Mac and iPad prices just jumped 20% because of a memory shortage, and someone in the supply chain is pocketing enormous profits. Tracing the money reveals a winner most Apple investors are not watching.
On Tim Cook’s last day as chief executive of Apple, CNBC’s MacKenzie Sigalos reported Mac and iPad prices are already up 20%, and the company is signaling that iPhone increases are next. The reason, in Cook’s own words from the July earnings call, is a “100-year flood on the memory pricing with exponential increases in memory prices.” Apple’s September 9 launch event is days away, with a foldable iPhone expected to debut at Apple Park on September 4 during John Ternus’s first week in the top job.
So who is getting rich off the shortage that just made a MacBook cost hundreds of dollars more? Look one link up the supply chain, at the memory suppliers.
Memory Is Where the Money Went Micron Technology (NASDAQ:MU | MU Price Prediction), the only U.S.-based memory maker, has become the clearest financial beneficiary of the AI-driven DRAM squeeze now showing up on Apple’s price tags. Shares closed at $932.86 on August 28 and traded near $940 on Monday, leaving the stock up 227% year to date and 666% over the past twelve months. Apple (NASDAQ:AAPL), by contrast, is up 17.9% year to date and down 5.4% over the past month, closing Monday near $315. One company is passing costs through. The other is collecting them.
Micron’s June-quarter results show the mechanics. Revenue reached $41.46 billion, up 345.7% from a year earlier, with GAAP gross margin expanding to 84.6% from 37.7%. DRAM prices rose in the low 60s percentage range sequentially; NAND prices rose in the mid-80s. Guidance for the current quarter calls for revenue of $50 billion, plus or minus $1 billion, at roughly 86% gross margin. CEO Sanjay Mehrotra told analysts the tightness is structural: “We expect tight conditions to persist beyond calendar 2027 as a result of AI-driven demand across all segments coupled with structural supply constraints.”
To lock that in, Micron has signed 16 Strategic Customer Agreements, mostly five-year take-or-pay contracts covering roughly 20% of DRAM and a third of NAND volume, with minimum committed revenue of about $100 billion and $22 billion in customer cash deposits and letters of credit. Mehrotra told UBS that “at the floor price that our profitability levels at the gross margins and the floor prices are higher than peak margins at any time in the past.” A 666% twelve-month run on a memory maker is the kind of setup we reverse-engineered from past monster tech winners in a free playbook you can grab here.
Why Apple Blinked Cook explained the pricing decision in July: “On the pricing front, we reluctantly raised prices.” He noted that the DRAM market has three suppliers, that September-quarter memory costs would be higher still, and that supply constraints would affect iPhone, Mac, and iPad. CFO Kevan Parekh told analysts that “more than 100% of” the sequential margin move was explained by memory costs. Apple’s guided September-quarter gross margin of 47% to 48% includes only about one percentage point of tariff-refund benefit, down from two in June.
Jim Cramer’s counterweight, delivered on Mad Money in July, is worth noting: “You should own Apple and Nvidia, not trade them,” arguing Apple’s brand lets it pass memory costs through. That is the bull case. The bear case is that the pass-through is already tested, and consumers have not yet felt it on the iPhone.
What Ternus Inherits and What to Watch Ternus takes the desk with a $4.6 trillion market cap, a decelerating services segment pressured by App Store rulings, and a bill of materials that Micron intends to keep expensive through 2027. Key signals come fast: Apple’s September 9 event and whether iPhone pricing formally moves; the company’s next earnings call and gross-margin commentary against the 47% to 48% guide; and Micron’s fiscal Q4 print against the $50 billion revenue and 86% margin outlook. If Micron delivers and Apple’s margin holds, Cramer wins the argument. If margin slips and iPhone units soften on a higher shelf price, the AI memory trade will have quietly rewired who captures the profit in a MacBook.
Data Sources CNBC: John Ternus takes over as Apple CEO: source for the 20% price hike on Mac and iPad, the iPhone signaling, and the CEO transition context. Contact [email protected] for any questions or corrections.
China’s memory-chip ambitions are moving into the heart of the artificial-intelligence supply chain. CXMT has begun producing small quantities of HBM3E, an advanced high-bandwidth memory used in AI chipsets, according to Reuters.
The company plans to expand production in 2027, while Chinese chip designers including Alibaba Group Holding Ltd’s (NYSE:BABA) T-Head and Cambricon are testing the memory with their processors.
The development could reshape the competitive landscape for Micron Technology Inc (NASDAQ:MU), SK Hynix Inc (NASDAQ:SKHY) and Samsung, while creating new opportunities across a growing group of ETFs targeting the global memory boom.
• Where are DRAM shares going?
CXMT Is Moving Beyond Conventional DRAMCXMT is already the world’s fourth-largest DRAM producer, with roughly 7% of global DRAM market share, according to Counterpoint research. Its first-half 2026 revenue jumped 874%, underscoring how rapidly the company has scaled alongside the global memory shortage.
Its move into HBM3E is potentially more important. HBM is the stacked DRAM technology that sits alongside AI accelerators and enables them to process massive volumes of data. The market is currently dominated by Samsung, SK Hynix and Micron.
CXMT’s current HBM production is small, so it is not yet a peer competitor to those companies. But plans to scale in 2027 and testing by Chinese chip designers suggest Beijing wants a domestic memory supply chain capable of supporting its growing AI ecosystem.
Four ETFs, Four Ways to Play the Memory BoomFor investors, the development extends beyond one ETF.
Roundhill Memory ETF (BATS:DRAM) is the most direct memory-producer play. It owns global companies involved in HBM, DRAM, NAND and storage, including Micron, Samsung and SK Hynix, while also gaining economic exposure to CXMT. While Micron, Samsung and SK Hynix hold about 72% of the portfolio, cumulatively, CXMT is also a part of the holdings, with almost 5% weightage.
Tuttle Capital Concentrated Memory Stack ETF (BATS:HBMX) takes a broader approach. At least 80% of assets must be invested in memory-stack companies, with exposure spanning memory manufacturers, advanced packaging, substrates, testing and equipment. The fund recently added CXMT exposure through a total return swap.
Tema Memory ETF (NYSE:DISK) may offer the most direct CXMT angle. It established a 10.56% position in CXMT when the Chinese company went public in July. CXMT currently accounts for 7.6% of DISK, alongside SK Hynix, SanDisk Corp (NASDAQ:SNDK) and Micron.
Then there is KraneShares China Technology & Semiconductor STAR Market 50 ETF (NYSE:KSTR). Unlike the pure-play memory funds, KSTR provides broader exposure to China’s semiconductor ecosystem. But CXMT has become a direct holding following its STAR Market debut, making KSTR another way for investors to participate in China’s domestic memory push.
The Bigger Opportunity Is the Memory BottleneckThe investment case is therefore bigger than just Micron versus CXMT.
AI models need increasingly powerful processors, but those processors also need enormous amounts of high-speed memory. As HBM, DRAM and NAND demand rises, companies supplying the memory, and the equipment and infrastructure needed to manufacture it, stand to benefit.
CXMT’s HBM3E breakthrough just adds another layer to that story. The global AI race is becoming a memory race, and investors now have several ETFs offering different ways to capture it.
SummaryMicron Technology, Inc. earns a Buy rating as hyperscalers front billions via SCAs, locking in capacity and insulating FCF from cyclical downturns.MU's shift to a quasi-SaaS toll-collector model, driven by agentic AI KV-cache demands and HBM wafer trade ratios, supports sustained high margins.Material risks include CXMT-driven supply shocks, algorithmic memory deflation, and hardware substitution that could compress multiples and margins post-2027.I will closely monitor MU's SCA cash growth, gross margin stability, HBM4E vendor lock-ins, buyback program signals, and data center storage revenue trends after Q4. knowlesgallery/iStock Editorial via Getty Images
For Micron Technology, Inc. (MU) stock, the phrase "hyperscalers bought the fab, bears bought fairy tales" points to a major problem on the bearish side. Bears who are betting that cyclical history may repeat, on the assumption of margin
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The stock remains above long-term support, but weakening momentum raises the risk of another failed breakout. Summary
Micron is trading below key resistance at $970.85A confirmed breakout could target roughly $1,057
Memory-chip maker Micron Technology Inc. (MU,Financials) is trading below a crucial technical mark that could signal if its current surge has further room to run. Shares traded between $937 and $943, keeping the price below resistance at $970.85.
That level has already knocked the stock back multiple times, so for traders awaiting the next wave higher, another breakout attempt is key.
Micron is above its 200-period simple moving average at $880.28 and the SuperTrend support is at $907.38. Those levels maintain the big picture positive. But momentum is less persuasive.
The MACD is losing steam, and an ADX value of nearly 17 shows traders are not yet heavily weighted one way or the other. The stock is also battling in a high volume zone between around $930 and $960 where the fight between buyers and sellers is tight.
A daily close over $970.85 would allow for an initial objective near $1,056.66 and then higher technical targets at about $1,143 and $1,254. The primary risk is a false breakout.
Investors will be looking to see if Micron can break above $970.85 with more volume and momentum, rather than just temporarily trading above the barrier level before retreating.
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.
Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.
Micron Technology MU shares rose 1.6% on Monday as investors continued to assess whether structural changes in the memory market could reduce the company's historically high earnings volatility.
Micron shares have more than tripled this year but trade at just above six times forward earnings.
That makes the stock one of the cheapest in the S&P 500, with only Charter Communications and General Motors trading at lower multiples, according to a CNBC report.
The discount has historically reflected the cyclical nature of the memory industry.
When supply is tight, memory prices and semiconductor profits can rise sharply. But higher prices typically encourage additional capacity, eventually putting pressure on pricing and earnings.
The current cycle, however, could be different as artificial intelligence drives demand for high-bandwidth memory (HBM) used in AI systems.
Nvidia's latest earnings highlighted the current pricing environment.
Nvidia CFO Colette Kress told analysts that the company was experiencing "extreme pricing conditions in memory" as component costs increased significantly.
Micron is one of three major suppliers of HBM for AI systems, potentially positioning it to benefit from elevated memory demand and pricing.
Despite that backdrop, Micron's shares initially gained about 3% following Nvidia's results before reversing and closing lower that session.
D.A. Davidson analyst Gil Luria attributed part of the move to a broader trading unwind involving semiconductor and software positions.
The reaction illustrates the debate surrounding Micron: investors must determine whether current earnings represent another peak in a traditional memory cycle or reflect a more durable change in the industry's economics.
Additional memory capacity is expected to come online, including increased competition from China.
That could eventually put pressure on prices. However, Micron has also entered long-term customer agreements that could change the company's exposure to future cycles.
Micron's newer agreements include binding volume commitments, take-or-pay provisions and, in many cases, price floors.
The contracts generally extend through 2030, and Micron has said that once planned agreements are completed, roughly half or more of its revenue should be covered.
These arrangements can limit Micron's ability to capture the full upside when memory prices surge. But they could also provide protection when the cycle turns downward.
For contracts containing price bands, management has said minimum prices would imply gross margins "well above" Micron's peak quarterly margins in previous memory cycles.
That creates a potential shift in how investors assess the stock. Rather than maximizing earnings during periods of extreme shortages, Micron may be exchanging some peak-cycle upside for greater earnings visibility.
The company remains exposed to market prices, and the memory industry is still cyclical.
Contracts can eventually reset, additional supply will enter the market and the long-term strength of AI demand remains uncertain.
The key question is whether those risks are now sufficiently lower to justify a higher valuation multiple.
Mizuho lowered its Micron price target to $1,300 from $1,375, citing multiple compression across the semiconductor sector.
Despite the lower target, Mizuho maintained a bullish fundamental view, noting that "aggregate DRAM demand continues to grow" and that market de-specification was a response to "tight DRAM supply."
Mizuho also maintained an Outperform rating on SanDisk (SNDK), lowering its price target to $1,875 from $1,900. The firm expects SanDisk's earnings per share to increase fivefold between fiscal 2026 and 2028.
Mizuho further estimated that SanDisk could potentially use $30 billion to $50 billion of aggregate free cash flow between 2027 and 2028 to repurchase 25% to 30% of the company.
CM Wealth Advisors LLC bought a new stake in Micron Technology, Inc. (NASDAQ:MU – Free Report) during the second quarter, according to its most recent filing with the SEC. The firm bought 742 shares of the semiconductor manufacturer’s stock, valued at approximately $856,000.
Other institutional investors have also recently bought and sold shares of the company. Brighton Jones LLC raised its stake in Micron Technology by 18.3% during the 4th quarter. Brighton Jones LLC now owns 6,318 shares of the semiconductor manufacturer’s stock valued at $532,000 after purchasing an additional 976 shares during the last quarter. Sivia Capital Partners LLC raised its position in Micron Technology by 21.7% in the 2nd 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 last quarter. United Bank acquired a new position in Micron Technology during the 2nd quarter worth about $236,000. Schnieders Capital Management LLC. grew its holdings in Micron Technology by 67.9% during the 2nd quarter. Schnieders Capital Management LLC. now owns 16,984 shares of the semiconductor manufacturer’s stock worth $2,093,000 after acquiring an additional 6,867 shares during the last quarter. Finally, Sei Investments Co. increased its position in Micron Technology by 5.6% in the 2nd quarter. Sei Investments Co. now owns 405,545 shares of the semiconductor manufacturer’s stock valued at $49,987,000 after acquiring an additional 21,619 shares in the last quarter. Institutional investors own 80.84% of the company’s stock.
Micron Technology Stock Performance NASDAQ MU opened at $932.86 on Monday. The company has a current ratio of 3.42, a quick ratio of 2.98 and a debt-to-equity ratio of 0.05. Micron Technology, Inc. has a 1 year low of $114.25 and a 1 year high of $1,255.00. The firm has a market capitalization of $1.05 trillion, a price-to-earnings ratio of 21.12 and a beta of 2.18. The firm’s 50 day simple moving average is $951.63 and its 200 day simple moving average is $717.04.
Micron Technology (NASDAQ:MU – Get Free Report) last released its quarterly earnings data on Wednesday, June 24th. The semiconductor manufacturer reported $25.11 earnings per share for the quarter, beating the consensus estimate of $21.39 by $3.72. Micron Technology had a return on equity of 71.13% and a net margin of 55.91%.The business had revenue of $41.46 billion for the quarter, compared to analyst estimates of $35.91 billion. During the same period last year, the firm posted $1.91 earnings per share. Micron Technology’s revenue was up 345.8% compared to the same quarter last year. Micron Technology has set its Q4 2026 guidance at 30.000-32.000 EPS. As a group, research analysts expect that Micron Technology, Inc. will post 72.93 earnings per share for the current fiscal year. Micron Technology Dividend Announcement The firm also recently declared a quarterly dividend, which was paid on Tuesday, July 21st. Stockholders 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 dividend yield of 0.1%. Micron Technology’s dividend payout ratio (DPR) is presently 1.36%.
Insider Activity In other Micron Technology news, EVP April S. Arnzen sold 40,000 shares of the company’s stock in a transaction dated Wednesday, July 1st. The stock was sold at an average price of $1,083.94, for a total value of $43,357,600.00. Following the sale, the executive vice president owned 85,737 shares in the company, valued at approximately $92,933,763.78. The trade was a 31.81% decrease in their position. The transaction was disclosed in a filing with the SEC, which is accessible through this link. Also, EVP Sumit Sadana sold 15,000 shares of the company’s stock in a transaction that occurred on Tuesday, August 18th. The shares were sold at an average price of $934.29, for a total value of $14,014,350.00. Following the completion of the sale, the executive vice president owned 191,021 shares in the company, valued at $178,469,010.09. The trade was a 7.28% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last three months, insiders sold 177,204 shares of company stock worth $182,156,264. 0.24% of the stock is owned by corporate insiders.
Micron Technology News Summary Here are the key news stories impacting Micron Technology this week:
Positive Sentiment: AI demand is tightening memory supply. CEO Sanjay Mehrotra said data-center customers want roughly 50% more memory than Micron can currently supply, while Nvidia identified memory availability as a key constraint on AI-system growth. That supports Micron’s pricing power and demand visibility. Micron CEO AI Shift Breaks Traditional Memory Market Cycles Positive Sentiment: Nvidia’s purchasing commitments reinforce the bullish outlook. Nvidia reportedly more than doubled memory-related supplier commitments to $279 billion, potentially benefiting Micron as a major supplier. Micron also has approximately $22 billion in strategic commitments, including contracts extending through 2030. Nvidia Just Validated Micron’s Biggest AI Bull Case Positive Sentiment: Expansion plans strengthen Micron’s long-term positioning. The company is investing $10 billion in U.S. research labs, launching a $250 million venture fund and expanding its workforce-training infrastructure. President Donald Trump’s praise of Micron as one of the world’s “hottest” companies adds political visibility to the investment. Why Micron Stock Didn’t Get a Leg Up From SK Hynix’s Memory Optimism Neutral Sentiment: Analysts and bullish commentators point to surging DRAM and NAND prices, record margins and the possibility that AI demand has made memory cycles less volatile. However, much of this optimism may already be reflected in Micron’s substantial previous gains. Negative Sentiment: Profit-taking and valuation concerns are weighing on the shares. Micron has rallied sharply, encouraging investors to lock in gains even after favorable Nvidia news. A softer technology-market backdrop and concerns about potential U.S. chip tariffs are adding pressure. Why Is Micron Stock Falling Negative Sentiment: Investors remain concerned that the memory supercycle will eventually become cyclical. Increased industry capacity or new competitors could eventually reduce pricing and margins, while current supply shortages may constrain Nvidia’s shipments in the near term. Micron Stock Has Surged 220 Percent Analyst Ratings Changes Several analysts have recently commented on the stock. DA Davidson increased their price target on shares of 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. Citigroup reduced their target price on Micron Technology from $1,400.00 to $1,150.00 and set a “buy” rating on the stock in a report on Friday, August 7th. Morgan Stanley upped their price target on shares of Micron Technology from $1,050.00 to $1,200.00 and gave the company an “overweight” rating in a report on Thursday, June 25th. Wells Fargo & Company lifted 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 note on Thursday, June 25th. Finally, Sanford C. Bernstein set a $1,300.00 target price on shares of Micron Technology in a report on Monday, June 22nd. Four investment 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. According to MarketBeat, Micron Technology presently has an average rating of “Buy” and a consensus target price of $1,295.63.
Read Our Latest Analysis on MU
Micron Technology Profile (Free Report)
Micron Technology, Inc is a global semiconductor company that designs and manufactures memory and storage solutions. Its product portfolio includes dynamic random-access memory (DRAM), NAND flash memory, solid-state drives (SSDs), memory modules and embedded memory solutions for a wide range of computing and electronic devices. Micron supplies components used in data centers, enterprise and cloud infrastructure, client computing, mobile devices, automotive systems and industrial applications, and also markets consumer-facing products under the Crucial brand.
Founded in 1978 and headquartered in Boise, Idaho, Micron has grown into an international manufacturer with research, development and production facilities across multiple regions.
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Empirical Asset Management LLC bought a new stake in Micron Technology, Inc. (NASDAQ:MU – Free Report) in the second quarter, according to its most recent disclosure with the Securities & Exchange Commission. The firm bought 6,072 shares of the semiconductor manufacturer’s stock, valued at approximately $7,009,000. Micron Technology makes up approximately 1.6% of Empirical Asset Management LLC’s holdings, making the stock its 8th largest holding.
A number of other hedge funds have also made changes to their positions in MU. Catalyst Investment Management LLC purchased a new position in Micron Technology during the 2nd quarter valued at about $246,000. Sound Financial Strategies Group LLC acquired a new position in Micron Technology in the 2nd quarter valued at $406,000. Chancellor Financial Group WB LP acquired a new position in Micron Technology in the second quarter valued at $342,000. Great Lakes Advisors LLC acquired a new stake in Micron Technology in the 2nd quarter worth about $11,184,000. Finally, Comprehensive Financial Planning Inc. PA grew its holdings in Micron Technology by 40.1% in the 2nd quarter. Comprehensive Financial Planning Inc. PA now owns 6,416 shares of the semiconductor manufacturer’s stock valued at $7,406,000 after buying an additional 1,835 shares during the period. Hedge funds and other institutional investors own 80.84% of the company’s stock.
Insider Activity In other Micron Technology news, EVP Sumit Sadana sold 15,000 shares of the 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 completion of the transaction, the executive vice president 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 legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, CAO Scott R. Allen sold 879 shares of the stock in a transaction that occurred 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 $34,958,000. This trade represents a 2.45% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold a total of 177,204 shares of company stock worth $182,156,264 in the last ninety days. 0.24% of the stock is currently owned by company insiders.
