Micron Technology (NASDAQ: MU) has received another bullish endorsement from Wall Street, with TD Cowen reiterating its ‘Buy’ rating and maintaining a $1,600 price target on the memory-chip giant.
The target implies a 63% upside from Micron’s press-time value of $979.
MU one-week stock price chart. Source: Finbold The firm’s analyst Krish Sankar reaffirmed confidence in the company’s long-term growth outlook, pointing to sustained demand for memory products and supply constraints that are expected to persist beyond 2027.
TD Cowen’s bullish stance follows investor meetings with Micron Chief Executive Officer Sanjay Mehrotra and Chief Financial Officer Mark Murphy.
The firm highlighted strong industry fundamentals, noting that physical production constraints continue to limit supply while demand remains robust across key end markets.
A major component of the firm’s thesis centers on Supply Constrainment Agreements (SCAs), which provide customers with guaranteed access to memory products while giving Micron greater revenue visibility.
TD Cowen estimates that nearly 50% of Micron’s total revenue could eventually be covered by such agreements, helping the company secure long-term pricing stability and improve profitability.
The analyst also pointed to continued tightness in the DRAM market, with recent industry checks indicating average selling prices could increase by more than 15% during the current quarter.
Demand for high-bandwidth memory (HBM), DRAM, and NAND products remains elevated as artificial intelligence infrastructure spending continues to accelerate.
Wall Street bullish on MU stock price The broader analyst community remains overwhelmingly positive on the stock. According to consensus estimates from 30 Wall Street analysts over at TipRanks, Micron carries a ‘Strong Buy’ rating, with 29 buy recommendations, one hold rating, and no sell ratings.
The average 12-month price target stands at approximately $1,564, while the highest target reaches $2,200 and the lowest sits at $1,100.
MU 12-month stock price prediction. Source: TipRanks Overall, Micron has emerged as one of the biggest beneficiaries of the AI-driven memory boom. The stock has delivered extraordinary gains over the past year, climbing from double-digit levels to trade near $1,000, although shares have experienced heightened volatility in recent weeks amid broader semiconductor sector pullbacks.
Micron stock fundamentals The company’s latest financial results reinforced the bullish narrative. For the third quarter 2026, Micron reported revenue of $41.46 billion, representing a 346% year-over-year increase, while adjusted earnings per share came in at $25.11, comfortably ahead of analyst expectations.
Management also issued fourth-quarter revenue guidance of approximately $50 billion, signaling continued momentum across its business.
Beyond near-term demand strength, Micron is also expanding its manufacturing footprint. The company recently increased its long-term U.S. investment commitment to $250 billion through 2035 as it seeks to expand domestic DRAM production capacity and capitalize on growing demand for AI-related memory solutions.
While Nvidia (NVDA +3.90%) has been one of the biggest drivers of the market during the past five years, its performance has slowed recently, with the stock up just around 26% over the past year. Part of the reason is the company's sheer size, which has climbed to around $5 trillion in market cap. Still, as the company transforms from a graphics processing unit (GPU) maker into a complete AI infrastructure company, its future remains bright. The stock is also cheap, trading at a forward P/E of 16 times analyst estimates for fiscal 2028 (ending January 2028), even after it reported 85% revenue growth last quarter.
That said, let's look at three AI stocks that have crushed Nvidia's stock performance over the past year. (Note all returns are as of this writing, and even seemingly small moves can have big impacts on one-year returns.)
Image source: Getty Images.
Sandisk: No flash in the pan Up over 3,990% in the past year, Sandisk (SNDK +3.27%) has been the hottest stock in the market, even after a recent 19% pullback. The memory maker has benefited from a shortage of NAND (flash) memory, as demand for huge SSDs (solid-state drives) that use flash memory to store AI data has surged. This has driven up NAND prices, which in turn has boosted Sandisk's sales and gross margin. Last quarter, its revenue surged 251%, while its gross margin climbed from 22.5% to 78.4%.
Today's Change
(
3.27
%) $
60.73
Current Price
$
1,919.00
Flash prices continue to climb, and Wedbush recently raised its fiscal Q4 outlook for the company, saying Sandisk likely materially underestimated the impact of higher industry price gains in its original forecast. The stock only trades at a forward P/E of less than 7.5 times next year's fiscal estimates, but its multiple remains low due to the NAND market's historically cyclical nature. However, it has started to lock in some longer-term deals with $42 billion in minimum value to try to reduce some of its cyclicality, which could still make the stock a bargain if the NAND cycle continues.
Micron Technology: Riding the DRAM supercycle Memory maker Micron Technology (MU 1.05%) has also been crushing it the past year, with its stock up roughly 721%. Micron derives approximately 75% of its revenue from DRAM (dynamic random access memory) and 25% from NAND. Like Sandisk, the company is seeing big boosts from rising memory prices, which in turn is driving revenue growth and expanding its gross margin.
Today's Change
(
-1.05
%) $
-10.39
Current Price
$
981.25
The DRAM market is benefiting from surging demand for high-bandwidth memory (HBM), which is used to optimize the performance of GPUs and other AI chips. This dynamic is becoming even more pronounced with the rise of inference, which tends to be more memory-bound than compute-constrained. The supply shortage has helped the company lock in long-term contracts for the first time, now covering 40% of its revenue, which should help reduce some of the cyclicality of its business. The stock trades at a forward P/E of under 6.5 times fiscal 2027 estimates, making it a bargain if the DRAM supercycle continues to have legs.
AMD: Riding the inference and agentic AI waves A direct competitor to Nvidia, Advanced Micro Devices (AMD +2.13%) has nicely outperformed its rival, with its stock up about 302% over the past year. The company's stock performance has been driven by its position in the inference and agentic AI markets.
Today's Change
(
2.13
%) $
11.62
Current Price
$
558.34
While Nvidia has dominated the AI training market due to its strong CUDA software moat, AMD is much better positioned in the fast-growing inference market. Its chiplet designs allow its GPUs to be packaged with more memory, making them well-suited for inference, and it has signed $100 billion GPU partnerships with both OpenAI and Meta Platforms. It is also believed that Anthropic will use its newest chips.
On top of that, as a leader in data center central processing units (CPUs), the company is set to ride the wave in agentic AI. More CPUs will be needed in AI data centers to manage AI agents, with AMD predicting this will grow into a $120 billion addressable market over the next few years. It's a huge opportunity, and the company is already designing high-performance CPUs specifically for agentic AI.
Given its opportunities with both inference and agentic AI, AMD looks like it could have more room to run.
There are plenty of AI stocks whose valuations have surged amid the current AI boom. There are now three companies worth at least $4 trillion, six companies worth at least $2 trillion, and 15 companies worth at least $1 trillion. And of the 15 companies worth at least a trillion, 13 are tech companies.
One of the newest members of the trillion-dollar club is Micron (MU 1.05%), which had a market cap of $1.07 trillion as of the market close on July 8. The stock is up more than 660% in the past 12 months and 200% this year, making investors a lot of money along the way -- including President Donald Trump.
Trump's 2025 financial disclosure showed that he owned between $1.67 million and $6.65 million in Micron stock. Should Trump's stake in Micron be a sign that investors should follow his lead?
Image source: The Motley Fool.
At the right place at the right time Trump's stake in Micron is noteworthy given the company's $250 million commitment to the president's "Trump Account." But when you set that aside, the investment in Micron is a matter of striking while the iron is hot.
Micron is a memory chip maker and has found itself at the right place at the right time during the current AI boom. As AI hyperscalers such as Amazon, Microsoft, and Alphabet have spent billions building out data centers and other AI infrastructure, there has been a shortage of memory hardware that these data centers rely on to operate.
Given the high demand and short supply, Micron has been able to considerably raise prices and improve its profits and margins (though it has been accused of collusion and price-fixing). In the past year, Micron's revenue has increased by 266%, while its net income has surged by 782%.
MU Revenue (Quarterly) data by YCharts
Unsurprisingly, the unique position Micron has found itself in -- both financially and in terms of market position -- has attracted many investors hoping to capitalize on it. And based on the president's latest disclosure, he's been one of those investors.
Today's Change
(
-1.05
%) $
-10.39
Current Price
$
981.25
Should you follow Trump's lead? You shouldn't invest in Micron simply because the president did. It's true his stake in the company means he has a vested interest in making sure the stock does well, but you don't want to blindly follow his moves simply for that reason.
You should, however, consider investing in Micron because its unique market position is bound to last for the foreseeable future. But even when supply meets demand, and Micron can't command the premium it's currently charging, the company will still have long-term agreements in place.
It's operating in a cyclical industry that's riding the high end, but it's still a solid company with good long-term potential. It's likely to be highly volatile along the way, but I trust its trajectory.
In the age of artificial intelligence (AI) infrastructure, Micron Technology's (MU 1.05%) plan to invest more than $250 billion in U.S. fab expansions marks an aggressive escalation. This capital outlay aims to scale the company's DRAM manufacturing while laying the groundwork for higher-volume high-bandwidth memory (HBM) production.
By deepening production at domestic facilities, Micron is increasingly positioned to capture a larger share of the AI memory supercycle amid fierce competition from SK Hynix and Samsung.
Image source: Micron Technology.
Secular AI demand is mitigating cyclicality in the memory market Micron's decision to increase investment in manufacturing may seem counterintuitive because memory markets have historically moved in tandem with PC and smartphone cycles. However, hyperscalers like Microsoft, Alphabet, Amazon, and Meta Platforms have demonstrated an insatiable appetite for AI infrastructure, including advanced memory chips.
In particular, HBM stacks require large quantities of advanced DRAM wafers and sophisticated packaging. These are the areas that Micron's investments are targeting. Scaling output supports Micron's long-term goal of producing 40% of total DRAM domestically. The vision is to create a more durable growth trajectory, enabling the company to close the market-share gap with overseas rivals.
Today's Change
(
-1.05
%) $
-10.39
Current Price
$
981.25
Micron has been investing in U.S. manufacturing already In New York, the company is building a complex with up to four fabs focused on high-volume DRAM production. Meanwhile, in Idaho and Virginia, Micron is investing in further R&D to accelerate product development and modernize existing operations.
By doubling down on existing infrastructure with this new multiyear build-out, Micron is quietly creating an end-to-end domestic ecosystem spanning wafer fabrication through advanced packaging. This playbook rivals the integrated operations long enjoyed by SK Hynix and Samsung in Asia.
Micron's progression over the next several years should transform earlier piecemeal investments into a more cohesive platform purpose-built for sustained leadership in both DRAM and AI-optimized HBM, directly fueling the company's ongoing ascent throughout the AI infrastructure era.
Adam Spatacco has positions in Alphabet, Amazon, and Microsoft. The Motley Fool has positions in and recommends Alphabet, Amazon, Meta Platforms, Micron Technology, and Microsoft. The Motley Fool has a disclosure policy.
Micron Technology (MU 1.05%) has emerged as one of the top AI stocks. It's up by more than 700% over the past year, thanks to strong demand for its memory and storage products from AI data centers. Those facilities need huge volumes of Micron's chips to efficiently handle AI workloads, but a new wave of products may need such chips even more.
During the company's fiscal 2026 third-quarter call on June 24, CEO Sanjay Mehrotra told investors that humanoid robots are a much more promising opportunity for Micron than AI data centers. That may sound hard to believe right now, especially since Micron more than quadrupled its revenue year over year thanks to data center sales. However, the premise is worth exploring.
Image source: Getty Images.
A multi-decade memory demand cycle Some investors have shied away from the semiconductor trade due to the industry's cyclical history. The general concept is that at various points, rising demand for a particular type of chip leads to a shortage, which drives prices up.
The chipmakers supplying those products book higher profits, but they also rush to boost their production capacity so that they can sell as many of those chips as possible. "Rush," however, is relative. It can take a couple of years to get new chip fabrication facilities online.
Today's Change
(
-1.05
%) $
-10.39
Current Price
$
981.25
Eventually, more supply arrives, cutting into chipmakers' pricing power. Then, frequently, total demand slides, and the chipmakers are stuck with inventory gluts. But they have to get rid of their older models to make room for new chips with better technological features. The solution is price cutting, which results in further reduced revenues and even tighter margins.
Memory chips in particular have been subject to these cycles, as the technology has largely been commoditized. There's not an enormous amount of variation between the products made by Micron and its peers.
