S&P 500 trades at 19 times forward earnings.

That discount reflects a concern, as memory booms have historically ended when high prices encouraged new capacity and supply caught demand.

The question now is whether AI has changed that cycle enough to make Micron’s profit surge last longer.

The valuation looks unusually low given what analysts expect from the coming quarter.

Goldman Sachs analyst James Schneider expects another strong quarter, as tight DRAM and NAND supply supports pricing.

He forecasts fiscal fourth-quarter revenue of $51.9 billion and earnings of $32.54 a share, both above Wall Street expectations.

Yet Goldman keeps a Neutral rating and a $1,100 price target.

That caution helps explain Micron’s multiple, as investors can accept that earnings remain exceptional while worrying that future supply additions weaken prices and margins.

Goldman has flagged capacity growth from competitors, particularly in China.

Micron is not trading cheaply because the market doubts the memory shortage.

It is trading cheaply because investors are sceptical about how long the shortage, and the profitability attached to it, can persist.

The bullish case is that this cycle may not behave like previous ones.

Susquehanna analyst Mehdi Hosseini told MarketWatch that memory has become the “king” of the semiconductor industry and said its “reign is here to stay.”

Memory now represents about 50% to 55% of semiconductor-industry revenue, versus a historical range of roughly 20% to 30%, according to Hosseini.

He expects DRAM prices to rise about 50% sequentially this quarter and NAND prices around 60%, followed by further increases.

AI is changing both demand and supply economics.

High-bandwidth memory used in AI accelerators consumes more wafer capacity than conventional DRAM.

Micron has said HBM carries roughly a three-to-one trade ratio with DDR5, while newer HBM generations require even more capacity.

The company has warned that industry supply will take considerable time to catch demand, with improvement expected only gradually in 2028.

If that persists, investors may be applying an old cyclical valuation framework to a memory market whose economics have structurally changed.

Mizuho analyst Vijay Rakesh has argued that “agentic AI is driving memory demand higher,” according to Investing.com.

He expects Micron’s fiscal 2027 revenue and earnings per share to increase about 66% and 80%.

That is the core bull case behind the low valuation: earnings could keep rising fast enough that even a stock up more than 200% remains inexpensive on future profits.

September 30 matters less as a beat-or-miss event than as a test of durability.

Investors will be watching DRAM and NAND pricing, HBM customer commitments, gross margins and any indication that supply tightness can extend through 2027 and into 2028.

Goldman expects Micron to guide to low-teens sequential revenue growth for fiscal first-quarter 2027, putting forward guidance at the centre of the valuation debate.

Micron’s six-times multiple does not mean Wall Street has missed the AI boom, but shows investors doubt today’s margins can last.

Key Takeaways Micron is the better investment bet, combining stronger near-term growth with a much lower valuation.Micron's HBM4 revenues topped $1 billion, while 2027-2028 HBM demand exceeds its supply capacity.AMD's Data Center revenues jumped 107.3% to $6.72 billion, but its premium valuation raises the execution bar. Micron Technology (MU - Free Report) and Advanced Micro Devices, Inc. (AMD - Free Report) are two major U.S. semiconductor companies benefiting from the rapid expansion of artificial intelligence (AI) infrastructure. While Micron supplies high-bandwidth memory (HBM) and storage that help AI systems handle massive amounts of data, Advanced Micro Devices provides AI accelerators and CPUs (Central processing Units) that power data centers.

While both companies are seeing strong momentum from AI-led semiconductor spending, their growth potential, profitability and valuation levels vary. Amid this scenario, investors must be wondering which AI semiconductor stock offers the better investment opportunity now.

Micron: AI Memory Demand Powers Robust GrowthMicron delivered exceptional third-quarter fiscal 2026 results, supported by strong demand across its data center portfolio. Third-quarter revenues surged 346% year over year to $41.46 billion, while non-GAAP earnings per share (EPS) rose to $25.11 from $1.91 a year earlier. Data center revenues exceeded $25 billion, putting the business on an annualized run rate of more than $100 billion. Operating cash flow reached $25.39 billion, more than five times the year-ago level.

Micron's HBM business is becoming an increasingly important growth driver. On its last earnings call, the company stated its HBM4 12-high ramp is progressing twice as fast as the HBM3E 12-high ramp, while HBM4 revenues have already surpassed $1 billion. Management also indicated that HBM demand for 2027 and 2028 is well above the company's ability to supply.

Another major positive is Micron's new Strategic Customer Agreements (SCAs). It has signed 16 SCAs, generally covering five years, with the agreements representing about 20% of DRAM volume and one-third of NAND volume over their terms. Out of the 16 agreements, 14 carry minimum-price commitments representing approximately $100 billion of cumulative revenues.

The main concern is that Micron remains exposed to memory-market cycles. Its exceptionally high margins could eventually decline if industry supply catches up with demand. At the same time, the company is increasing investment to expand capacity.

In the fourth quarter of fiscal 2026, management projects capital expenditure of around $10 billion, bringing full-year fiscal 2026 capital spending to approximately $27 billion. It also expects capex in every quarter of fiscal 2027 to be above fiscal fourth-quarter levels, with more than half of the year-over-year increase coming from construction capex. These investments are aimed at long-term demand, but they create execution and timing risk. Construction spending will not produce bits immediately, which could limit free cash flow flexibility if demand fluctuates or pricing weakens.

AMD: AI Compute Opportunity Supports Strong GrowthAdvanced Micro Devices also reported strong second-quarter 2026 results. Revenues climbed 50.1% year over year to $11.54 billion, while non-GAAP EPS jumped 246% to $1.66. AMD generated $2.36 billion in cash from continuing operations and $1.56 billion in free cash flow during the quarter.

The Data Center segment remains its biggest growth engine. Data Center revenues soared 107.3% year over year to $6.72 billion, driven by strong EPYC CPU and Instinct graphics processing unit (GPU) demand. Data Center accounted for 58% of total company revenues in the quarter.

Advanced Micro Devices has several important AI catalysts. AMD is ramping up its Instinct GPUs and Helios rack-scale platform, while its partnerships with major AI customers are expanding. Anthropic plans to deploy up to 2 gigawatts of MI450 GPUs in Helios systems, while Microsoft is expanding its use of Helios and EPYC processors across Azure.

Advanced Micro Devices expects server revenues to increase more than 80% year over year in the second half of 2026 and more than 70% for full-year 2027. It also expects Data Center revenues to more than double in 2027.

However, Advanced Micro Devices faces a tougher competitive landscape from NVIDIA and Intel in AI accelerators. It must continue expanding the ROCm (Radeon Open Compute) software ecosystem and execute smoothly as large Helios deployments ramp up. The company has previously stated that data center AI margins are somewhat below AMD's corporate average, making product mix important for future profitability.

MU vs. AMD: Which Has a Better Growth Profile?Both companies will benefit from the surging demand for AI chips, but Micron’s growth profile appears stronger in the near term. The Zacks Consensus Estimate for MU’s current fiscal 2026 revenues and EPS indicates a year-over-year surge of 246.8% and 791%, respectively. For fiscal 2027, the top and bottom lines are projected to grow 91.5% and 113.7%, respectively.

By contrast, estimates for Advanced Micro Devices’ 2026 point to more modest 45.8% revenue growth and a 79.4% EPS increase. For 2027, the top and bottom lines are projected to rise 64.7% and 96.2%, respectively.

Valuation: MU Has a Major Advantage Over AMDThe biggest difference between the two stocks is valuation. Micron trades at a P/E multiple of 5.81 compared with 39.27 for AMD.

Image Source: Zacks Investment Research

This means investors are paying substantially less for Micron's earnings despite its shares having a substantially higher return than Advanced Micro Devices. MU shares have surged 224.9% year to date, while AMD has gained 131.1%.

Image Source: Zacks Investment Research

Advanced Micro Devices' higher valuation multiple reflects its significant AI GPU and CPU opportunity, strong Data Center growth and potential for further market-share gains. However, the premium valuation also raises the execution bar. AMD needs to deliver substantial earnings growth to justify its multiple.

Conclusion: Micron Is the Better Investment Bet TodayBoth Micron and Advanced Micro Devices are well-positioned to benefit from the expanding AI infrastructure market. AMD offers impressive long-term growth opportunities in CPUs and AI accelerators, while MU is becoming increasingly critical to the AI ecosystem through HBM, DRAM and advanced storage products.

However, Micron appears to be the better investment option right now. The company is benefiting from powerful supply-demand dynamics, record profitability, strong pricing trends and accelerating AI memory demand. When combined with its much lower valuation multiple, MU provides a more compelling combination of growth potential and value for investors seeking exposure to the AI semiconductor boom.

Micron carries a Zacks Rank #2 (Buy), making it a clear winner over Advanced Micro Devices, which has a Zacks Rank #3 (Hold) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

While it can be exciting when a stock you own declares a dividend raise, the hard truth is that many hikes are unspectacular. The raises tend to be fairly modest, rising by a low- to mid-single-digit percentage. Every once in a while, however, a company's management will be confident enough, sufficiently flush, or both, to enact a dividend raise worth getting excited about.