Wall Street Analyst Weigh In Several research analysts have recently weighed in on the stock. DA Davidson increased their price objective on shares of Micron Technology from $1,500.00 to $2,000.00 and gave the stock a “buy” rating in a report on Thursday, June 25th. TD Cowen restated a “buy” rating on shares of Micron Technology in a report on Friday, July 10th. Morgan Stanley upped their price target on shares of Micron Technology from $1,050.00 to $1,200.00 and gave the stock an “overweight” rating in a research report on Thursday, June 25th. The Goldman Sachs Group increased their price target on shares of Micron Technology from $900.00 to $1,100.00 and gave the stock a “neutral” rating in a research note on Thursday, June 25th. Finally, Mizuho decreased their price target on shares of Micron Technology from $1,375.00 to $1,300.00 and set an “outperform” rating on the stock in a report on Tuesday, August 25th. Four analysts have rated the stock with a Strong Buy rating, thirty-one have given a Buy rating and three have issued a Hold rating to the stock. According to data from MarketBeat, the company has an average rating of “Buy” and an average price target of $1,295.63. Read Our Latest Analysis on Micron Technology
Micron Technology Price Performance Shares of NASDAQ MU opened at $932.86 on Monday. The stock has a fifty day moving average price of $951.63 and a 200 day moving average price of $717.04. The company has a current ratio of 3.42, a quick ratio of 2.98 and a debt-to-equity ratio of 0.05. Micron Technology, Inc. has a 12-month low of $114.25 and a 12-month high of $1,255.00. The company has a market cap of $1.05 trillion, a P/E ratio of 21.12 and a beta of 2.18.
Micron Technology (NASDAQ:MU – Get Free Report) last issued its quarterly earnings data on Wednesday, June 24th. The semiconductor manufacturer reported $25.11 EPS for the quarter, topping analysts’ consensus estimates of $21.39 by $3.72. Micron Technology had a return on equity of 71.13% and a net margin of 55.91%.The company had revenue of $41.46 billion for the quarter, compared to analysts’ expectations of $35.91 billion. During the same quarter in the previous year, the firm posted $1.91 earnings per share. The firm’s quarterly revenue was up 345.8% on a year-over-year basis. 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 fiscal year.
Micron Technology Dividend Announcement The business also recently declared a quarterly dividend, which was paid on Tuesday, July 21st. Investors of record on Monday, July 6th were given a 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 1.36%.
Key Stories Impacting Micron Technology Here are the key news stories impacting Micron Technology this week:
Positive Sentiment: AI demand is tightening memory supply. CEO Sanjay Mehrotra said data-center customers want roughly 50% more memory than Micron can currently supply, while Nvidia identified memory availability as a key constraint on AI-system growth. That supports Micron’s pricing power and demand visibility. Micron CEO AI Shift Breaks Traditional Memory Market Cycles Positive Sentiment: Nvidia’s purchasing commitments reinforce the bullish outlook. Nvidia reportedly more than doubled memory-related supplier commitments to $279 billion, potentially benefiting Micron as a major supplier. Micron also has approximately $22 billion in strategic commitments, including contracts extending through 2030. Nvidia Just Validated Micron’s Biggest AI Bull Case Positive Sentiment: Expansion plans strengthen Micron’s long-term positioning. The company is investing $10 billion in U.S. research labs, launching a $250 million venture fund and expanding its workforce-training infrastructure. President Donald Trump’s praise of Micron as one of the world’s “hottest” companies adds political visibility to the investment. Why Micron Stock Didn’t Get a Leg Up From SK Hynix’s Memory Optimism Neutral Sentiment: Analysts and bullish commentators point to surging DRAM and NAND prices, record margins and the possibility that AI demand has made memory cycles less volatile. However, much of this optimism may already be reflected in Micron’s substantial previous gains. Negative Sentiment: Profit-taking and valuation concerns are weighing on the shares. Micron has rallied sharply, encouraging investors to lock in gains even after favorable Nvidia news. A softer technology-market backdrop and concerns about potential U.S. chip tariffs are adding pressure. Why Is Micron Stock Falling Negative Sentiment: Investors remain concerned that the memory supercycle will eventually become cyclical. Increased industry capacity or new competitors could eventually reduce pricing and margins, while current supply shortages may constrain Nvidia’s shipments in the near term. Micron Stock Has Surged 220 Percent Micron Technology Company Profile (Free Report)
Micron Technology, Inc is a global semiconductor company that designs and manufactures memory and storage solutions. Its product portfolio includes dynamic random-access memory (DRAM), NAND flash memory, solid-state drives (SSDs), memory modules and embedded memory solutions for a wide range of computing and electronic devices. Micron supplies components used in data centers, enterprise and cloud infrastructure, client computing, mobile devices, automotive systems and industrial applications, and also markets consumer-facing products under the Crucial brand.
Founded in 1978 and headquartered in Boise, Idaho, Micron has grown into an international manufacturer with research, development and production facilities across multiple regions.
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E Fund Management Co. Ltd. bought a new stake in shares of Micron Technology, Inc. (NASDAQ:MU – Free Report) in the 2nd quarter, according to the company in its most recent filing with the SEC. The fund bought 118,220 shares of the semiconductor manufacturer’s stock, valued at approximately $136,460,000. Micron Technology comprises approximately 3.1% of E Fund Management Co. Ltd.’s portfolio, making the stock its 11th largest holding.
A number of other large investors also recently made changes to their positions in MU. M.E. Allison & CO. Inc. increased its holdings in Micron Technology by 0.8% in the second quarter. M.E. Allison & CO. Inc. now owns 1,324 shares of the semiconductor manufacturer’s stock valued at $1,528,000 after purchasing an additional 11 shares during the last quarter. Cherrydale Wealth Management LLC lifted its stake in Micron Technology by 1.4% in the second 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 during the period. Bellevue Asset Management LLC boosted its holdings in Micron Technology by 25.5% during the second quarter. Bellevue Asset Management LLC now owns 64 shares of the semiconductor manufacturer’s stock worth $74,000 after buying an additional 13 shares during the last quarter. Mowery & Schoenfeld Wealth Management LLC boosted its holdings in Micron Technology by 8.8% during the second quarter. Mowery & Schoenfeld Wealth Management LLC now owns 161 shares of the semiconductor manufacturer’s stock worth $186,000 after buying an additional 13 shares during the last quarter. Finally, Red Door Wealth Management LLC boosted its holdings in Micron Technology by 0.7% during the second quarter. Red Door Wealth Management LLC now owns 1,914 shares of the semiconductor manufacturer’s stock 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 Stock Performance NASDAQ:MU opened at $932.86 on Monday. Micron Technology, Inc. has a fifty-two week low of $114.25 and a fifty-two week 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. The stock has a market capitalization of $1.05 trillion, a PE ratio of 21.12 and a beta of 2.18. The business’s 50-day simple moving average is $951.63 and its 200-day simple moving average is $717.04.
Micron Technology (NASDAQ:MU – Get Free Report) last issued its quarterly earnings data on Wednesday, June 24th. The semiconductor manufacturer reported $25.11 earnings per share (EPS) for the quarter, beating the consensus estimate of $21.39 by $3.72. 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 analyst estimates of $35.91 billion. During the same period in the previous year, the firm earned $1.91 EPS. Micron Technology’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. Sell-side analysts expect that Micron Technology, Inc. will post 72.93 earnings per share for the current fiscal year. Micron Technology Announces Dividend The business also recently declared a quarterly dividend, which was paid on Tuesday, July 21st. Stockholders 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 dividend payout ratio is 1.36%.
Wall Street Analyst Weigh In A number of analysts have recently commented on the company. Morgan Stanley upped their price target on Micron Technology from $1,050.00 to $1,200.00 and gave the company an “overweight” rating in a research note on Thursday, June 25th. Deutsche Bank Aktiengesellschaft lifted their price objective on shares of Micron Technology from $1,500.00 to $1,550.00 and gave the stock a “buy” rating in a research note on Thursday, June 25th. BMO Capital Markets started coverage on shares of Micron Technology in a report on Friday, August 21st. They set an “outperform” rating and a $1,300.00 price objective for the company. Cantor Fitzgerald reaffirmed an “overweight” rating and issued a $1,500.00 target price on shares of Micron Technology in a research note on Thursday, June 25th. Finally, ThinkEquity reiterated a “buy” rating on shares of Micron Technology in a report on Monday, August 3rd. Four 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 company’s stock. According to data from MarketBeat, Micron Technology has a consensus rating of “Buy” and an average price target of $1,295.63.
Check Out Our Latest Stock Report on MU
Key Micron Technology News Here are the key news stories impacting Micron Technology this week:
Positive Sentiment: AI demand is tightening memory supply. CEO Sanjay Mehrotra said data-center customers want roughly 50% more memory than Micron can currently supply, while Nvidia identified memory availability as a key constraint on AI-system growth. That supports Micron’s pricing power and demand visibility. Micron CEO AI Shift Breaks Traditional Memory Market Cycles Positive Sentiment: Nvidia’s purchasing commitments reinforce the bullish outlook. Nvidia reportedly more than doubled memory-related supplier commitments to $279 billion, potentially benefiting Micron as a major supplier. Micron also has approximately $22 billion in strategic commitments, including contracts extending through 2030. Nvidia Just Validated Micron’s Biggest AI Bull Case Positive Sentiment: Expansion plans strengthen Micron’s long-term positioning. The company is investing $10 billion in U.S. research labs, launching a $250 million venture fund and expanding its workforce-training infrastructure. President Donald Trump’s praise of Micron as one of the world’s “hottest” companies adds political visibility to the investment. Why Micron Stock Didn’t Get a Leg Up From SK Hynix’s Memory Optimism Neutral Sentiment: Analysts and bullish commentators point to surging DRAM and NAND prices, record margins and the possibility that AI demand has made memory cycles less volatile. However, much of this optimism may already be reflected in Micron’s substantial previous gains. Negative Sentiment: Profit-taking and valuation concerns are weighing on the shares. Micron has rallied sharply, encouraging investors to lock in gains even after favorable Nvidia news. A softer technology-market backdrop and concerns about potential U.S. chip tariffs are adding pressure. Why Is Micron Stock Falling Negative Sentiment: Investors remain concerned that the memory supercycle will eventually become cyclical. Increased industry capacity or new competitors could eventually reduce pricing and margins, while current supply shortages may constrain Nvidia’s shipments in the near term. Micron Stock Has Surged 220 Percent Insider Buying and Selling In other news, Director Lynn A. Dugle sold 1,300 shares of the stock in a transaction on Tuesday, June 30th. The shares were sold at an average price of $1,150.43, for a total transaction of $1,495,559.00. Following the completion of the sale, the director owned 17,728 shares of the company’s stock, valued at $20,394,823.04. This represents a 6.83% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, EVP April S. Arnzen sold 40,000 shares of the firm’s stock in a transaction on Wednesday, July 1st. The stock was sold at an average price of $1,083.94, for a total transaction of $43,357,600.00. Following the sale, the executive vice president owned 85,737 shares in the company, valued at approximately $92,933,763.78. The trade was a 31.81% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last three months, insiders have sold 177,204 shares of company stock valued at $182,156,264. 0.24% of the stock is owned by corporate insiders.
Micron Technology Profile (Free Report)
Micron Technology, Inc is a global semiconductor company that designs and manufactures memory and storage solutions. Its product portfolio includes dynamic random-access memory (DRAM), NAND flash memory, solid-state drives (SSDs), memory modules and embedded memory solutions for a wide range of computing and electronic devices. Micron supplies components used in data centers, enterprise and cloud infrastructure, client computing, mobile devices, automotive systems and industrial applications, and also markets consumer-facing products under the Crucial brand.
Founded in 1978 and headquartered in Boise, Idaho, Micron has grown into an international manufacturer with research, development and production facilities across multiple regions.
See Also Five stocks we like better than Micron Technology Strike a Balance Between Growth and Stability With These 3 Names Ready to Rally Rubrik’s AI Security Bet Could Power the Next Leg Higher Apple’s Foldable iPhone Could Be a Catalyst, But Not a Cure-All Snowflake Is Up Nearly 50% in 2026—What Are Short Sellers Betting Against?
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Bantamac Capital LLC purchased a new stake in Micron Technology, Inc. (NASDAQ:MU – Free Report) in the second quarter, according to its most recent disclosure with the Securities & Exchange Commission. The fund purchased 2,365 shares of the semiconductor manufacturer’s stock, valued at approximately $2,730,000. Micron Technology comprises 1.4% of Bantamac Capital LLC’s holdings, making the stock its 9th biggest holding.
Other institutional investors and hedge funds have also added to or reduced their stakes in the company. State Street Corp increased its position in Micron Technology by 2.1% in the 4th quarter. State Street Corp now owns 52,749,817 shares of the semiconductor manufacturer’s stock valued at $15,061,310,000 after acquiring an additional 1,090,644 shares in the last quarter. Andar Capital Management HK Ltd grew 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 purchasing an additional 34,278,413 shares during the last quarter. Norges Bank acquired a new stake in shares of Micron Technology in the fourth quarter valued at approximately $6,433,456,000. Morgan Stanley increased its holdings in shares of Micron Technology by 5.1% in the fourth quarter. Morgan Stanley now owns 16,396,655 shares of the semiconductor manufacturer’s stock valued at $4,679,771,000 after purchasing an additional 794,289 shares in the last quarter. Finally, Northern Trust Corp raised its position in Micron Technology by 1.9% in the 4th quarter. Northern Trust Corp now owns 10,654,349 shares of the semiconductor manufacturer’s stock worth $3,040,858,000 after purchasing an additional 194,550 shares during the last quarter. Institutional investors and hedge funds own 80.84% of the company’s stock.
Insider Activity In other Micron Technology news, EVP Sumit Sadana sold 15,000 shares of the company’s stock in a transaction that occurred on Tuesday, August 18th. The shares were sold at an average price of $934.29, for a total value of $14,014,350.00. Following the completion of the sale, the executive vice president owned 191,021 shares of the company’s stock, valued at approximately $178,469,010.09. This represents a 7.28% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, CEO Sanjay Mehrotra sold 40,000 shares of the stock in a transaction on Friday, August 21st. The stock was sold at an average price of $968.90, for a total transaction of $38,756,000.00. Following the completion of the sale, the chief executive officer owned 264,503 shares in the company, valued at approximately $256,276,956.70. This trade represents a 13.14% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last 90 days, insiders have sold 177,204 shares of company stock valued at $182,156,264. 0.24% of the stock is currently owned by company insiders.
Micron Technology Stock Performance NASDAQ MU opened at $932.86 on Monday. Micron Technology, Inc. has a 12 month low of $114.25 and a 12 month high of $1,255.00. The stock has a 50-day simple moving average of $951.63 and a 200 day simple moving average of $717.04. The company has a current ratio of 3.42, a quick ratio of 2.98 and a debt-to-equity ratio of 0.05. The company has a market capitalization of $1.05 trillion, a PE ratio of 21.12 and a beta of 2.18. Micron Technology (NASDAQ:MU – Get Free Report) last issued its earnings results on Wednesday, June 24th. The semiconductor manufacturer reported $25.11 earnings per share (EPS) for the quarter, topping 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 return on equity of 71.13% and a net margin of 55.91%.The company’s revenue was up 345.8% compared to the same quarter last year. During the same quarter last year, the business earned $1.91 earnings per share. Micron Technology has set its Q4 2026 guidance at 30.000-32.000 EPS. Research analysts forecast that Micron Technology, Inc. will post 72.93 EPS for the current year.
Micron Technology Dividend Announcement The company 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 dividend payout ratio (DPR) is presently 1.36%.
Analyst Upgrades and Downgrades Several research firms have issued reports on MU. Zacks Research downgraded Micron Technology from a “strong-buy” rating to a “hold” rating in a report on Wednesday, August 19th. Sanford C. Bernstein set a $1,300.00 price target on Micron Technology in a research note on Monday, June 22nd. Seaport Research Partners reiterated a “buy” rating on shares of Micron Technology in a report on Friday, August 14th. Deutsche Bank Aktiengesellschaft boosted their price objective on Micron Technology from $1,500.00 to $1,550.00 and gave the stock a “buy” rating in a report on Thursday, June 25th. Finally, Morgan Stanley upped their target price on shares of Micron Technology from $1,050.00 to $1,200.00 and gave the company an “overweight” rating in a research report on Thursday, June 25th. Four investment 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 company. Based on data from MarketBeat, the stock presently has a consensus rating of “Buy” and a consensus price target of $1,295.63.
View Our Latest Report on Micron Technology
Micron Technology News Summary Here are the key news stories impacting Micron Technology this week:
Positive Sentiment: AI demand is tightening memory supply. CEO Sanjay Mehrotra said data-center customers want roughly 50% more memory than Micron can currently supply, while Nvidia identified memory availability as a key constraint on AI-system growth. That supports Micron’s pricing power and demand visibility. Micron CEO AI Shift Breaks Traditional Memory Market Cycles Positive Sentiment: Nvidia’s purchasing commitments reinforce the bullish outlook. Nvidia reportedly more than doubled memory-related supplier commitments to $279 billion, potentially benefiting Micron as a major supplier. Micron also has approximately $22 billion in strategic commitments, including contracts extending through 2030. Nvidia Just Validated Micron’s Biggest AI Bull Case Positive Sentiment: Expansion plans strengthen Micron’s long-term positioning. The company is investing $10 billion in U.S. research labs, launching a $250 million venture fund and expanding its workforce-training infrastructure. President Donald Trump’s praise of Micron as one of the world’s “hottest” companies adds political visibility to the investment. Why Micron Stock Didn’t Get a Leg Up From SK Hynix’s Memory Optimism Neutral Sentiment: Analysts and bullish commentators point to surging DRAM and NAND prices, record margins and the possibility that AI demand has made memory cycles less volatile. However, much of this optimism may already be reflected in Micron’s substantial previous gains. Negative Sentiment: Profit-taking and valuation concerns are weighing on the shares. Micron has rallied sharply, encouraging investors to lock in gains even after favorable Nvidia news. A softer technology-market backdrop and concerns about potential U.S. chip tariffs are adding pressure. Why Is Micron Stock Falling Negative Sentiment: Investors remain concerned that the memory supercycle will eventually become cyclical. Increased industry capacity or new competitors could eventually reduce pricing and margins, while current supply shortages may constrain Nvidia’s shipments in the near term. Micron Stock Has Surged 220 Percent Micron Technology Profile (Free Report)
Micron Technology, Inc is a global semiconductor company that designs and manufactures memory and storage solutions. Its product portfolio includes dynamic random-access memory (DRAM), NAND flash memory, solid-state drives (SSDs), memory modules and embedded memory solutions for a wide range of computing and electronic devices. Micron supplies components used in data centers, enterprise and cloud infrastructure, client computing, mobile devices, automotive systems and industrial applications, and also markets consumer-facing products under the Crucial brand.
Founded in 1978 and headquartered in Boise, Idaho, Micron has grown into an international manufacturer with research, development and production facilities across multiple regions.
Featured Articles Five stocks we like better than Micron Technology Strike a Balance Between Growth and Stability With These 3 Names Ready to Rally Rubrik’s AI Security Bet Could Power the Next Leg Higher Apple’s Foldable iPhone Could Be a Catalyst, But Not a Cure-All Snowflake Is Up Nearly 50% in 2026—What Are Short Sellers Betting Against?
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.
Edmond DE Rothschild Holding S.A. acquired a new position in shares of Micron Technology, Inc. (NASDAQ:MU – Free Report) during the second quarter, according to its most recent 13F filing with the Securities & Exchange Commission. The firm acquired 11,261 shares of the semiconductor manufacturer’s stock, valued at approximately $12,998,000.
Several other institutional investors have also added to or reduced their stakes in the stock. State Street Corp boosted its position in shares of Micron Technology by 2.1% during the fourth quarter. State Street Corp now owns 52,749,817 shares of the semiconductor manufacturer’s stock worth $15,061,310,000 after buying an additional 1,090,644 shares during the period. Andar Capital Management HK Ltd grew its holdings 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 worth $39,571,847,000 after buying an additional 34,278,413 shares in the last quarter. Norges Bank acquired a new stake in Micron Technology in the 4th quarter valued at approximately $6,433,456,000. Morgan Stanley lifted its stake in Micron Technology by 5.1% in the 4th quarter. Morgan Stanley now owns 16,396,655 shares of the semiconductor manufacturer’s stock valued at $4,679,771,000 after acquiring an additional 794,289 shares in the last quarter. Finally, Northern Trust Corp lifted its stake in Micron Technology by 1.9% in the 4th quarter. Northern Trust Corp now owns 10,654,349 shares of the semiconductor manufacturer’s stock valued at $3,040,858,000 after acquiring an additional 194,550 shares in the last quarter. 80.84% of the stock is owned by institutional investors.
Micron Technology Price Performance MU opened at $932.86 on Monday. The stock has a fifty day moving average of $951.63 and a 200-day moving average of $717.04. The company has a market capitalization of $1.05 trillion, a P/E ratio of 21.12 and a beta of 2.18. Micron Technology, Inc. has a fifty-two week low of $114.25 and a fifty-two week high of $1,255.00. The company has a debt-to-equity ratio of 0.05, a quick ratio of 2.98 and a current ratio of 3.42.
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, 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 company had revenue of $41.46 billion for the quarter, compared to analyst estimates of $35.91 billion. During the same period in the prior year, the firm posted $1.91 EPS. Micron Technology’s quarterly revenue was up 345.8% on a year-over-year basis. Micron Technology has set its Q4 2026 guidance at 30.000-32.000 EPS. On average, equities analysts expect that Micron Technology, Inc. will post 72.93 EPS for the current year. Micron Technology Announces Dividend The business also recently declared a quarterly dividend, which was paid on Tuesday, July 21st. Shareholders of record on Monday, July 6th were given 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%.