Bullish investors view Micron as being in the middle of a multiyear up cycle driven by artificial intelligence. However, Mehrotra took it a step further during the fiscal 2026 third-quarter earnings call. He predicted a "sustained, substantial multidecade memory demand cycle" that will begin in "the latter part of this decade."
This cycle hasn't even started yet, and it's supposed to be bigger than the one that's being powered by AI data center demand. And that forecast came from Mehrotra right after his company broke records and crushed its already ambitious guidance.
Why robots? Mehrotra also notified investors that AI infrastructure is accelerating the path to physical AI. That's a large category that includes humanoid robots. Tesla (TSLA +0.22%) has also been teasing its Optimus robots for a while, and is getting closer to commercializing them.
When mass production of those devices actually happens, it will be a substantial tailwind for Micron. The company said humanoid robots will carry 10 times the memory of the average L2+ vehicle. (L2+ is just an auto industry insiders' term for vehicles with enhanced advanced driver assistance systems.)
The supply shortages in the memory market will get worse if demand continues to accelerate. Micron will have a vast runway to sell chips at nosebleed margins. Barclays expects the market for humanoid robots to reach $200 billion in less than 10 years, while well-known tech bull Dan Ives of Wedbush Securities anticipates the industry will be worth trillions of dollars over the course of the next decade.
Investors don't have to guess which robotics company will win that race when they can buy a chipmaker whose products will be integral to the majority of humanoid robots. That's the pitch from Micron, and it's a pretty good one.
This post may contain links from our sponsors and affiliates, and Flywheel Publishing may receive compensation for actions taken through them.
Jim Cramer picked a loud morning to turn bearish. On CNBC’s Squawk on the Street earlier this week, with oil up 5% and global stocks falling after the president declared the Iran ceasefire over, Cramer told David Faber he sees a supply-and-demand imbalance in capital markets he has not witnessed since early 2000. “There’s a lot of offerings, not enough money, and I am turning bearish,” he said, adding, “I have a huge cash position. I don’t want to buy any tech” and “I think we’re out of money, really.”
That is a striking call from someone who spent the last two years cheerleading the AI capex trade. So what spooked him? Two deals. Amazon (NASDAQ:AMZN | AMZN Price Prediction) raised $25 billion in debt that traded poorly, and SK Hynix is lining up a massive equity offering for Friday. Faber put the underlying question directly. “The real question is, when does capital become more dear? You have to pay more for it.”
The Bearish Pivot and the 2000 Comparison Cramer’s last comparable bearish turn came in October 2000, right before the dot-com unwind gathered speed. The parallel he is drawing now is mechanical, not emotional. When too many issuers rush the window at once, prices soften, buyers demand better terms, and the marginal deal has to sweeten.
The 10-year Treasury sits at 4.569%, in the 91.6th percentile of the past year’s range, so the risk-free hurdle for every corporate bond is already elevated. Add a wave of new supply and capital becomes more dear.
Meanwhile, the tape abroad is flashing. KOSPI is down 18% from its June high, with forward P/E at its lowest since October 2008, a print that would lead the tape on a quieter day.
Amazon’s Debt Deal and the OpenAI Canary Amazon is the tell here. Cramer said, “I’m not worried about Amazon. I’m worried about OpenAI, because if Amazon has raised and tapped out the debt market, and the way that piece of debt was received yesterday is not good.”
Amazon is the most creditworthy hyperscaler on the planet, guiding to roughly $200 billion of capex in 2026 on AI infrastructure, chips, robotics, and satellites, with Q1 capex alone at $44.2 billion and TTM free cash flow down 95% to $1.2 billion. If the top of the food chain has to pay up for money, everyone below has a problem.
July 16 is the Final Day to Tap Into the Lithium Boom (sponsor)
General Motors, POSCO, and 50,000+ everyday investors have already backed lithium producer EnergyX.
Here’s why you should do the same before their July 16 investment deadline: lithium prices are up 75% this year, with demand projected to grow a staggering 5X by 2040.
With tech that can recover up to 3X more lithium than traditional methods, EnergyX is preparing to unlock up to 15M+ tons. Become a private-stage EnergyX investor before the July 16 deadline.
The market is not fully buying the panic yet. Polymarket traders are pricing in 87.5% odds that Amazon’s 2026 capex will exceed $200 billion, and AMZN is still up 8.25% year to date at $245. But the same book has an 88.5% probability that AMZN will close today. Traders think Amazon can still spend. They also think the stock gets punished while it’s doing so.
(Our bubble survivors handbook report walks through how to stay invested when the plumbing tightens like this.) The Q1 8-K lays out the capex ramp in the company’s own numbers.
What Out of Money Means for NVIDIA, Micron, and Your Holdings NVIDIA (NASDAQ:NVDA) is the counter-argument to Cramer’s thesis, at least on valuation. Cramer noted NVIDIA trades at 18x forward earnings, cheaper than half the S&P 500, though he is likely using the upper end of earnings estimates. Shares are up 11.2% YTD at $210, with Q1 FY2027 revenue of $81.62 billion, up 85.2% year over year.
Micron Technology (NASDAQ:MU) is the extreme case. The stock is up 704% for the year despite the recent selloff, and it just dropped 18% from its highest closing price in June. Micron’s fiscal Q3 revenue hit $41.46 billion, up 345.7% year over year, with Q4 guidance of $50 billion. HBM demand is real. Whether every buyer of an HBM4 wafer can keep funding itself is the Cramer question.
Keep an eye on the stock reaction to SK Hynix’s Friday equity deal and the next round of hyperscaler bond issuance. If those price ugly, Cramer’s supply-glut warning graduates from cable segment to base case. If they get absorbed, the AI capex machine keeps chewing through backlog. Either way, the cost of the money funding this cycle has stopped being an afterthought.
Meet America's Newest $1b Unicorn (Sponsor)A US startup just passed a $1 billion private valuation, joining billion-dollar private companies like OpenAI and ByteDance. Unlike those other unicorns, you can invest in EnergyX right now; but only until July 16.
Over 50,000 people already have, along with global giants like General Motors and POSCO.
Here’s why there’s so much interest: EnergyX’s patented tech can recover up to 3X more lithium than traditional methods. That’s a big deal, as demand for lithium is expected to 5X current production levels by 2040.Become an early-stage EnergyX shareholder before the 7/16 investment deadline.
Wall Street has a habit of making investors question their own sanity.
A company can post the best quarter in its history, crush expectations, raise the bar for an entire industry...and the stock still gets sold. Sound familiar? That's exactly what we've been watching unfold across memory chips and several AI infrastructure names.
Take Micron Technology (MU). The company delivered a blockbuster quarter in late June, producing record revenue, explosive earnings growth, and more evidence that AI demand for high-bandwidth memory and DRAM remains incredibly strong. By almost every fundamental measure, it was exactly what investors had been hoping to see.
Yet instead of rewarding shareholders, the market hit the sell button.
Then came Samsung Electronics. The company followed with preliminary second-quarter results showing another eye-popping surge in operating profit, fueled by the same AI data center spending that's reshaping the semiconductor landscape. Once again, the headlines looked spectacular. Once again, the stock struggled as investors focused less on the record profits and more on future spending, rising capital expenditures, and whether the cycle is getting "too good."
That selling pressure quickly spilled over to U.S. memory names. We've seen a similar story play out with Nebius Group. After becoming one of the hottest AI infrastructure stories on the market thanks to its GPU cloud buildout, the stock has surrendered a meaningful portion of its gains as enthusiasm gave way to concerns about competition, valuation, and execution.
None of this is unusual.
It's simply what happens when expectations get ahead of reality.
The Market Doesn't Reward Great...It Rewards Better Than Expected
One of the biggest mistakes investors make is assuming strong earnings automatically translate into higher stock prices. That's not how Wall Street works. Stocks don't trade on what happened last quarter. They trade on what investors expect to happen over the next six to twelve months. When everyone expects perfection, "excellent" suddenly feels disappointing.
That's especially true in themes as crowded as AI and memory. After triple-digit moves, investors stop asking whether a company is growing. They start asking whether growth can get even better.
If management hints at higher spending...
If margins look like they've peaked...
If competitors are catching up...
If guidance is merely "very good" instead of spectacular...
Algorithms don't wait around to debate it. They simply hit sell. It's classic "sell the news" behavior. By the time earnings arrive, many traders have already made their money. The report simply becomes an excuse to lock in gains. The Fundamentals Haven't Changed
Here's the important part. None of these pullbacks suddenly mean AI demand disappeared. Quite the opposite. Cloud providers are still spending aggressively. Hyperscalers are still ordering GPUs. HBM remains supply constrained. Memory demand tied to AI inference and training continues to look healthy well into the coming years.
That's why these violent reactions often have much more to do with positioning than fundamentals. When everyone owns the same stocks, there simply aren't enough buyers left when the music pauses.
Next week, 141 companies are scheduled to report earnings. What if you could know in advance which few would shock Wall Street by beating earnings expectations and pop in price?
Now you can.
Zacks proprietary "ESP" formula predicts positive earnings surprises with unthinkable 80% accuracy. They’ve led us to recent gains of +78.2%, +64.5%, and +34.3% in as little as 10 days.¹
What stocks is the system picking today? Find out before doors close to new investors at midnight, Sunday, July 12.
While investors focus on the selling in semiconductors, they're missing what's happening elsewhere. The money isn't leaving the market. It's moving. That's internal rotation. Capital has been flowing toward areas that largely sat out the AI party.
Financials have attracted fresh interest. Healthcare has quietly stabilized. Consumer staples are seeing renewed buying. Industrials and select small-cap names have started participating again as investors broaden their exposure beyond the same handful of AI leaders.
That's actually a healthy development. Bull markets don't survive when only a dozen stocks carry the entire market. They become much stronger when leadership expands. What Investors Should Do
This is where discipline matters. Don't confuse price action with business performance. A stock falling after great earnings doesn't automatically mean the story is broken. Sometimes it simply means expectations got ahead of reality. Instead of reacting emotionally, ask yourself a few simple questions. Has the long-term thesis actually changed? Is AI demand slowing? Has valuation become more attractive after the pullback? Where is institutional money rotating next?
The Whisper of the Zacks Earnings ESP
One of the things that gets us on the hunt for where the money is moving is going back to the basics of the earnings estimate philosophy at the heart of the Zacks Rank. Here are the clues:
• Earnings estimates come from brokerage firm stock analysts.
• These analysts are highly motivated to create conservative estimates that can easily be beat. Why? If a stock has a Buy rating and the estimates are too high, the stock is more likely to disappoint. This would drive the stock price lower, and their stock ratings would perform poorly (leading to lower compensation).
• The closer to earnings season we get, the more accurate the information that goes into the estimate.
Add it all up, and there is no good reason for an analyst to create a higher estimate close to the date of the earnings report unless they had a DARN GOOD REASON. Focusing on those estimates closest to the earnings announcement is where we found the “whisper that becomes a scream,” a clear indication from the analyst community of which stocks are more likely to beat earnings by a wide margin. And most importantly, rise on that news.
New Surprise Stock to Post Monday Morning
Check our live recommendations right now and be first to the one I’m adding Monday. You can take advantage of buying ripples even before a company reports earnings.
Don't miss your chance to beat Wall Street to the punch and make the most of the potential double-digit price pops. Our signals predict big positive surprises, and they've been right a remarkably consistent 80% of the time!
While not all our picks are winners, recent recommendations have led investors to gains of +78.2%, +64.5%, and +34.3% in as little as 10 days.¹
See the surprise stocks we're holding now and buying over the next 30 days for only $1.
Plus, that same dollar gives you 30-day access to all of Zacks' private trading and investing services. No reason to hesitate. There's not a cent of further obligation.
Bonus: Another reason to look into this right away is that you are also invited to download our just-released "Early Warning Alert" report. It reveals stocks to sell BEFORE they report earnings in the coming weeks. Our strategy works both ways, and you can use this report to avoid companies that are more likely to report negative surprises.
Please note that your opportunity to access Surprise Trader and download our Early Warning Alert for just $1 ends Sunday, July 12.