For shareholders of the three companies featured here, the payout raises made this year were surprising and substantial, jumping at least 30%. Here's the skinny on the increases from artificial intelligence (AI) hardware makers Nvidia (NVDA +0.95%) and Micron Technology (MU +1.70%), as well as specialized financial services provider OTC Markets Group (OTCM +0.54%).

Image source: Getty Images.

1. Nvidia Nvidia issued the biggest raise among the three, boosting its per-share dividend by 2,400%. To be fair, the raise comes from a low base, going from $0.01 per (split-adjusted) share to $0.25.

The AI revolution is in full swing, and it wouldn't be as durable and sustained as it is without the involvement of Nvidia. Enthusiasm for its state-of-the-art AI processors has helped its fundamentals really balloon of late. In its second-quarter fiscal 2027, Nvidia more than doubled its revenue year over year to $96 billion (sequential improvement was also considerable at 18%). Adjusted net income motored even higher, rising 118% to almost $54 billion.

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With that kind of growth and bottom-line margin, which is now typical for Nvidia, it has too much cash available. Such gains may not be sustainable forever, but the company's success appears set to continue, pointing to further payout increases.

Because the stock price continues to outperform, Nvidia's dividend yield remains underwhelming at 0.47%.

2. Micron Technology Micron concentrates on memory and storage solutions for the AI industry. And while it's not posting triple-digit gains in key line items, its business is clocking some impressive growth. That growth gave the company enough reason to declare a 30% dividend increase in March, raising the payout to $0.15 per share from just under $0.12.

AI requires not only considerably more processing power than preceding technologies, but also the memory and storage capacity to support it. Since all four of the company's customer segments are busy building their AI capabilities, these revenue streams continue to grow.

For example, the cloud memory business segment's revenue more than quadrupled year over year to nearly $13.8 billion in its fiscal third quarter. And the core data center segment's revenue of $11.5 billion rose sevenfold. Revenue overall leaped to more than $41 billion from $9 billion a year ago. Better, adjusted net income zoomed to $28.9 billion from $2.2 billion.

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Even more than Nvidia, whose stock has stumbled at times, Micron's shares have raced well higher this year, more than tripling in value. Even with that, however, the stock's valuation remains reasonable.

Again, a rising stock pushes down yield -- significantly, in this case. Micron's raised dividend currently yields under 0.1%.

3. OTC Markets OTC Markets is an all-in-one provider of trading and information services for over-the-counter stocks (although it works with larger exchanges like the Nasdaq Composite, too). It's been doing well lately, as the areas where it operates tend to be lucrative when managed effectively, and securities markets of all types are frothy these days.

OTC Markets is doing so well that management was comfortable declaring a meaty dividend raise of 67% to $0.30 per share in Q1. In both the first and second quarters, OTC Markets posted year-over-year growth of 14% for gross revenue and 17% for net income. The company's top line in Q2 was just under $35 million, while net income was $8.6 million.

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These days, OTC Markets is reaping the rewards of being a known operator in a thriving market. Its business is growing thanks to sharply rising volume. In Q2, for instance, average daily trades through its alternative trading systems during regular business hours bounced more than 50% higher to 95,000.

For investors who believe equity trading will remain robust, OTC Markets is an intriguing, somewhat under-the-radar play on that dynamic. On a pure share-price basis, it's also less expensive than other stocks in its niche, and its valuations are comparable.

Its yield is also above average (1.1%) and currently sits just under 2%.

The Finbold AI Agent is projecting that Micron Technology (NASDAQ: MU) stock is likely to see a modest decline by October 1.

Using predictions from multiple artificial intelligence models, the agent forecasts that MU will trade at an average price of $915.31 by October 1, 2026, representing a 0.93% decline from its current price of $923.88.

MU stock price prediction. Source: Finbold Overall, the projection suggests that AI models expect the memory-chip maker to remain largely range-bound over the next two weeks despite continued strength in the AI semiconductor market.

Among the individual models, GPT-5.7 Luna delivered the most bullish outlook, projecting Micron stock at $955, representing a 3.37% gain from current levels. 

DeepSeek Chat was the most bearish, forecasting a price of $895.42, while Gemini 3.5 Flash predicted $895.50, both implying declines of just over 3%.

MU stock price prediction. Source: Finbold MU stock fundamentals  The relatively stable forecast comes as Micron remains one of the biggest beneficiaries of the artificial intelligence infrastructure boom.

The company recently reported record fiscal third-quarter results, with revenue surging to $41.46 billion, while management guided for approximately $50 billion in fourth-quarter revenue. Micron also disclosed $22 billion in strategic customer agreements designed to secure memory-chip supply amid strong demand from AI data centers.

Demand for high-bandwidth memory (HBM), a key component used in Nvidia’s AI accelerators, continues to exceed industry supply. 

Micron stated that its HBM4 products are already in high-volume shipments and that supply constraints across the memory market could persist beyond 2027.

Industry analysts also expect memory chips to remain one of the fastest-growing segments of the semiconductor market as AI workloads drive higher demand for DRAM and NAND products. Supply shortages and rising memory prices have further strengthened Micron’s earnings outlook.

Investors are also watching Micron’s upcoming quarterly earnings report, scheduled for September 30, as the company seeks to extend its AI-driven growth streak. Analyst expectations remain elevated due to ongoing memory shortages and robust pricing trends across the industry.

While Micron shares have recently faced volatility alongside other semiconductor stocks amid broader concerns about the pace of AI investment, the company’s exposure to high-bandwidth memory and data-center demand continues to support its long-term growth outlook.

Featured image via Shutterstock.

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Extraordinary margins magnify the earnings stakes if memory pricing loses momentum. Summary

Micron’s next-quarter forecast requires another 20.6% revenue increase.

Micron Technology MU, the memory-chip manufacturer, fell approximately 5.9% to $918.36 Monday as investors questioned whether AI infrastructure spending could lose momentum. According to Barron's, concerns about a potential investment slowdown weighed on memory stocks. The valuation picture leaves little room for disappointment: shares sit 44.92% above the displayed GF Value™ estimate of $633.68.

The business now has a big number to deliver: roughly $50 billion in quarterly revenue. Management's forecast implies 20.6% growth from the $41.456 billion reported in its latest quarter, when GAAP gross margin reached 84.6%. Multiyear customer agreements could make future earnings more predictable. But the investment case still depends on how those contracts translate into shipments, prices and profits.

Volume alone will not settle the debate. At $50 billion in sales, each percentage point of gross margin equals $500 million in gross profit—a powerful earnings boost if pricing holds, and a painful hit if it slips. Investors need to watch delivery commitments and contract economics alongside demand. A booming memory market can support enormous earnings, but a premium share price keeps the pressure on execution.

Disclosures I/we have no positions in any stocks mentioned, and have no plans to buy any new positions in the stocks mentioned within the next 72 hours.

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Micron Technology (MU -5.70%) has been one of the hottest stocks to own this year, with its value rising by more than 240% heading into trading this week. At over $1 trillion in market cap, it has joined the illustrious trillion-dollar club this year and become one of the most valuable companies in the world.

And yet, investors remain bullish that it can continue to soar higher due to the impressive growth it's been generating, as tech giants continue to invest heavily in artificial intelligence (AI).

Micron recently announced plans to increase production of high-bandwidth memory (HBM), which could result in even better financial results. Here's why.

Image source: Getty Images.

Demand is strong for HBM and margins are highMicron has been thriving this year as demand for its memory and storage products remains through the roof. Due to a shortage, it's been able to raise prices, which has given its financials a boost from both rising prices and skyrocketing demand. It has gone from generating gross margins of around 40% to now more than 70%. A stronger gross margin enables more of the incremental revenue it generates to flow through to the bottom line and increases profits. Thus, as revenue is rising at a fast rate, earnings are also climbing fast.

According to reports, Micron could further bolster its margins in the future as it's planning to significantly increase HBM production this year. By the end of 2026, it is aiming to be able to produce 100,000 wafers per month, up from around 40,000 to 50,000 that it's been averaging over the past year.

HBM is more efficient and suitable for AI purposes, and it's not only in high demand, but companies can charge more for it as well. For Micron, ramping up production of HBM can enable its financial results, as strong as they already are, to look even better in the near future.

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Micron's stock could be heading even higherOn Sept. 30, Micron is set to release its fourth-quarter results, which will likely be a huge day for the stock. Not only will the results highlight how much growth the business has generated over the past three months, but because it's also the fiscal year-end, there may be valuable insights into Micron's guidance for the year ahead -- which should factor in its outlook for HBM.

Strong guidance will be essential for Micron's stock to continue rising. And with the company ramping up production of HBM, it looks highly likely that the guidance will indeed be strong, which is why I think Micron's stock will reach new heights before the end of 2026.

Micron, SanDisk and SK Hynix are sitting at the sharp end of Monday’s AI sell-off as investors question one of the assumptions that made memory stocks the biggest winners of the infrastructure boom.