Key Stories Impacting Micron Technology Here are the key news stories impacting Micron Technology this week:
Positive Sentiment: AI demand is tightening memory supply. CEO Sanjay Mehrotra said data-center customers want roughly 50% more memory than Micron can currently supply, while Nvidia identified memory availability as a key constraint on AI-system growth. That supports Micron’s pricing power and demand visibility. Micron CEO AI Shift Breaks Traditional Memory Market Cycles Positive Sentiment: Nvidia’s purchasing commitments reinforce the bullish outlook. Nvidia reportedly more than doubled memory-related supplier commitments to $279 billion, potentially benefiting Micron as a major supplier. Micron also has approximately $22 billion in strategic commitments, including contracts extending through 2030. Nvidia Just Validated Micron’s Biggest AI Bull Case Positive Sentiment: Expansion plans strengthen Micron’s long-term positioning. The company is investing $10 billion in U.S. research labs, launching a $250 million venture fund and expanding its workforce-training infrastructure. President Donald Trump’s praise of Micron as one of the world’s “hottest” companies adds political visibility to the investment. Why Micron Stock Didn’t Get a Leg Up From SK Hynix’s Memory Optimism Neutral Sentiment: Analysts and bullish commentators point to surging DRAM and NAND prices, record margins and the possibility that AI demand has made memory cycles less volatile. However, much of this optimism may already be reflected in Micron’s substantial previous gains. Negative Sentiment: Profit-taking and valuation concerns are weighing on the shares. Micron has rallied sharply, encouraging investors to lock in gains even after favorable Nvidia news. A softer technology-market backdrop and concerns about potential U.S. chip tariffs are adding pressure. Why Is Micron Stock Falling Negative Sentiment: Investors remain concerned that the memory supercycle will eventually become cyclical. Increased industry capacity or new competitors could eventually reduce pricing and margins, while current supply shortages may constrain Nvidia’s shipments in the near term. Micron Stock Has Surged 220 Percent Analyst Upgrades and Downgrades MU has been the topic of a number of recent research reports. Wedbush lifted their price objective on shares of Micron Technology from $1,300.00 to $1,400.00 and gave the company an “outperform” rating in a report on Thursday, June 25th. Weiss Ratings restated a “buy (b)” rating on shares of Micron Technology in a report on Friday, August 7th. Raymond James Financial raised their target price on shares of Micron Technology from $1,100.00 to $1,500.00 and gave the company an “outperform” rating in a research report on Thursday, June 25th. Wells Fargo & Company lifted 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 note on Thursday, June 25th. Finally, Cantor Fitzgerald reissued an “overweight” rating and set a $1,500.00 price target on shares of Micron Technology in a research report on Thursday, June 25th. Four investment analysts have rated the stock with a Strong Buy rating, thirty-one have issued a Buy rating and three have assigned a Hold rating to the company. According to data from MarketBeat, Micron Technology has an average rating of “Buy” and a consensus target price of $1,295.63.
View Our Latest Research Report on MU
Insider Buying and Selling In other Micron Technology news, Director Lynn A. Dugle sold 1,300 shares of the company’s stock in a transaction on Tuesday, June 30th. The shares were sold at an average price of $1,150.43, for a total transaction of $1,495,559.00. Following the sale, the director owned 17,728 shares of the company’s stock, valued at approximately $20,394,823.04. This represents a 6.83% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. Also, EVP April S. Arnzen sold 40,000 shares of Micron Technology stock in a transaction that occurred on Wednesday, July 1st. The stock was sold at an average price of $1,083.94, for a total value of $43,357,600.00. Following the completion of the sale, the executive vice president owned 85,737 shares of the company’s stock, valued at approximately $92,933,763.78. The trade was a 31.81% 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. Corporate insiders own 0.24% of the company’s stock.
(Free Report)
Micron Technology, Inc is a global semiconductor company that designs and manufactures memory and storage solutions. Its product portfolio includes dynamic random-access memory (DRAM), NAND flash memory, solid-state drives (SSDs), memory modules and embedded memory solutions for a wide range of computing and electronic devices. Micron supplies components used in data centers, enterprise and cloud infrastructure, client computing, mobile devices, automotive systems and industrial applications, and also markets consumer-facing products under the Crucial brand.
Founded in 1978 and headquartered in Boise, Idaho, Micron has grown into an international manufacturer with research, development and production facilities across multiple regions.
Featured Articles Five stocks we like better than Micron Technology Strike a Balance Between Growth and Stability With These 3 Names Ready to Rally Rubrik’s AI Security Bet Could Power the Next Leg Higher Apple’s Foldable iPhone Could Be a Catalyst, But Not a Cure-All Snowflake Is Up Nearly 50% in 2026—What Are Short Sellers Betting Against?
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.
Memory stocks quietly powered one of the steepest AI trades of the cycle, but Micron now sits at a crossroads where a blowout quarter and a $100 billion sales backlog collide with surging capex and insiders selling at a decade-high…
Memory stocks have quietly become one of the most powerful AI trades of the cycle, and no name captures it better than Micron Technology (NASDAQ:MU | MU Price Prediction).
Shares are up 665.88% over the past year as HBM4 shipments scale and hyperscalers lock in multi-year supply deals. The question is whether the easy money has already been made, or whether Micron’s setup into 2027 can rival NVIDIA’s returns from here.
The 24/7 Wall St. price target for Micron is $952.78 over the next twelve months, implying 2.14% upside from the current price of $932.86.
Our recommendation is hold, with confidence at 90%. The stock sits near fair value after a historic run, and while the AI memory thesis remains intact, the risk/reward at these levels is more balanced than bulls suggest.
Metric Value Current Price $932.86 24/7 Wall St. Price Target $952.78 Upside 2.14% Recommendation HOLD Confidence 90% A Historic Run Into a Blowout Fiscal Q3 Micron has ripped 227.05% year to date and 26.23% in the past month alone, though shares slipped 3.51% last week off the $1,254.81 52-week high.
Fiscal Q3 revenue of $41.46 billion beat consensus by 17.6%, EPS of $25.11 topped estimates by 23.79%, and GAAP gross margin expanded to 84.6%. Management guided fiscal Q4 revenue to $50 billion and EPS to $31. CEO Sanjay Mehrotra called the results a reflection of “the strategic value of memory in the AI era.”
Bull Case: $1,500 and Beyond Bulls have real ammunition. Wall Street’s consensus target is $1,513.41, with 9 strong-buy, 31 buy, and 5 hold ratings and zero sells. HBM4 12-high is ramping “twice as fast as HBM3E 12 high”, and Micron has already shipped over $1 billion in HBM4 revenue.
The 16 Strategic Customer Agreements lock in roughly $100 billion in minimum revenue with floor margins management says will run “well above our peak quarterly margins in any past cycle.” At a forward P/E of just 6x, the bull scenario clears $1,332.79 within twelve months.
What Could Go Wrong Memory is cyclical, and Micron is spending like a company preparing for a peak. Fiscal Q4 capex is guided to around $10 billion, taking full-year FY26 spend to roughly $27 billion. HBM4 customer concentration is real, and management already signaled a “meaningful moderation in the rate of price increases” in fiscal Q4.
Bears would also flag the insider net selling in recent months. The heavy capex enables the SCA framework itself, and pricing moderation still leaves gross margin near 86%. Our bear case pegs downside at $697.74.
How Micron Stacks Up Against NVIDIA and Western Digital NVIDIA (NASDAQ:NVDA) is the essential comparison because Micron’s HBM4 economics are effectively an NVIDIA derivative trade. NVIDIA posted Q2 FY27 revenue of $96.22 billion, up 105.85% YoY, and trades at a trailing P/E of roughly 44x. Micron’s 21x trailing multiple and 6x forward look strikingly cheap next to that.
Western Digital (NASDAQ:WDC) is the AI-storage counterpoint, growing on HDD tightness rather than memory. WDC’s Q4 FY26 revenue rose 43.84% to $3.75 billion with non-GAAP gross margin of 54.4%, respectable but nowhere near Micron’s 84%-plus. The peer set makes our target look conservative on multiples but reasonable on cycle risk.
Micron Price Prediction 2026-2030 My verdict is hold with 90% confidence. The 24/7 Wall St. price target of $952.78 reflects a stock that has priced in the near-term AI memory boom.
The setup would look more attractive if shares retest the low $800s or if Micron signs additional SCAs that push guaranteed revenue meaningfully above $100 billion. I’d stay on the sidelines if HBM pricing moderates faster than guided or if capex creeps past $30 billion into fiscal 2027.
Year 24/7 Wall St. Price Target 2026 $952 2027 $964 2028 $1,004 2029 $1,022 2030 $1,095 These projections assume Micron executes on its SCA framework and industry supply stays tight into 2028. Meaningful upside could come from a HBM4E ramp ahead of schedule, while a sharper-than-expected memory downcycle would compress the range materially.
The other side of this trade is the power, cooling, and networking suppliers feeding the same AI buildout, which we profiled in a free report on seven AI infrastructure names that aren’t chipmakers.
Contact [email protected] for any questions or corrections.
Two threats are closing in on Apple at the worst possible moment, and neither the App Store nor the supply chain can absorb the hit alone. Whether a single product launch in September can silence the skeptics is the question…
The Magnificent Seven have become less predictable as investors rotate between artificial intelligence winners, consumer technology, and companies capable of turning enormous revenue into even more enormous cash flows. Before Nvidia‘s (NASDAQ:NVDA | NVDA Price Prediction) latest earnings report, Apple (NASDAQ:AAPL) was the best-performing member of the group in 2026, with its stock up more than 15% year to date. Nvidia has now moved ahead after reporting $96.2 billion of quarterly revenue and forecasting roughly 70% revenue growth for fiscal 2028. Its shares are rising more than 7% today.
That puts Apple’s recent run in a different light. Investors weren’t buying the stock merely because it was Apple. They were betting on a powerful combination of cash generation, profitability, and the possibility of an iPhone upgrade supercycle. But two new problems are emerging at precisely the wrong time.
Apple’s Growth Engine Is Showing Cracks Apple generated $29.8 billion of net income in its latest quarter on $109.4 billion of revenue, up 16% year-over-year. Over the first nine months of fiscal 2026, it generated $101.5 billion of net income. Its services business also produced a 75.6% gross margin, compared with 40.1% for products.
That mix has made Services Apple’s most dependable growth engine. The problem is that the App Store — arguably the crown jewel within that engine — is now under pressure.
The Financial Times reports that U.S. consumer spending through the App Store fell 6% in the June quarter, versus 9% growth a year earlier. Appfigures estimates Apple’s U.S. App Store commission revenue has contracted 18% so far this year. Apple’s Services revenue still reached a record $30.7 billion, but it missed Wall Street’s $31.4 billion expectation, while Services gross margin also came in below forecasts.
Regulators and courts are forcing Apple to loosen its control over payments and app distribution, threatening the commissions of as much as 30% that made the App Store such a lucrative business.
For years, investors could count on Services growing through almost any environment. That assumption is becoming harder to defend.
Apple’s 15% rally hits a wall of soaring memory costs and regulatory pressure. Investors are betting big on a foldable iPhone supercycle to stop the bleeding. Now Memory Costs Are Attacking Margins As if regulatory pressure weren’t enough, Apple is facing a second problem: memory.
CEO Tim Cook previously described soaring memory costs as a “100-year flood” and had complained to the Trump administration about Micron Technology‘s (NASDAQ:MU) price increases. That forced Apple to reluctantly raise prices on Macs and iPads because absorbing the increases was no longer sustainable. Apple raised prices on 14 products in July.
Nvidia is seeing the same inflation. Its CFO said memory pricing has exceeded expectations and will continue rising into next year. Nvidia expects gross margins to fall from 75% in the June quarter to 71% to 72% in its fiscal fourth quarter before recovering to 72% to 73% in fiscal 2028 as price increases take effect.
That is not something Apple can ignore because it doesn’t have Nvidia’s ability to pass higher component costs to customers without risking demand. Reports suggest some upcoming iPhone models could cost about $100 more, while higher memory costs are already forcing Apple to raise prices elsewhere.
The iPhone Supercycle Could Change Everything Granted, Apple has a potential ace up its sleeve. The company will unveil its next iPhones on Sept. 9, including its first foldable model, just as John Ternus takes over as CEO. The iPhone generated $54.3 billion of revenue in the June quarter, up 22% year over year, so the product remains anything but broken.
A successful iPhone 18 launch could therefore overwhelm some of the current problems by driving upgrades, higher average selling prices, and renewed ecosystem engagement.
But that is an expectation, not a certainty.
Key Takeaway In short, Apple doesn’t look like a stock investors need to sell simply because its challenges are mounting. Its $101.5 billion of nine-month profit, 75.6% Services gross margin, and 22% iPhone revenue growth provide plenty of financial cushion.
That said, the investment thesis has become less straightforward. The App Store is no longer an unquestioned growth machine, while memory inflation threatens to pressure prices and margins.
I’d view Apple as a hold today, not a sell. The September iPhone launch could reignite the growth story. But until investors see whether Apple can offset regulatory leakage and memory inflation, chasing the stock after its 15%-plus run is harder to justify.
Contact [email protected] for any questions or corrections.
A Heritage Foundation economist is challenging the Trump administration's push for semiconductor tariffs, arguing that the timing could saddle chip buyers with higher costs before a single new American fab is ready to ship product.
EJ Antoni, chief economist at the Heritage Foundation, a conservative think tank, used a recent appearance on Fox Business’s The Bottom Line to push back on reports that the Trump administration is considering new tariffs on foreign semiconductor imports as part of a push to restore chip manufacturing to the United States. He argues that the administration risks raising import costs before domestic manufacturers can add more supply.
Chip Tariffs Can Raise Prices Before Factories Raise Output Antoni’s core objection is that there is no domestic supply to shift toward today instead of importing: “We absolutely need to win the race. We need to make all the stuff here, but we need the input. So it does not make sense right now to tariff when there is nowhere else we can get it from at the moment but overseas,“ he said.
With CPI at 3.4% in July 2026 and the U.S. trade balance at -$73.3B in June, added import costs on chips would land on already-tight supply. Recent memory supercycle coverage has flagged supply constraints as the binding limit, and Antoni argues additional tariffs might not be able to positively impact supply in the short term.
“Tariffs Are a Negative Incentive”: The Alternative In Antoni’s view, negative incentives like tariffs could work even better when complimented with positive incentives: “Tariffs are a negative incentive. It is telling you what not to do, but it is not telling you what to do. It is the difference between bopping your dog on the nose because he does something bad and giving him a treat because he does something good,” he said.
Antoni cites the failure of prior trade deals and the Biden administration’s CHIPS Act as evidence that mandates and subsidies without clear performance metrics do not work. His alternative: “If you want to incentivize production here, then give time-limited subsidies that are tied to actual production. How about tax and regulatory reform that is going to reduce the cost here and just provide a natural market incentive for people to move production here?”
Micron’s $50 Billion Boise Buildout Puts Tariff Timing in Focus Micron’s (NASDAQ:MU | MU Price Prediction) $50 billion Boise buildout is supported by up to $6.2 billion in CHIPS Act funds, alongside a $100 billion campus in Clay, New York, with the first Boise fab targeted for 2027 and the second for late 2028. Micron has been described as the only U.S. company manufacturing high-bandwidth memory at scale. But with much of the capacity still years away, Antoni’s concern is that tariffs could raise chip costs long before new U.S. fabs are ready to offset foreign supply.
Reference material on U.S. and EU chip strategies notes that the U.S. is on track for 30% of global production by 2032 under current policy, a target that assumes those buildouts land on schedule.
Key Takeaways Antoni’s warning is about the gap between raising tariffs and bringing factories online. If import costs rise before domestic supply can respond, chip buyers could face higher expenses with few immediate alternatives.
Contact [email protected] for any questions or corrections.
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Trump praised Micron as one of the world's hottest companies the day after Nvidia revealed a staggering jump in memory purchase commitments, and the timing raises questions about who stands to benefit most from an AI-driven memory squeeze that insiders…
On Wednesday afternoon at 2:31 PM, President Trump wrote on Truth Social that Micron Technology (NASDAQ:MU | MU Price Prediction) was “one of the ‘HOTTEST’ Companies in the World” and congratulated CEO Sanjay Mehrotra.
On Tuesday evening, NVIDIA (NASDAQ:NVDA) filed its fiscal second quarter results and disclosed supplier purchase commitments had jumped to $279 billion, from $119 billion the prior quarter, primarily for memory procurement tied to Vera Rubin production.
What NVIDIA Disclosed NVIDIA’s Q2 fiscal 2027 revenue reached $96.22 billion, up 105.85% year over year, with Data Center revenue of $89.02 billion. Purchase obligations sit at $279 billion, with a separate $108.5 billion in guarantee obligations for AI cloud and data center partners.
CFO Colette Kress stated: “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.” She added that “Memory scarcity today is being driven in large part by the AI build-out itself” and that NVIDIA has “longstanding, deep relationships with all three major memory suppliers.” Fiscal 2028 will be supply constrained, with growth of roughly 70% against customer forecasts that “point to our growth doubling next year.” Gross margins bottom at 71% to 72% in Q4 before settling at 72% to 73% in fiscal 2028.
What Trump Praised Trump’s post celebrated Micron’s $10 billion AI memory research lab, announced in Boise, Idaho, on Aug. 20, 2026, a week prior. He described it as “just announced” and paired it with Micron’s $250 billion US manufacturing commitment through 2035, which targets 40% of DRAM produced domestically and projects 140,000 jobs across New York, Idaho and Virginia. Mehrotra credited Trump’s “leadership and policies,” calling it “the Trump effect.”
Trump’s Micron Holdings Per 2025 financial disclosures, Trump held between $1.67 million and $6.65 million in Micron stock and purchased an additional $215,000 to $550,000 in March 2026. In late June 2026, Micron announced a $250 million donation to the Trump Accounts program, after which Trump praised the company on Truth Social on July 2, 2026.
Market Reaction Despite an overnight pop after NVIDIA’s disclosure, Micron closed Wednesday at $935.39, down on the session. Year to date it is up 227.94%; over the past week, down 4%. Western Digital (NASDAQ:WDC) fell about 4% while SK Hynix rose roughly 1%. NVIDIA closed at $227.98. The pullback reflects profit-taking after the stock rose from roughly $117.56 a year ago.
Underlying Story Behind the Memory Squeeze Micron’s fiscal Q3 revenue was $41.46 billion, up 345.72% year over year, with GAAP gross margin of 84.6%. Fiscal Q4 guidance calls for $50.0 billion in revenue. According to reporting from Seoul Economic Daily and Tech Times on Aug. 27, HBM production consumes three to four times the wafer area per gigabyte of standard DRAM, and TSMC’s CoWoS packaging capacity is maxed out with NVIDIA consuming roughly 60%. Kress said supply generally remains a bottleneck “at least through the end of fiscal year 28.”
Readers watching the next earnings cycle should track one number: whether Micron’s Strategic Customer Agreements convert NVIDIA’s supply commitments into locked-in gross margin, or whether hyperscaler capex, projected at nearly $800 billion in 2026, buys out the queue before Micron can price the next tranche. Our related coverage lives here.
Contact [email protected] for any questions or corrections.
Micron Technology Inc. (NASDAQ:MU) stock is down in early Friday trading as investors weighed a softer tech backdrop against strong AI-driven memory demand, elevated pricing and fresh policy uncertainty.
Nasdaq futures slipped 0.25%, while S&P 500 futures edged up 0.01%. The move also follows Micron’s sharp 12-month advance, with the stock consolidating near short-term trend levels.
• Micron Technology stock is trending lower. Why are MU shares declining?
Nvidia Reinforces Tight Memory SupplyMicron remains at the center of a powerful AI-driven memory cycle, but investors continue to balance strong demand against rising costs and elevated expectations.
The stock also fell Thursday as investors took profits following a 189.28% year-to-date gain.
The pullback came after Nvidia’s earnings reflected both the strength and supply constraints surrounding AI infrastructure.
Nvidia CFO Colette Kress said the company faces "extreme pricing conditions in memory," adding that price increases have exceeded prior expectations and could climb further next year.
Nvidia sources high-bandwidth memory from Micron, SK Hynix and Samsung.
Nvidia CEO Jensen Huang said demand could grow about 100% next year, while supply constraints limit expected revenue growth to roughly 70%.
Gartner Sees Memory Driving Semiconductor GrowthGartner expects sustained AI infrastructure spending and higher memory prices to push worldwide semiconductor revenue up 92% to about $1.6 trillion in 2026 and roughly $1.9 trillion in 2027.
The firm forecasts memory revenue will surge from $220.1 billion in 2025 to $837.3 billion in 2026 and exceed $1 trillion in 2027.
Gartner expects DRAM revenue to rise 246.6% this year and NAND revenue to jump 371.9%, keeping Micron, Samsung and SK Hynix in focus.
Trump Highlights Micron’s U.S. ExpansionPresident Donald Trump praised Micron’s new $10 billion U.S. research investment, which adds to its earlier $250 billion commitment to domestic manufacturing.
Micron previously announced Micron Research Labs, anchored by a Boise, Idaho, campus focused on memory and AI technologies.
Micron is also the only U.S.-based manufacturer of high-bandwidth memory, which the administration views as important to domestic AI supply-chain security.
Semiconductor Tariffs Add Policy RiskThe Trump administration is reportedly considering new semiconductor tariffs covering products including data center servers, laptops and gaming consoles.
Technology companies have pushed back, warning that higher costs could slow the AI data-center buildout.