See our Surprise Trader stocks and “Early Warning Alert” now >>
All the Best,
Dave
Dave Bartosiak is Zacks' resident earnings surprise expert. He selects stocks and delivers daily commentary for our Surprise Trader portfolio.
¹ The results listed above are not (or may not be) representative of the performance of all selections made by Zacks Investment Research's newsletter editors and may represent the partial close of a position. Access grants you a comprehensive list of all open and closed trades.
South Korean semiconductor giant SK Hynix made history on Wall Street, listing on Nasdaq today via American Depositary Receipts (ADRs) under the ticker SKHY.
The firm’s US initial public offering (IPO) priced at $149 was more than 7x oversubscribed – and raised a total of about $26.5 billion. This made it the largest-ever US listing by a foreign company.
SK Hynix stock is now better-positioned to compete for capital against its American rival, Micron. But is it really a better investment than MU for the long-term? Let’s find out!
SKHY shares may be a superior investment than Micron due to the company’s absolute dominance on the High-Bandwidth Memory (HBM) market.
The South Korean giant commands an impressive 56.4% share of the global HBM sector – which makes it the primary supplier of ultra-fast memory for artificial intelligence (AI) accelerators.
In fact, SK Hynix is already deeply integrated into Nvidia’s next-generation Vera Rubin platform with its advanced HBM4 architecture.
While Micron Technology is executing rather well and has sold out its capacity through the end of this year, it controls a much smaller 21% market share.
SK Hynix’s massive volume footprint grants it unparalleled pricing power and stronger, contracted multi-year revenue visibility with hyperscalers.
In terms of profitability, SK Hynix shares seem to be in a whole another league.
In its latest reported quarter, the company’s operating margin stood at a staggering 72%, driven by high-value enterprise solid-state drives (eSSDs) and premium DRAM modules.
However, despite this world-class financial efficiency, a notable valuation disconnect persists. SK Hynix trades at a highly attractive forward price-to-earnings (P/E) multiple of just 8x, which makes it infinitely cheaper to own than Micron.
In other words, SKHY offers investors direct exposure to the booming artificial intelligence memory market at a much lower valuation than MU.
Despite significant market debut gains, SKHY stock remains attractive as a long-term holding also because the company plans of using the IPO proceeds to future-proof its production moat.
Executives have earmarked substantial funds for extreme ultraviolet (EUV) lithography equipment and advanced packaging plants, including the Yongin semiconductor cluster.
This positions SK Hynix to significantly benefit as the global tech infrastructure shift from massive foundational model training toward real-time, continuous inference driven by agentic AI.
All in all, Icheon-headquartered SK Hynix Inc combines unrivaled HBM leadership, impressive profitability, compelling valuation, and an aggressive capacity expansion strategy all into one.
While Micron Technology remains a formidable competitor, SKHY appears better positioned to capture the next phase of AI-driven semiconductor demand, making it a more compelling long-term investment for growth-oriented investors in 2026.
John Coogan spent Wednesday's TBPN segment arguing that the largest AI hardware IPO no US retail investor can buy yet might also be the cheapest name in the entire complex.
SummarySK hynix Inc. debuts on NASDAQ via ADR IPO, offering US investors direct access to the HBM market leader.SKHY commands 56.4% HBM market share, outpacing Micron and Samsung, and benefits most from the AI data center buildout.SKHY's operating margins have surpassed Micron's since 2024, and its forward P/E is a compelling 8x despite clear market leadership.I rate SK Hynix a Strong Buy, citing superior HBM positioning, robust growth, and valuation discount relative to peers. Just_Super/iStock via Getty Images
Investment Thesis Today, SK hynix Inc. (SKHY) started trading on the NASDAQ, providing U.S. investors direct access through a national exchange. Prior to this listing, which is structured as an ADR IPO, investors could only buy SKHY on
7.53K Followers
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.
SKHYV shares are moving. See the real-time price action here. A Mega IPO With Market-Wide ConsequencesStephen Callahan, trading behavior analyst at Firstrade, flagged the risks of such a large U.S. ADR listing in an exclusive conversation with Benzinga.
He warned that "such a big IPO and its huge supply of new shares will require a lot [of] liquidity from institutional capital," adding that "this money needs to come from somewhere."
After a year of aggressive inflows into AI and semiconductor names, that "somewhere" may increasingly mean existing winners.
Micron’s 22% Drop Raises Red FlagsMicron Technology Inc. (NASDAQ:MU) may already be showing signs of strain. Shares have dropped roughly 22% over the past two weeks, a move that stands out against a still-intact fundamental backdrop for memory demand.
Callahan suggests the weakness in Micron could be less about earnings outlook and more about positioning, noting that institutions "may need to sell off some chip and AI stocks to add SK Hynix to their portfolios."
The dynamic points to a classic supply-demand imbalance. A large, high-profile IPO effectively introduces new equity supply into an already crowded trade.
If institutional allocations to semiconductors and AI are near limits, adding SK Hynix exposure may force portfolio managers to trim elsewhere—particularly in names that have seen the biggest runs.
ETF Outflows Could Add PressureThat, in turn, may add another layer of selling pressure across related holdings, including Samsung and other index components.
The TakeawayMicron’s pullback may be the first visible crack in what has been a momentum-driven rally. If Callahan’s liquidity warning proves accurate, the SK Hynix listing could act as a near-term stress test — revealing just how much demand remains beneath the surface of the AI trade, and how much of it has already been fully allocated.
Photo: Shutterstock
This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Market News and Data brought to you by Benzinga APIs
Analyst’s Disclosure: I/we have a beneficial long position in the shares of NVDA either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.
Micron Technology, Inc. delivered extraordinary Q3 results, with 346% revenue growth and a 1,215% YoY EPS surge, far surpassing aggressive expectations. Pricing power is unprecedented, driven by tight supply and AI-driven demand, resulting in gross margins expanding 46 percentage points YoY to 85%. Strategic Customer Agreements lock in multi-year, non-cancelable commitments, significantly reducing cyclicality and enhancing business resilience.
AI continues to be top of mind for traders as SK Hynix sets its U.S. trading debut on the Nasdaq via ADR. @Stockstotrade's Tim Bohen turns to Micron (MU) as an opportunity in the AI memory space after a recent pullback in shares.
This post may contain links from our sponsors and affiliates, and Flywheel Publishing may receive compensation for actions taken through them.
Jim Cramer, the CNBC host and longtime market commentator, offered a measured take on X this morning that cuts through the noise around 2026’s most crowded AI trade: “Meta isn’t as rewarding as a Micron but it is still real money nonetheless.” As a former hedge fund trader, Cramer’s framing is worth unpacking because it captures a discipline that gets lost when one stock runs the way Micron has.
The comparison lands at a natural moment. Meta Platforms (NASDAQ:META | META Price Prediction) rallied 5.71% intraday on July 10, while Micron Technology (NASDAQ:MU) has become the poster child for the memory-in-the-AI-era thesis. Cramer’s argument is that owning the compounder can still be rational, even after the cyclical winner has already tripled.
Pillar 1: The Return Gap Is Real Cramer is acknowledging Micron’s run. The numbers are one-sided.
This infographic compares Meta Platforms and Micron Technology across returns, valuation, AI infrastructure investment, and analyst sentiment, illustrating why one analyst prefers Meta despite Micron’s strong performance. Metric META MU YTD -4.17% +247.66% 1-Year -13.55% +712.54% 5-Year +81.77% +1,191.71% Trailing P/E 22 21 Meta has actually trailed the market over the trailing 12 months, but the tone has shifted. Shares are up 8.12% over the past month and 8.33% over the past week, with the stock trading around $667.54. Micron sits near $980.81. On a 10-year view, Meta is still up 440.38%. That is the “real money” Cramer is referencing.
Pillar 2: Valuation and the Cycle Question Meta trades at a P/E of roughly 22, with a market cap of about $1.47 trillion. Micron, at a market cap near $1.11 trillion, screens at a similar trailing multiple of 21 and a forward multiple of 6. That gap between trailing and forward is the memory cycle in a nutshell: analysts model peak-earnings power today, and the historical playbook says supply eventually catches demand.
_________________________________
What's Your Number...?Here's a question most people 5y from retirement can't answer: at your current savings rate, how much do you need, and how long will it actually last? A good advisor can put a date on that in a single meeting. SmartAsset's free quiz matches you with up to three fiduciary advisors serving your area, so you can get YOUR retirement number now (sponsor)
__________________________________________
Meta’s earnings are a different animal. Q1 2026 revenue climbed 33.1% to $56.31 billion, with operating margin around 41% and ad impressions up 19% year over year (per Meta’s SEC filing). The reported $10.44 EPS included a $3.13 per share tax benefit, leaving underlying operational EPS near $7.31. Still strong, but investors should back out the noise.
Pillar 3: The AI Infrastructure Engine The reason Meta remains “real money” in Cramer’s frame is what the company is doing with its cash. Management lifted 2026 capex guidance to a range of $125 to $145 billion, financing the buildout of Meta Superintelligence Labs and next-generation data centers out of an ad business that still produced $55.02 billion in Q1 alone. That capex, incidentally, is a big reason Micron’s order book is what it is (for investors thinking about the picks-and-shovels side of this trade, our 7 Stocks Powering the AI Boom report walks through the infrastructure supply chain).
Sell-side sentiment reflects the split. Meta carries an average price target of $828.17, with 49 buy and 8 strong buy ratings against 6 holds and no sells. Micron’s target sits near $1,486, but with a wider distribution that includes one strong sell.
The Disciplined-Investor Takeaway Chasing the biggest winner after the fact is a different exercise than owning a durable, cash-generative business. Meta’s 13.55% one-year drawdown and its capex burden are legitimate risks. So is the memory cycle risk baked into Micron’s forward multiple. Cramer’s point is that both can be real money, and an investor who owns Meta through this stretch is not making an obvious mistake because a different stock ran harder. Keep an eye on Meta’s Q2 report, where management’s guided $58 to $61 billion revenue range will show whether the ad engine is still funding the AI ambition without breaking stride.
If You’ve Been Thinking About Retirement, Pay Attention (sponsor) Retirement planning doesn’t have to feel overwhelming. The key is finding expert guidance, and SmartAsset’s simple quiz makes it easier than ever for you to connect with a vetted financial advisor. Here’s how:
Answer a Few Simple Questions.
Get Matched with Vetted Advisors
Choose Your Fit
Why wait? Start building the retirement you’ve always dreamed of. Get started today! (sponsor)
Download this episode on Apple Podcasts or Spotify or listen below:
Dark situationship with Iran (0:25) SK Hynix preparing IPO (1:20) Micron drops (3:25) Pepsi and Delta earnings (5:20) Financials in focus (7:00)
Transcript
Rena Sherbill: Brian Stewart, Seeking Alpha's Director of News. Always great to talk to you on a Friday at Wall Street Roundup. Welcome back to the show. Talk to us. What is top of mind this week in July?
Brian Stewart: Great to be here. So pretty light week in terms of especially corporate news. We're coming off the July fourth holidays. It's kind of the summer doldrums in general. Just vacations everywhere on Wall Street. So in a way, not too much going on, not a lot of catalysts.
I think Iran was probably the biggest sort of macro headline guiding things this week, though I think we're all just sort of used to the fact that we're in some sort of dark situationship with Iran at this point. It's not clear what our relationship is or what it's going to be, but we're working it out.
I think that's going to continue for the foreseeable future. And I think the market has just sort of decided to not think too hard about it unless something really concrete, either good or bad, takes place.
Meanwhile, on on sort of the the AI front, I think the big news this week was SK Hynix (SKHYV), it's a South Korean memory chipmaker, is preparing its IPO, it raised $26.5 billion of selling its ADRs, priced at $149 a share per ADR. I mean, scheduled to start trading on Monday. So that's gonna be a good litmus test of the amount of demand that's that's out there for for new AI issuances.
Micron (MU), just as sort of a comparison, is down about 22% from the highs it reached about two weeks ago. So it hit highs just as earnings were coming out and has been kind of drifting off that lately.
So there's some signs that there there might be kind of the the AI, at least in sort of the memory chip area, might have overstretched a little bit so I think SK Hynix will be a good test of where we're at.
Rena Sherbill: Will it also show us more insight into the American players and and how that's working out and the division between what's happening in America and what's happening over in Asia?