Micron and SanDisk fell more than 5% in US premarket trading, while SK Hynix plunged 7.4%.

The declines followed weekend calls from Anthropic CEO Dario Amodei and other AI leaders to slow frontier-model development over safety concerns.

Training and running advanced AI models requires far more than GPUs.

HBM feeds accelerators, conventional DRAM supports servers and enterprise NAND provides the storage needed for large inference workloads.

That demand transformed memory from a cyclical commodity business into one of AI infrastructure’s most valuable bottlenecks.

Susquehanna analyst Mehdi Hosseini told MarketWatch that memory has become the “king” of the semiconductor industry and argued that “its reign is here to stay”.

He estimates memory now represents roughly 50% to 55% of semiconductor-industry revenue, compared with a historical range of 20% to 30%.

AI data-centre investment has been a reason the industry is approaching $1.5 trillion in annual revenue.

That explains Monday’s reaction, as the stocks that became concentrated bets on relentless AI infrastructure spending are naturally among the first to be repriced when investors question that spending trajectory.

No major hyperscaler has announced a material reduction in AI capital expenditure, and frontier laboratories have not said they plan to stop buying compute.

Investors are instead pricing a new risk to future growth.

“Fundamentally, the question that would come up is whether increased AI safety means slower and lower capex spending,” Barclays strategist Emmanuel Cau told the Financial Times.

The issue matters particularly for Micron and SK Hynix because HBM demand is tied closely to accelerator deployments.

SanDisk has a similar sensitivity through NAND. At Goldman Sachs’ technology conference last week, management said data-centre demand had grown to more than half of the NAND market, calling the shift a watershed moment for the industry.

The bearish argument runs into an uncomfortable reality that the memory market remains severely constrained.

KB Securities estimates finished memory inventories at Samsung Electronics and SK Hynix have fallen below 10 days of supply.

“As of the third quarter, memory inventories at Samsung Electronics and SK hynix have fallen to less than 10 days,” research head Kim Dong-won told Seoul Economic Daily, warning that sellable volumes could become “absolutely insufficient”.

KB expects 2027 DRAM and NAND bit-demand growth to exceed supply growth by more than 10 percentage points as HBM4, server DDR5 and enterprise SSD demand rise together.

Bernstein also reiterated Buy ratings on Micron and SanDisk this month, forecasting conventional DRAM and NAND contract prices could rise nearly 20% quarter-on-quarter in the third quarter.

That leaves memory stocks caught between two realities.

AI safety concerns have introduced a genuine risk to future infrastructure spending, but current supplies remain tight, prices are still rising and inventories are unusually low.

Micron Technology (MU -0.22%) has gained more than 500% over the past year and trades at $975 at this writing. When a stock does that, the useful question stops being whether the business is good. It becomes: What would have to change for the story to break, and who gets to decide?

That decision sits with Nvidia (NVDA -0.03%). Most of the discussion centers on a table in Nvidia's second-quarter commentary, where Chief Financial Officer Colette Kress disclosed that supply commitments jumped from $119 billion to $279 billion, tied to memory buying. That is a large number, and spending drops to almost nothing after fiscal 2029, according to The Wall Street Journal.

Fair enough. But a purchase commitment is a plan, and plans get revised. In other words, Nvidia is betting heavily on future memory demand, but that spending isn't guaranteed to happen if its plans change.

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The Nvidia signal that matters more for Micron What I find harder to dismiss is what Nvidia is doing with its designs, because design choices lock in years ahead of purchase orders.

Consider the Rubin CPX, a chip built for the first stage of answering an AI prompt, when the system reads everything you fed it before writing a word. Nvidia's original plan used GDDR7, the same memory category used in gaming graphics cards. It costs about one-fifth as much per gigabyte as the premium stacked memory that drives Micron's profits, and it skips the expensive packaging step.

Analyst Ming-Chi Kuo reported in August that Nvidia revived the project with stacked memory instead, though at 168 gigabytes per chip rather than the 288 gigabytes per chip in the flagship part.

Image source: Getty Images.

That all sounded a bit technical, but read that sequence as a company testing how little premium memory it can get away with in the parts of the workload that do not need it. Nvidia has every reason to keep trying. In other words, the bigger thing to watch is how Nvidia designs its chips because those decisions can affect Micron for years (or even permanently).

Nvidia originally planned to use cheaper memory in Rubin CPX. Still, if it keeps choosing more expensive stacked memory, that's a good sign for Micron, as Nvidia would continue to need its high-end memory. 

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Why Micron's own expansion adds to the risk Here is where it gets uncomfortable for Micron shareholders: The company plans to double its monthly output of stacked memory to roughly 100,000 wafers by the end of this year. Meanwhile, its share of that market slipped to 18% in the second quarter, while Samsung Electronics doubled to 33%, according to research firm Counterpoint Research. Samsung reached its first billion dollars of stacked memory revenue within four months of starting shipments.

So Micron is adding a great deal of capacity to a market where it might be losing its position. Nvidia CEO Jensen Huang confirmed in June 2026 that the company had approved all three major memory makers, Samsung Electronics, SK Hynix, and Micron Technology, to supply HBM4 memory for its next-generation Vera Rubin platform.

This is either good or bad, depending on your posture as an investor. It keeps Micron in the game and hands Nvidia three sellers to compete against each other.

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What does all this mean for Nvidia and Micron? For Nvidia, the direction is favorable. Three qualified suppliers competing for its business is a cost advantage, and its memory bill is enormous. In my opinion, Nvidia is in a stronger position because it can design its chips around whatever memory makes the most economic sense and use three (or more) qualified suppliers to keep costs and supply in check.

For Micron, the near term still looks strong. Management guided that tight supply conditions persist beyond calendar 2027, and SK Hynix CEO Kwak Noh-jung has said the shortage could run through 2030.

The risk is what happens when Micron's new capacity arrives at the same moment Nvidia's designs need less premium memory per chip, and its commitment schedule thins out. I would not short this. I would stop treating $1,000 as a floor.

If you hold Micron and it has become an outsize part of your portfolio, trimming back toward your intended weight is reasonable. Watch two things: Micron's share of stacked memory in each quarterly update and whether Nvidia extends commitments into fiscal 2030. It seems far away now, but keep your eyes peeled.

Outlook Capital Management LLC acquired a new position in shares of Micron Technology, Inc. (NASDAQ:MU – Free Report) in the 2nd quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The firm acquired 169,848 shares of the semiconductor manufacturer’s stock, valued at approximately $196,056,000. Micron Technology makes up approximately 63.3% of Outlook Capital Management LLC’s portfolio, making the stock its largest holding.

A number of other institutional investors have also recently bought and sold shares of the company. M.E. Allison & CO. Inc. raised its stake in shares of Micron Technology by 0.8% during the 2nd 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 grew its stake in shares of Micron Technology by 1.4% in 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 grew its stake in shares of Micron Technology by 25.5% in 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 grew its stake in shares of Micron Technology by 8.8% in 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 increased its holdings in Micron Technology by 0.7% in the second 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 last quarter. Institutional investors and hedge funds own 80.84% of the company’s stock.

Micron Technology Price Performance NASDAQ MU opened at $975.26 on Friday. Micron Technology, Inc. has a twelve month low of $153.21 and a twelve month high of $1,255.00. The company has a debt-to-equity ratio of 0.05, a quick ratio of 2.98 and a current ratio of 3.42. The stock has a market capitalization of $1.10 trillion, a PE ratio of 22.08, a P/E/G ratio of 0.62 and a beta of 2.22. The stock has a 50-day simple moving average of $929.44 and a 200 day simple moving average of $754.92.

Micron Technology (NASDAQ:MU – Get Free Report) last released 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 firm had revenue of $41.46 billion for 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 was up 345.8% on a year-over-year basis. During the same quarter last year, the firm posted $1.91 EPS. Micron Technology has set its Q4 2026 guidance at 30.000-32.000 EPS. Research analysts anticipate that Micron Technology, Inc. will post 72.93 EPS for the current 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 given a $0.15 dividend. This represents a $0.60 annualized dividend and a dividend yield of 0.1%. The ex-dividend date of this dividend was Monday, July 6th. Micron Technology’s dividend payout ratio is currently 1.36%.