For Micron, the setup combines strong memory demand and expanding U.S. investment with rising costs, tariff uncertainty and high investor expectations after the stock’s sharp rally.
Earnings & Analyst OutlookLooking further out, the next major catalyst for the stock arrives with the Sept. 30 (confirmed) earnings report.
EPS Estimate: $31.26 (Up from $3.03 year-over-year) Revenue Estimate: $50.78 billion (Up from $11.31 billion YoY) Valuation: P/E of 21.1x (Suggests fair valuation relative to peers) Analyst Consensus & Recent Actions: The stock carries a Buy rating with an average consensus price forecast of $1,303. Recent analyst moves include:
Mizuho: Outperform (Lowers target to $1,300 on Aug. 25) New Street Research: Upgraded to Buy (Forecast $1,250 on Aug. 14) Citigroup: Buy (Lowers target to $1,150 on Aug. 7) Top ETF Exposure iShares Semiconductor ETF (NASDAQ:SOXX): 7.98% Weight Invesco S&P 500 Momentum ETF (NYSE:SPMO): 9.81% Weight Invesco PHLX Semiconductor ETF (NASDAQ:SOXQ): 7.82% Weight Significance: Because Micron carries such a heavy weight in these funds, any significant inflows or outflows for these ETFs will likely trigger automatic buying or selling of the stock.
MU Price ActionMicron Technology shares were down 0.20% at $935 during early trading on Friday, according to Benzinga Pro data.
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The memory-chip giant is expanding research as AI demand reshapes the semiconductor industry. Summary
Previous U.S. commitments exceed $250 billion
Micron Technology Inc. (MU, Financials) said it plans to invest another $10 billion on its already huge endeavor to boost U.S. semiconductor research and manufacture.
The memory-chip maker announced it would spend $10 billion on new U.S. research facilities over the next 10 years, including a Micron Research Labs campus in Boise, Idaho. Construction is due to begin in 2027.
President Donald Trump trumpeted the move Thursday, calling Micron one of the world's “hottest” companies and linking the investment to booming demand for artificial intelligence and sophisticated computers.
The $10 billion pledge is over and above more than $250 billion of U.S. investment pledges that Micron has already stated. It's all about timing. To work with accelerators from companies like as Nvidia, artificial intelligence systems require a lot of sophisticated memory, particularly high-bandwidth memory.
That's made memory one of the most watched parts of the AI supply chain, not the usually cyclical semiconductor market. For Micron, beefing up its research muscle might help keep the business competitive as consumers look for faster and more power-efficient memory products.
The additional investment also bolsters Micron's narrative of domestic manufacturing as Washington seeks to bring more critical semiconductor technology home to the U.S. As memory's significance in AI expands, so does Micron's bet.
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.
Micron (MU -0.27%) has more than tripled this year, and the memory chipmaker actually has a real shot at doubling again in 2027. That would give the stock a $2 trillion market cap and see it approach $2,000 per share.
Micron's ability to reach that valuation depends on the AI boom maintaining its momentum. That seems likely, and there are other factors at play that apply exclusively to Micron.
Image source: Getty Images.
Micron's fundamental growth is outpacing its stock gains Investors have to look at a company's fundamentals to determine if a rally is justified or excessive. Some stocks are due for corrections after a 5% rally, while other stocks are still undervalued after more than doubling.
Micron fits in the latter category. It is up by a little more than 200% this year, but it delivered 346% year-over-year revenue growth in its fiscal 2026 third quarter. Net income also grew by more than 1,000% year-over-year.
Those growth rates support Micron's rally. Furthermore, Micron only trades at a 6 forward P/E ratio. That's a much lower valuation than the majority of tech stocks and the S&P 500.
Multi-year deals solidify revenue visibility One of the main issues with memory chipmakers is that their revenue is cyclical. Supply shortages cause companies to increase production. Then, demand dries up, and the same semiconductor companies suddenly have massive inventory gluts that require selling at lower prices and dealing with low margins.
Some investors have feared that when the AI trade slows down, Micron will be stuck with a bunch of chips that it can't sell unless it reduces prices sharply. However, this scenario has become increasingly less likely.
Micron announced that it has secured multi-year strategic customer agreements with top customers. These deals provide more revenue visibility and make the company less susceptible to a cyclical downturn.
These deals aren't just about preserving existing revenue. They are also extending Micron's growth rates. For instance, the company told investors to expect $50 billion when it reports its fiscal 2026 fourth quarter results. Micron crushed guidance when reporting $41.46 billion in its fiscal 2026 third quarter, and now it's implying more than 20% sequential growth.
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Memory chip demand should heat up during the physical AI rollout The companies that are investing heavily in memory chips are already seeing more growth. Salesforce (CRM +1.57%) reported that its AgentForce ARR more than tripled year-over-year, contributing to 14% year-over-year sales growth in its fiscal 2027 second quarter.
Salesforce uses cloud computing providers like Amazon Web Services for its platform. Those cloud companies are heavily buying memory chips, and as Salesforce sees more annual recurring revenue growth for its AI segment, its cloud costs should also go up. That development would further boost the demand for Micron's memory chips.
However, it isn't just AI agents and models that need memory chips. Micron is currently working with a robotaxi customer, which can open the door to more opportunities like that in the future. Elon Musk, who is trying to make Optimus humanoid robots mainstream, referred to memory as the biggest bottleneck in AI.
Nvidia (NVDA -4.58%) CEO Jensen Huang told investors that physical AI is "coming online" in the company's fiscal 2027 second-quarter press release. Those results included revenue more than doubling year-over-year, breezing past prior guidance. Nvidia is anticipating a mind-boggling $108 billion in fiscal 2027 third-quarter revenue, which represents a 12% sequential growth rate.
Humanoid robots and autonomous vehicles are two physical AI products that should become mainstream within a few years and dramatically boost the demand for memory chips.
These long-term catalysts, combined with immediate financial successes, suggest that Micron stock can double yet again in 2027. It's all about soaring earnings, not expanding multiples.
An investment of $1,000 made in shares of Micron Technology (MU -0.27%) three years ago is now worth almost $15,000, which isn't surprising as the company has been benefiting from healthy memory chip demand that has created a supply shortage in the industry.
However, Micron stock has been pulling back lately. Investors have been rotating out of memory stocks, booking profits after a stellar run in this sector in recent months. The good news is that Micron's pullback has opened an opportunity for savvy investors to buy the stock at an attractive valuation.
If you've $1,000 in investible cash right now, putting that money into this semiconductor stock could be a profitable move, as Micron could surge impressively until the end of the decade. Let's look at the reasons why.
Image source: Micron Technology.
The memory boom isn't going anywhereMicron Technology released fiscal 2026 third-quarter results (for the quarter ended May 28) on June 24. The company's revenue increased by 346% year over year to $41.45 billion. Meanwhile, non-GAAP earnings per share rose more than 13x year over year to $25.11.
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The simplest reason behind this phenomenal surge was the favorable demand-supply environment in memory chips. Artificial intelligence (AI) data centers consume enormous amounts of compute and storage memory chips to ensure AI workloads run seamlessly. The good news for Micron investors is that the supply deficit won't be going away until the end of the decade.
Equity research provider Citrini Research (via PC Gamer) predicts that the supply deficit in dynamic random-access memory (DRAM) will increase from the current 18% to nearly 25% by 2030. The research firm notes that DRAM demand could hit 157.5 exabytes (EB) in 2030, exceeding supply by 28.7 EB. The firm adds that the proliferation of agentic AI and the need for high-bandwidth memory (HBM) will be key factors behind demand exceeding supply.
Citrini's forecast is consistent with what memory specialist SK Hynix noted earlier this year. The South Korean giant estimates that wafer supply will be at least 20% below demand over the next four to five years.
So, Micron's biggest catalyst -- higher memory prices -- seems sustainable until the end of the decade. Importantly, Micron has entered into multi-year agreements with customers to capitalize on the growing memory demand. The company reported having 16 strategic customer agreements (SCAs) at the end of fiscal Q3, spread across the data center, automotive, and consumer end markets.
Management notes that these SCAs typically have a five-year term, running until the end of 2030. Meanwhile, the automotive agreements have a three-year term. Micron says that it will sell 20% of its DRAM volume and one-third of its NAND flash volume through these SCAs. An important point to note is that 14 of these SCAs will generate at least $100 billion in revenue for Micron over the remainder of the agreement period.
Given that Micron still has capacity to sell even after signing these SCAs, it is well-positioned to capture the secular growth of the memory market. Not surprisingly, analysts are bullish about Micron's growth prospects, expecting its top line to more than double in just two fiscal years.
MU Revenue Estimates for Current Fiscal Year data by YCharts
Micron can make investors significantly richer by the end of the decadeMicron's fiscal year 2026 will end this month. The company's earnings are expected to jump by a whopping 785% in the fiscal year to $73.40 per share. Importantly, consensus estimates project a nice jump in Micron's earnings in fiscal years 2027 and 2028.
MU EPS Estimates for Current Fiscal Year data by YCharts
We have already seen that the favorable pricing environment will continue until the end of the decade. So, I won't be surprised to see Micron clocking double-digit earnings growth in fiscal 2029 and fiscal 2030. Assuming its bottom line grows at even 10% annually in those two years, its earnings per share could reach $206.55 in 2030.
Micron trades at 6 times forward earnings. That's well above the S&P 500 index's forward earnings multiple of 21. Assuming Micron trades at even 15 times earnings in 2030 and achieves $206.55 in earnings per share, its stock price could jump to $3,098. That's almost 3.4x its current stock price.
So, an investment of $1,000 in this AI stock could be worth more than $3,000 by 2030, which is why investors can consider buying Micron before it steps on the gas once again.
The Direxion Daily MU Bull 2X ETF is rated HOLD, pending a clear technical breakout in Micron Technology. MUU's extraordinary 2,510% one-year return is path-dependent and vulnerable to volatility drag during sideways or choppy markets. Micron's fundamentals remain robust, driven by HBM4 production, Nvidia's Vera Rubin ramp, and persistent memory shortages.
Nvidia's (NVDA -4.58%) fiscal 2027 second-quarter earnings report was less of a quarterly update than it was a reminder that the company sits at the center of the artificial intelligence (AI) infrastructure build-out. Total revenue reached $96.2 billion, more than double the $46.7 billion posted a year ago and up 18% from the prior quarter. The more striking comparison, however, sits inside the underlying mix of Nvidia's sales.
The company's data center segment generated $89 billion alone. This single franchise now produces more sales than Nvidia's entire company did one year ago. These figures are proving that the hyperscaler capital expenditure (capex) boom is no longer an abstract backdrop. Cloud providers and AI infrastructure developers are adding capacity at full speed, and Nvidia is converting on that spend with unprecedented efficiency.
With that said, Nvidia's print did contain a quieter signal that may matter even more for the next name in the AI chip value chain: Micron Technology (MU -0.27%). Nvidia's management guided for a lower gross margin, and the explanation pointed directly at memory. This means that Nvidia is paying a premium for the stacks that sit beside its GPUs, making pricing power flow to memory suppliers like Micron.
Image source: The Motley Fool.
Nvidia's blowout quarter underscores its scale and dominance Nvidia's numbers leave little room for understatement. Gross margin came in at 75%, essentially unchanged sequentially and up by 2.6 points from a year ago. Operating income rose 19% sequentially and 124% year over year to $63.7 billion. Meanwhile, net income was $59.7 billion, or $2.46 per share.
Within the data center book, hyperscale customers contributed $48.7 billion of revenue -- an increase of 102% year over year. It's clear that Nvidia is far from demand constrained, a distinction that showed up in both the beat against its own outlook and the size of the upcoming guide. Guidance is the other half of the print that I am more focused on. For the third quarter, Nvidia expects to generate revenue of $108 billion, plus or minus 2%. Of note, the company is assuming no compute sales to China.
Perhaps the most revealing line in the company's outlook is its gross margin. Generally accepted accounting principles (GAAP) and non-GAAP (adjusted) gross margin are both expected to be 74%, plus or minus 50 basis points. That is a full point below the margin Nvidia just delivered. Furthermore, management explained that gross margin is expected to bottom somewhere between 71% and 72% by the fourth quarter before recovering in fiscal 2028.
What is eating into Nvidia's margin? Nvidia Chief Financial Officer Colette Kress was direct about the cause of the eroding margins. The step-down is clearly not a demand problem, nor is it a sudden collapse in Nvidia's pricing power with customers. Instead, it has to do with the rising cost of memory.
High bandwidth memory (HBM) is no longer a commodity add-on in chip clusters. Rather, it has quickly become a co-equal component of the accelerator package. Kress told investors that Nvidia's commitments for critical components increased from $119 billion last quarter to $279 billion, saying it was "primarily related to the procurement of memory."
I see Nvidia's margin cut as a positive signal for Micron. When a customer as large and as sophisticated as Nvidia accepts a lower gross margin outlook and cites memory prices as the culprit, it confirms the bottleneck is moving downstream into DRAM and HBM. Micron is one of a few producers that can supply the stacked memory AI platforms require.
Higher commitments from Nvidia are, by definition, higher realized average selling prices for memory vendors like Micron on the other side of the purchase order. Said differently, the same hyperscaler capex cycle fueling Nvidia's growth is now filling Micron's supply. The difference is that Micron is positioned to capture the inflation from component prices that Nvidia can no longer treat as a stable cost.
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Nvidia's earnings performance is a preview for Micron Investors no longer need to guess whether the AI infrastructure cycle is meaningful enough to reprice memory. Nvidia's lower margin guide just confirmed that it is. The dollars leaving Nvidia's gross margin are not disappearing. Instead, they accrue to companies like Micron, which are shipping HBM and adjacent DRAM into Nvidia's racks.
In my eyes, the prudent response is to watch Micron with the same intensity reserved for Nvidia. If the cost pressures Nvidia described are real, then Micron is positioned for the kind of print that should reset expectations and, potentially, the stock's momentum. The bull thesis around Micron stock is no longer a "hopium trade" attached to a historically cyclical name. Instead, it is quietly becoming an extension of Nvidia's own trajectory.
AI has transformed memory from a boom-and-bust commodity into critical infrastructure, sending forecasts to levels that would have seemed absurd a few years ago. But a ghost from 2018 is lurking in the data, and it raises an uncomfortable question…
The semiconductor industry is undergoing a strange inversion. For decades, memory was the quintessential commodity business: huge capital requirements, brutal pricing swings, and profits that could disappear when supply outran demand. Artificial intelligence is changing that equation. AI accelerators need enormous amounts of high-bandwidth memory, and hyperscalers are scrambling to secure supplies years ahead of time.
Gartner’s April forecast showed memory revenue jumping from $216.3 billion in 2025 to $633.3 billion in 2026, taking its share of the $1.32 trillion semiconductor market to roughly 48%. Its August forecast is even more striking: memory revenue is now expected to reach $837.3 billion, or 54% of the $1.56 trillion industry.
That makes memory much more than another semiconductor category. It has become critical AI infrastructure.
AI Has Changed the Demand Equation The clearest evidence is coming from procurement rather than forecasts. Nvidia (NASDAQ:NVDA | NVDA Price Prediction) increased its supply and capacity commitments from $119 billion to $279 billion in just one quarter. The company says those commitments are primarily related to memory, with $92 billion due in the remainder of fiscal 2027, $87 billion in 2028, and $88 billion in 2029.
That is extraordinary visibility for the memory manufacturers.
Three companies dominate the market: Micron Technology (NASDAQ:MU), SK hynix (NASDAQ:SKHY), and Samsung Electronics. SK hynix has secured long-term agreements with about 10 customers, while Micron says 16 strategic customer agreements cover roughly 20% of its DRAM volume and one-third of its NAND volume over their contract periods. Samsung has also secured multiyear memory agreements with major customers.
These agreements provide substantially more demand visibility than memory companies typically enjoyed in previous cycles. But they do not magically eliminate the industry’s pricing mechanism.
Once a volatile commodity, memory is now the $837 billion fuel powering the AI revolution—and tech giants are scrambling to lock in supplies years in advance. The Memory Cycle Isn’t Dead Yet Here’s the uncomfortable part for investors: memory’s share of semiconductor revenue is heavily influenced by price.
Memory previously reached roughly 34% of semiconductor revenue in 2018. The following year, memory revenue plunged 31.5%, while DRAM average selling prices fell 47.4%. Memory’s industry share fell back to 26.7%. Gartner attributed the collapse to oversupply and falling prices. In other words, memory consumption didn’t need to collapse for revenue to crater. Pricing did the damage.
Long-term agreements help because they lock in volumes and, in some cases, pricing. But they aren’t a permanent floor underneath every memory product. Conventional DRAM and NAND remain exposed to new capacity, inventory levels, and competitive pricing.
And new capacity is coming. SK hynix plans a $4 billion Indiana facility for next-generation HBM packaging, while the company has approved 54.3 trillion won, or about $38.3 billion, of investment through 2031.
There is also a technological wildcard. SK hynix and Sandisk (NASDAQ:SNDK) have introduced a High Bandwidth Flash standard designed to alleviate AI memory bottlenecks, potentially allowing flash-based architectures to handle workloads currently demanding scarce HBM.
Key Takeaway In short, AI has undeniably changed memory’s trajectory. Gartner’s latest forecast puts memory at 54% of semiconductor revenue in 2026, compared with 27% in 2025. That supports the bull case for Micron, SK hynix, and Samsung.
But smart investors shouldn’t conclude that memory has permanently escaped cyclicality. New capacity, technological substitutions, and eventually normalized pricing can still turn today’s shortage into tomorrow’s oversupply.
The better thesis is that AI has extended and enlarged the memory cycle — not necessarily abolished it. That distinction could matter enormously when today’s $837 billion memory market eventually meets tomorrow’s supply.
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BOK Financial Private Wealth Inc. bought a new position in Micron Technology, Inc. (NASDAQ:MU – Free Report) during the 2nd quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The institutional investor bought 1,618 shares of the semiconductor manufacturer’s stock, valued at approximately $1,868,000.
Other hedge funds have also made changes to their positions in the company. Andar Capital Management HK Ltd boosted its position in Micron Technology by 856,960.3% in the second quarter. Andar Capital Management HK Ltd now owns 34,282,413 shares of the semiconductor manufacturer’s stock valued at $39,571,847,000 after buying an additional 34,278,413 shares in the last quarter. Norges Bank acquired a new stake in shares of Micron Technology during the fourth quarter worth approximately $6,433,456,000. AQR Capital Management LLC raised its stake in shares of Micron Technology by 411.9% in the third quarter. AQR Capital Management LLC now owns 3,627,022 shares of the semiconductor manufacturer’s stock valued at $606,873,000 after acquiring an additional 2,918,535 shares during the last quarter. Arrowstreet Capital Limited Partnership raised its stake in shares of Micron Technology by 1,340.6% in the fourth quarter. Arrowstreet Capital Limited Partnership now owns 2,820,986 shares of the semiconductor manufacturer’s stock valued at $805,148,000 after acquiring an additional 2,625,169 shares during the last quarter. Finally, Amundi raised its stake in shares of Micron Technology by 65.0% in the fourth quarter. Amundi now owns 4,989,400 shares of the semiconductor manufacturer’s stock valued at $1,424,025,000 after acquiring an additional 1,965,319 shares during the last quarter. Institutional investors and hedge funds own 80.84% of the company’s stock.
Micron Technology Trading Down 0.3% MU stock opened at $932.86 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. Micron Technology, Inc. has a twelve month low of $114.25 and a twelve month high of $1,255.00. The company has a market cap of $1.05 trillion, a P/E ratio of 21.12 and a beta of 2.18. The business has a fifty day moving average of $951.63 and a 200-day moving average of $714.71.
Micron Technology (NASDAQ:MU – Get Free Report) last posted its quarterly earnings results on Wednesday, June 24th. The semiconductor manufacturer reported $25.11 earnings per share (EPS) for the quarter, beating the consensus estimate of $21.39 by $3.72. The business had revenue of $41.46 billion for 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 firm’s quarterly revenue was up 345.8% compared to the same quarter last year. During the same quarter last year, the business earned $1.91 earnings per share. Micron Technology has set its Q4 2026 guidance at 30.000-32.000 EPS. As a group, equities research analysts expect that Micron Technology, Inc. will post 72.93 EPS for the current year. Micron Technology Dividend Announcement The firm also recently announced a quarterly dividend, which was paid on Tuesday, July 21st. Stockholders of record on Monday, July 6th were paid 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 (DPR) is 1.36%.
Insider Activity at Micron Technology In related news, CEO Sanjay Mehrotra sold 40,000 shares of the business’s stock in a transaction that occurred on Friday, August 21st. The shares were sold at an average price of $968.90, for a total transaction 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. The trade was a 13.14% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available at this link. Also, CAO Scott R. Allen sold 879 shares of the stock in a transaction that occurred 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 transaction, the chief accounting officer owned 34,958 shares in the company, valued at $34,958,000. This represents a 2.45% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold 177,204 shares of company stock worth $182,156,264 over the last 90 days. Insiders own 0.24% of the company’s stock.