Brian Stewart: Yeah, I think the more information we have, the better in terms of that.
Every way you can carve up the AI trade, I think is useful for investors. Because I think that's been the conversation that's been going on on Wall Street is the sort of a realization I think 2026 is the realization that there's gonna be winners and losers in the AI trade rather than just all lines go up situation. So I think the more that we can look at all the different ways in which the market is operating.
Along those lines, Taiwan Semiconductor (TSM) has earnings next week. Next week is the beginning of earnings season. Financial stocks are going to be in the real spotlight, but just in terms of tech, Taiwan Semi is going to be the big name that's releasing next week.
So in terms of just getting a glimpse of the Asian situation as it comes to chips and AI, I think those are both going to be important pieces of information.
Rena Sherbill: And speaking of that AI trade and and straight lines don't only go up. Micron (MU) was down this week. And for those interested in the quant perspective, we had a talk with Steve Cress this week about. That was one of his main picks of the year and a little update there on how it's doing.
But yeah, what would you say about Micron and its place in the market and and what it portends for investors on the tech side of things?
Brian Stewart: It's interesting to me how volatile Micron has gotten on a day-to-day basis and and not really requiring a catalyst to move around. You know, if you just look back at the last say two, three weeks of the daily, the daily change in Micron, you'll see down 10%, up five percent, down six percent, just sort of bouncing around in a in a very high beta way.
So I think that just points to the overall jitteriness of the market, like every kind of wind blowing in one direction or another is really catching sail, I guess is the metaphor that I'm stumbling towards. But yeah I think the world we're in a year, 18 months ago, where AI was definitely the future just as much money as you can you know shake out of the mattress and find in your old pants pockets, put it into AI and it'll eventually work out.
I think that people are a little less sure that that's the case. I think there's an argument to be made that that a lot of the the benefit of AI, at least in the near term, has already been priced into a lot of these stocks and everyone's kind of looking around to see either confirmation of that or some sign that no, actually there's another substantial near term growth possibility out there.
Rena Sherbill: Yes, lots to be paying attention to along the way. What other stock specific news do you have for us?
Brian Stewart: So just check in on the consumer. Like I said, there there wasn't a lot of earnings, especially this week, but we did get PepsiCo (PEP) announcing its earnings, it dipped three percent following results.
Revenue beat expectations, it was helped by overseas strength. how are the the company warned that the consumer is feeling the pinch of higher prices and especially in impulse buys?
So there's just kind of a rising a rising wallet consciousness among consumers that Pepsi's pointing out. People are getting a little bit more strict about their budgets. They're not sort of willing to grab that Pepsi on the on the way out of the store kind of situation.
And then on kind of a similar front, but kind of the opposite bit of news. Delta (DAL) also dipped after its earnings, but it was able to overcome higher fuel prices through higher prices and and it specifically pointed to strong travel demand.
So you have Pepsi kind of warning about about consumers not not having as much money as they used to and and pulling back on purchases. And you have Delta saying that there's strong travel demand.
Now this could point to sort of a bifurcation among consumers because obviously, you know, people who are booking vacations and and traveling a lot for either business or pleasure you know, are probably higher income consumers where you know Pepsi is snacks and and sodas and and things like that.
So they might be operating in sort of the lower income areas. So you might see that split being kind of put into action there. But there there are some signs of caution about the impact that inflation is having on overall spending.
Rena Sherbill: Anything else, Brian, for this week?
Brian Stewart: No, just looking ahead, earnings season, like I said, is coming up.
Financials are gonna be in focus. You have stocks like Citi (C) and Goldman (GS) and JPMorgan (JPM), Bank of America (BAC), Wells Fargo (WFC) all reporting early next week, starting Tuesday and kind of rolling into the rest of the week. Financials have had a pretty good run lately.
They're up about seventeen percent. I'm looking at the (XLF) right here, up about seventeen percent since March, which was sort of the high point of Iran concern was in sort of the mid to late March period. So you see a lot of stocks hit kind of a near-term multi-month low in the the March time period.
Since that point, you see the financials are up pretty strongly. They're not quite to where they were in January, which was their high for the year, but they're almost there. So overall some excitement, but I also think a wait and see attitude going into the earnings reports.
There's also a split within the sector. So you see like Citigroup and Goldman are both up about twenty percent year to date, but meanwhile Wells Fargo's down six percent and JP Morgan and Bank of America are both up, but to a lesser degree.
So there are stock picking situations going on in financials. So I think we're gonna get lot of information from them next week and it's gonna kind of set the stage for whatever's happen.
Rena Sherbill: We had Clem Chambers on Investing Experts, and he was talking about going down the value chain to wit these financial stocks. I'm just gonna quote for a second. I'd be happy to hear your thoughts if you have any afterwards. So he says,
There are other stops on that chain of value in AI, and I think people haven't put two and two together just yet. For example, Goldman Sachs. I mean, what a wonderful company. Pays a nice dividend, cheap as chips. I mean, way cheaper than chips at this point. Chips are expensive now. And who's going to be doling out all this investment money? Who's going to be doling out all the money that they're going to have to print to onshore American industry to build out AI? It's going to be those investment banks again, isn't it?
If you have any thoughts, happy to hear them. But I thought that was a a a really nice take on a oversaturated, you know, stock picking kind of market. I thought that was an insightful point that I hadn't heard before.
Brian Stewart: In terms of of Goldman and AI and just sort of who the winners are gonna be, I do think that that's part of that conversation I was talking about before about winners and losers and kind of looking under the hood or looking into the future, and okay, so who's next?
We know that this is going to be a super powerful tool. We've been very focused on the infrastructure play and maybe sort of the next level, the hyperscalers and things like that. But there's lots of companies whose businesses are going to change dramatically in ways that are gonna make them extremely more profitable in the future. And so finding that next wave I think, it's part of the discussion that's coming next.
Editor's Note: This article discusses one or more securities that do not trade on a major U.S. exchange. Please be aware of the risks associated with these stocks.
Micron (MU - Free Report) is one of the stocks most watched by Zacks.com visitors lately. So, it might be a good idea to review some of the factors that might affect the near-term performance of the stock.
Shares of this chipmaker have returned -0.4% over the past month versus the Zacks S&P 500 composite's +2.2% change. The Zacks Computer - Integrated Systems industry, to which Micron belongs, has gained 8.6% over this period. Now the key question is: Where could the stock be headed in the near term?
While media releases or rumors about a substantial change in a company's business prospects usually make its stock 'trending' and lead to an immediate price change, there are always some fundamental facts that eventually dominate the buy-and-hold decision-making.
Earnings Estimate RevisionsRather than focusing on anything else, we at Zacks prioritize evaluating the change in a company's earnings projection. This is because we believe the fair value for its stock is determined by the present value of its future stream of earnings.
We essentially look at how sell-side analysts covering the stock are revising their earnings estimates to reflect the impact of the latest business trends. And if earnings estimates go up for a company, the fair value for its stock goes up. A higher fair value than the current market price drives investors' interest in buying the stock, leading to its price moving higher. This is why empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For the current quarter, Micron is expected to post earnings of $31.29 per share, indicating a change of +932.7% from the year-ago quarter. The Zacks Consensus Estimate has changed +39% over the last 30 days.
The consensus earnings estimate of $73.86 for the current fiscal year indicates a year-over-year change of +791%. This estimate has changed +23.2% over the last 30 days.
For the next fiscal year, the consensus earnings estimate of $152.68 indicates a change of +106.7% from what Micron is expected to report a year ago. Over the past month, the estimate has changed +44.3%.
Having a strong externally audited track record, our proprietary stock rating tool, the Zacks Rank, offers a more conclusive picture of a stock's price direction in the near term, since it effectively harnesses the power of earnings estimate revisions. Due to the size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, Micron is rated Zacks Rank #1 (Strong Buy).
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS
Revenue Growth ForecastEven though a company's earnings growth is arguably the best indicator of its financial health, nothing much happens if it cannot raise its revenues. It's almost impossible for a company to grow its earnings without growing its revenue for long periods. Therefore, knowing a company's potential revenue growth is crucial.
For Micron, the consensus sales estimate for the current quarter of $50.55 billion indicates a year-over-year change of +346.8%. For the current and next fiscal years, $124.97 billion and $234.73 billion estimates indicate +234.3% and +87.8% changes, respectively.
Last Reported Results and Surprise HistoryMicron reported revenues of $41.46 billion in the last reported quarter, representing a year-over-year change of +345.7%. EPS of $25.11 for the same period compares with $1.91 a year ago.
Compared to the Zacks Consensus Estimate of $36.72 billion, the reported revenues represent a surprise of +12.91%. The EPS surprise was +17.39%.
The company beat consensus EPS estimates in each of the trailing four quarters. The company topped consensus revenue estimates each time over this period.
ValuationNo investment decision can be efficient without considering a stock's valuation. Whether a stock's current price rightly reflects the intrinsic value of the underlying business and the company's growth prospects is an essential determinant of its future price performance.
While comparing the current values of a company's valuation multiples, such as price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), with its own historical values helps determine whether its stock is fairly valued, overvalued, or undervalued, comparing the company relative to its peers on these parameters gives a good sense of the reasonability of the stock's price.
The Zacks Value Style Score (part of the Zacks Style Scores system), which pays close attention to both traditional and unconventional valuation metrics to grade stocks from A to F (an A is better than a B; a B is better than a C; and so on), is pretty helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.
Micron is graded D on this front, indicating that it is trading at a premium to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
ConclusionThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Micron. However, its Zacks Rank #1 does suggest that it may outperform the broader market in the near term.
Micron Technology NASDAQ: MU just accelerated a $250 billion domestic fabrication commitment, pouring concrete a full quarter ahead of schedule at its new Clay, New York mega-fab.
Micron Technology Today
MU
Micron Technology
$978.18 -13.46 (-1.36%)
As of 12:17 PM Eastern
This is a fair market value price provided by Massive. Learn more.
52-Week Range$103.38▼
$1,255.00Dividend Yield0.06%
P/E Ratio22.09
Price Target$1,263.76
This capital deployment moves beyond standard capacity expansion. It represents the creation of a closed-loop U.S. manufacturing ecosystem that actively derisks the memory supercycle and insulates domestic production from volatility in the Taiwan Strait.
When capital expenditures reach a quarter-trillion dollars, the market takes notice. Understanding how this localized supply chain dominance impacts Micron's forward valuation and competitive positioning is critical for investors navigating the semiconductor sector.
Get Micron Technology alerts:
Securing the Raw Silicon Foundation in TexasBuilding a semiconductor fabrication plant requires years of planning, billions in capital, and a highly synchronized supply chain. Micron is tackling supply chain vulnerabilities head-on by allocating $3 billion to domestic sourcing initiatives.
The most pivotal piece of this allocation is a $500 million strategic financing agreement with GlobalWafers to secure raw silicon capacity at a new Texas facility. Raw silicon wafers are the foundational canvas of chipmaking. By locking in a 10-year domestic supply agreement, Micron ensures its New York and Idaho fabs will have the critical materials needed to operate without relying on trans-Pacific shipping routes. This localized infrastructure solidifies long-term dominance in the supply chain.
As enterprise companies and governments continue to demand secure AI infrastructure, a fully U.S.-based memory pipeline increasingly commands a definitive geopolitical safety premium.
Out-Executing SK Hynix on the HBM4 BattlefieldTo understand current valuation dynamics, investors need to examine the architecture of a modern AI data center. Graphics processing units starve without High-Bandwidth Memory (HBM) feeding them information at lightning speed.
South Korean competitor SK Hynix currently dominates the HBM space with a 57% global market share. On July 10, SK Hynix expects to launch a formidable $28 billion Nasdaq listing to fund its own capacity expansion. While the capital raise is substantial, SK Hynix operates with a structural vulnerability. The company relies heavily on packaging and testing facilities located in regions exposed to friction in the South China Sea. If geopolitical tensions rise, their supply chain grinds to a halt.
Micron is moving aggressively to capture market share from SK Hynix and other competitors by out-executing its rivals on the manufacturing floor. Recent management commentary indicates Micron is achieving faster-than-expected defect reduction and yield ramps in its upcoming HBM4 architecture.