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

Positive Sentiment: AI demand and supply constraints remain major tailwinds. Oracle’s strong cloud-infrastructure growth reinforced expectations for continued data-center AI spending, while limited DRAM and high-bandwidth memory supply could support Micron’s pricing and margins. Micron Stock Rises as This Key Number From Oracle Boosts AI Trade Positive Sentiment: Long-term customer agreements may reduce earnings volatility. Micron’s strategic contracts reportedly cover substantial memory volumes through 2030, with pricing protections that improve revenue visibility and could make the company less exposed to the traditional boom-and-bust memory cycle. Micron Bets on Long-Term SCA Deals Positive Sentiment: Analysts remain constructive ahead of fiscal fourth-quarter results. Bullish commentary points to persistent shortages, rising HBM4 demand and potentially strong revenue and gross-margin guidance at the September 30 earnings report. Micron’s Q4 Might Change the Game Neutral Sentiment: Employee rewards highlight both strong profitability and rising costs. Taiwan-based direct labor employees are slated to receive fiscal 2026 rewards equivalent to 35–68 months of pay. The payouts recognize exceptional results but may increase expense pressure, while unions representing about 10,000 workers continue to threaten industrial action. Micron’s Taiwan Workers to Get Rewards Worth Up to 68 Months of Pay Negative Sentiment: Valuation and execution expectations are unusually high. Despite record guidance and worsening shortages, investors appear concerned that much of the AI-memory upside is already reflected in MU’s valuation. Any moderation in memory pricing or results that merely meet expectations could trigger profit-taking. Micron’s 662% Rally Created a Problem Wall Street Cannot Ignore Negative Sentiment: Competitive and macroeconomic risks are weighing on sentiment. Intel-backed startup Kepler Computing is targeting the memory-chip market, raising concerns about future pricing power. Separately, higher oil prices, inflation worries and interest-rate pressure have hurt high-beta technology stocks. Micron Stock Slips as Intel-Backed Start-up Takes Aim at Memory-Chip Market Insiders Place Their Bets In related news, EVP Sumit Sadana sold 15,000 shares of the company’s stock in a transaction 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 transaction, the executive vice president directly owned 191,021 shares in the company, valued at $178,469,010.09. This represents a 7.28% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, CAO Scott R. Allen sold 879 shares of the 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 trade represents a 2.45% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 177,204 shares of company stock valued at $182,156,264 in the last 90 days. 0.24% of the stock is currently owned by corporate insiders.

Wall Street Analysts Forecast Growth Several equities analysts have weighed in on the company. Royal Bank Of Canada raised their target price on Micron Technology from $1,200.00 to $1,500.00 and gave the company an “outperform” rating in a report on Thursday, June 25th. TD Cowen reissued a “buy” rating on shares of Micron Technology in a report on Friday, July 10th. ThinkEquity reissued a “buy” rating on shares of Micron Technology in a research note on Monday, August 3rd. The Goldman Sachs Group boosted their target price on Micron Technology from $900.00 to $1,100.00 and gave the stock a “neutral” rating in a report on Thursday, June 25th. Finally, Deutsche Bank Aktiengesellschaft upped their target price on 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. Four 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’s stock. Based on data from MarketBeat, Micron Technology has a consensus rating of “Buy” and a consensus price target of $1,295.63.

Check Out Our Latest Analysis on MU

(Free Report)

Micron Technology, Inc is a global semiconductor company that designs, develops, manufactures and sells memory and storage solutions. Its product portfolio includes dynamic random-access memory (DRAM), NAND flash memory, NOR flash memory, solid-state drives, memory modules and high-bandwidth memory used in data-intensive computing applications.

Micron’s products support a range of markets, including data centers, artificial intelligence and high-performance computing, personal computers, smartphones, automotive systems, industrial equipment and networking devices.

Recommended Stories Five stocks we like better than Micron Technology Rocket Lab Tackles a Supply Chain Bottleneck as the Stock Hunts for a Bottom. Time to Buy? Optical Cable Corporation Is Starting to Get the Market’s Attention Oil Above $100 Is Creating a New Opportunity Beyond the Major Producers Is Nike’s Index Demotion a Warning or a Buying Opportunity? 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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MW Advisory LLC purchased a new stake in shares of Micron Technology, Inc. (NASDAQ:MU – Free Report) in the second quarter, according to the company in its most recent disclosure with the SEC. The institutional investor purchased 1,243 shares of the semiconductor manufacturer’s stock, valued at approximately $1,435,000.

Several other institutional investors and hedge funds have also bought and sold shares of MU. Andar Capital Management HK Ltd increased its stake in shares of Micron Technology by 856,960.3% during the second quarter. Andar Capital Management HK Ltd now owns 34,282,413 shares of the semiconductor manufacturer’s stock valued at $39,571,847,000 after buying an additional 34,278,413 shares during the period. Norges Bank bought a new position in shares of Micron Technology during the fourth quarter valued at approximately $6,433,456,000. Primecap Management Co. CA purchased a new stake in Micron Technology in the second quarter worth $22,182,263,000. Legal & General Group Plc purchased a new stake in Micron Technology in the second quarter worth $8,402,393,000. Finally, Situational Awareness LP boosted its holdings in Micron Technology by 1,149.0% in the second quarter. Situational Awareness LP now owns 4,828,786 shares of the semiconductor manufacturer’s stock valued at $5,573,819,000 after acquiring an additional 5,289,124 shares in the last quarter. Hedge funds and other institutional investors own 80.84% of the company’s stock.

Micron Technology Stock Performance Shares of Micron Technology stock opened at $975.26 on Friday. 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 firm has a market capitalization of $1.10 trillion, a P/E ratio of 22.08, a P/E/G ratio of 0.62 and a beta of 2.22. The business has a fifty day simple moving average of $929.44 and a two-hundred day simple moving average of $754.92. Micron Technology, Inc. has a 12 month low of $153.21 and a 12 month high of $1,255.00.

Micron Technology (NASDAQ:MU – Get Free Report) last announced its earnings results on Wednesday, June 24th. The semiconductor manufacturer reported $25.11 EPS for the quarter, beating analysts’ consensus estimates of $21.39 by $3.72. The firm had revenue of $41.46 billion for the quarter, compared to analysts’ expectations of $35.91 billion. Micron Technology had a net margin of 55.91% and a return on equity of 71.13%. The company’s quarterly revenue was up 345.8% on a year-over-year basis. During the same quarter in the previous year, the business posted $1.91 EPS. Micron Technology has set its Q4 2026 guidance at 30.000-32.000 EPS. On average, equities analysts forecast that Micron Technology, Inc. will post 72.93 earnings per share for the current fiscal year. Micron Technology Dividend Announcement The firm also recently disclosed a quarterly dividend, which was paid on Tuesday, July 21st. Investors of record on Monday, July 6th were paid 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 yield of 0.1%. Micron Technology’s payout ratio is presently 1.36%.

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

Positive Sentiment: AI demand and supply constraints remain major tailwinds. Oracle’s strong cloud-infrastructure growth reinforced expectations for continued data-center AI spending, while limited DRAM and high-bandwidth memory supply could support Micron’s pricing and margins. Micron Stock Rises as This Key Number From Oracle Boosts AI Trade Positive Sentiment: Long-term customer agreements may reduce earnings volatility. Micron’s strategic contracts reportedly cover substantial memory volumes through 2030, with pricing protections that improve revenue visibility and could make the company less exposed to the traditional boom-and-bust memory cycle. Micron Bets on Long-Term SCA Deals Positive Sentiment: Analysts remain constructive ahead of fiscal fourth-quarter results. Bullish commentary points to persistent shortages, rising HBM4 demand and potentially strong revenue and gross-margin guidance at the September 30 earnings report. Micron’s Q4 Might Change the Game Neutral Sentiment: Employee rewards highlight both strong profitability and rising costs. Taiwan-based direct labor employees are slated to receive fiscal 2026 rewards equivalent to 35–68 months of pay. The payouts recognize exceptional results but may increase expense pressure, while unions representing about 10,000 workers continue to threaten industrial action. Micron’s Taiwan Workers to Get Rewards Worth Up to 68 Months of Pay Negative Sentiment: Valuation and execution expectations are unusually high. Despite record guidance and worsening shortages, investors appear concerned that much of the AI-memory upside is already reflected in MU’s valuation. Any moderation in memory pricing or results that merely meet expectations could trigger profit-taking. Micron’s 662% Rally Created a Problem Wall Street Cannot Ignore Negative Sentiment: Competitive and macroeconomic risks are weighing on sentiment. Intel-backed startup Kepler Computing is targeting the memory-chip market, raising concerns about future pricing power. Separately, higher oil prices, inflation worries and interest-rate pressure have hurt high-beta technology stocks. Micron Stock Slips as Intel-Backed Start-up Takes Aim at Memory-Chip Market Insiders Place Their Bets In other 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 transaction, the executive vice president directly owned 191,021 shares in the company, valued at approximately $178,469,010.09. This trade represents a 7.28% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, Director Lynn A. Dugle sold 1,300 shares of the business’s stock in a transaction that occurred on Tuesday, June 30th. The stock was sold at an average price of $1,150.43, for a total value of $1,495,559.00. Following the completion of the sale, the director directly owned 17,728 shares in the company, valued at approximately $20,394,823.04. This represents a 6.83% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last quarter, insiders have sold 177,204 shares of company stock valued at $182,156,264. Insiders own 0.24% of the company’s stock.