Key Headlines Impacting Micron Technology Here are the key news stories impacting Micron Technology this week:
Positive Sentiment: AI demand is tightening memory supply. CEO Sanjay Mehrotra said data-center customers want roughly 50% more memory than Micron can currently supply, while Nvidia identified memory availability as a key constraint on AI-system growth. That supports Micron’s pricing power and demand visibility. Micron CEO AI Shift Breaks Traditional Memory Market Cycles Positive Sentiment: Nvidia’s purchasing commitments reinforce the bullish outlook. Nvidia reportedly more than doubled memory-related supplier commitments to $279 billion, potentially benefiting Micron as a major supplier. Micron also has approximately $22 billion in strategic commitments, including contracts extending through 2030. Nvidia Just Validated Micron’s Biggest AI Bull Case Positive Sentiment: Expansion plans strengthen Micron’s long-term positioning. The company is investing $10 billion in U.S. research labs, launching a $250 million venture fund and expanding its workforce-training infrastructure. President Donald Trump’s praise of Micron as one of the world’s “hottest” companies adds political visibility to the investment. Why Micron Stock Didn’t Get a Leg Up From SK Hynix’s Memory Optimism Neutral Sentiment: Analysts and bullish commentators point to surging DRAM and NAND prices, record margins and the possibility that AI demand has made memory cycles less volatile. However, much of this optimism may already be reflected in Micron’s substantial previous gains. Negative Sentiment: Profit-taking and valuation concerns are weighing on the shares. Micron has rallied sharply, encouraging investors to lock in gains even after favorable Nvidia news. A softer technology-market backdrop and concerns about potential U.S. chip tariffs are adding pressure. Why Is Micron Stock Falling Negative Sentiment: Investors remain concerned that the memory supercycle will eventually become cyclical. Increased industry capacity or new competitors could eventually reduce pricing and margins, while current supply shortages may constrain Nvidia’s shipments in the near term. Micron Stock Has Surged 220 Percent Analyst Ratings Changes A number of equities research analysts recently commented on MU shares. Erste Group Bank upgraded Micron Technology from a “hold” rating to a “buy” rating in a research report on Thursday, June 25th. Royal Bank Of Canada boosted their price objective on Micron Technology from $1,200.00 to $1,500.00 and gave the stock an “outperform” rating in a research note on Thursday, June 25th. Mizuho decreased their target price on Micron Technology from $1,375.00 to $1,300.00 and set an “outperform” rating on the stock in a report on Tuesday, August 25th. Wolfe Research set a $1,500.00 price target on Micron Technology in a report on Thursday, June 25th. Finally, Morgan Stanley increased their price objective on shares of Micron Technology from $1,050.00 to $1,200.00 and gave the stock an “overweight” 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 assigned a Hold rating to the company. According to data from MarketBeat, the stock presently has an average rating of “Buy” and a consensus price target of $1,295.63.
View Our Latest Report on MU
Micron Technology Company Profile (Free Report)
Micron Technology, Inc is a global semiconductor company that designs and manufactures memory and storage solutions. Its product portfolio includes dynamic random-access memory (DRAM), NAND flash memory, solid-state drives (SSDs), memory modules and embedded memory solutions for a wide range of computing and electronic devices. Micron supplies components used in data centers, enterprise and cloud infrastructure, client computing, mobile devices, automotive systems and industrial applications, and also markets consumer-facing products under the Crucial brand.
Founded in 1978 and headquartered in Boise, Idaho, Micron has grown into an international manufacturer with research, development and production facilities across multiple regions.
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Micron (MU -0.27%) and Sandisk (SNDK +0.00%) have had an incredible 2026, with Sandisk stock rising more than 520% and Micron increasing by about 225% (as of Aug. 28). That ranks Sandisk as the top-performing S&P 500 (^GSPC -0.25%) stock, and Micron as the fourth-best for 2026. That's an impressive run, but there are still four months left in 2026 and a lot could happen.
Between the two, is there a better stock to buy? Let's take a look at which one makes the most sense because I think there's a clear winner.
Image source: Getty Images.
Micron's business is broader Micron and Sandisk are both memory chip fabricators. There are two primary types of memory: NAND and DRAM. DRAM memory is utilized by computing units for rapid information access. Micron is the only company of the two that makes DRAM. Both companies make NAND, which is used for long-term data storage. In a data center, the most common use is in solid-state drives (SSDs). Regardless of which type of memory you're talking about, both companies are beyond sold out.
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With little new supply available and rising demand, the prices on memory chips have skyrocketed. This has allowed both Micron and Sandisk to make a fortune on their products, but they are doing their parts to alleviate the shortage. Sandisk recently announced a third fabrication facility, and Micron has several production facilities under construction. However, it's going to be some time before those facilities are up and running. Most of Micron's facilities won't be running until mid-2027 and Sandisk's facility won't be online until after that.
This could prolong the memory chip shortage, which may be bad news for consumers and AI hyperscalers, but it's great news for these two companies. By investing in these stocks, you can also profit from these soaring memory chip prices.
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But of the two, Micron is by far the better business. Micron saw the writing on the wall and started building new production facilities a while back. Sandisk only recently decided to start building new facilities. Furthermore, Micron operates on both sides of the memory chip market. So, if one side's supply shortage is alleviated, it can still benefit from lofty prices on the other one. With Sandisk, it's a coin flip whether the NAND industry sees the supply constraints alleviated first.
Winner: Micron
Both companies are growing at a rapid pace During their most recent quarters, revenue at both companies grew rapidly.
MU Revenue (Quarterly YoY Growth) data by YCharts
Micron reports results on Sept. 30, and Wall Street analysts on average expect 349% growth. However, Micron has been blowing estimates out of the water for a while now, mainly because surging memory chip prices make projections difficult. For example, in Q3, Micron forecast revenue of $33.5 billion. Then, it turned around and delivered $41.5 billion. I'm not sure whether Micron can deliver that kind of beat again, but if it can, it will easily secure itself as the faster-growing of the two.
Regardless, it's hard to declare a winner here because revenue at both is rising at an annual rate of 350% or more, which is simply incredible.
Winner: Tie
Micron is the cheaper stock Sandisk's fiscal year ended in June, while Micron's ends in August. As a result, valuing the companies on 2027 earnings projections is the best tool investors have. Micron trades for about 6 times fiscal 2027 earnings estimates.
MU PE Ratio (Forward 1y) data by YCharts
Sandisk stock is slightly more expensive, at almost 7 times forward earnings.
SNDK PE Ratio (Forward) data by YCharts
These are two dirt cheap price tags, but that's because the market is unsure about the future of the memory chip market cycle. If prices stay elevated, these two are fantastic investments and are worth buying now. But if prices come crashing down in 2028 after more production facilities are up and running, they may not be as compelling. Regardless, I think it's hard to give a win to either stock once again because they're still both cheap.
Winner: Tie
Micron's win is bigger than it appears Micron ends up being the better stock solely due to its more diverse business. Micron's exposure to both sides of the chip market, plus its foresight to build more production facilities so it can benefit from surging demand places it in a better position to benefit over the long haul. It's clearly better run, and that goes a long way in investing.
Micron Technology (MU -0.27%) is putting $250 million behind four areas it believes could shape AI's future. Its investments may offer an early signal about tomorrow's memory-intensive technologies, while giving investors a different way to evaluate Micron's long-term growth opportunity beyond today's HBM boom.
Stock prices used were the market prices of Aug. 20, 2026. The video was published on Aug. 29, 2026.
Rick Orford has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Micron Technology. The Motley Fool has a disclosure policy. Rick Orford is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through their link, they will earn some extra money that supports their channel. Their opinions remain their own and are unaffected by The Motley Fool.
Micron Technology (MU -0.27%) started the year incredibly hot, rising 325% for the year at its peak. However, it cooled off after July arrived, and the stock has sold off a fair bit. It's now down over 20% from its all-time high, but I think that will change after Sept. 30.
Why? Micron reports results for its fiscal 2026's fourth quarter on Sept. 30, and I think it could be the news that it needs to start a major rally. Additionally, I think it could surge past previous all-time highs and end 2026 on a high note. If you don't own any Micron shares now, it could be the perfect time to buy.
Image source: Getty Images.
Micron is cheap heading into earnings Micron is a memory chip fabrication company and makes both NAND and DRAM memory. Both styles of memory are in high demand as AI data centers take up all available capacity. In fact, there is too much demand and not enough supply, which has caused memory chip prices to surge. This has allowed Micron and its peers to make a fortune in recent quarters, and there's plenty more where that came from for Micron.
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During its fiscal Q3 (ended May 28), Micron's revenue surged from $9.3 billion in 2025 to $41.5 billion in 2026. For Q4, Micron gave guidance for revenue of $50 billion; Wall Street analysts expect it to report revenue of $50.8 billion. That would indicate nearly 350% year-over-year revenue growth, which is nothing short of incredible.
However, this isn't the peak for Micron. For fiscal 2027, Wall Street analysts estimate 85% revenue growth, which would make Micron one of the world's largest companies by revenue. However, the market has not priced in any of this growth, and the stock trades for a mere 6 times fiscal 2027 earnings.
MU PE Ratio (Forward 1y) data by YCharts
That's an absolute bargain price tag, and if Micron can rise to a respectable 20 times earnings by the end of fiscal 2027, the stock could easily triple. A triple in a year is a tantalizing investment, but there's one catch: What comes after 2027? The memory chip market is known to be cyclical, and if enough supply is built out to drop prices, Micron and its peers may struggle. That's the primary reason why the stock doesn't already have a higher valuation.
Still, I wouldn't be surprised if there's a short-term rally in the stock as its massive growth is hard to ignore. However, investors need to temper their long-term expectations until more is known about the future state of memory chip prices.
On Sept. 30, Micron Technology (MU -0.27%) will share its fiscal 2026 fourth-quarter earnings results. The stock closed trading on Friday at $932.86, having somewhat recovered from a broad chip sell-off this summer that sent Micron below $740 in late July.
Still, the stock price has a ways to go if it's going to return to its 52-week high of $1,255, and shareholders are hoping this report will provide the fuel it needs. That said, September is a notoriously tough month for the markets.
The S&P 500, for example, has averaged a negative return in September from 1928 through 2023. Given how Micron has historically performed in September, shareholders may want to brace themselves for a volatile month.
Image source: The Motley Fool.
The historical performance of Micron stock in September From 2017 to 2025, in September, Micron has averaged a 4.1% gain. But if you look more closely at the data, there is an outlier on the positive side, and a set of negative returns worth noting.
2025 return: 40% 2024 return: 7.7% 2023 return: -2.7% 2022 return: -11.3% 2021 return: -3.6% 2020 return: 3.1% 2019 return: -5.3% 2018 return: -13.8% 2017 return: 23% The average result for its recent Septembers is skewed by the 40% return in 2025. That 2025 performance does all the heavy lifting to produce that positive average return, as the stock has produced a negative return in five of those nine Septembers, and for the eight years prior to 2025, the average September return was negative.
That said, after September, things usually have started looking better for Micron. For October, from 2017 to 2025, Micron stock has averaged a 5.3% gain, with positive returns five out of nine times. November is even better, with the stock averaging a 7.8% gain and ending the month up six out of nine times. Micron has posted slightly muted returns in December, with an average gain of 2.9%. It has, however, delivered a gain five out of nine times in December.
Bracing for seasonality From what history has shown us since 2017, September is likely to be a volatile month for Micron. On top of that, if it underperforms expectations for its 2026 fourth-quarter earnings report on Sept. 30, it could cap off a rough month for the stock.
What's happened in the past, however, doesn't provide any guarantees. Micron's stock price could just as easily skyrocket in September as it could drop significantly, or even finish the month flat. But paying heed to the market's seasonality offers investors a chance to get more mentally prepared, as it could be a tough month. That preparedness can help shareholders avoid making knee-jerk decisions and panic-selling if Micron stock were to struggle in the short term.
What moves Micron meaningfully next What's more important for long-term Micron shareholders will be whether it can shed its image as a boom-or-bust stock tied to cyclicality.
Currently, Micron has significant pricing power because it provides critical memory and storage solutions that enable artificial intelligence (AI) and other advanced technologies to operate effectively, and the sector's production capacity can't keep up with soaring demand.
For instance, gross margin for Micron's cloud memory business unit in the third quarter of its fiscal 2026 was 83%, a huge boost from the 58% in the prior-year period. A gross margin boost was also seen across the board for its other divisions, including its core data center unit, mobile and client unit, and automotive and embedded business unit.
But the leading memory makers are building out new foundries to boost production, and when supply catches up to demand, their pricing power will fade.
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To counter that, Micron is locking its biggest clients into long-term contracts, or what it calls strategic customer agreements. With these contracts, it can set favorable floor prices while also locking in reliable revenue for when supply catches up with demand. In the company's earnings call for Q3 2026, it reported signing 16 strategic customer agreements and expected to receive financial commitments and cash deposits totaling $22 billion.
That said, it doesn't appear that the market has quite bought into the premise that Micron is becoming a less cyclical company. Its forward price-to-earnings ratio is 6, indicating there's skepticism about the memory maker's earnings growth potential.
I still like Micron as a long-term investment, even as the stock is up 227% thus far in 2026 as of this writing. The global AI market is expected to grow in value from $617.6 billion in 2026 to $1.4 trillion by 2032, according to research by Statista. As a key supplier of memory and storage solutions for data centers, cloud providers, and hyperscalers, Micron can continue to benefit from this trend.
To get the stock price moving, it just has to convince investors that cyclicality has become less of an issue for the company than it was in the past, and that it's effectively preparing for when supply catches up with demand through its strategic customer agreements.
Some investors dread the end of the summer, mostly because of the so-called "September Effect," which shows that, on average, the market tends to decline during that month.
Indeed, Bank of America research finds that in 56% of the Septembers since 1928, the S&P 500 has fallen, and that over that period, the index has averaged a return of about negative 1.17% in Septembers.
And even AI stocks aren't immune. The September Effect typically spans sectors, and it's coming at a time when some investors are already growing wary of the artificial intelligence trade.
So, what does this mean for holders of leading AI stocks like Nvidia (NVDA -4.58%) and Micron Technology (MU -0.27%)?
Image source: Getty Images.
Why September is historically a bad time for the market Part of the reason for the September slump may be psychological. After some poor-performing Septembers, investors have come to expect these declines. That leads them to rotate out of stocks, putting downward pressure on prices and thereby perpetuating the month's poor track record.
There are also legitimate reasons for the declines, including investors locking in gains as the year nears its end or starting to sell shares as part of a tax-loss harvesting strategy.
What's more, the Federal Reserve sometimes makes important economic decisions in September that may spur investors to shift their investment strategies. That's the case right now, as inflation rose to 3.3% in July, and the Federal Reserve will meet in September to decide whether or not to raise interest rates.
It's also worth noting that in 44% of Septembers since 1928, the S&P 500 has gone up. That is, of course, nearly half the time.
So while it's true that the S&P 500 declines in September more often than not, the average decline is negligible, and the declines occur just slightly more than half the time.
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What this means for Nvidia and Micron If there's a broad pullback in the market, AI stocks like Nvidia and Micron could lose some ground. Still, both companies are worth adding to your portfolio, and any decline could present a buying opportunity.
Consider that in its recently completed fiscal 2027 second quarter, Nvidia's revenues more than doubled year over year to $96.2 billion, and non-GAAP (adjusted) earnings surged 120% to $2.22 per share. Nvidia's results beat analysts' top- and bottom-line consensus estimates for the quarter.
Nvidia's management also forecast strong revenue growth for fiscal 2028, with CFO Colette Kress predicting that sales will increase 70% during the year, compared with analysts' expectation of just 44% growth.
That doesn't sound like an AI stock that investors should be selling right now, no matter what happens to the broader market in September.
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As for Micron, investors are keeping a close eye on the memory company because it reports its fiscal 2026 fourth-quarter results on Sept. 23. Management guided for $50 billion in revenue for the quarter and non-GAAP earnings of $31 per share, both at the midpoint. That would be a 342% increase in revenue and a 923% spike in earnings.
Does that sound like a stock you should sell right now, just because historically, the S&P 500 has averaged a decline of just over 1% in September? No, it does not.
Both of these companies are leaders in the AI infrastructure boom, and investors would be wise to hold onto them. Nvidia still holds an estimated 86% share of the data center GPU market, and Micron is the third-largest global DRAM memory supplier, with 22% of the market.
Large tech companies will spend an estimated $1.3 trillion next year building out AI data centers. That spending will likely continue to fuel Nvidia's processor sales and Micron's memory business.
And if Micron and Nvidia shares do decline in September, that would present a nice buying opportunity for savvy investors.
All of which means that if the September Effect shows up again this year, AI investors should just shrug their shoulders, stay the course, and perhaps take advantage by picking up shares.
Convergence Financial LLC increased its stake in shares of Micron Technology, Inc. (NASDAQ:MU – Free Report) by 442.8% during the second quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The fund owned 7,697 shares of the semiconductor manufacturer’s stock after buying an additional 6,279 shares during the quarter. Micron Technology comprises about 0.7% of Convergence Financial LLC’s holdings, making the stock its 26th largest position. Convergence Financial LLC’s holdings in Micron Technology were worth $8,885,000 as of its most recent filing with the Securities & Exchange Commission.
Other institutional investors have also recently added to or reduced their stakes in the company. Ramsey Quantitative Systems purchased a new position in shares of Micron Technology in the 2nd quarter valued at approximately $46,000. RHL Group LLC acquired a new position in shares of Micron Technology in the second quarter valued at approximately $47,000. Signature Resources Capital Management LLC raised its stake in shares of Micron Technology by 1,125.0% during the second quarter. Signature Resources Capital Management LLC now owns 49 shares of the semiconductor manufacturer’s stock worth $57,000 after purchasing an additional 45 shares during the last quarter. Davis Capital Management raised its stake in shares of Micron Technology by 510.0% during the second quarter. Davis Capital Management now owns 61 shares of the semiconductor manufacturer’s stock worth $70,000 after purchasing an additional 51 shares during the last quarter. Finally, Glynn Capital Management LLC lifted its holdings in shares of Micron Technology by 40.9% during the second quarter. Glynn Capital Management LLC now owns 62 shares of the semiconductor manufacturer’s stock worth $72,000 after purchasing an additional 18 shares during the period. Institutional investors and hedge funds own 80.84% of the company’s stock.
Insider Transactions at Micron Technology In related news, CEO Sanjay Mehrotra sold 31,285 shares of the business’s stock in a transaction dated Friday, July 24th. The shares were sold at an average price of $926.83, for a total transaction of $28,995,876.55. Following the sale, the chief executive officer owned 313,218 shares of the company’s stock, valued at approximately $290,299,838.94. The trade was a 9.08% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. Also, EVP Sumit Sadana sold 15,000 shares of the company’s stock in a transaction dated Tuesday, August 18th. The stock was sold at an average price of $934.29, for a total transaction of $14,014,350.00. Following the transaction, the executive vice president owned 191,021 shares in the company, valued at $178,469,010.09. The trade was a 7.28% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Over the last three months, insiders have sold 177,179 shares of company stock valued at $181,826,211. 0.24% of the stock is owned by company insiders.
Analyst Upgrades and Downgrades A number of research firms recently weighed in on MU. Bank of America lifted their price objective on shares of Micron Technology from $950.00 to $1,500.00 and gave the company a “buy” rating in a research report on Tuesday, June 23rd. Barclays upped their price objective on shares of Micron Technology from $1,175.00 to $2,000.00 and gave the stock an “overweight” rating in a research report on Thursday, June 25th. Melius Research started coverage on shares of Micron Technology in a research note on Monday, April 27th. They issued a “buy” rating and a $700.00 target price for the company. Erste Group Bank raised shares of Micron Technology from a “hold” rating to a “buy” rating in a report on Thursday, June 25th. Finally, Mizuho boosted their price target on shares of Micron Technology from $1,150.00 to $1,375.00 and gave the stock an “outperform” rating in a research note on Thursday, June 25th. Four investment analysts have rated the stock with a Strong Buy rating, thirty-two have issued 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 an average price target of $1,261.26. Get Our Latest Analysis on Micron Technology
Key Micron Technology News Here are the key news stories impacting Micron Technology this week:
Positive Sentiment: Micron CEO Sanjay Mehrotra said demand for AI memory continues to outpace supply, with industry capacity potentially unable to catch up until 2028. He also described memory as increasingly strategic rather than a commodity. Micron CEO sounds alarm on AI memory crunch Positive Sentiment: The company is investing $10 billion in Micron Research Labs to develop next-generation AI memory, supporting its long-term positioning in high-bandwidth memory and other advanced products. Micron CEO’s $10 billion AI-memory investment Positive Sentiment: Micron opened a 60,000-square-foot Boise training center and expanded its apprenticeship pipeline, supporting its planned U.S. manufacturing expansion and future workforce needs. Micron Boise training center announcement Neutral Sentiment: Analyst sentiment remains broadly favorable, with a consensus “Buy” rating and price targets well above recent trading levels. However, these targets may not offset short-term volatility in the memory cycle and semiconductor sector. Micron consensus Buy recommendation Negative Sentiment: Reports that Washington may allow Apple to purchase memory from Chinese suppliers raised concerns about potential demand and pricing pressure for Micron and other memory-chip makers. Memory stocks slide on Apple-China sourcing report Negative Sentiment: Investors also reacted to the possibility of a major YMTC initial public offering, which could provide China’s memory industry with additional capital to expand competition. Broad semiconductor de-risking and profit-taking ahead of Nvidia’s results added to selling pressure. Micron and the YMTC threat Negative Sentiment: Reports of substantial insider selling, including sales by CEO Sanjay Mehrotra, may have further weakened sentiment by encouraging profit-taking after MU’s strong earlier gains. Micron executive share sales Micron Technology Trading Down 5.8% NASDAQ:MU opened at $910.43 on Tuesday. The stock has a fifty day moving average price of $963.47 and a two-hundred day moving average price of $701.56. The stock has a market capitalization of $1.03 trillion, a price-to-earnings ratio of 20.61 and a beta of 2.18. The company has a debt-to-equity ratio of 0.05, a quick ratio of 2.98 and a current ratio of 3.42. Micron Technology, Inc. has a 1 year low of $114.25 and a 1 year high of $1,255.00.