In semiconductor manufacturing, yield dictates everything. Yield measures the percentage of usable, defect-free chips that come off a silicon wafer. Higher yields equal fatter net margins and faster time-to-market. Micron's ability to scale domestic HBM4 yields directly threatens SK Hynix’s market share, offering cloud service providers a more reliable, technologically superior product free from international shipping chokepoints.
Separating the Halo Effect From Pure-Play AlphaWhen capital flows into a localized sector, neighboring businesses often catch a draft. Critically, GlobalWafers does not supply Micron alone—the same raw silicon feeds much of the domestic foundry base, including GlobalFoundries NASDAQ: GFS, which has maintained a multi-year strategic partnership with GlobalWafers since 2021.
That shared pipeline is why GlobalFoundries experienced an immediate intraday price expansion as markets reacted to Micron's capital deployment. As Micron's capital derisks the broader domestic silicon ecosystem, foundries drawing from that same raw material pipeline stand to benefit from increased stability.
However, investors evaluating the sector should separate a sympathetic halo effect from pure-play AI infrastructure growth. A closer look at the fundamentals reveals a stark contrast in revenue quality between the two companies. GlobalFoundries operates as a pure-play contract manufacturer but relies heavily on legacy consumer electronics.
Smart mobile devices currently account for 34% of GlobalFoundries' revenue mix. While Micron posted a 345.8% year-over-year revenue growth driven by sold-out AI memory capacity, GlobalFoundries managed a modest 3.1% increase.
Forward projections point to EBITDA margin compression for GlobalFoundries, burdened by cyclical drag from the handset market. Trading at a steep forward price-to-earnings (P/E) ratio of 50.3 compared to a trailing P/E of 50.0, GlobalFoundries lacks the unhedged data center exposure that drives structural valuation breakouts.
Smart Money Front-Runs the Forward MultipleInstitutional money always leaves footprints, and the derivatives market suggests a significant bullish sentiment shift for Micron. Recent options data reveals aggressive out-of-the-money call sweeps targeting the $1,100 and $1,150 strikes expiring in August 2026. This highly targeted derivatives positioning suggests smart money is front-running a valuation re-rating ahead of the SK Hynix liquidity event.
The fundamentals support this institutional accumulation. Micron’s trailing P/E ratio currently sits at 22, but its forward P/E compresses dramatically to 14. Those forward multiples signal anticipated earnings growth, heavily supported by recent quarterly performance. Micron just reported earnings per share of $25.11, beating consensus estimates by $3.72. Operating with net margins of 55.91% and a virtually nonexistent debt-to-equity ratio of 0.05, Micron's balance sheet is uniquely positioned to absorb the $250 billion expansion without destructive shareholder dilution.
Building Your Portfolio Around the Reshoring TradeSemiconductors are no longer just technology products; they are critical sovereign assets. By aggressively reshoring its manufacturing footprint, Micron has recognized the vulnerability of its globalized memory supply chain and deployed a quarter-trillion-dollar solution.
As SK Hynix attempts to absorb $28 billion in capital to defend its incumbent status, the market is actively recalculating risk. Micron’s accelerating HBM4 yields and domestic moat render offshore memory operators structurally vulnerable.
Investors looking to capitalize on this U.S. infrastructure buildout might consider adding Micron to their watchlists. As the AI memory supercycle continues to tighten global capacity and supply, companies that command physical supply chain security are uniquely positioned to dictate market pricing and capture dominant market share.
Should You Invest $1,000 in Micron Technology Right Now?Before you consider Micron Technology, you'll want to hear this.
MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and Micron Technology wasn't on the list.
While Micron Technology currently has a Buy rating among analysts, top-rated analysts believe these five stocks are better buys.
View The Five Stocks Here
Tesla, Nvidia, and Google helped shape the last era of market growth, but the next wave could come from a new group of companies. Inside this report, you’ll find 7 stocks that could play a major role in the next tech-driven market boom.
I'm upgrading Micron Technology from Sell to Hold after Q3 results reaffirmed HBM4 product leadership and robust execution. MU's Q3 revenue and EPS significantly beat guidance; HBM4 shipments for NVIDIA's Vera Rubin platform are ramping faster than HBM3E 12-high. Despite an improved outlook, I remain cautious due to cyclical risks, aggressive industry capacity expansion, and uncertain demand durability.
This post may contain links from our sponsors and affiliates, and Flywheel Publishing may receive compensation for actions taken through them.
SanDisk (NASDAQ:SNDK | SNDK Price Prediction) and Micron Technology (NASDAQ:MU) both delivered blockbuster AI-driven memory quarters, then got swept up in a brutal mid-July correction as investors questioned whether storage demand has peaked. SanDisk, freshly spun off from Western Digital (NASDAQ:WDC) in February 2025, now sports a four-figure share price. Micron trades below $900 with real fabs and locked-in contracts behind it.
Datacenter Carries SanDisk. HBM Carries Micron. SanDisk’s Q3 FY2026 revenue hit $5.95 billion, up 251% YoY, with non-GAAP EPS of $23.41 crushing the $14.66 consensus. The Datacenter segment grew 645% YoY, but Consumer slipped 10% sequentially, a small crack worth noting. CEO David Goeckeler called it a “fundamental inflection point” tied to a mix shift toward enterprise SSDs.
Micron ran bigger and broader. Q3 FY2026 revenue reached $41.46 billion, up 345.7% YoY, with GAAP gross margin of 84.6% and seven consecutive EPS beats. HBM4 is already in high-volume shipments for its lead AI customer, and Cloud Memory alone brought in $13.77 billion.
One Depends on a Partner. One Owns Its Fabs. The structural gap is where the “dangerous” label sticks to SanDisk. It relies on the Kioxia Corporation Flash Ventures JV for manufacturing, sells commodity-prone NAND, and has only five multi-year New Business Model agreements signed so far. Micron, by contrast, is the only U.S.-based memory manufacturer, spent $7.83 billion on capex last quarter, and has billions locked in Strategic Customer Agreements.
Lens SanDisk Micron Core Product NAND flash, HBF DRAM, HBM4, NAND Manufacturing Kioxia JV dependence Owned U.S. fabs Trailing P/E 60 22 YTD Move +581.5% +229% SanDisk fell 28.85% in the past week to $1,617.70. Micron slipped 18.69% to $938.38. The larger drop tells you where fragility hides.
The Next Test Is Hyperscaler Capex Both stocks live and die on cloud spending. Micron guided Q4 revenue to $50.0 billion with ~86% gross margin, an outlook backed by HBM4E ramping into calendar 2027. SanDisk projected $7.75B to $8.25B in Q4 revenue. I want to see whether SanDisk’s remaining NBM signings close and whether Consumer weakness spreads before I trust the run higher.
Why I Lean Toward Micron Right Now If I had to hold one memory name through a demand wobble, it is Micron. Owned fabs, HBM leadership, and a 30% dividend increase earlier this year give me real downside support. SanDisk’s story is genuinely impressive, but a 60 trailing P/E, Kioxia dependency, and a young standalone track record leave me cautious. If you want turnaround-style upside and can stomach the volatility, SanDisk fits. For me, Micron’s asset base and contract book win the risk-adjusted call.
Meet America's Newest $1b Unicorn (Sponsor)A US startup just passed a $1 billion private valuation, joining billion-dollar private companies like OpenAI and ByteDance. Unlike those other unicorns, you can invest in EnergyX right now; but only until July 16.
Over 50,000 people already have, along with global giants like General Motors and POSCO.
Here’s why there’s so much interest: EnergyX’s patented tech can recover up to 3X more lithium than traditional methods. That’s a big deal, as demand for lithium is expected to 5X current production levels by 2040.Become an early-stage EnergyX shareholder before the 7/16 investment deadline.
Backpack CEO Armani Ferrante appeared on CNBC on Friday morning to announce that the crypto-native brokerage has launched 24/7 trading of real U.S. equities for international investors through genuine security entitlements rather than synthetic derivatives. Initial launch names include Micron Technology (NASDAQ:MU | MU Price Prediction), SanDisk (NASDAQ:SNDK), and SpaceX (NASDAQ:SPCX).
“We’re super excited to be going live with 24/7 trading of real U.S. equities through the brokerage for the first time. Going live today,” Backpack’s CEO Ferrante said on the segment. He framed the launch as an infrastructure shift enabled by tokenization, with Backpack operating as a globally regulated financial institution built on blockchain technology.
International Investors Can Now Trade U.S. Equities Around the Clock Many overseas platforms already offer “U.S. stock” exposure, but usually through contracts for difference or synthetic derivatives that track the price without conferring ownership. “What we’re doing is really for the first time, opening up 24/7 trading for a genuine bona fide security entitlement,” he said. “Markets will close on Friday in the US. And over the weekend, Saturday and Sunday, people through the Backpack brokerage will continue to trade. And they’ll get the exact same asset that you would expect from your brokerage account.”
Ferrante drew a direct parallel to stablecoins, which have become major holders of U.S. Treasuries globally by providing international users with frictionless dollar exposure. “When you look internationally, it’s a very different story. It’s a story about access. It’s a story about the entire world wanting access to US dollars,” he said. He suspects the same demand curve applies to U.S. equity ownership.
Micron Brings 346% Revenue Growth to Backpack’s Launch Micron is the poster child for AI-era memory demand. The company posted fiscal Q3 2026 revenue of $41.456 billion, a 345.7% year-over-year jump, with non-GAAP EPS of $25.11 and GAAP gross margin of 84.6%. CEO Sanjay Mehrotra told investors that “Micron’s record fiscal Q3 financial results and even stronger outlook for Q4 reflect the strategic value of memory in the AI era.” Q4 guidance calls for revenue of $50.0 billion ± $1.0 billion and non-GAAP EPS of $31.00 ± $1.00, with gross margin expanding to roughly 86%.
SanDisk’s Data Center Revenue Just Exploded 645% SanDisk offers a parallel storyline in NAND flash and enterprise SSDs. Fiscal Q3 2026 revenue landed at $5.95 billion, up 251% year over year, with the Datacenter segment posting +645% YoY growth to $1.467 billion. CEO David Goeckeler described the quarter as “a fundamental inflection point for SanDisk where our technology leadership is enabling a deliberate shift in our mix toward the highest-value end markets, led by Datacenter.” The company retired $650 million in debt during the quarter, reaching a zero long-term debt balance sheet, and guided Q4 revenue to $7.75 billion to $8.25 billion. SanDisk has traded publicly for a little over a year since separating from Western Digital in February 2025.
Readers looking to find the winning companies riding the AI build-out wave can dig into our Free Report: 7 Stocks Powering the AI Boom (That Aren’t Chipmakers).
Weekend Trading Could Create a New Source of Price Discovery The immediate question is whether continuous access generates meaningful international trading in Micron, SanDisk, and other U.S. equities while traditional markets are closed. The larger question is whether Backpack’s genuine-entitlement structure pressures competing brokerages to move beyond synthetic stock exposure.
Ferrante’s stablecoin comparison captures the potential opportunity. Stablecoins expanded access to U.S. dollars and Treasuries by making them available to international users around the clock. Backpack is betting that global investors have the same unmet demand for genuine ownership of American companies.
If international investors embrace the model, weekend trading in America’s leading technology companies could become a meaningful source of capital flow and price discovery rather than a crypto-market curiosity.
Micron Technology (MU) drew renewed support from Bank of America, which said the memory chipmaker offers a stronger investment case than Qualcomm (QCOM) as arti
Micron (MU 2.09%) is becoming a more important AI stock as investors look beyond GPUs and focus on memory bandwidth. If high-bandwidth memory becomes the real AI bottleneck, Micron could benefit from tighter supply, stronger pricing, and rising demand. But the old memory cycle still matters, and that tension makes the stock especially interesting.
Stock prices used were the market prices of July 3, 2026. The video was published on July 8, 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.
Despite delivering exceptional results in its fiscal third-quarter earnings report, shares of Micron Technology (MU 2.38%) have slid roughly 11% since the company's earnings release on June 24. The contrast between strong business fundamentals and the market's reaction is a little puzzling.
While near-term sentiment on Micron appears to be turning cautious, the company's underlying momentum and valuation profile suggest the sell-off is more a reflection of broader sector dynamics as opposed to a fundamental deterioration at Micron itself. This disconnect creates a unique opportunity to buy Micron stock at more attractive levels.