Wall Street Analyst Weigh In A number of brokerages have issued reports on MU. Raymond James Financial boosted their price objective on shares of Micron Technology from $1,100.00 to $1,500.00 and gave the company an “outperform” rating in a research report on Thursday, June 25th. Cantor Fitzgerald reaffirmed an “overweight” rating and issued a $1,500.00 target price on shares of Micron Technology in a research report on Thursday, June 25th. Weiss Ratings reaffirmed a “buy (b)” rating on shares of Micron Technology in a research note on Friday, August 7th. Wells Fargo & Company boosted their price target on shares of Micron Technology from $1,220.00 to $1,525.00 and gave the company an “overweight” rating in a research report on Thursday, June 25th. Finally, Zacks Research downgraded shares of Micron Technology from a “strong-buy” rating to a “hold” rating in a research note on Wednesday, August 19th. Four equities research analysts have rated the stock with a Strong Buy rating, thirty-one have given a Buy rating and three have given a Hold rating to the stock. According to MarketBeat, Micron Technology currently has a consensus rating of “Buy” and a consensus price target of $1,295.63.

Check Out Our Latest Report on Micron Technology

Micron Technology Profile (Free Report)

Micron Technology, Inc is a global semiconductor company that designs, develops, manufactures and sells memory and storage solutions. Its product portfolio includes dynamic random-access memory (DRAM), NAND flash memory, NOR flash memory, solid-state drives, memory modules and high-bandwidth memory used in data-intensive computing applications.

Micron’s products support a range of markets, including data centers, artificial intelligence and high-performance computing, personal computers, smartphones, automotive systems, industrial equipment and networking devices.

Further Reading Five stocks we like better than Micron Technology Rocket Lab Tackles a Supply Chain Bottleneck as the Stock Hunts for a Bottom. Time to Buy? Optical Cable Corporation Is Starting to Get the Market’s Attention Oil Above $100 Is Creating a New Opportunity Beyond the Major Producers Is Nike’s Index Demotion a Warning or a Buying Opportunity? Want to see what other hedge funds are holding MU? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Micron Technology, Inc. (NASDAQ:MU – Free Report).

Receive News & Ratings for Micron Technology Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Micron Technology and related companies with MarketBeat.com's FREE daily email newsletter.

Oakmont Investment Advisors Inc. acquired a new position in Micron Technology, Inc. (NASDAQ:MU – Free Report) in the second quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The institutional investor acquired 10,902 shares of the semiconductor manufacturer’s stock, valued at approximately $12,584,000. Micron Technology accounts for approximately 8.8% of Oakmont Investment Advisors Inc.’s portfolio, making the stock its largest holding.

Other institutional investors have also recently made changes to their positions in the company. Heritage Trust Co lifted its position in shares of Micron Technology by 9.7% in the fourth quarter. Heritage Trust Co now owns 15,026 shares of the semiconductor manufacturer’s stock worth $4,289,000 after buying an additional 1,323 shares in the last quarter. Denali Advisors LLC bought a new stake in Micron Technology in the 2nd quarter worth approximately $7,364,000. Castleark Management LLC bought a new stake in Micron Technology in the 1st quarter worth approximately $3,709,000. Oppenheimer & Co. Inc. raised its holdings in shares of Micron Technology by 16.0% during the 2nd quarter. Oppenheimer & Co. Inc. now owns 48,520 shares of the semiconductor manufacturer’s stock worth $56,006,000 after acquiring an additional 6,702 shares in the last quarter. Finally, Legacy Wealth Management LLC MS boosted its position in shares of Micron Technology by 73.3% during the 2nd quarter. Legacy Wealth Management LLC MS now owns 3,544 shares of the semiconductor manufacturer’s stock valued at $4,091,000 after acquiring an additional 1,499 shares during the last quarter. Hedge funds and other institutional investors own 80.84% of the company’s stock.

Analyst Ratings Changes Several analysts have recently issued reports on MU shares. Royal Bank Of Canada upped their target price on shares of Micron Technology from $1,200.00 to $1,500.00 and gave the company an “outperform” rating in a research report on Thursday, June 25th. DA Davidson increased their target price on Micron Technology from $1,500.00 to $2,000.00 and gave the stock a “buy” rating in a research note on Thursday, June 25th. Wells Fargo & Company boosted their target price on shares of Micron Technology from $1,220.00 to $1,525.00 and gave the company an “overweight” rating in a research note on Thursday, June 25th. Needham & Company LLC boosted their target price on shares of Micron Technology from $1,550.00 to $1,650.00 and gave the company a “buy” 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 issued a Buy rating and three have assigned a Hold rating to the company’s stock. According to data from MarketBeat, Micron Technology presently has a consensus rating of “Buy” and a consensus target price of $1,295.63.

Get Our Latest Stock Report on Micron Technology Key Headlines Impacting Micron Technology Here are the key news stories impacting Micron Technology this week:

Positive Sentiment: AI demand and supply constraints remain major tailwinds. Oracle’s strong cloud-infrastructure growth reinforced expectations for continued data-center AI spending, while limited DRAM and high-bandwidth memory supply could support Micron’s pricing and margins. Micron Stock Rises as This Key Number From Oracle Boosts AI Trade Positive Sentiment: Long-term customer agreements may reduce earnings volatility. Micron’s strategic contracts reportedly cover substantial memory volumes through 2030, with pricing protections that improve revenue visibility and could make the company less exposed to the traditional boom-and-bust memory cycle. Micron Bets on Long-Term SCA Deals Positive Sentiment: Analysts remain constructive ahead of fiscal fourth-quarter results. Bullish commentary points to persistent shortages, rising HBM4 demand and potentially strong revenue and gross-margin guidance at the September 30 earnings report. Micron’s Q4 Might Change the Game Neutral Sentiment: Employee rewards highlight both strong profitability and rising costs. Taiwan-based direct labor employees are slated to receive fiscal 2026 rewards equivalent to 35–68 months of pay. The payouts recognize exceptional results but may increase expense pressure, while unions representing about 10,000 workers continue to threaten industrial action. Micron’s Taiwan Workers to Get Rewards Worth Up to 68 Months of Pay Negative Sentiment: Valuation and execution expectations are unusually high. Despite record guidance and worsening shortages, investors appear concerned that much of the AI-memory upside is already reflected in MU’s valuation. Any moderation in memory pricing or results that merely meet expectations could trigger profit-taking. Micron’s 662% Rally Created a Problem Wall Street Cannot Ignore Negative Sentiment: Competitive and macroeconomic risks are weighing on sentiment. Intel-backed startup Kepler Computing is targeting the memory-chip market, raising concerns about future pricing power. Separately, higher oil prices, inflation worries and interest-rate pressure have hurt high-beta technology stocks. Micron Stock Slips as Intel-Backed Start-up Takes Aim at Memory-Chip Market Micron Technology Trading Down 0.2% MU opened at $975.26 on Friday. The company has a quick ratio of 2.98, a current ratio of 3.42 and a debt-to-equity ratio of 0.05. The stock’s fifty day moving average is $929.44 and its two-hundred day moving average is $754.92. The company has a market capitalization of $1.10 trillion, a P/E ratio of 22.08, a PEG ratio of 0.62 and a beta of 2.22. Micron Technology, Inc. has a 52 week low of $153.21 and a 52 week high of $1,255.00.

Micron Technology (NASDAQ:MU – Get Free Report) last issued its earnings results on Wednesday, June 24th. The semiconductor manufacturer reported $25.11 earnings per share for the quarter, topping the consensus estimate of $21.39 by $3.72. Micron Technology had a return on equity of 71.13% and a net margin of 55.91%.The business had revenue of $41.46 billion during the quarter, compared to analysts’ expectations of $35.91 billion. During the same period in the prior year, the business earned $1.91 EPS. The business’s revenue for the quarter was up 345.8% compared to the same quarter last year. Micron Technology has set its Q4 2026 guidance at 30.000-32.000 EPS. Analysts forecast that Micron Technology, Inc. will post 72.93 earnings per share for the current year.

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

Insider Buying and Selling In related news, CEO Sanjay Mehrotra sold 40,000 shares of the company’s stock in a transaction dated 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 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. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, CAO Scott Allen sold 879 shares of the stock in a transaction dated Thursday, July 23rd. The stock was sold at an average price of $1,000.00, for a total transaction of $879,000.00. Following the transaction, the chief accounting officer owned 34,958 shares in the company, valued at approximately $34,958,000. The trade was a 2.45% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold 177,204 shares of company stock valued at $182,156,264 over the last quarter. 0.24% of the stock is owned by company insiders.

(Free Report)

Micron Technology, Inc is a global semiconductor company that designs, develops, manufactures and sells memory and storage solutions. Its product portfolio includes dynamic random-access memory (DRAM), NAND flash memory, NOR flash memory, solid-state drives, memory modules and high-bandwidth memory used in data-intensive computing applications.

Micron’s products support a range of markets, including data centers, artificial intelligence and high-performance computing, personal computers, smartphones, automotive systems, industrial equipment and networking devices.

Recommended Stories Five stocks we like better than Micron Technology Rocket Lab Tackles a Supply Chain Bottleneck as the Stock Hunts for a Bottom. Time to Buy? Optical Cable Corporation Is Starting to Get the Market’s Attention Oil Above $100 Is Creating a New Opportunity Beyond the Major Producers Is Nike’s Index Demotion a Warning or a Buying Opportunity?

Receive News & Ratings for Micron Technology Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Micron Technology and related companies with MarketBeat.com's FREE daily email newsletter.