Micron Technology (NASDAQ:MU – Get Free Report) last released 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 company had revenue of $41.46 billion during the quarter, compared to the consensus estimate of $35.91 billion. Micron Technology had a return on equity of 71.13% and a net margin of 55.91%.Micron Technology’s quarterly revenue was up 345.8% compared to the same quarter last year. During the same quarter last year, the company earned $1.91 earnings per share. Micron Technology has set its Q4 2026 guidance at 30.000-32.000 EPS. As a group, sell-side analysts anticipate that Micron Technology, Inc. will post 72.93 earnings per share for the current fiscal year.
Micron Technology Announces Dividend The business also recently disclosed a quarterly dividend, which was paid on Tuesday, July 21st. Investors of record on Monday, July 6th were paid a $0.15 dividend. The ex-dividend date was Monday, July 6th. This represents a $0.60 annualized dividend and a dividend yield of 0.1%. Micron Technology’s dividend payout ratio (DPR) is 1.36%.
(Free Report)
Micron Technology, Inc is a global semiconductor company that designs and manufactures memory and storage solutions. Its product portfolio includes dynamic random-access memory (DRAM), NAND flash memory, solid-state drives (SSDs), memory modules and embedded memory solutions for a wide range of computing and electronic devices. Micron supplies components used in data centers, enterprise and cloud infrastructure, client computing, mobile devices, automotive systems and industrial applications, and also markets consumer-facing products under the Crucial brand.
Founded in 1978 and headquartered in Boise, Idaho, Micron has grown into an international manufacturer with research, development and production facilities across multiple regions.
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Fifth Third Bancorp lessened its stake in shares of Micron Technology, Inc. (NASDAQ:MU – Free Report) by 5.1% in the 2nd quarter, according to its most recent 13F filing with the Securities and Exchange Commission. The fund owned 298,637 shares of the semiconductor manufacturer’s stock after selling 16,020 shares during the quarter. Fifth Third Bancorp’s holdings in Micron Technology were worth $344,713,000 at the end of the most recent reporting period.
Several other large investors have also modified their holdings of MU. Brighton Jones LLC grew its position in shares of Micron Technology by 18.3% in the 4th quarter. Brighton Jones LLC now owns 6,318 shares of the semiconductor manufacturer’s stock valued at $532,000 after buying an additional 976 shares during the last quarter. Sivia Capital Partners LLC lifted its position in Micron Technology by 21.7% in the second quarter. Sivia Capital Partners LLC now owns 3,528 shares of the semiconductor manufacturer’s stock valued at $435,000 after acquiring an additional 628 shares during the last quarter. United Bank purchased a new stake in Micron Technology in the second quarter valued at $236,000. Schnieders Capital Management LLC. boosted its stake in Micron Technology by 67.9% in the second quarter. Schnieders Capital Management LLC. now owns 16,984 shares of the semiconductor manufacturer’s stock valued at $2,093,000 after acquiring an additional 6,867 shares in the last quarter. Finally, Sei Investments Co. boosted its stake in Micron Technology by 5.6% in the second quarter. Sei Investments Co. now owns 405,545 shares of the semiconductor manufacturer’s stock valued at $49,987,000 after acquiring an additional 21,619 shares in the last quarter. Institutional investors and hedge funds own 80.84% of the company’s stock.
Insider Transactions at Micron Technology In other news, EVP April S. Arnzen sold 40,000 shares of the firm’s stock in a transaction on Wednesday, July 1st. The shares were sold at an average price of $1,083.94, for a total value of $43,357,600.00. Following the completion of the sale, the executive vice president owned 85,737 shares in the company, valued at approximately $92,933,763.78. This trade represents a 31.81% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, EVP Sumit Sadana sold 15,000 shares of Micron Technology stock in a transaction dated Tuesday, August 18th. The shares were sold at an average price of $934.29, for a total transaction of $14,014,350.00. Following the completion of the sale, the executive vice president directly owned 191,021 shares in the company, valued at approximately $178,469,010.09. The trade was a 7.28% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold a total of 177,179 shares of company stock worth $181,826,211 over the last quarter. 0.24% of the stock is currently owned by corporate insiders.
Key Headlines Impacting Micron Technology Here are the key news stories impacting Micron Technology this week: Positive Sentiment: Micron CEO Sanjay Mehrotra said demand for AI memory continues to outpace supply, with industry capacity potentially unable to catch up until 2028. He also described memory as increasingly strategic rather than a commodity. Micron CEO sounds alarm on AI memory crunch Positive Sentiment: The company is investing $10 billion in Micron Research Labs to develop next-generation AI memory, supporting its long-term positioning in high-bandwidth memory and other advanced products. Micron CEO’s $10 billion AI-memory investment Positive Sentiment: Micron opened a 60,000-square-foot Boise training center and expanded its apprenticeship pipeline, supporting its planned U.S. manufacturing expansion and future workforce needs. Micron Boise training center announcement Neutral Sentiment: Analyst sentiment remains broadly favorable, with a consensus “Buy” rating and price targets well above recent trading levels. However, these targets may not offset short-term volatility in the memory cycle and semiconductor sector. Micron consensus Buy recommendation Negative Sentiment: Reports that Washington may allow Apple to purchase memory from Chinese suppliers raised concerns about potential demand and pricing pressure for Micron and other memory-chip makers. Memory stocks slide on Apple-China sourcing report Negative Sentiment: Investors also reacted to the possibility of a major YMTC initial public offering, which could provide China’s memory industry with additional capital to expand competition. Broad semiconductor de-risking and profit-taking ahead of Nvidia’s results added to selling pressure. Micron and the YMTC threat Negative Sentiment: Reports of substantial insider selling, including sales by CEO Sanjay Mehrotra, may have further weakened sentiment by encouraging profit-taking after MU’s strong earlier gains. Micron executive share sales Analyst Upgrades and Downgrades Several brokerages have issued reports on MU. KeyCorp reaffirmed an “overweight” rating on shares of Micron Technology in a report on Monday, July 20th. Rosenblatt Securities boosted their target price on Micron Technology from $1,200.00 to $1,500.00 and gave the company a “buy” rating in a report on Thursday, June 25th. Mizuho upped their target price on Micron Technology from $1,150.00 to $1,375.00 and gave the company an “outperform” rating in a research report on Thursday, June 25th. UBS Group restated a “buy” rating on shares of Micron Technology in a research note on Monday, August 10th. Finally, Bank of America lifted their price target on Micron Technology from $950.00 to $1,500.00 and gave the stock a “buy” rating in a research report on Tuesday, June 23rd. Four investment analysts have rated the stock with a Strong Buy rating, thirty-two have issued a Buy rating and three have assigned a Hold rating to the company’s stock. According to data from MarketBeat, the stock currently has an average rating of “Buy” and a consensus price target of $1,261.26.
Read Our Latest Report on Micron Technology
Micron Technology Stock Down 5.8% MU opened at $910.43 on Tuesday. Micron Technology, Inc. has a 52 week low of $114.25 and a 52 week high of $1,255.00. The business has a 50 day moving average price of $963.47 and a two-hundred day moving average price of $701.56. 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 company has a market cap of $1.03 trillion, a PE ratio of 20.61 and a beta of 2.18.
Micron Technology (NASDAQ:MU – Get Free Report) last announced its earnings results on Wednesday, June 24th. The semiconductor manufacturer reported $25.11 earnings per share for the quarter, beating the consensus estimate of $21.39 by $3.72. The company had revenue of $41.46 billion for the quarter, compared to the consensus estimate of $35.91 billion. Micron Technology had a return on equity of 71.13% and a net margin of 55.91%.The company’s revenue was up 345.8% on a year-over-year basis. During the same period last year, the business posted $1.91 EPS. 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 EPS for the current year.
Micron Technology Dividend Announcement The company also recently disclosed a quarterly dividend, which was paid on Tuesday, July 21st. Investors of record on Monday, July 6th were given a $0.15 dividend. This represents a $0.60 dividend on an annualized basis and a yield of 0.1%. The ex-dividend date was Monday, July 6th. Micron Technology’s dividend payout ratio (DPR) is 1.36%.
Micron Technology Profile (Free Report)
Micron Technology, Inc is a global semiconductor company that designs and manufactures memory and storage solutions. Its product portfolio includes dynamic random-access memory (DRAM), NAND flash memory, solid-state drives (SSDs), memory modules and embedded memory solutions for a wide range of computing and electronic devices. Micron supplies components used in data centers, enterprise and cloud infrastructure, client computing, mobile devices, automotive systems and industrial applications, and also markets consumer-facing products under the Crucial brand.
Founded in 1978 and headquartered in Boise, Idaho, Micron has grown into an international manufacturer with research, development and production facilities across multiple regions.
Read More Five stocks we like better than Micron Technology Visa Just Put Hims & Hers in the Penalty Box—Here’s Why It Matters Treasury Yields Are Surging Again: 3 Stocks That Could Feel the Pain Snowflake Could Be Headed for New Highs Despite Insider Selling MongoDB Is Surging—And the Next Catalyst Is Almost Here 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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I'm even more optimistic about Micron (MU -5.83%) after this.
*Stock prices used were the afternoon prices of Aug. 21, 2026. The video was published on Aug.23, 2026.
Parkev Tatevosian, CFA has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Micron Technology. The Motley Fool has a disclosure policy. Parkev Tatevosian is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through his link, he will earn some extra money that supports his channel. His opinions remain his own and are unaffected by The Motley Fool.
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The Roundhill Memory ETF (CBOE:DRAM) has become the retail trade of the year. Launched on April 2, 2026, DRAM was pitched as “the first-ever memory stock ETF”, and buyers have piled in fast enough that the fund is being described as the fastest asset gatherer in ETF history, reportedly crossing $25 billion in assets in roughly four months. The appeal is obvious: memory pricing has ripped higher alongside AI infrastructure spend, and DRAM lets a US brokerage account own Samsung and SK hynix without wrestling with foreign listings. The fund is up 107.78% since inception. At face value, it seems like a fine idea; however, on closer inspection, it appears to be a fund most memory bulls do not actually need.
What DRAM Actually Is Under the Hood Strip the branding away and DRAM is a three-stock portfolio with a tail. Samsung Electronics sits at 24.99%, SK hynix at 24.22%, and Micron Technology at 23.83%. Those three names are 73% of the fund. The remaining sleeve, spread across Kioxia, Sandisk, Western Digital, Seagate, Nanya and Winbond, adds storage and Taiwanese memory exposure but does not change the concentration story. Geographically, 49.25% of the fund sits in South Korea, 37.65% in the United States, 6.31% in Taiwan, and 4.87% in Japan.
For that exposure, holders pay 0.65% annually. That is not egregious for a thematic ETF, but it is meaningful when the same trade can be built directly. It also introduces a wrinkle US taxable holders should understand: Samsung and SK hynix pay foreign dividends, and the fund’s Korean exposure carries withholding tax and won complications that a domestic name does not.
A Simpler Trade Has Beaten the Fund If your thesis is “AI needs more memory,” the cleanest expression is the one US pure-play in the basket: Micron Technology (NASDAQ:MU | MU Price Prediction). Since DRAM’s launch on April 1, 2026, Micron is up 162.86%, versus 107.78% for the ETF that holds it as a top position. Year to date, Micron is up 238.94%, and over the trailing year it has returned 736.3%.
That gap is the mechanism. DRAM’s Samsung weight dilutes the memory thesis with a conglomerate that also sells phones, appliances, and displays. SK hynix is a purer bet, but Micron has been the highest-beta pure-play in the group during this cycle, and the ETF’s rules-based weighting caps how much of that upside flows through. You are paying 0.65% a year to have the fund partially hedge the very trade you were trying to make.
If You Want Diversification, Own Semis Broadly The counter to single-stock risk is a broader semiconductor fund. The iShares Semiconductor ETF (NASDAQ:SOXX) is up 72.87% year to date, and the VanEck Semiconductor ETF (NASDAQ:SMH) is up 55.62%. Both trail Micron, but both include Micron alongside logic, foundry and equipment names that benefit from the same AI capex wave without depending on a single pricing cycle. For an investor whose real goal is AI-linked chip exposure rather than a memory-specific bet, SOXX at a lower expense ratio is the sturdier vehicle.
Tradeoffs Worth Naming Owning Micron alone means accepting the full swing of memory pricing. If DRAM contract prices roll over, MU falls harder than DRAM will, because the fund’s Samsung and Korean allocations blunt some of the move. That is the real cost of the purer expression. It is also worth noting DRAM is the only clean US-listed way to overweight SK hynix without buying ADRs, so investors who specifically want Korean memory exposure have a real reason to keep at least part of the position.
How to Think About the Swap In a taxable account, do not blow up a 100%-plus gain to save 65 basis points. The tax bill will dwarf the fee savings for years. In a retirement account, the math flips: rotating some or all of the DRAM position into Micron for higher beta, or into SOXX for broader semis, is a cleaner expression of most investors’ actual thesis. A middle path is trimming DRAM back to a position sized for Samsung and SK hynix access only, and holding Micron directly for the US memory book.
DRAM is a concentrated fund wearing a diversified label, at a price most of its owners can beat by naming the two or three things they actually wanted to own.
Contact [email protected] for any questions or corrections.
Micron (MU - Free Report) ended the recent trading session at $910.43, demonstrating a -5.83% change from the preceding day's closing price. The stock fell short of the S&P 500, which registered a loss of 0.28% for the day. At the same time, the Dow added 0.26%, and the tech-heavy Nasdaq lost 0.77%.
Shares of the chipmaker witnessed a gain of 4.98% over the previous month, beating the performance of the Computer and Technology sector with its gain of 1.04%, and the S&P 500's gain of 2.31%.
The investment community will be paying close attention to the earnings performance of Micron in its upcoming release. On that day, Micron is projected to report earnings of $31.39 per share, which would represent year-over-year growth of 935.97%. Meanwhile, the latest consensus estimate predicts the revenue to be $50.76 billion, indicating a 348.58% increase compared to the same quarter of the previous year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $73.86 per share and revenue of $129.61 billion, which would represent changes of +790.95% and +246.76%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for Micron. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.01% higher. Micron is currently a Zacks Rank #3 (Hold).
From a valuation perspective, Micron is currently exchanging hands at a Forward P/E ratio of 13.09. This valuation marks a discount compared to its industry average Forward P/E of 21.14.
The Computer - Integrated Systems industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 59, positioning it in the top 24% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
Micron Technology's (MU -5.99%) CEO, Sanjay Mehrotra, sat down with CNBC's Jim Cramer last week at a construction site in Boise, Idaho, where the memory specialist is building two chip fabrication plants.
He had a lot to talk about: Micron's fiscal third-quarter revenue more than quadrupled year over year to $41.5 billion, and net income hit $28.2 billion, compared with $1.9 billion a year earlier. Guidance points to about $50 billion this quarter.
But the number I keep coming back to wasn't in any earnings release. It's the money customers are putting up upfront -- $22 billion in deposits and related commitments under the first 16 agreements.
"All our customers across our end markets will buy everything that we make," Mehrotra said. And data center customers, he added, want about 50% more supply than Micron can commit to delivering.
The driver, of course, is artificial intelligence (AI). Data centers built for it need enormous amounts of memory, and the industry can't manufacture enough.
But what do the contracts require both sides to do -- and what happens if prices fall?
Image source: Micron.
Binding, both waysAlong with its fiscal third-quarter report in late June (the period ended May 28), Micron said it had signed 16 strategic agreements with data center, consumer, and automotive customers. And Mehrotra told Cramer the company has signed more since then.
They are take-or-pay contracts: the customer commits to buying specific volumes of memory over the term and pays for them, whether they end up wanting them or not. Most last five years -- from calendar year 2026 through late 2030, and automotive agreements generally last three. Fourteen of the first 16 add up to a combined minimum of about $100 billion in contracted revenue. That number assumes minimum volumes and prices, and management expects actual revenue to come in well above that.
Floors and ceilingsThe biggest contracts set a price ceiling for existing products around where memory was trading in the second calendar quarter of 2026, as well as a price floor that holds throughout the term. Micron says that even at the floor, these agreements would produce gross margins "well above our peak quarterly margins in any past cycle."
That claim carries weight against the sector's last downturn. In fiscal 2023, Micron's revenue fell by about half, to $15.5 billion, and the company lost $5.8 billion.
In this cycle, the gross margin hit 84.6% in the fiscal third quarter, compared with 74.4% in the prior quarter and 37.7% a year earlier, and guidance points to around 86% this quarter.
If memory prices fall, the contracted volumes are still bought -- or paid for anyway. After all, selling in a collapsing spot market is what generated that $5.8 billion annual loss, and the contracts exist to keep Micron out of that position.
But the coverage has limits. The 16 signed agreements represent about 20% of Micron's DRAM volume and around a third of its NAND volume (its two main memory chip categories) over the period. Management expects half or more of revenue to fall under these agreements once the full list is signed. Most of the business, for now, still depends on the open market.
Supply remains tight well into 2028But could a wave of new factories flood the market before the contracts prove their worth?
Not soon, according to Mehrotra, who expects 2027 to be even tighter than this year.
Micron's own construction calendar explains why. The first Boise factory isn't expected to produce wafers until mid-calendar year 2027, and the second will follow in late calendar year 2028. The New York site, where Micron broke ground in January, arrives even later. And the company expects industry DRAM and NAND supply to remain tight beyond calendar year 2027.
In short, that demand runs into significant new supply only well into the contracts' window.
Today's Change
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Current Price
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908.91
Then there's the stock's price. The growth stock, near $967 as of this writing, has more than tripled in 2026.
Even so, it trades at about 22 times earnings, and about 6 times next year's earnings. A price like that says the market expects these profits to contract.
Ultimately, these agreements help address some of the concerns about how the company can mitigate the risks of a cyclical downturn. Additionally, it stands to reason that customers with $22 billion on the table expect the shortage to last.
But a fifth of DRAM volume under contract is a start, not a transformation. Until more of the business moves to similarly contracted sales, some of the market's caution seems fair to me.
Americké akciové indexy vykazují v pondělní seanci smíšenou bilanci, když tradiční index Dow Jones zpevňuje lehce přes 0,2 %, zatímco širší index S&P500 ztrácí 0,2 % a technologický Nasdaq téměř 0,5 %.
Poklesům dominují polovodiče. Referenční Philadelphia SE Semiconductor Index oslabuje o 2,6 % na nejnižší úroveň za poslední 3 měsíce v „předvečer“ ostře sledovaných výsledků hlavního hráče na poli výkonných čipů, spol. NVidia (NVDA -2,2 %). Ty společnost představí ve středu po skončení trhu. S ohledem na tučné růsty klíčových dodavatelů AI infrastruktury tak kvartální čísla nesmí zklamat a pro celý sektor budou důležitým semaforem dalšího vývoje. Trhy ale netrpělivě vyhlíží i blížící se tradiční sympozium centrálních bankéřů v Jackson Hole, na kterém v pátek odpoledne vystoupí i nový šéf Fedu, Kevin Warsh, s možnou indikací ohledně dalšího směřování měnové politiky. Nutno podotknout v prostředí nadále zvýšených inflačních tlaků, zejména v důsledku vysokých cen energií. Ve středu sledovaný jádrový PCE deflátor napoví více.
Na dluhopisovém trhu dnes nicméně dochází k mírnému uklidnění, když u delších splatností vidíme pokles výnosů. Na 30letém vládním bondu na 5,23 % (vs. 5,28 % v pátek), na 10letém bondu pak 4,7 % (vs. 4,74 % v pátek). K tomu přispěla i zpráva CNBC, která s odkazem na dva vysoce postavené představitele amerického ministerstva financí uvedla, že k minulý týden oznámeným zpětným odkupům dlouhodobých státních dluhopisů může být využita i část téměř bilionového hotovostního polštáře ministerstva financí u Fedu.
Smíšený vývoj vykazují dnes drahé kovy. Zlato pokračuje v růstu, když přidává 0,7 % na 4634 USD/oz, stříbro o stejné síle oslabuje s posunem na 68,5 USD/oz. Na energetickém trhu se nedaří ropě, která odepisuje přes 2,2 % na 85,12 USD/barel, zemní plyn (+0,2 %) naopak mírně posiluje na 2,78 USD/mmbtu.
Na sektorové úrovni nejhorší výkonnost zaznamenávají informační technologie (-1,2 %) a energetický sektor spolu s průmyslovými společnostmi (-1 %), přes 1 % naopak přidává segment zbytných statků (+1,4 %) a komunikace (+1,2 %) při růstu Mety Platforms (META) o 2 %.