Image source: The Motley Fool.
Why is Micron stock plummeting? A number of factors are weighing on Micron following the company's recent earnings report. Namely, increased capital spending from key competitors Samsung and SK Hynix have raised concerns about potential future supply and pricing pressure in the DRAM, NAND, and high-bandwidth memory (HBM) markets. Sometimes investors interpret competitors' aggressive investments as a signal that industry capacity could outpace demand growth in the medium term even when the near-term outlook remains robust.
Moreover, over the last couple of weeks, there has been a broader rotation out of AI semiconductor stocks. This has brought additional downward pressure to a number of leading chip stocks, including Micron.
SMH data by YCharts.
After a strong multi-year run driven by accelerating data center build-outs, some investors are taking profits or reducing exposure to the obvious winners amid macro uncertainty and questions about the pace of AI infrastructure spending from the hyperscalers.
Micron is demonstrating incredibly strong momentum Micron has posted robust revenue and earnings per share (EPS) growth over the last several quarters. During the most recent earnings call, management's guidance remained constructive -- highlighting new long-term supply agreements that provide greater revenue visibility and reduce cyclical risk.
MU Revenue (TTM) data by YCharts.
Equally important, Micron outlined that these strategic customer agreements come with price bands that effectively lock in optimal pricing discipline and ongoing manufacturing efficiencies. In turn, the company is positioned to maintain both healthy revenue growth and expanding gross margins over the coming years.
These dynamics point to a business that is not only growing but also becoming structurally more profitable over time. The combination of accelerating top-line results and protected margin levels supports the view that Micron is part of a sustained upward trajectory in the AI infrastructure ecosystem.
Forget the stock price, look at valuation instead As of this writing (July 8), shares of Micron have skyrocketed 230% so far this year, making it the second-highest performer in the Nasdsaq-100. However, the stock is now down 22% from recent highs and trades for roughly $943. While this may look expensive, the absolute dollar amount of a stock price reveals little about a company's underlying valuation.
Today's Change
(
-2.38
%) $
-23.64
Current Price
$
968.00
Even after its meteoric gains, Micron trades at a compelling valuation based on the forward price-to-earnings (P/E) multiple. With a forward P/E of just 6.4, I think it's fair to say that much of the company's anticipated growth over the next couple of years has yet to be fully priced into the stock. For reference, other category-leading AI chip stocks such as Nvidia, Broadcom, and Taiwan Semiconductor Manufacturing have consistently traded at forward P/E ranges between 25x and 50x throughout much of the AI revolution.
When growth prospects remain strong but the underlying valuation multiples have not expanded excessively, periods of share-price consolidation often represent attractive entry points. At current levels, Micron's risk-reward setup favors long-term investors willing to look past short-term volatility. I think the dip is an opportunity to accumulate shares in a company whose earnings power and strategic positioning in the high-growth AI memory segment continue to strengthen.
Key Takeaways Flowserve's sales are expected to grow 3.4% in 2026, supported by its global flow-control business.Micron's fiscal 2026 sales are projected to surge 234.4% on memory and storage technology demand.Duke Energy's sales are expected to rise 6.3% in 2026 across its diversified energy operations. U.S. equities recorded solid gains in the first half of 2026 despite a challenging investment backdrop. Market sentiment was periodically weighed down by escalating tensions in the Middle East, oil price volatility, tariff-related ambiguity, persistent inflation concerns and apprehension over elevated artificial intelligence (AI)-driven valuations. Nevertheless, resilient economic activity, robust corporate earnings, renewed enthusiasm for AI and easing geopolitical concerns supported investor confidence and helped sustain the broader market rally.
In such a situation, the traditional way of selecting stocks is a good idea. Sales growth provides a more reliable view for evaluating stocks compared with earnings-focused metrics. In this regard, stocks like Flowserve Corporation (FLS - Free Report) , Micron Technology (MU - Free Report) and Duke Energy Corporation (DUK - Free Report) are worth considering.
Sales growth is one of the most dependable measures of a company’s underlying business momentum. Although earnings may be influenced by several factors, revenues provide a clearer indication of customer demand and the company’s capacity to sell more products or services. Sustained sales growth can reflect favorable end-market conditions, market-share gains, pricing power, successful product introductions, or expansion into new geographies and customer segments.
Sales growth can also establish a stronger foundation for improved profitability. As sales rise, companies may spread fixed costs across a broader revenue base, enhancing operating leverage and supporting margin expansion over time. Still, sales growth should not be evaluated in isolation. It is most informative when considered alongside industry trends, peer performance, pricing conditions, customer mix and the broader macroeconomic backdrop.
The quality and sustainability of sales growth are equally critical. Recurring revenues, repeat purchases, volume-led gains and durable demand are generally more valuable than growth driven by temporary factors. Companies that consistently achieve high-quality sales growth across market cycles are often better equipped to generate reliable cash flows, reinvest in operations, reinforce their competitive standing and deliver sustainable long-term shareholder value.
Selecting the Potential Winning StocksTo shortlist stocks with impressive sales growth and a high cash balance, we have selected 5-Year Historical Sales Growth (%) greater than X-Industry and Cash Flow of more than $500 million as our main screening parameters.
But sales growth and cash strength are not the absolute criteria for selecting stocks. Hence, we have added other factors to arrive at a winning strategy.
P/S Ratio less than X-Industry: This metric determines the value placed on each dollar of a company’s revenues. The lower the ratio, the better it is for picking a stock since the investor is paying less for each unit of sales.
% Change F1 Sales Estimate Revisions (four weeks) greater than X-Industry: Estimate revisions, better than the industry, are often seen to trigger an increase in stock price.
Operating Margin (average last five years) greater than 5%: The operating margin measures how much every dollar of a company's sales translates into profits. A high ratio indicates that the company has good cost control and sales are increasing faster than costs — an optimal situation.
Return on Equity (ROE) greater than 5%: This metric will ensure that sales growth is translated into profits and the company is not hoarding cash. A high ROE means that the company is spending wisely and is, in all likelihood, profitable.
Zacks Rank less than or equal to 2: Zacks Rank #1 (Strong Buy) or 2 (Buy) stocks are known to outperform, irrespective of the market environment. You can see the complete list of today’s Zacks #1 Rank stocks here.
3 Stocks With Solid Sales Growth to Buy NowBased in Irving, TX, Flowserve is a leading manufacturer and aftermarket service provider of comprehensive flow control systems globally. FLS develops and manufactures precision-engineered flow control equipment, such as pumps, valves and seals, for critical service applications that require high reliability.
Flowserve’s expected sales growth rate for 2026 is 3.4%. FLS carries a Zacks Rank #2 at present.
Based in Boise, ID, Micron is one of the leading worldwide providers of semiconductor memory solutions. Through global brands, namely Micron, Crucial and Ballistix, MU manufactures and markets high-performance memory and storage technologies.
MU’s expected sales growth rate for fiscal 2026 is 234.4%. Micron currently sports a Zacks Rank #1.
Charlotte, NC-based Duke Energy is a diversified energy company. DUK has a wide portfolio of domestic and international, natural gas and electric and regulated and unregulated businesses which supply, deliver and process energy in North America and selected international markets.
DUK’s sales are expected to rise 6.3% in 2026. Duke Energy carries a Zacks Rank #2 at present.
SK Hynix is about to go live on the U.S. market, and Micron (NASDAQ:MU | MU Price Prediction) will no longer be the lone go-to option for investors looking to play the DRAM shortage. Undoubtedly, time will tell if SK Hynix, which will debut with an ADR priced at $149 per share, is coming to the U.S. market a bit late in the cycle. With recent volatility hitting the broad semi scene, questions linger as to whether more than just perfection is priced in when it comes to the world’s top memory chip makers.
Of course, they’ve got the triopoly, pricing power, and could continue to grow earnings at an absurd pace for years to come. But just how much of that bullish narrative is already baked in? And what’s it going to take to keep the share price appreciation going from here? Shares of SK Hynix have already gained more than 640% in the past year and about 1,750% in the last five years.
Despite the hot run, though, shares still look quite attractively valued, especially compared to the likes of a U.S.-based Micron.
SK Hynix is a premium memory chip titan at a fairly reasonable price As to whether SK Hynix’s U.S. debut can help it move beyond the days of the South Korean discount remains the trillion-dollar question. In any case, it looks like SK Hynix is going to be coming in hot. And given its size, the big question is whether waves will be made as investors look to welcome another AI-driven behemoth into the mix.
Time will tell if a U.S. IPO is enough for SK Hynix to command a greater premium. In my view, there are a number of unique differentiators that make a fairly strong case for rotating from Micron into SK Hynix.
Apart from its very close relationship with GPU giant Nvidia (NASDAQ:NVDA), SK Hynix stands out as a more explosive play in high-bandwidth memory. Undoubtedly, Micron may have shifted gears to cater more to the big AI spenders and away from everyday consumers amid the latest boom in DRAM, but SK Hynix has already been flooring it some time ago.
Act now: the analyst who called NVIDIA in 2010 just named his top 10 AI stocks — and Micron Technology didn't make the cut. Grab the names FREE today.
Though it’s hard to tell, I do think that a lot of the recent volatility hitting the tech scene is more to do with profit-taking on the part of investors looking to get a piece of SK Hynix. With considerable oversubscription on the table and the potential for the opening day price to get a bit out of hand, I’d look to limit orders rather than placing market orders at the open.
SK Hynix could come in hot as it takes the title of the more explosive memory chip play In my view, $175 per share can’t be counted out as the hottest new AI issue hits the ground running in its first day of trading in the U.S. market. Going into 2027, things could get really interesting for SK Hynix, as its new Yongin fab comes online by summer.
The massive factory is going to help inject a wave of new AI memory supply on the market. As AI demand stays overheated, though, it’s already looking like that supply is going to get snatched up as they come off the assembly lines.
In any case, it’s hard not to be excited about SK Hynix, even if giant question marks surround the future of memory chip demands, if something like TurboQuant, which uses algorithmic efficiencies to reduce demand, were to make bigger strides. It’s a major risk that SK Hynix highlighted, and it’s one that might be met with great unpredictability.
Could a company like Alphabet (NASDAQ:GOOG) and Google really derail the memory chip run in its tracks? Or will demand for the latest and greatest that SK Hynix has to offer stay hot in spite of any such breakthrough efficiency innovations?
Act now: the analyst who called NVIDIA in 2010 just named his top 10 AI stocks — and Micron Technology didn't make the cut. Grab the names FREE today.
Micron Technology (MU +4.55%) delivered spectacular fiscal third-quarter earnings when it reported results on June 24. However, after an initial jump in its stock price sent its shares to an all-time high of $1,255, it has now suddenly lost a quarter of its value in the preceding weeks.
With earnings by themselves unable to lift the stock, could a stock split be around the corner?
Image source: The Motley Fool.
Revenue and EPS surge amid demand Even with the dip in its share price, Micron's stock is still up a whopping 650% over the past year. The gains are also well deserved, as the company has seen its revenue skyrocket and gross margins balloon over the past year. For fiscal Q3, its revenue surged from $9.3 billion a year ago to $41.5 billion, while its gross margins expanded from 37.7% to 84.6%. That helped its adjusted EPS skyrocket to $25.11 from just $1.91 a year earlier.
Today's Change
(
4.55
%) $
43.22
Current Price
$
992.02
Micron's strong results are being driven by supply-demand imbalances in both the DRAM (dynamic random access memory) and NAND (flash) memory markets. Last quarter, 76% of its revenue came from DRAM and the rest from NAND. The shortages stem from the high demand for AI infrastructure.
A special form of DRAM, called high-bandwidth memory (HBM), is needed to optimize graphics processing unit (GPU) performance, and this is becoming even more important for inference. Meanwhile, AI data centers need massive SSDs (solid state drives) that use flash memory to store data for long-term use.
The result is that both DRAM and NAND prices continue to skyrocket. And while Micron and others in the space are working to increase capacity, they are struggling to keep up with demand.
In good news for the industry, the big three DRAM makers, including SK Hynix and Samsung, have all been locking in long-term contracts for the first time. For its part, Micron has said it now has around 40% of its revenue tied to these long-term agreements.