Maestria Partners LLC purchased a new stake in Micron Technology, Inc. (NASDAQ:MU – Free Report) during the 2nd quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The firm purchased 12,000 shares of the semiconductor manufacturer’s stock, valued at approximately $13,851,000. Micron Technology accounts for 4.8% of Maestria Partners LLC’s investment portfolio, making the stock its 12th biggest holding.

A number of other hedge funds also recently made changes to their positions in MU. Brighton Jones LLC boosted its position in Micron Technology by 18.3% during the 4th quarter. Brighton Jones LLC now owns 6,318 shares of the semiconductor manufacturer’s stock worth $532,000 after acquiring an additional 976 shares during the period. Sivia Capital Partners LLC increased its holdings in shares of Micron Technology by 21.7% during the second quarter. Sivia Capital Partners LLC now owns 3,528 shares of the semiconductor manufacturer’s stock valued at $435,000 after purchasing an additional 628 shares during the period. United Bank bought a new stake in shares of Micron Technology during the second quarter valued at about $236,000. Schnieders Capital Management LLC. raised its stake in shares of Micron Technology by 67.9% during the second quarter. Schnieders Capital Management LLC. now owns 16,984 shares of the semiconductor manufacturer’s stock valued at $2,093,000 after purchasing an additional 6,867 shares in the last quarter. Finally, Sei Investments Co. lifted its holdings in Micron Technology by 5.6% in the second quarter. Sei Investments Co. now owns 405,545 shares of the semiconductor manufacturer’s stock worth $49,987,000 after purchasing an additional 21,619 shares during the period. Institutional investors own 80.84% of the company’s stock.

Analysts Set New Price Targets A number of research firms recently commented on MU. Wells Fargo & Company raised their price objective on shares of Micron Technology from $1,220.00 to $1,525.00 and gave the company an “overweight” rating in a research note on Thursday, June 25th. Susquehanna increased their price target on Micron Technology from $1,750.00 to $2,000.00 and gave the company a “positive” rating in a research note on Thursday, June 25th. The Goldman Sachs Group lifted their price target on Micron Technology from $900.00 to $1,100.00 and gave the company a “neutral” rating in a research report on Thursday, June 25th. Sanford C. Bernstein set a $1,300.00 price objective on Micron Technology in a research note on Monday, June 22nd. Finally, Deutsche Bank Aktiengesellschaft upped their price objective on Micron Technology from $1,500.00 to $1,550.00 and gave the company a “buy” rating in a report on Thursday, June 25th. Four analysts have rated the stock with a Strong Buy rating, thirty-one have assigned a Buy rating and three have given a Hold rating to the stock. According to data from MarketBeat.com, Micron Technology currently has an average rating of “Buy” and an average target price of $1,295.63.

Get Our Latest Analysis on Micron Technology Micron Technology Stock Down 0.2% Micron Technology stock opened at $975.26 on Friday. Micron Technology, Inc. has a twelve month low of $153.21 and a twelve month high of $1,255.00. The company has a debt-to-equity ratio of 0.05, a quick ratio of 2.98 and a current ratio of 3.42. The firm has a market cap of $1.10 trillion, a PE ratio of 22.08, a P/E/G ratio of 0.62 and a beta of 2.22. The firm’s 50 day moving average price is $929.44 and its two-hundred day moving average price is $754.92.

Micron Technology (NASDAQ:MU – Get Free Report) last released its quarterly earnings data on Wednesday, June 24th. The semiconductor manufacturer reported $25.11 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $21.39 by $3.72. The firm had revenue of $41.46 billion during the quarter, compared to analysts’ expectations of $35.91 billion. Micron Technology had a return on equity of 71.13% and a net margin of 55.91%.The business’s revenue for the quarter was up 345.8% on a year-over-year basis. 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. On average, research analysts predict that Micron Technology, Inc. will post 72.93 EPS for the current fiscal year.

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

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

Positive Sentiment: AI demand and supply constraints remain major tailwinds. Oracle’s strong cloud-infrastructure growth reinforced expectations for continued data-center AI spending, while limited DRAM and high-bandwidth memory supply could support Micron’s pricing and margins. Micron Stock Rises as This Key Number From Oracle Boosts AI Trade Positive Sentiment: Long-term customer agreements may reduce earnings volatility. Micron’s strategic contracts reportedly cover substantial memory volumes through 2030, with pricing protections that improve revenue visibility and could make the company less exposed to the traditional boom-and-bust memory cycle. Micron Bets on Long-Term SCA Deals Positive Sentiment: Analysts remain constructive ahead of fiscal fourth-quarter results. Bullish commentary points to persistent shortages, rising HBM4 demand and potentially strong revenue and gross-margin guidance at the September 30 earnings report. Micron’s Q4 Might Change the Game Neutral Sentiment: Employee rewards highlight both strong profitability and rising costs. Taiwan-based direct labor employees are slated to receive fiscal 2026 rewards equivalent to 35–68 months of pay. The payouts recognize exceptional results but may increase expense pressure, while unions representing about 10,000 workers continue to threaten industrial action. Micron’s Taiwan Workers to Get Rewards Worth Up to 68 Months of Pay Negative Sentiment: Valuation and execution expectations are unusually high. Despite record guidance and worsening shortages, investors appear concerned that much of the AI-memory upside is already reflected in MU’s valuation. Any moderation in memory pricing or results that merely meet expectations could trigger profit-taking. Micron’s 662% Rally Created a Problem Wall Street Cannot Ignore Negative Sentiment: Competitive and macroeconomic risks are weighing on sentiment. Intel-backed startup Kepler Computing is targeting the memory-chip market, raising concerns about future pricing power. Separately, higher oil prices, inflation worries and interest-rate pressure have hurt high-beta technology stocks. Micron Stock Slips as Intel-Backed Start-up Takes Aim at Memory-Chip Market Insiders Place Their Bets In other Micron Technology news, CEO Sanjay Mehrotra sold 40,000 shares of Micron Technology stock in a transaction that occurred on Friday, August 21st. The stock was sold at an average price of $968.90, for a total value of $38,756,000.00. Following the transaction, the chief executive officer directly owned 264,503 shares of the company’s stock, valued at $256,276,956.70. The trade was a 13.14% decrease in their position. The sale was disclosed in a filing with the SEC, which is available at the SEC website. 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 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 ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 177,204 shares of company stock valued at $182,156,264 in the last ninety days. Company insiders own 0.24% of the company’s stock.

Micron Technology Company Profile (Free Report)

Micron Technology, Inc is a global semiconductor company that designs, develops, manufactures and sells memory and storage solutions. Its product portfolio includes dynamic random-access memory (DRAM), NAND flash memory, NOR flash memory, solid-state drives, memory modules and high-bandwidth memory used in data-intensive computing applications.

Micron’s products support a range of markets, including data centers, artificial intelligence and high-performance computing, personal computers, smartphones, automotive systems, industrial equipment and networking devices.

Read More Five stocks we like better than Micron Technology Block Makes a Federal Trust Bank Move That Could Reshape Its Fintech Model Kroger’s Textbook Entry for Buy-and-Hold Investors AST SpaceMobile Looks to Extend Its 30-Day FCC Satellite Testing Window Amgen Drops 10% on a Trial It Didn’t Even Run 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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Micron Technology (MU -0.22%) has been one of the leaders of this next phase of the artificial intelligence (AI) boom. Its high bandwidth memory chips, built to handle AI workloads, are essential components of AI infrastructure. After all, for AI computing to work, it needs quick access to data. That's where Micron comes in.

As one of just three major players in high bandwidth memory chips, Micron is one of the market leaders. And demand is so high right now, Micron cannot make chips fast enough. Micron long ago sold out of its high bandwidth memory chips for 2026, and now, according to reports, it is essentially sold out for all of 2027.

Image source: Getty Images.

This insatiable demand has given Micron pricing leverage, enabling it to charge higher prices and leading to surging revenue and earnings. Every quarter, it is hitting new records. In its fiscal Q3, Micron generated $41.5 billion in revenue, up 82% from Q2 and 357% year over year. Earnings soared 104% to $24.67 from Q2 and grew 1,368% year over year.

These are just staggering numbers that have translated into eye-popping returns. Micron stock is up 628% over the past 12 months and 245% year-to-date.

Micron is also a deep value play Where does Micron go from here? Its forward price-to-earnings ratio, which projects earnings 12 months out, and its price/earnings-to-growth (PEG) ratio, which looks out five years, depict unyielding growth.

The forward P/E ratio is just 6 -- which puts it in deep value stock territory. In reality, it means that earnings growth is expected to be so strong that the rising stock price will seem muted by comparison.

Further out, the five-year PEG ratio is just 0.15, which is ridiculously low. Given that anything under 1 is considered a value relative to its long-term earnings growth expectations, a PEG ratio of just 0.15 is also in deep value territory.