Mezi korporacemi S&P500 konstituentů nejvíce ztrácí výrobci paměťových čipů v čele se Sandiskem (SNDK -6,2 %), jemuž sekunduje Seagate (STX -5,9 %) a Micron (MU -5,3 %). Na růstové straně vidíme povýsledkové dozvuky u online cestovního zprostředkovatele Expedia (EXPE +3,9 %), těžící z postupně zvyšujících se analytických cílů. Dnes od Evercore ISI s posunem cílovky na 430 USD z předchozích 375 USD. Titul dnešním pohybem pokořuje historická maxima.
Nejsilnější sektory S&P Změna Nejslabší sektory S&P Změna Zbytná spotřeba +1,4 % Informační technologie -1,2 % Sektor komunikací +1,2 % Energie -1 % Finanční sektor +1 % Průmysl -1 % Nejsilnější akcie S &P Změna Nejslabší akcie S&P Změna Expedia Group (EXPE) +3,9 % SANDISK CORP O (SNDK) -6,2 % GODADDY I (GDDY) +3,3 % Seagate Technology Holdings (STX) -5,9 % Ulta Beauty (ULTA) +3,2 % Micron Technology (MU) -5,3 % VeriSign (VRSN) +3,2 % JB Hunt Transport Services (JBHT) -5,1 % Church & Dwight (CHD) +3,1 % CIENA CORPRATI (CIEN) -5 % Zdroj: Reuters
New 60,000-square-foot training center, delivering hands-on technical training and semiconductor career pathwaysMicron and the U.S. Department of Commerce provide $3 million to the College of Western Idaho for educator pay, equipment and classroom spaceMicron’s registered apprenticeship program welcomes its largest cohort to date and is building toward triple-digit enrollment by the end of fiscal 2027
BOISE, Idaho, Aug. 24, 2026 (GLOBE NEWSWIRE) -- Micron Technology Inc. (Nasdaq: MU), the only U.S.-based manufacturer of memory and storage solutions, today opened a 60,000-square-foot Micron Training Center (MTC) in Boise, a strategic investment to strengthen the skilled talent pipeline, support advanced semiconductor manufacturing and expand education and apprenticeship pathways in Idaho.
Located near Micron’s Boise campus, this unique, collaborative training facility accelerates new-hire readiness through an intensive onboarding boot camp and hands-on training in fab operations and manufacturing systems. The center also serves as a site for community college students and career seekers pursuing semiconductor pathways through the College of Western Idaho (CWI).
The MTC supports Micron’s broader commitment to invest more than $250 billion in U.S. semiconductor manufacturing, building the workforce needed to support high-volume production of advanced memory technologies. Those efforts are expected to create more than 90,000 American jobs.
“Our community invests in our people, and the Micron Training Center is proof of that promise. This center is built to skill up the next generation of Idahoans, whether they’re just starting out or making a career pivot,” said Boise Mayor Lauren McLean. “With strong partners standing beside us, we’re filling today’s jobs and preparing our workforce for the future. That’s what it means to build a city where everyone has the opportunity to grow right here at home.”
Strategic collaboration and unique approach for workforce development
The MTC houses up to 20 semiconductor process tools that replicate a fab environment — the same equipment trainees will use on Micron’s fab floor. Industry partners including Applied Materials, Lam Research, SCREEN, Kokusai Electric, Tokyo Electron and others have supported the installation of equipment that will also be used for hands-on vendor training, helping both their teams and Micron’s ramp up faster on the tools that drive production.
The center also expands Micron’s long-standing partnership with CWI to bring semiconductor training directly into the education pipeline. Starting this fall, CWI will deliver its Advanced Mechatronics Engineering Technology (AMET) and Semiconductor Manufacturing Technology (SMT) programs at the MTC, alongside its Nampa campus offerings. The MTC will serve as the new location for the technical instruction component of Micron’s Registered Apprenticeship Program, while continuing to host CWI coursework for the broader student community.
To support this partnership, Micron and the U.S. Department of Commerce have provided $3 million to CWI for educator pay, equipment and classroom space.
“CWI and Micron have built a training environment where students learn on the same equipment they’ll operate in a world-class fab,” said Gordon Jones, president of the College of Western Idaho. “This is what a decade of partnership looks like — a shared facility, tools, and commitment to building careers that matter for Idaho.”
“A strong semiconductor industry depends on a strong talent pipeline,” said April Arnzen, executive vice president and chief people officer, Micron Technology. “The Micron Training Center is a strategic investment in workforce development, helping build the skilled talent needed to support advanced manufacturing and sustain U.S. leadership in semiconductor innovation. By combining state-of-the-art facilities with degree programs, certifications, apprenticeships and clear career pathways, we are creating opportunities for Idahoans while strengthening the workforce that will power Micron’s growth and the future of the industry.”
“America’s ability to lead the world in semiconductor manufacturing depends on building a highly skilled workforce ready to support the factories and technologies of the future,” said Bill Frauenhofer, executive director of semiconductor investment & innovation at the U.S. Department of Commerce. “Micron’s new Boise training center is an example of what is possible when federal investment, private-sector leadership, and education partners work together to meet that challenge. As Micron executes on its more than $250 billion commitment to U.S. manufacturing and R&D, the CHIPS Program Office is proud to support Micron’s new training center and help build the talent pipeline needed to create meaningful pathways into essential careers, strengthen our domestic talent pipeline, and ensure this country remains at the forefront of innovation and advanced manufacturing.”
“Micron’s training center and their investment in apprenticeships and career pathways are helping keep Idaho’s workforce and economy at the forefront. This exciting announcement builds on the investments we’ve made to strengthen Idaho’s workforce, including Idaho LAUNCH. Together, we’re helping Idahoans gain the skills and training they need to succeed in high-demand careers. We challenged Idaho employers to step up and partner with us, and Micron has answered that call,” Governor Brad Little said.
At today’s event, Micron celebrated Cohort 6 of its registered apprenticeship program — its largest Boise cohort to date and is building toward triple-digit enrollment by the end of fiscal year 2027. Developed with CWI and the Idaho Manufacturing Alliance, the earn-and-learn model directly supports Gov. Brad Little’s goal to double Idaho’s registered apprentices statewide by 2029.
For more information visit: Idaho | Micron Technology Inc.
About Micron Technology, Inc.
Micron Technology, Inc. is a global leader in semiconductor memory and storage, powering AI and compute-intensive applications from cloud to edge. With a relentless focus on our customers, technology and product leadership, and manufacturing and operational excellence, Micron’s comprehensive portfolio of high-performance DRAM, NAND and NOR solutions delivers the speed, efficiency and scale today’s workloads demand, accelerating intelligence to enrich life for all. To learn more about Micron Technology, Inc. (Nasdaq: MU), visit micron.com.
Memory stocks fell sharply on Monday as investors weighed concerns over Apple’s potential use of Chinese memory chips, a disappointing capital-return announcement from Samsung and broader profit-taking across semiconductor shares.
Micron Technology MU fell about 7%, while SK Hynix dropped roughly 5%. SanDisk declined around 9%, while Seagate Technology and Western Digital each fell about 7%.
The selling came as investors digested reports that the Trump administration could allow Apple to source DRAM from China's ChangXin Memory Technologies, or CXMT, and NAND flash from Yangtze Memory Technologies, or YMTC.
The reports added to concerns that major US memory suppliers could eventually lose some Apple-related business to Chinese competitors.
However, analysts cautioned that the immediate market reaction may have overstated the threat.
Wccftech reported that the Trump administration could allow Apple to procure memory chips from CXMT and YMTC following Chinese President Xi Jinping's expected US visit in September.
The report suggested that allowing Apple access to Chinese memory suppliers could form part of a broader effort to ease tensions between Washington and Beijing while also helping Apple address supply-chain constraints.
The possibility was enough to pressure memory stocks, particularly Micron, which has been closely associated with Apple's memory supply chain.
But KC Rajkumar of Lynx Equity Research argued that investors may be overestimating CXMT's ability to disrupt the market.
CXMT has reportedly been qualified for only a single, low-volume Mac product, with production still constrained by poor yields. Rajkumar said the company's LPDDR5X yields make it unlikely to supply Apple at meaningful scale.
"CXMT supply is unlikely to dent the shortage Apple is facing in DRAM, nor could CXMT supply improve Apple’s negotiation position at traditional suppliers such as MU," he wrote.
That suggests the immediate threat to Micron may be limited, even if Washington ultimately allows Apple to expand its relationship with Chinese memory manufacturers.
Washington's stance remains uncertainThe latest reports also appear to conflict with recent comments from US Commerce Secretary Howard Lutnick.
The Wall Street Journal reported last week that Lutnick said the Trump administration does not want Apple to use memory chips manufactured in China.
“The Trump administration is not in favor of that,” Lutnick said in an interview after touring an Apple manufacturing facility in Houston, according to the newspaper.
The comments came as Micron lobbied Washington against Apple using Chinese memory chips.
The company has argued that allowing such imports could undermine US semiconductor manufacturing and run counter to the administration's efforts to bring more chip production onto American soil.
The conflicting signals have therefore added another layer of uncertainty for investors trying to assess how US technology policy could affect memory suppliers.
Another catalyst came from South Korea, where Samsung shares fell about 9% after the company announced its 2026 shareholder-return plans.
Samsung said it expects to return between 90 trillion and 110 trillion Korean won to shareholders in 2026.
Investors, however, had hoped for clearer commitments to immediate share buybacks and share cancellations.
JPMorgan analysts viewed the lack of an immediate buyback and the unchanged return framework as potential disappointments after expectations had risen ahead of the announcement.
Samsung is one of the world's largest memory-chip manufacturers, making its share-price decline significant for the broader sector.
Still, the announcement does not fundamentally alter the demand outlook for Micron's high-bandwidth memory or SanDisk's NAND business.
Instead, it may have provided a catalyst for investors to take profits across a sector that has already enjoyed substantial gains.
Memory stocks were also caught in a broader retreat across semiconductor shares ahead of Nvidia's earnings later this week.
Nvidia fell about 3% on Monday, while the Philadelphia Semiconductor Index declined roughly 4%.
That suggests the weakness in Micron and its peers is not entirely the result of company-specific concerns.
Investors appear to be reducing exposure to semiconductor stocks ahead of one of the most closely watched earnings reports of the quarter.
The broader market was also under pressure as the Trump administration prepared new tariffs on Canadian goods and additional economic sanctions against Iran.
In the earnings season that is now wrapping up, technology companies delivered a clear message regarding artificial intelligence (AI) spending. The five hyperscalers -- Microsoft, Amazon, Alphabet, Meta Platforms, and Oracle -- all either reaffirmed or boosted their capital expenditure plans for the year, pushing their combined planned outlay north of $700 billion.
The scope of that infrastructure spending is being driven by two interlocking forces: Insatiable demand for additional compute capacity as AI training and inference workloads explode, and a sharp rise in memory component prices that has made every new data center rack more expensive.
While most investors will be watching Nvidia's (NVDA -2.54%) fiscal 2027 second-quarter earnings report on Aug. 26, I'll have my eyes on Micron Technology (MU -5.54%).
Image source: The Motley Fool.
What is Wall Street expecting for Nvidia's Q2 earnings? Wall Street analysts expect Nvidia to post roughly $92.1 billion in revenue and earnings per share (EPS) of $2.09 for the second quarter. That would amount to 97% revenue growth and nearly a doubling of profits year over year.
I see several factors that make a considerable earnings beat plausible. First, research analyst Vivek Arya from Bank of America notes that the four major cloud infrastructure platforms -- Azure, AWS, Google Cloud, and Oracle Cloud -- boast a combined backlog of $2.3 trillion. It's no secret that the hyperscalers remain capacity-constrained. Given this ongoing compute bottleneck, it's highly likely that demand for Nvidia's latest GPU and CPU platforms will remain robust. Moreover, Nvidia's management previously guided for gross margins to hold near 75%, underscoring the company's ability to maintain its pricing power.
How Nvidia's momentum flows directly to Micron The impact of a strong performance from Nvidia shouldn't stop at that company's own stock price. Micron occupies a strategic position in the same AI chip supply chain. Nvidia's accelerators incorporate high bandwidth memory (HBM) stacks, and Micron is one of only three manufacturers qualified to supply Nvidia with these platforms. Micron's South Korean rivals, SK Hynix and Samsung, are the other two major high-end memory producers.
This means that every GPU that Nvidia ships requires a corresponding volume of advanced memory products. Because HBM production is increasingly being allocated to customers under multiyear agreements, any confirmation of accelerated GPU demand from Nvidia effectively tightens memory supply even further.
This, in turn, should fuel higher contract prices for both HBM and conventional DRAM -- translating into further revenue growth and margin expansion for memory suppliers like Micron. In essence, growth in Nvidia's data center chip shipments acts as a catalyst for Micron's pricing.
Why Micron stock could break out After a parabolic rally earlier this year, Micron stock has spent the last month digesting its gains. This consolidation has left shares range-bound relative to pure-play GPU designers and other category-leading AI semiconductor stocks.
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A decisive earnings beat from Nvidia would serve as an additional data point validating that the AI infrastructure supercycle remains intact, strengthening the value of memory as a key layer in the chip value chain. Considering that Micron's own HBM and DRAM output is already sold out and new capacity is still coming online, the narrative around the company should shift from "priced for perfection" to "still catching up with demand curves."
Investors waiting for a clearer catalyst to emerge may want to consider rotating some capital into memory names now, as I suspect a sharp rerating of these companies could be right around the corner. The combination of end-market strength from Nvidia and cloud hyperscalers, constrained supply across the industry, and a stock that has already absorbed considerable profit-taking creates a compelling setup for renewed upside once Nvidia's fiscal Q2 numbers hit the tape.
Bank of America is an advertising partner of Motley Fool Money. Adam Spatacco has positions in Alphabet, Microsoft, and Nvidia. The Motley Fool has positions in and recommends Alphabet, Micron Technology, Microsoft, Nvidia, and Oracle. The Motley Fool has a disclosure policy.
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Sanjay Mehrotra used a CNBC appearance from Boise last Thursday to unveil Micron Research Labs, a $10 billion investment in basic research aimed at next-generation AI memory. He framed it with a claim investors should take seriously and interrogate carefully: “Memory is no longer a component in a system. Memory is the strategic infrastructure for AI. It’s no longer a commodity. It is a high value.”
That is a large statement from a company whose stock has historically traded as a cyclical. Shares of Micron Technology (NASDAQ:MU | MU Price Prediction) closed at $974.33 on Thursday, up 241.59% year to date and 732.62% over the trailing year. The market has already accepted the reframing.
The question worth asking is whether the reframing survives the next downcycle, because a business that has escaped commodity dynamics does not see margins collapse when supply catches up with demand. Mehrotra is partly right, and the distinction matters enormously for valuation. High bandwidth memory is increasingly a contracted, designed-in product, although commodity DRAM and NAND still clear at cyclical prices.
What Mehrotra Actually Announced in Boise Micron Research Labs will be headquartered in Boise with satellite campuses globally, and Mehrotra drew an explicit parallel to Bell Labs. The pitch is that Micron will convene customers, universities and startups around the memory hierarchy the AI era requires.
He backed the framing with a claim about scale, noting that Micron holds over 62,000 patents. The company also announced the lab in a press release that same day, positioning it as an anchor of American semiconductor leadership.
On CNBC, Mehrotra tied the effort directly to system architecture: “Without memory, you cannot make AI smarter. You cannot make AI faster. You cannot scale up AI.” He argued the point applies across the stack, “from high bandwidth memory to DRAM to SSDs.”
The $10 billion figure signals which business Micron intends to be judged on. Basic research is what you fund when differentiation is expected to be technical rather than cost-driven, and Micron is telling investors to price it accordingly. Seeking Alpha reported the labs disclosure the same day Mehrotra sat with Cramer.
Why the “Not a Commodity” Claim Is Partly True Micron has signed 16 Strategic Customer Agreements, most of which run for five years from calendar 2026 through the end of calendar 2030. They are structured as take-or-pay contracts with binding volumes.
Fourteen of those agreements have cumulative revenue at minimum prices of approximately $100 billion over the remaining term of the agreements. Together, the signed deals cover roughly 20% of Micron’s DRAM volume and a third of its NAND volume.
The largest include price bands with floors that Mehrotra said would deliver “a very robust gross margin for Micron, well above our peak quarterly margins in any past cycle.” That is a real structural change if it holds. Fiscal Q3 already showed the direction, with $41.46 billion in revenue and a non-GAAP gross margin of 84.9%, disclosed in the Q3 press release filed with the SEC.
The part that remains commodity is the part not under contract. Even after every planned agreement is executed, only approximately 40% of revenue will be at fixed prices or ceilings near current market levels, leaving a large book of DRAM and NAND exposed to the cycle.
Real Test Comes in the Next Downturn The market is signaling it half-believes the reframing. Micron trades at a trailing PE of 21x but only a forward PE of 6x, which is the multiple you assign a company you expect to earn less next year, not more.
Mehrotra argues the setup is durable, telling investors on the June call that “We expect tight conditions to persist beyond calendar 2027 as a result of AI-driven demand across all segments coupled with structural supply constraints.” He also warned of “a meaningful moderation in the rate of price increases” in the fiscal Q4 gross margin outlook.
Retail chatter on Reddit has flagged that memory prices are pressuring non-AI devices, with June China smartphone shipments down 17% year over year, which is exactly what a demand pull-forward looks like when it starts to bite. Insider filings show Mehrotra himself recorded dispositions across May, June and July at prices ranging from about $907 to $1,192.
A re-rating to a durably higher multiple is justified only if the SCA book proves it can hold floor pricing through a supply-normalization phase Micron has not yet faced. Until then, the $10 billion for Micron Research Labs is a credible bet that the differentiated slice of memory keeps growing faster than the commodity slice shrinks, which is a defensible thesis rather than a settled one.
Contact [email protected] for any questions or corrections.
Micron Technology Inc. (MU, Financials) is being caught up in a bigger semiconductor selloff just as one of the sector's greatest tests looms.
Shares dropped more than 3% in premarket Monday as investors rotated out of semiconductor stocks ahead of Nvidia's earnings later this week. This vulnerability is not coming from a new Micron-specific issue.
Instead, investors seem to be de-risking the sector as bond yields increase and growth companies and memory names come under greater scrutiny. Samsung's strong selloff added to the apprehensive tone after its record shareholder-return plan failed to excite investors. Timing is everything to Micron.
The company has been one of the main benefactors of the AI memory boom, with expectations considerably higher as demand for high-bandwidth memory and data-center processors has soared. Which implies Nvidia's results could have ramifications well beyond Nvidia.
A good prognosis may help bolster confidence that AI infrastructure spending is strong. Any evidence of demand weakening, however, might put more pressure on equities that have already priced in fast growth. Wall Street is still positive on Micron.
TipRanks consensus is Strong Buy, based on 29 Buys and one Hold, with an average price target of ~62% upside. For now though, Micron is trading less on its own fundamentals and more on what investors expect to hear from Nvidia next.
Micron (MU -6.80%) stock tumbled 5.5% in the first five minutes of trading Monday after tech news site WCCTech reported the Trump Administration has decided to permit Apple (AAPL +1.21%) to purchase memory chips from Chinese suppliers ChangXin Memory Technologies (CXMT) and Yangtze Memory Technologies Corp (YMTC).
Image source: Micron.
What does this have to do with Micron? Respectively, CXMT is a maker of low-cost DRAM chips, while YMTC manufactures NAND. Micron produces both kinds of memory chips. According to WCCTech, the DRAM and NAND that Apple might source from China would only be used in Apple products sold in China.
As such, this news isn't a global threat to Micron. It is, however, at least a threat to the company's market share in China, and perhaps in other countries to which China might ship Apple products, should those start to filter out.
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What's next for Micron stock? Not everyone thinks it's time to press the panic button. In a note on StreetInsider.com this morning, Lynx Equity Research analyst KC Rajkumar says calls for investors to sell Micron are an "overreaction," citing concerns about the quality of Chinese wares and the inability of CXMT and YMTC to scale production sufficiently to meet Apple's needs.
Lynx may be whistling past the graveyard here, however.
Is it true that Apple hasn't approved many CXMT and YMTC chips for use in Apple devices yet? Is it true they haven't scaled their production to the point they can steal appreciable market share from Micron yet?
Yes, both these things are true. But CXMT just finished raising $8.6 billion in a Shanghai IPO -- and plans to put that money to work immediately by ramping up production. I expect YMTC to follow a similar path.
Cheap Chinese chips are coming. Micron investors should be nervous.
Rich Smith has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple and Micron Technology. The Motley Fool has a disclosure policy.
Founders Financial Alliance LLC cut its holdings in shares of Micron Technology, Inc. (NASDAQ:MU – Free Report) by 36.8% during the 2nd quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The institutional investor owned 1,531 shares of the semiconductor manufacturer’s stock after selling 890 shares during the quarter. Founders Financial Alliance LLC’s holdings in Micron Technology were worth $1,767,000 at the end of the most recent reporting period.
A number of other large investors also recently modified their holdings of the business. High Note Wealth LLC increased its position in shares of Micron Technology by 65.4% in the fourth quarter. High Note Wealth LLC now owns 86 shares of the semiconductor manufacturer’s stock valued at $25,000 after acquiring an additional 34 shares during the last quarter. Kohmann Bosshard Financial Services LLC acquired a new position in Micron Technology during the first quarter valued at approximately $27,000. Bayban acquired a new position in Micron Technology during the fourth quarter valued at approximately $29,000. Joseph Group Capital Management acquired a new position in Micron Technology during the fourth quarter valued at approximately $31,000. Finally, Luken Investment Analytics LLC bought a new position in Micron Technology in the fourth quarter valued at approximately $31,000. 80.84% of the stock is currently owned by institutional investors and hedge funds.