Is a stock split coming? With earnings failing to lift its stock and it still sitting over $900, Micron could turn toward a stock split to boost its stock price. It has split its stock three times in its history, but the last was more than 20 years ago, in May 2000, when it did a 2-for-1 split. While this doesn't change the company's fundamental story, a lower stock price could help draw more retail investors.
That said, the biggest catalyst for the stock in the coming years would be its tying more of its revenue to longer-term agreements to help shed some of the cyclicality of its business. The stock is cheap, trading at a forward P/E of just over 6 times fiscal 2027 estimates, but it needs to show that this cycle will last and that it can maintain strong pricing. If it can do this, then it is an AI stock worth buying, split or no split.
SummaryMicron Technology (MU) earns a Buy rating as HBM4 adoption and strategic customer agreements (SCAs) fundamentally enhance its economic moat and earnings stability.SCAs lock in ~40% of MU’s revenues at fixed prices/price bands through 2028–2030, buffering cyclicality while HBM demand will drive gross margin expansion and premium pricing.HBM memory transitions MU from a commodity player to a specialized supplier, with HBM4 ramping twice as fast as HBM3E and already exceeding $1B in revenue.Risks include eventual supply increases post-2028 and hyperscaler capex concentration, but near-term HBM scarcity and potential AI accelerator utilization improvements support robust growth and margins. krblokhin/iStock Editorial via Getty Images
Micron Technology, Inc. (MU) has been one of the most watched semiconductor stocks for a reason. After rising by over 722% in the last year, it captured investors' imaginations with the hope of further gains. The main question
897 Followers
Analyst’s Disclosure: I/we have a beneficial long position in the shares of MU either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
Additional stock ownership: GOOGL, AMZN, META
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 +4.51%) just reported a gross margin most software companies would envy, and it came from a business that stamps out physical memory chips. In its core data center unit, gross margin reached 87% last quarter.
For a company long treated as the poster child for commodity boom-and-bust cycles, that number is stunning. It is also the clearest sign yet that memory has become one of the scarcest, most valuable inputs in artificial intelligence (AI).
While the 87% margin is the headline, the more important question for the stock is how durable that pricing power is, and, at today's price, whether the market believes it can last at all.
Imag source: Getty Images.
A number that rewrites the story In its fiscal third quarter of 2026 (the period ended May 28, 2026), Micron's core data center business generated record revenue of $11.5 billion. That was up 103% from the prior quarter, and the unit now accounts for about 28% of the whole company. Gross margin there expanded roughly 12 percentage points in a single quarter to 87%.
Put another way, that one segment is now running above a $45 billion annual pace, up from a roughly $6 billion annual pace a year ago.
The strength wasn't confined to one corner of the business. Companywide revenue set a record at about $41.5 billion, up a staggering 346% year over year from $9.3 billion, and non-GAAP (adjusted) earnings per share hit a record $25.11.
What drove the margin was price, not just volume. Memory prices have soared as artificial intelligence has strained supply. Micron's newest high-bandwidth memory (HBM), the dense chips stacked beside AI processors, has already shipped more than $1 billion of its latest generation. That product is ramping about twice as fast as the one before it, and its entire 2026 supply is already sold out under multi-year agreements.
Management said industry demand for DRAM and NAND memory continues to run well ahead of supply, and it expects those tight conditions to persist beyond 2027. That is the sort of visibility a commodity chipmaker almost never gets.
That backdrop points to enormous near-term earnings power. Micron guided for fiscal fourth-quarter revenue of about $50 billion at a gross margin near 86%, which would stretch the run of records at least one quarter further.
Today's Change
(
4.51
%) $
42.84
Current Price
$
991.64
The market isn't convinced it lasts And yet the stock tells a far more skeptical story. Even after jumping more than 8% today as of this writing, as Micron raised its planned U.S. investment to more than $250 billion through 2035 -- and despite the record results -- Micron shares still trade at less than 7 times the earnings analysts expect over the next 12 months. This is well under a third of the S&P 500's roughly 25 times earnings.
A multiple that low usually signals that investors expect earnings growth to eventually stall and even start to decline. And this checks out. Memory has always been cyclical. Historically, capacity eventually catches up, prices roll over, and a fat margin narrows quickly.
In short: Investors have watched that movie enough times to price Micron as though the boom is borrowed time -- even as it prints the best numbers in its history.
The bull case is that this cycle breaks the old pattern. HBM is far harder to make than commodity memory. And bringing new capacity online can take years, which could keep supply tight well after past cycles would have cracked.
Personally, I think the truth sits somewhere in the middle. The 87% data center margin is almost certainly a peak rather than a baseline, and I wouldn't bet on it holding for years to come.
But a stock priced at less than 7 times forward earnings doesn't need the peak to last. It just needs the eventual downturn to be milder, or to arrive later, than the market is currently assuming.
At about $1,026 as of this writing, Micron looks cheap if AI keeps memory tight into 2027 and beyond. But the stock could look expensive in hindsight if the cycle turns.
That makes it a bet on timing more than on how impressive the margin is. The record margin tells you the boom is here. The single-digit multiple tells you the market still expects it to end. For investors comfortable with the volatility, it's arguably one of the more compelling ways to play the memory boom. But it's a deeply cyclical stock, and I'd want to own it in a size I could stomach through the next downturn.
Founder's ClubSwingTraderLeaderboardMarketSurgeeIBDIBD DigitalIBD LiveCustomer Center
My Stock Lists
Email Preferences
Help & Support
Sign Out
Search stocks or keywords
Sections
My IBD
MARKET TREND
STOCK LISTS
STOCK RESEARCH
NEWSECONOMY
VIDEOS & PODCASTS
HOW TO INVESTEDUCATIONAL RESOURCESStoreMy Products
Founder's ClubSwingTraderLeaderboardMarketSurgeeIBDIBD DigitalIBD Live
Recently Searched
AMD, Micron Spearhead Chip Sector Surge, Lead 23 Hot Prospects To Best Stock Lists
2026: A Space Stock Odyssey
Stock Market Mixed As Chips Rise While Small Caps, Dow, SpaceX Struggle; Ned Davis On Cash SK Hynix raised $26.5 billion in its share offering, with the South Korean memory-chip giant set to begin trading Friday on the Nasdaq. SK Hynix (SKHY) sold 177.9 million American depositary shares (ADRs) for $149 apiece, the company announced Thursday night. That's the largest foreign listing in history, surpassing China's Alibaba (BABA). SK Hynix competes against fellow Korean giant Samsung…
Shares of Micron Technology (MU +4.55%) rallied on Thursday after the memory chip maker highlighted its plans to bolster its semiconductor supply chain.
Image source: The Motley Fool.
Bringing more silicon wafer production to the U.S. Micron intends to invest up to $3 billion to expand its U.S. production network and secure the materials it needs to satisfy the booming artificial intelligence (AI)-driven demand for its memory chips.
As part of those plans, Micron will contribute $500 million in strategic financing to semiconductor supplier GlobalWafers to expand its silicon wafer manufacturing site in Texas.
Today's Change
(
4.55
%) $
43.22
Current Price
$
992.02
Micron and GlobalWafers also agreed to a 10-year supply deal that will help Micron meet its raw silicon wafer needs.
"Securing a reliable supply of critical input materials is essential to supporting Micron's long-term growth and technology roadmap," Micron executive Ben Tessone said in a press release.
A decade of expansion lies ahead Peering further into the future, Micron said it will invest over $250 billion in manufacturing and technology through 2035 to advance its long-term plan to produce 40% of its DRAM (dynamic random access memory) in the U.S.
These investments will help lessen Micron's reliance on foreign supply chains and reduce its exposure to geopolitical disruptions, thereby decreasing risks for shareholders.
Joe Tenebruso 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.
Most of the attention on Micron Technology (MU +4.55%) sits on high-bandwidth memory and the artificial intelligence data center boom. That story is real, but it hides a different shift in how the company sells its products -- a shift that could shape the next earnings report more than any single chip.
Micron is signing long-term supply agreements In the first week of July, Micron announced two strategic customer agreements within six days of each other. A strategic customer agreement is, in plain terms, a promise from a buyer to keep buying.
On July 1, it signed a deal with General Motors to secure a long-term supply of memory for the automaker's next vehicle platforms. On July 6, Micron announced a similar pact with Ford Motor Company.
Image source: Getty Images.
Buried in both press releases is the detail that matters most. Each agreement is described as "one of the 16" discussed on Micron's fiscal third-quarter conference call. So the company has told investors it has a stack of these deals and has started revealing them one at a time. That drumbeat of announcements gives Micron a reason to stay in the news between now and its next report.
Why the automotive deals matter These are not glamorous AI chips. General Motors is locking in a supply of LPDRAM, NOR, and UFS NAND -- the memory that runs in-cabin screens and driver-assistance systems. Cars carry the kind of memory once reserved for phones and servers, and each model can stay in production for years, so a single win can feed orders long after the deal is signed.
What makes the deals valuable is their shape: multiyear commitments tied to Micron's $2 billion modernization of its Manassas, Virginia, fab.
Memory has long been a boom-and-bust business, priced like a commodity. Contracts that pin down volume across a car's production life turn some of that swing into something closer to a backlog. For a company investors treat as a cyclical bet, contracted demand is a quiet form of insurance on an investment.
Today's Change
(
4.55
%) $
43.22
Current Price
$
992.02
The risks investors should weigh None of these agreements discloses price or volume, so the financial impact remains unknown until it shows up in the results. Auto production can soften, and a broad memory downturn would pressure margins. The stock has climbed a long way, which raises the bar for any surprise.
The catalyst is not a number. If Micron keeps converting that list of 16 agreements into signed deals before its fiscal fourth-quarter report, I think the market gets a running preview of demand that most cyclical suppliers cannot offer. Investors who own the stock or watch it should track the number of these agreements as a real-time signal ahead of earnings.
Micron (MU +4.55%) has lost more than 20% of its value in less than two weeks amid a broader correction among AI stocks. Most investors have been conditioned to expect these sorts of stocks to keep rising steadily, especially as tech giants continue to ramp up their AI infrastructure spending.
The fundamentals of its business suggest Micron's stock rally should continue, so when its price movements defy expectations, it creates buying opportunities for long-term investors.
Image source: Getty Images.
Micron's combination of valuation and revenue growth is rare Micron may be in a class of its own when it comes to valuation and revenue growth.
In its fiscal 2026 third quarter, which ended May 28, the company more than quadrupled its revenue year over year, blowing past its previous guidance. Even its fiscal fourth-quarter guidance was solid, with more than 20% sequential growth expected.
Today's Change
(
4.55
%) $
43.22
Current Price
$
992.02
Yet the stock trades at a P/E ratio of 22, which is lower than the S&P 500's (^GSPC +0.81%) valuation. Meanwhile, few companies in the benchmark index came anywhere close to that kind of revenue growth. The valuation appears even more absurd when looking at Micron's 6.4 forward P/E ratio. That metric reflects expected future growth, making the current dip all the more jarring.
The company even hinted in its earnings release a few weeks ago that it is breaking free from the cyclical nature of the memory chip business. "Multiyear Strategic Customer Agreements will significantly enhance the durability and predictability of Micron's strong financial performance," said CEO Sanjay Mehrotra.
The fundamentals are strong and strengthening, which makes the recent stock price slide more difficult to justify. It also comes as fellow memory product provider Samsung reported a higher quarterly profit than Apple or Nvidia. Micron is riding that same tailwind and looks poised to expand its market share.
Micron's top customers are rushing to spend more on AI infrastructure The string of strong quarters that Micron has put up lately has not been a fluke. They are the result of the company's largest customers ramping up their AI expenditures and competing with each other to gain market share in lucrative opportunities.
Amazon recently said it would issue at least $25 billion in corporate bonds to raise funds for its AI infrastructure build-out. Meanwhile, Alphabet completed an $84.75 billion equity raise a little earlier.
This spending comes from highly profitable companies that are scaling up their products and services thanks to AI. A meaningful portion of the money raised by their financial moves should flow rapidly into Micron's coffers since AI servers require copious amounts of memory chips.
Micron is even well positioned for the expected push into physical AI. Humanoid robots and self-driving vehicles will also need Micron's memory chips. While hyperscalers' big deals get the most attention, Micron also struck a multiyear agreement with Ford Motor Company to supply the memory products for its next-gen vehicles. Deals can branch well beyond tech giants as more industries embrace AI. It all bodes well for Micron despite the recent stock price action.