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Because the PEG ratio looks five years out, it suggests that analysts expect the memory chip boom to last for another five years. That roughly syncs with the expectations of many strategists and experts, who see the AI buildout boom lasting until 2029 or 2030. At that point, the necessary factories and infrastructure will be able to meet the demand for memory chips. When that happens, Micron's earnings growth will level off and stabilize, as supply will likely meet demand and Micron will lose some of its pricing power.

Where will Micron be a decade out? It is impossible to know exactly what will happen over the next 10 years, because Micron is taking steps now to ensure its dominance for years to come, even beyond the boom years.

Specifically, it has been signing long-term five-year contracts with customers called strategic customer agreements (SCAs). In the last quarter, it signed 16 of them with tier 1 (major) clients, with more to come. It projects that the SCAs will generate more than $100 billion in revenue over the course of the contracts, as a floor.

Following the Q3 earnings call, some of those SCA clients were announced, including Ford Motor Company, General Motors, and several automotive industry suppliers. The SCAs were also signed with data center, consumer device, and industrial customers. On the earnings call, CEO Sanjay Mehrotra said there were four very large SCA customers, including data center customers, which likely means some of the major hyperscalers.

"These SCAs accelerate the transformation of our business model. Enhance partnership in technology and innovation, and provide customers with contracted supply assurance," Mehrotra said on the Q3 call with analysts.

When these contracts are all executed, they will account for at least half of the company's revenue.

Beyond five years, it is difficult to predict where Micron will be. Given what is known about the company and its plans, I would expect its growth rates to moderate, yet it should remain an essential cog in the AI economy, which should continue to grow and flourish. As one of just a handful of major players within the memory chip universe, I would expect Micron to be a solid, mature grower. That bodes well for the long-term investing thesis of this stock.

Micron just posted the highest revenue guidance in its history while the shortage fueling its growth gets worse, yet Wall Street wiped out tens of billions in market cap anyway. The signal hiding inside that contradiction is worth understanding before…

You don’t often see a trillion-dollar chipmaker shed tens of billions of dollars in market capitalization on a day when the shortage driving its earnings worsens. That is what happened to Micron Technology (NASDAQ:MU | MU Price Prediction) on Thursday.

The stock closed at $977.41, down 4.9% in the session. On the same day, Chinese AI chipmakers are raising prices on forthcoming Huawei and Cambricon accelerators because high-bandwidth memory has become prohibitively scarce and expensive in the grey channel there.

Those Chinese price signals do not translate cleanly into Micron revenue, because export restrictions distort that channel. They speak to global memory tightness rather than to sales into China. Micron is one of three companies that dominate advanced high-bandwidth memory production, alongside SK Hynix and Samsung, so scarcity in that market accrues mechanically to those three balance sheets.

Fifty-Seven Billion Gone in a Session Micron’s fiscal Q3 2026 revenue came in at $41.46 billion, beating the $35.25 billion consensus by 17.60% and rising 345.7% year over year. Non-GAAP EPS of $25.11 beat the $20.28 consensus by 23.79%, the seventh consecutive EPS beat.

GAAP gross margin ran at 84.6%, with non-GAAP at 84.9%. Operating income of $33.32 billion rose 1,436% year over year. Free cash flow was $18.30 billion on capex of $7.83 billion.

Guidance for fiscal Q4 calls for revenue of $50 billion plus or minus $1 billion, non-GAAP EPS of $31 plus or minus $1, and gross margin of approximately 86%. It is the highest revenue outlook the company has ever issued.

CEO Sanjay Mehrotra said DRAM and NAND demand keeps outrunning supply and management does not yet have “line of sight as to when memory supply will be able to catch up with increasing demand”. That is the operating context the market discounted this week.

What The Contract Book Says Micron has signed 16 Strategic Customer Agreements, typically five-year take-or-pay contracts, covering roughly 20% of DRAM volume and a third of NAND volume over the agreement period. Fourteen of the sixteen carry a minimum-price commitment worth about $100 billion cumulatively.

Micron is collecting roughly $18 billion in cash deposits and $4 billion in letters of credit against those obligations. Management described the deposits as separate binding commitments held during performance of the agreements.

HBM4 12-high volume ramp is tracking twice as fast as HBM3E 12-high, with over $1 billion in HBM4 revenue already shipped. Management expects tight supply-demand conditions to “persist beyond calendar 2027”, with only gradual improvement in 2028.

That is a pricing regime. The contract book converts it into visible revenue.

Market Reaction Over the past week, the stock is up 2.01%, over the past month up 12.54%, and year to date up 242.67%. One-year performance is 599.28%.

The post-earnings reversal after fiscal Q3 was severe. The day-of move was +15.74%, but the one-week change was -19.61% and the thirty-day change was -32.39%. Over the same thirty days, SPY returned 0.89%, and Invesco QQQ Trust (NYSEARCA:QQQ) returned -5.71%.

All 8 recorded earnings periods in the reaction history were beats, with an average one-week change of -3.44%. The Q3 26 one-week and thirty-day drawdowns are the largest in that record.

An Intel (NASDAQ:INTC)-backed start-up entering the memory-chip market also added a competitive overhang to the session.

Bull Case Hear the bear case first, because it has teeth. Memory has always been cyclical; the supply that cures a shortage is usually already being built, and the ten-year Treasury sits at 4.83%, the high of the supplied one-year series.

WTI crude is at $100 a barrel as of this writing, keeping the rate-shock scenario alive for growth semis. A stock up 242.67% year to date has priced in a great deal of good news.

The bull case still wins on the evidence. Q4 guidance of $50 billion in revenue at an 86% gross margin describes a business selling into a worsening shortage while locking customers into multi-year minimums. Forward PE sits at 6x against a trailing PE of 23x, with an analyst target price of $1,513.11 and 9 strong buys plus 35 buys versus 4 holds and 0 sells.

Bottom Line The Chinese HBM price signal, the Q4 guide and the contract book all point in the same direction, even as the stock moves the other way. If you own Micron for the AI memory cycle, this session is noise against a lengthening shortage (the power, cooling, and networking suppliers riding the same buildout are the subject of a free report we put together here).

The forward catalyst worth watching is capital returns. Management said it intends to increase them from December 9, 2026, the second anniversary of the definitive CHIPS agreements, and said that “over time, we expect to return 100% of our excess cash to shareholders”.

A trillion-dollar memory maker selling into a shortage it cannot fully supply is a rare setup. The market gave a cheaper entry into an intact thesis.

Is MU Stock a Buy? Micron looks attractive for long-term holders who can tolerate the volatility. The valuation looks demanding on trailing metrics and cheap on forward earnings; the shortage is intensifying, and the Strategic Customer Agreements give the next several years unusual revenue visibility for a memory maker.

SK Hynix (NASDAQ:SKHY) and Samsung compete for the same HBM demand, but the three-supplier structure benefits Micron directly, and it remains the only U.S.-based memory manufacturer. The real risk is macro. If the ten-year keeps climbing from 4.83% and WTI stays above $90, multiples in growth semis will compress regardless of fundamentals.

On balance, the fundamentals outweigh the macro overhang, and the stock has already done part of the work of resetting the entry. Verdict: Buy.

Contact [email protected] for any questions or corrections.

AXQ Capital LP cut its stake in Micron Technology, Inc. (NASDAQ:MU – Free Report) by 66.1% during the 2nd quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The firm owned 3,006 shares of the semiconductor manufacturer’s stock after selling 5,849 shares during the quarter. AXQ Capital LP’s holdings in Micron Technology were worth $3,470,000 at the end of the most recent quarter.

A number of other hedge funds and other institutional investors also recently modified their holdings of the stock. JNBA Financial Advisors boosted its stake in shares of Micron Technology by 77.3% in the second quarter. JNBA Financial Advisors now owns 39 shares of the semiconductor manufacturer’s stock valued at $45,000 after purchasing an additional 17 shares during the period. Ramsey Quantitative Systems purchased a new stake in Micron Technology during the 2nd quarter worth $46,000. RHL Group LLC purchased a new stake in Micron Technology during the 2nd quarter worth $47,000. Philadelphia Investment Partners LLC acquired a new position in Micron Technology in the 2nd quarter worth $54,000. Finally, Signature Resources Capital Management LLC lifted its holdings in Micron Technology by 1,125.0% in the 2nd quarter. Signature Resources Capital Management LLC now owns 49 shares of the semiconductor manufacturer’s stock worth $57,000 after buying an additional 45 shares in the last quarter. Institutional investors and hedge funds own 80.84% of the company’s stock.