Analyst Upgrades and Downgrades Several research firms have weighed in on MU. KeyCorp reaffirmed an “overweight” rating on shares of Micron Technology in a research report on Monday, July 20th. Sanford C. Bernstein set a $1,300.00 price objective on Micron Technology in a report on Monday, June 22nd. Erste Group Bank raised shares of Micron Technology from a “hold” rating to a “buy” rating in a research note on Thursday, June 25th. Wolfe Research set a $1,500.00 target price on shares of Micron Technology in a research note on Thursday, June 25th. Finally, Melius Research began coverage on shares of Micron Technology in a report on Monday, April 27th. They set a “buy” rating and a $700.00 target price on the stock. Four investment analysts have rated the stock with a Strong Buy rating, thirty-two have given a Buy rating and three have given a Hold rating to the company’s stock. According to data from MarketBeat, the company currently has an average rating of “Buy” and a consensus price target of $1,261.26.
View Our Latest Stock Analysis on Micron Technology More Micron Technology News Here are the key news stories impacting Micron Technology this week:
Positive Sentiment: $10 billion research commitment: Micron unveiled Micron Research Labs in Boise, backed by a planned $10 billion investment over the next decade. The facility will focus on memory, advanced packaging, computing systems and future semiconductor manufacturing, potentially strengthening Micron’s position in AI infrastructure. Micron Research Labs announcement Positive Sentiment: Strong AI demand outlook: CEO Sanjay Mehrotra said AI has fundamentally changed the traditional boom-and-bust memory cycle and that AI systems cannot scale without memory. Tight supply and demand for high-bandwidth memory, server DRAM and data-center products remain key bullish catalysts. Micron CEO AI demand comments Positive Sentiment: Upbeat analyst coverage: BMO Capital Markets initiated coverage with an “outperform” rating and a $1,300 price target. Separately, D.A. Davidson analyst Gil Luria reportedly raised his target to $2,000, keeping a Buy rating. These forecasts suggest analysts expect AI-driven memory pricing and earnings to support further gains. Micron price target commentary Positive Sentiment: Positive sector momentum: Strong demand and SK hynix’s $28.6 billion buyback are supporting confidence across memory stocks. Investors are also watching Nvidia’s upcoming earnings for evidence that AI infrastructure spending remains robust. Nvidia and Micron AI outlook Neutral Sentiment: Long-term expansion versus execution risk: Micron’s broader $50 billion Idaho manufacturing buildout should increase U.S. capacity and support future growth, but the scale of the spending raises capital-allocation, construction and execution risks. Negative Sentiment: Valuation and cyclicality concerns: Commentary warns that Micron’s record revenue has been driven primarily by higher memory prices rather than substantial shipment growth. Bears argue that memory remains cyclical and that AI optimism may already be reflected in the stock’s substantial prior rally. Micron memory price analysis Negative Sentiment: Market and analyst pressure: Rising Treasury yields have weighed on growth stocks, while Zacks Research downgraded Micron from “strong buy” to “hold.” Michael Burry’s warning that AI infrastructure may contain excessive leverage adds to broader sector risk. Negative Sentiment: Insider and institutional selling: EVP Sumit Sadana sold 15,000 shares for approximately $14 million, and Stanley Druckenmiller’s fund reportedly exited Micron during the second quarter. Neither transaction necessarily signals deteriorating fundamentals, but both can reinforce profit-taking concerns after the sharp advance. Micron insider sale Negative Sentiment: No near-term buyback: Micron is prioritizing large investments and cannot immediately match rivals’ aggressive repurchases, reducing a potential source of near-term shareholder support. Micron buyback analysis Micron Technology Stock Performance Shares of Micron Technology stock opened at $966.78 on Monday. The company has a debt-to-equity ratio of 0.05, a current ratio of 3.42 and a quick ratio of 2.98. The business has a fifty day simple moving average of $967.02 and a two-hundred day simple moving average of $698.10. Micron Technology, Inc. has a 1 year low of $114.25 and a 1 year high of $1,255.00. The company has a market capitalization of $1.09 trillion, a price-to-earnings ratio of 21.89 and a beta of 2.19.
Micron Technology (NASDAQ:MU – Get Free Report) last released its quarterly earnings data on Wednesday, June 24th. The semiconductor manufacturer reported $25.11 EPS for the quarter, beating the consensus estimate of $21.39 by $3.72. The firm had revenue of $41.46 billion for the quarter, compared to the consensus estimate of $35.91 billion. Micron Technology had a net margin of 55.91% and a return on equity of 71.13%. The company’s quarterly revenue was up 345.8% on a year-over-year basis. During the same period in the previous year, the company earned $1.91 earnings per share. Micron Technology has set its Q4 2026 guidance at 30.000-32.000 EPS. Research analysts forecast that Micron Technology, Inc. will post 72.93 EPS for the current year.
Micron Technology Dividend Announcement The business also recently announced a quarterly dividend, which was paid on Tuesday, July 21st. Investors of record on Monday, July 6th were issued a dividend of $0.15 per share. The ex-dividend date of this dividend was Monday, July 6th. This represents a $0.60 annualized dividend and a dividend yield of 0.1%. Micron Technology’s payout ratio is presently 1.36%.
Insiders Place Their Bets In other Micron Technology news, CAO Scott R. Allen sold 879 shares of the firm’s stock in a transaction that occurred 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 in the company, valued at $34,958,000. This trade represents a 2.45% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available at this hyperlink. Also, EVP April S. Arnzen sold 40,000 shares of the business’s stock in a transaction that occurred on Wednesday, July 1st. The stock was sold at an average price of $1,083.94, for a total value of $43,357,600.00. Following the sale, the executive vice president owned 85,737 shares of the company’s stock, valued at approximately $92,933,763.78. This represents a 31.81% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders have sold 177,179 shares of company stock worth $181,826,211 in the last 90 days. Corporate insiders own 0.24% of the company’s stock.
Micron Technology Profile (Free Report)
Micron Technology, Inc is a global semiconductor company that designs and manufactures memory and storage solutions. Its product portfolio includes dynamic random-access memory (DRAM), NAND flash memory, solid-state drives (SSDs), memory modules and embedded memory solutions for a wide range of computing and electronic devices. Micron supplies components used in data centers, enterprise and cloud infrastructure, client computing, mobile devices, automotive systems and industrial applications, and also markets consumer-facing products under the Crucial brand.
Founded in 1978 and headquartered in Boise, Idaho, Micron has grown into an international manufacturer with research, development and production facilities across multiple regions.
Further Reading Five stocks we like better than Micron Technology VIG, VYM, and VYMI: Which Vanguard Dividend ETF Is Right for You? 3 Closed-End Funds to Maximize Dividend Payments Rocket Lab’s Sell-Off Is Fading—Is It Finally Safe to Buy? $27 Billion in Buybacks: 3 Stocks Betting Their Strong Runs Aren’t Over 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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Eaton Financial Holdings Company LLC cut its holdings in Micron Technology, Inc. (NASDAQ:MU – Free Report) by 30.3% in the 2nd quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The institutional investor owned 5,375 shares of the semiconductor manufacturer’s stock after selling 2,342 shares during the period. Micron Technology makes up approximately 1.7% of Eaton Financial Holdings Company LLC’s portfolio, making the stock its 17th biggest position. Eaton Financial Holdings Company LLC’s holdings in Micron Technology were worth $6,204,000 at the end of the most recent quarter.
A number of other hedge funds and other institutional investors also recently made changes to their positions in MU. Heritage Trust Co raised its stake in Micron Technology by 9.7% during the 4th 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 during the period. Castleark Management LLC bought a new position in Micron Technology in the first quarter worth approximately $3,709,000. Legacy Wealth Management LLC MS grew its stake in Micron Technology by 73.3% in the second quarter. Legacy Wealth Management LLC MS now owns 3,544 shares of the semiconductor manufacturer’s stock valued at $4,091,000 after acquiring an additional 1,499 shares during the period. Oppenheimer & Co. Inc. grew its stake in Micron Technology by 16.0% in the second quarter. Oppenheimer & Co. Inc. now owns 48,520 shares of the semiconductor manufacturer’s stock valued at $56,006,000 after acquiring an additional 6,702 shares during the period. Finally, Financial Synergies Wealth Advisors Inc. bought a new stake in shares of Micron Technology during the fourth quarter valued at approximately $1,316,000. 80.84% of the stock is owned by institutional investors and hedge funds.
Analysts Set New Price Targets MU has been the topic of a number of research reports. Barclays upped their target price on Micron Technology from $1,175.00 to $2,000.00 and gave the stock an “overweight” rating in a research report on Thursday, June 25th. The Goldman Sachs Group boosted their price target on shares of Micron Technology from $900.00 to $1,100.00 and gave the company a “neutral” rating in a research note on Thursday, June 25th. TD Cowen restated a “buy” rating on shares of Micron Technology in a report on Friday, July 10th. Seaport Research Partners reaffirmed a “buy” rating on shares of Micron Technology in a research note on Friday, August 14th. Finally, Royal Bank Of Canada lifted their price objective on shares of Micron Technology from $1,200.00 to $1,500.00 and gave the company an “outperform” rating in a report on Thursday, June 25th. Four investment analysts have rated the stock with a Strong Buy rating, thirty-two have given a Buy rating and three have issued a Hold rating to the stock. According to MarketBeat.com, the stock has an average rating of “Buy” and an average target price of $1,261.26.
Get Our Latest Analysis on MU Micron Technology Price Performance MU stock opened at $966.78 on Monday. The firm has a market capitalization of $1.09 trillion, a PE ratio of 21.89 and a beta of 2.19. The company has a quick ratio of 2.98, a current ratio of 3.42 and a debt-to-equity ratio of 0.05. Micron Technology, Inc. has a twelve month low of $114.25 and a twelve month high of $1,255.00. The stock’s 50 day moving average is $967.02 and its 200-day moving average is $698.10.
Micron Technology (NASDAQ:MU – Get Free Report) last announced its quarterly earnings results on Wednesday, June 24th. The semiconductor manufacturer reported $25.11 earnings per share (EPS) for the quarter, topping the consensus estimate of $21.39 by $3.72. Micron Technology had a return on equity of 71.13% and a net margin of 55.91%.The business had revenue of $41.46 billion during the quarter, compared to the consensus estimate of $35.91 billion. During the same quarter in the prior year, the company posted $1.91 earnings per share. Micron Technology’s revenue was up 345.8% compared to the same quarter last year. Micron Technology has set its Q4 2026 guidance at 30.000-32.000 EPS. Sell-side analysts expect that Micron Technology, Inc. will post 72.93 EPS for the current fiscal year.
Micron Technology Announces Dividend The company also recently announced a quarterly dividend, which was paid on Tuesday, July 21st. Stockholders of record on Monday, July 6th were issued a $0.15 dividend. The ex-dividend date was Monday, July 6th. This represents a $0.60 annualized dividend and a dividend yield of 0.1%. Micron Technology’s dividend payout ratio is currently 1.36%.
More Micron Technology News Here are the key news stories impacting Micron Technology this week:
Positive Sentiment: $10 billion research commitment: Micron unveiled Micron Research Labs in Boise, backed by a planned $10 billion investment over the next decade. The facility will focus on memory, advanced packaging, computing systems and future semiconductor manufacturing, potentially strengthening Micron’s position in AI infrastructure. Micron Research Labs announcement Positive Sentiment: Strong AI demand outlook: CEO Sanjay Mehrotra said AI has fundamentally changed the traditional boom-and-bust memory cycle and that AI systems cannot scale without memory. Tight supply and demand for high-bandwidth memory, server DRAM and data-center products remain key bullish catalysts. Micron CEO AI demand comments Positive Sentiment: Upbeat analyst coverage: BMO Capital Markets initiated coverage with an “outperform” rating and a $1,300 price target. Separately, D.A. Davidson analyst Gil Luria reportedly raised his target to $2,000, keeping a Buy rating. These forecasts suggest analysts expect AI-driven memory pricing and earnings to support further gains. Micron price target commentary Positive Sentiment: Positive sector momentum: Strong demand and SK hynix’s $28.6 billion buyback are supporting confidence across memory stocks. Investors are also watching Nvidia’s upcoming earnings for evidence that AI infrastructure spending remains robust. Nvidia and Micron AI outlook Neutral Sentiment: Long-term expansion versus execution risk: Micron’s broader $50 billion Idaho manufacturing buildout should increase U.S. capacity and support future growth, but the scale of the spending raises capital-allocation, construction and execution risks. Negative Sentiment: Valuation and cyclicality concerns: Commentary warns that Micron’s record revenue has been driven primarily by higher memory prices rather than substantial shipment growth. Bears argue that memory remains cyclical and that AI optimism may already be reflected in the stock’s substantial prior rally. Micron memory price analysis Negative Sentiment: Market and analyst pressure: Rising Treasury yields have weighed on growth stocks, while Zacks Research downgraded Micron from “strong buy” to “hold.” Michael Burry’s warning that AI infrastructure may contain excessive leverage adds to broader sector risk. Negative Sentiment: Insider and institutional selling: EVP Sumit Sadana sold 15,000 shares for approximately $14 million, and Stanley Druckenmiller’s fund reportedly exited Micron during the second quarter. Neither transaction necessarily signals deteriorating fundamentals, but both can reinforce profit-taking concerns after the sharp advance. Micron insider sale Negative Sentiment: No near-term buyback: Micron is prioritizing large investments and cannot immediately match rivals’ aggressive repurchases, reducing a potential source of near-term shareholder support. Micron buyback analysis Insider Buying and Selling In related news, CEO Sanjay Mehrotra sold 31,285 shares of the business’s stock in a transaction dated Friday, July 24th. The shares were sold at an average price of $926.83, for a total transaction of $28,995,876.55. Following the transaction, the chief executive officer directly owned 313,218 shares in the company, valued at approximately $290,299,838.94. The trade was a 9.08% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, CAO Scott R. Allen sold 879 shares of the company’s 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 completion of the sale, the chief accounting officer directly owned 34,958 shares of the company’s stock, valued at $34,958,000. The trade was 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 177,179 shares of company stock valued at $181,826,211 over the last 90 days. 0.24% of the stock is currently owned by company insiders.
Micron Technology Profile (Free Report)
Micron Technology, Inc is a global semiconductor company that designs and manufactures memory and storage solutions. Its product portfolio includes dynamic random-access memory (DRAM), NAND flash memory, solid-state drives (SSDs), memory modules and embedded memory solutions for a wide range of computing and electronic devices. Micron supplies components used in data centers, enterprise and cloud infrastructure, client computing, mobile devices, automotive systems and industrial applications, and also markets consumer-facing products under the Crucial brand.
Founded in 1978 and headquartered in Boise, Idaho, Micron has grown into an international manufacturer with research, development and production facilities across multiple regions.
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You probably know by now that a central question to the artificial intelligence (AI) narrative is not whether the technology will consume more memory but whether producers like Micron Technology (MU -0.78%) can convert ongoing shortages into a durable business model that compounds through the end of the decade.
For now, discussions primarily revolve around surging demand for high-bandwidth memory (HBM) and accelerating hyperscale capital expenditure budgets. While these talking points are necessary, they don't capture the full scale of the AI memory supercycle.
In my view, what matters more is a deeper shift that most investors are overlooking: Memory is ceasing to be a pure commodity and is quietly emerging as the binding constraint on the pace of further AI development.
Image source: Micron Technology.
Memory is a core feature of advanced computing Each successive generation of AI models is hitting the same physical limit: Processors execute more parameters than the memory subsystem can actually feed. In this sense, Micron's nodes and advanced packaging are not simple incremental product upgrades -- they are the only practical way to keep extending AI's capabilities.
In the 2030s, the AI industry will almost certainly still be chasing denser memory stacks because demand from next-generation applications in robotics, autonomous vehicles, and agentic AI will be scaling alongside future breakthroughs in lithography.
Long-term supply contracts are helping Micron lock in volume and secure price floors for a meaningful fraction of its future output. I think these agreements are more likely to expand rather than expire as sovereign AI programs -- namely from SpaceX -- and edge deployments proliferate. As a result, Micron's earnings profile should become less volatile.
Micron has historically been (correctly) viewed and priced as a highly cyclical business, but against this evolving backdrop, investors may come to see it as an AI infrastructure compounder, and rerate the stock accordingly, granting it a higher earnings multiple.
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Keep an eye on Micron's capital allocation Another thing to monitor is the sheer volume of cash Micron generates once its production capacity expansions catch up to its contracted demand. Once this happens, Micron will be under less pressure to supplement its current $250 billion manufacturing build-out with outlays for additional fabrication capabilities. Instead, management will have a choice: Return capital aggressively through buybacks or dividends, acquire complementary intellectual property in packaging, or build internally and become even more vertically integrated.
Any of these paths should transform Micron's balance sheet from a cyclical buffer into a strategic fortress. Investors who only model peak-cycle earnings inherently miss the upside embedded in a growing cash position, as this capital can fund optionality in the product roadmap or simply reduce the share count -- both of which will amplify Micron's equity value even after the initial data center build-out.
What could an investment in Micron look like by 2030? I think the best metric to use when analyzing Micron stock is the forward price-to-earnings (P/S) ratio because it requires two transparent assumptions: a level of normalized future earnings and a multiple the market will realistically assign once the memory cycle is better understood.
MU EPS Estimates for Current Fiscal Year data by YCharts.
In the chart above, investors can see that Wall Street analysts forecast Micron's earnings per share (EPS) will roughly double over the next year, but that growth will then begin to decelerate by calendar 2028. With these trends in mind, I've provided a scenario analysis below that shows a range of possible earnings figures and forward earnings ratios for 2030.
Scenario2030 EPS2030 Forward P/E Ratio2030 Share PriceUpside case$25014$3,500Base case$16010$1,600Downside case$1008$800 Given these assumptions, a $10,000 investment made in Micron today could be worth anywhere between roughly $8,400 and $36,600 by the end of 2030. I personally think the base case, which implies about 67% upside to current trading levels, is the most realistic. The bear case ultimately leads to capital erosion, a risk that could very well occur given the historically boom-and-bust nature of the memory industry. The big takeaway here is that an investment in Micron likely carries a spread that should not be overlooked.
The DRAM memory market is expected to remain tighter for longer vs. the NAND market. This benefits Micron's 76% DRAM-focused portfolio. Faster-than-expected HBM market growth, tight market conditions, and Micron's high share in this segment are major growth catalysts. DRAM market tightness is expected through 2027 and beyond, with HBM TAM projected to surpass $100B in 2027, accelerating revenue growth.
Memory stocks have been on a tremendous run over the past year, buoyed by surging prices, ballooning gross margins, and huge free cash flow. This has helped the stocks of Micron Technology (MU -0.78%), Sandisk (SNDK -0.28%), and SK Hynix (SKHY +0.20%) (before its U.S. IPO) go parabolic this year. Micron is up more than 700% over the past year, while Sandisk is up an almost inconceivable 3,400% during the same stretch. SK Hynix's Korean shares, meanwhile, have surged 600% during the past year.
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The current memory supercycle can be tied directly to the AI infrastructure build-out, which has led to major supply-demand imbalances. The memory market is divided between DRAM (dynamic random access memory), used for very short-term storage, and NAND (flash), which retains data longer. Both have seen tremendous increases in AI-related demand.
The biggest driver in the market right now is high-bandwidth memory (HBM), which is packaged with graphics processing units (GPUs) and other AI chips to reduce latency and power consumption. It's one of the biggest bottlenecks in all of AI, and as such, the big three DRAM makers -- SK Hynix, Samsung, and Micron -- have been dedicating most of their resources to keeping up with demand. This is leading to a supply shortage across the entire DRAM market and skyrocketing prices.
Flash memory, meanwhile, is used in colossal enterprise solid-state drives (SSDs) that store training data. Flash has been supply-constrained as the big three memory makers have shifted their focus to HBM, after earlier cutting production and redirecting resources toward DRAM following the NAND market's crash after the pandemic. Stay-at-home mandates had led to a pull-through in demand for electronics, which are big users of flash memory, but once they were lifted, the market collapsed.
Image source: Getty Images.
History says the market will collapse, but this time does look different History would tell us that memory stocks will eventually crash, as traditionally, boom cycles are met by increasing supply that eventually overtakes demand, causing memory prices to sink. However, this cycle does seem different.
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Current Price
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First, AI infrastructure demand just continues to soar, with no signs of slowing down. Second, memory makers, especially those focused on HBM, are struggling to keep up, and a few factors will continue to constrain supply growth. This includes limited capacity growth for EUV (extreme ultraviolet lithography) machines needed in the manufacturing of both HBM and advanced logic chips, such as GPUs; HBM requiring upwards of three times the wafer capacity of regular DRAM; and the lead times required to construct new clean rooms. Finally, all of the memory makers, including pure-play flash maker Sandisk, have been able to secure long-term contracts for the first time in history.
With both DRAM and NAND memory cycles still looking to have a long runway ahead, and stock valuations not reflecting this, memory makers could continue to be top AI stocks to own.