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

Positive Sentiment: Micron has reportedly signed multiyear strategic customer agreements covering approximately $22 billion in memory supply through 2030, including guaranteed floor prices. The contracts could improve revenue visibility and reduce the impact of the traditional memory-chip cycle. Micron: The Show Goes On Positive Sentiment: AI data-center demand continues to strain DRAM and high-bandwidth memory supplies. Micron is reportedly only 1.6 percentage points behind the No. 2 DRAM supplier after narrowing a 6.4-point gap in one quarter, suggesting potential market-share gains. Micron Is 1.6 Points From Taking the No. 2 Spot in DRAM Positive Sentiment: Recent results were exceptionally strong: quarterly revenue rose 345.8% year over year to $41.46 billion, while earnings exceeded analyst estimates. Analysts remain focused on whether elevated memory pricing and AI demand can support another leg higher. Micron’s Earnings Could Be a Catalyst for AI Neutral Sentiment: Investors are looking ahead to Micron’s September 30 earnings report for evidence that margins, memory prices and demand remain durable after the stock’s major AI-driven rally. A bullish outlook points to multiyear supply shortages, while historical memory cycles remain a concern. Micron’s Boom-and-Bust Risk Negative Sentiment: Thursday’s decline reflected a wider memory-stock selloff as rising oil prices increased inflation and interest-rate concerns, pressuring high-beta technology shares. Why Memory Stocks Are Falling Negative Sentiment: Valuation concerns have intensified after MU’s 662% one-year rally. Critics argue much of the AI upside is already reflected in the stock, while dependence on a major customer and the possibility of renewed memory oversupply create downside risk. Micron’s Rally Created a Problem Wall Street Cannot Ignore Negative Sentiment: Intel-backed startup Kepler Computing is targeting the memory-chip market, raising longer-term competitive concerns. Investors are also questioning whether China’s AI-chip development could eventually weaken Micron’s pricing power. Intel-Backed Startup Takes Aim at Memory Micron Technology Price Performance Shares of MU stock opened at $977.41 on Friday. The firm has a fifty day moving average of $929.44 and a two-hundred day moving average of $753.37. The firm has a market cap of $1.10 trillion, a P/E ratio of 22.13, a P/E/G ratio of 0.65 and a beta of 2.22. Micron Technology, Inc. has a 1-year low of $147.61 and a 1-year 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 issued its quarterly earnings results on Wednesday, June 24th. The semiconductor manufacturer reported $25.11 EPS for the quarter, topping the consensus estimate of $21.39 by $3.72. Micron Technology had a net margin of 55.91% and a return on equity of 71.13%. The business had revenue of $41.46 billion for the quarter, compared to analysts’ expectations of $35.91 billion. During the same quarter last year, the company posted $1.91 earnings per share. The company’s 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. As a group, research analysts anticipate 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. Stockholders of record on Monday, July 6th were issued a $0.15 dividend. This represents a $0.60 dividend on an annualized basis and a dividend yield of 0.1%. The ex-dividend date was Monday, July 6th. Micron Technology’s payout ratio is 1.36%.

Insiders Place Their Bets In related news, CEO Sanjay Mehrotra sold 40,000 shares of the company’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 sale, 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. The transaction was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Also, Director Lynn Dugle sold 1,300 shares of the firm’s stock in a transaction on Tuesday, June 30th. The stock was sold at an average price of $1,150.43, for a total value of $1,495,559.00. Following the transaction, the director owned 17,728 shares in the company, valued at $20,394,823.04. This trade represents a 6.83% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last ninety days, insiders sold 177,204 shares of company stock worth $182,156,264. Corporate insiders own 0.24% of the company’s stock.

Wall Street Analysts Forecast Growth Several brokerages have recently weighed in on MU. Wolfe Research set a $1,500.00 target price on Micron Technology in a research note on Thursday, June 25th. Cantor Fitzgerald reiterated an “overweight” rating and issued a $1,500.00 price target on shares of Micron Technology in a research note on Thursday, June 25th. Mizuho cut their price target on Micron Technology from $1,375.00 to $1,300.00 and set an “outperform” rating on the stock in a research note on Tuesday, August 25th. Barclays increased their price target on Micron Technology from $1,175.00 to $2,000.00 and gave the company an “overweight” rating in a report on Thursday, June 25th. Finally, DA Davidson raised their price objective on Micron Technology from $1,500.00 to $2,000.00 and gave the company a “buy” rating in a research note on Thursday, June 25th. 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. Based on data from MarketBeat, the stock presently has a consensus rating of “Buy” and a consensus price target of $1,295.63.

Get Our Latest Stock Analysis on Micron Technology

Micron Technology Profile (Free Report)

Micron Technology, Inc is a global semiconductor company that designs, develops, manufactures and sells memory and storage solutions. Its product portfolio includes dynamic random-access memory (DRAM), NAND flash memory, NOR flash memory, solid-state drives, memory modules and high-bandwidth memory used in data-intensive computing applications.

Micron’s products support a range of markets, including data centers, artificial intelligence and high-performance computing, personal computers, smartphones, automotive systems, industrial equipment and networking devices.

See Also Five stocks we like better than Micron Technology AeroVironment’s Record Backlog and Earnings Beat Fuel Recovery Case Corning Just Locked In a Massive Verizon Fiber Deal as AI Infrastructure Expands 3 Under-$20 Stocks Tied to the Future of U.S. Energy and Materials Uncle Sam’s Quantum Leap: Feds Fund a $300M Quantum Supercycle 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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When it comes to artificial intelligence (AI), two names seem to get more airtime than their peers: Nvidia (NVDA -2.29%) and Palantir Technologies (PLTR -2.18%). Over the current earnings season, investors have already gotten thorough downloads on how Nvidia and Palantir are performing. Spoiler alert: They both look unstoppable.

However, the company I think sits at the tightest choke-point in the entire AI infrastructure build-out is Micron Technology (MU -4.33%). The memory shortage has become the bottleneck that tech sector CEOs are talking about out loud. While Micron won't report its results till the end of the month, Nvidia and Palantir have already signaled the cycle is running in its favor.

Image source: Micron Technology.

Nvidia and Palantir confirmed the AI build-out continues Nvidia's latest earnings report was the kind of print that resets conversations. Total revenue was $96.2 billion, more than double what it took in during the year-ago quarter. Data center sales reached $89 billion, up 117% year over year. Naturally, hyperscalers still matter a lot to Nvidia's data center segment. Big tech customers comprised $48.7 billion of the company's data center sales. The faster-growing slice, however, was its  "ACIE group" -- AI clouds, industrial customers, and enterprises. This market segment generated $40.3 billion in revenue, up 138% year over year and 25% from the prior quarter.

Palantir is achieving in software what Nvidia is in hardware. During the second quarter, its revenue surged 93% year over year to $1.9 billion. Sales from the U.S. commercial segment jumped 149% year over year to $764 million. Given this momentum, management raised full-year revenue guidance to a little over $8.2 billion, implying 82% growth.

Palantir's Artificial Intelligence Platform (AIP) is not a pilot project anymore. Fortune 500 companies are embedding Palantir's platforms -- Foundry, Gotham, and Apollo -- into their daily operations, and the company's bookings suggest its sales acceleration will continue.

These two reports were not isolated. Nvidia and Palantir are proving that both the hardware layer and the software layer of the AI revolution are still expanding at paces that most on Wall Street would have called unsustainable even just two years ago.

Upstream dollars are now flowing downstream The growth displayed by Nvidia and Palantir is excellent news for Micron because the AI stack is vertical. You can't sell more data center GPUs or more enterprise software platforms without putting a lot more high bandwidth memory (HBM) into the equation. Nvidia itself has made this abundantly clear. Last quarter, the company boosted its supply and capacity commitments through its fiscal 2032 by $160 billion to a total of $279 billion, with management saying the bulk of those commitments are for memory purchases.

Hyperscalers and AI-cloud operators continue to place enormous orders for Nvidia's GPUs. Software companies like Palantir then sell platforms and services that make these GPUs useful within production environments. The subtle beneficiary here is Micron, because every extra new accelerator installed and every AI deployment needs incremental stacks of HBM.

Micron is one of only three companies that can deliver these key types of memory at scale. DRAM pricing has soared because AI data centers are gobbling up a huge portion of available production. This shows how upstream success does not stay upstream. Downstream in the AI value chain, it manifests as tighter supply and better pricing for component makers like Micron.

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The market could recalibrate its view of Micron on Sept. 30 Micron reports its fiscal 2026 fourth-quarter results after the closing bell on Sept. 30. The consensus estimates among Wall Street analysts are that it will report $50.8 billion in revenue and about $31.28 in earnings per share (EPS). The reason Micron could actually beat these forecasts is that pricing and product mix keep moving in its favor. Next-generation HBM4 is ramping up for the next wave of Nvidia systems, while conventional DRAM supply remains tight.

To me, Micron's valuation story is a curiosity. On a trailing-12-month basis, Micron stock may look expensive because its earnings explosion is still catching up to the stock price. On a forward price-to-earnings (P/E) basis, however, Micron is trading more like a cyclical industrial stock as opposed to a company positioned in the middle of a multiyear infrastructure boom.

MU PE Ratio data by YCharts.

Nvidia and Palantir are already priced like true AI winners -- deservedly so. On a forward earnings basis, Micron remains priced like a commoditized memory producer that investors expect to eventually repeat its familiar boom-and-bust cycle. Yet memory is now a scarce resource, and every GPU produced and every enterprise AI system deployed needs it to function. If Micron merely delivers what Wall Street expects and then confirms that demand remains robust, its valuation multiple has significant room to expand alongside its still-rising earnings. That is why, in this particular month, Micron looks like the most important AI infrastructure stock.