Marc Guberti has positions in Apple. The Motley Fool has positions in and recommends Alphabet, Amazon, Apple, Micron Technology, and Nvidia. The Motley Fool has a disclosure policy.
SummaryMicron remains a 2026 winner despite a sharp post-earnings plunge, with a bullish outlook on the Direxion Daily MU Bull 2X ETF.MUU targets 200% of MU’s daily performance; I see upside to $950–$1,000 if MU rebounds toward $1,150, contingent on technical momentum.MU’s Q3 delivered 346% YoY revenue growth and record EPS, but technical profit-taking — not fundamentals — drove the recent 30% drawdown.I rate MUU a buy for a short-term rally; leveraged ETF risks and volatility demand small position sizing and active management. JHVEPhoto/iStock Editorial via Getty Images
Micron (MU) plunged after a solid fiscal Q3 report issued in June. I outlined a bullish long-term outlook on MU right after the numbers hit the tape, but that idea is not looking good right now. Indeed, the stock plunged nearly 30% peak to
9.46K Followers
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 +6.90%) is one of the hottest stocks in the market right now. Massive demand for its memory chips has driven prices higher over the last year, leading to record-breaking earnings for the company. Still, the stock trades for just 13.6 times analysts' earnings expectations for the next 12 months. For comparison, the S&P 500 trades for close to 22 times forecast earnings.
Many investors have pointed out how cheap Micron appears to be at its current price. In fact, Micron's the largest position in the Vanguard Value ETF, suggesting the stock is undervalued right now. But the truth is Micron's not as cheap as it looks. Here's why.
Image source: The Motley Fool.
Looking beyond the current price-to-earnings ratio It's true that Micron trades for low price relative to its earnings expectations over the next 12 months. And analysts expect Micron's earnings to grow even more over the next two years, projecting Micron will generate over $160 in earnings per share by fiscal 2028, making its price around $1,000 per share look like an incredible bargain.
But the semiconductor industry is cyclical, and few segments are more so than memory chipmakers. That's because memory chips are commodity-like; device makers and chip packagers can, for the most part, swap out a Micron chip with any of its competitors'. That means if one of Micron's competitors increases the capacity of its chip production facilities, it will negatively impact Micron's ability to charge a premium price.
That's exactly what's playing out. Not only is Micron building out new chip manufacturing capacity, but its competitors are as well. As the pendulum of supply and demand swings the other way, Micron will see unit volume increase while pricing declines. At some point, unit volume growth won't be enough to offset price declines, and, combined with the added costs of running new facilities, profits will decline. That's the nature of cyclical stocks.
Today's Change
(
6.90
%) $
65.47
Current Price
$
1,014.27
So, as Micron approaches the peak of an earnings cycle, its P/E ratio will decline. Investors shouldn't be willing to pay as much for Micron's earnings at the peak of the cycle if the expectation is for earnings to decline for the next few years. And because of the commodity-like nature of Micron's products, the decline can be severe, especially if Micron doesn't build as much capacity as its competitors. That puts it in a prisoner's dilemma where it must spend the money to build new facilities.
Micron has historically traded at a P/E ratio in the mid single digits at its earnings peaks. At nearly 14 times earnings, the market suggests there are still a few more years of earnings growth for Micron in the current cycle; analysts are currently underestimating the peak of its earnings, or that the next down cycle won't be as bad as previous ones. All indications from Micron and its competitors suggest that the supply shortage will start to abate by 2028, which should have a noticeable negative impact on earnings in 2029 and 2030. Expectations for Micron are already sky-high, and the market is increasingly valuing it as if its earnings will never come down again. Don't confuse a highly cyclical stock with a value.
HomeIndustriesComputers/ElectronicsTech StocksTech StocksThe memory-chip giant is reversing its recent slide after increasing its investment in the U.S. semiconductor supply chainJuly 9, 2026, 12:13 p.m. ET
After a steep post-earnings slide, shares of Micron popped 7% on Thursday morning as the company announced a $3 billion plan to invest in its U.S. semiconductor supply chain.
As part of the plan, Micron MU pledged $500 million in strategic financing to GlobalWafers TW:6488 to help the semiconductor company build out its advanced 300mm raw silicon wafer facility in Sherman, Texas. Micron and GlobalWafers also entered into a 10-year supply agreement, giving Micron guaranteed long-term access to advanced wafer capacity needed to produce high-bandwidth memory and DRAM. Both of these memory components have become increasingly critical to powering artificial-intelligence workloads, causing demand for them to far exceed supply.
One trillion dollars. That is the scale of institutional capital that spot crypto ETFs, tokenized securities, and corporate treasuries are gradually pulling toward Bitcoin and its adjacent markets.
This number also represents the kind of move that would reset Bitcoin from a speculative allocation to a portfolio staple. Now trading around $61,500 per token, Bitcoin has been cut roughly in half from its recent peak, so there’s plenty of uncertainty in the market for investors in this mega-cap digital asset right now.
What It Means Bulls will certainly argue that Bitcoin is oversold and the plumbing beneath it is expanding at the same time. The token’s weekly RSI reads 35.1787, near the lowest levels of 2026 and a long way from the 72.7571 reading on July 11, 2025. Underneath this price action, the U.S. money supply keeps building. M2 sits at $23.05T as of May 1, 2026, up 1.1% in a single month and sitting in the 90.9th percentile of its 12-month range.
Inflation is not cooperating with the Fed either. CPI printed 333.979 in May 2026, up 0.5% month over month and holding in the 90th percentile of its 12-month distribution. The fed funds target has been parked at 3.75% since December 11, 2025, following a 50 basis point cut. Liquidity is rising, real rates are compressing, and the fear gauge is quiet. The VIX closed at 16.59 on July 1, 2026, below its 12-month average of 18.095.
Market Reaction Bitcoin has already priced in a lot of pain. The token fell 0.52% over the last day, 10.51% over the last month, and 31.83% year to date, going from $87,497.94 on December 31, 2025 to $59,649.88. Over five years the return is still 71.91%, and over ten years it is 8,629.05%.
Act now: the analyst who called NVIDIA in 2010 just named his top 10 AI stocks — and Micron Technology didn't make the cut. Grab the names FREE today.
Bull Case The macro setup and the plumbing case both point the same direction. Start with the pipes. U.S. crypto ETF assets stood at $135 billion in the United States and $6 billion in Canada by the end of 2025, with the SEC approving in-kind creations and redemptions for spot crypto ETPs on July 29. State Street counts more than 45 spot crypto-focused ETFs representing over $130 billion in assets under management, with more product structures expected in 2026.
Corporate treasuries are still leaning in. Hyperscale Data added 67 Bitcoin between June 30 and July 1, taking its total to 849 BTC. BlackRock-backed Securitize went public with a valuation of $1.25B after raising $400M, and its stock jumped 3% on NYSE debut. Ondo Finance rolled out the first U.S.-listed securities tokenized on public blockchain under SEC framework, backing IVV ETF and Micron (NASDAQ:MU | MU Price Prediction) shares 1:1. Analyst tone has followed. BTIG raised its Core Scientific (NASDAQ:CORZ) target to $38 from $33. Bernstein tagged CleanSpark (NASDAQ:CLSK) with a $24 target.
Now investors need to stack the macro environment on top. Money supply growth, as evidenced by M2, grew 1.1% month over month in June, with CPI printing at the 90th percentile of expectations. And, with the Federal Reserve having sat on rates for approximately 6 months, I think this is exactly the mix that has historically favored scarce, non-sovereign assets. Bitcoin has taken its pain. The next trillion in institutional and treasury flows would move a market that is already technically oversold.
Bottom Line The near-term signal to watch is the Fed. Rates have held at 3.75% since December 11, 2025, and the 10-year Treasury yield closed at 4.48% on July 1, 2026, in the 92.4th percentile of its 12-month range. Any easing from here lowers the opportunity cost of holding Bitcoin at the same moment ETF wrappers, tokenized funds, and corporate treasuries are widening the pipe. For long-term holders, the trillion-dollar question has shifted to how much of that next trillion arrives before the price finishes healing.
Act now: the analyst who called NVIDIA in 2010 just named his top 10 AI stocks — and Micron Technology didn't make the cut. Grab the names FREE today.
MU stock is moving. See the real-time price action here. In the WallStreetBets subreddit, one poster summed up the rotation case bluntly: "Dumping all my MU for this – these guys are significantly more degenerate with their expansion plans which I like."
The pitch is that Micron is now the establishment memory trade, while SK Hynix is the high‑beta vehicle for AI datacenter build‑out actually hitting wafers.
‘Liquidity Go Brrrrrr’The SK Hynix U.S. listing is also turning into a liquidity story. One WSB comment frames the cross‑listing as a 24/7 tape:
"SK Hynix will be now 24 hours live trading. U.S., Korea and Europe all together. And Koreans won’t be able to panic sell as U.S. algorithm system will take over."
In that worldview, global arbitrage and passive flows become a feature, not a bug. Another user distills the entire bull case down to three words: "Liquidity go brrrrrrr."
The oversubscribed deal is being cited as proof that so‑called smart money is already crowding in, with retail eager to front‑run the first‑day imbalance.
ETFs: Basket Trades Around The Memory TradeTraders are also sketching out basket trades built around the ETFs that already hide a who’s‑who of the memory and Korea trade. In this setup, retail investors are viewing SK Hynix as a spark that could send the entire basket into a momentum relay race.
DRAM, the Roundhill Memory ETF (BATS:DRAM) is being pitched in WallStreetBets as the lazy way to lever the trade if the new U.S. ticker rips and drags the whole basket higher.
KMEM, the Kurv Memory Select (BATS:KMEM) Korea‑focused fund, is framed as a higher‑octane proxy on the "Korea discount" narrowing once SK Hynix trades alongside U.S. peers.
SK Hynix ADR price targets from the WallStreetBets community run from semi‑plausible to outright fantasy, but earnings models are an afterthought. The real trade, in this corner of Reddit, is riding first‑day chaos in SK Hynix — and anything even loosely wired into the memory stack.
Photo: Samuel Bolvin / Shutterstock
Market News and Data brought to you by Benzinga APIs
Micron Technology (NASDAQ: MU | MU Price Prediction) and Intel (NASDAQ: INTC) both delivered earnings that reframed how investors think about AI silicon. Micron posted record fiscal Q3 results powered by memory pricing. Intel notched a sixth straight revenue beat while absorbing a heavy restructuring hit. One is harvesting the AI build-out today. The other is rebuilding fabs and product lines to compete for it.
HBM4 Lifts Micron. Foundry Reshapes Intel. Micron’s June 24, 2026 report showed revenue of $41.456 billion, beating consensus by 17.60% and climbing 345.72% year over year. Non-GAAP EPS of $25.11 cleared estimates by 23.79%. GAAP gross margin reached 84.6%, up from 37.7% a year earlier. Cloud Memory led the mix at $13.769 billion, propelled by HBM4 volume shipments to the lead AI accelerator customer. CEO Sanjay Mehrotra said results “reflect the strategic value of memory in the AI era.”
Intel’s Q1 FY26 revenue landed at $13.577 billion, a 9.22% beat with 7.18% YoY growth. Data Center and AI jumped 22%. Intel Foundry climbed 16%. Client Computing crawled at 1%. A $4.07 billion restructuring charge, largely a Mobileye goodwill impairment, produced a GAAP net loss of $3.728 billion. CEO Lip-Bu Tan framed the results as a “deliberate reset” that delivered a sixth consecutive revenue beat.
One Harvests. One Rebuilds. Lens Micron Intel Core Bet HBM4 for AI accelerators Intel 18A foundry and Xeon Free Cash Flow $18.304B -$3.867B Forward P/E 7 159 Key Vulnerability HBM customer concentration Foundry losses, 14A demand Micron’s edge is durability. Multi-year Strategic Customer Agreements lock in demand for high-margin HBM parts, buffering the classic memory cycle. Intel is placing bets on Panther Lake, its multiyear Google Xeon collaboration, and selection as host CPU for NVIDIA’s DGX Rubin NVL8 systems. Those wins take quarters to convert into GAAP profit.
What Matters Next Micron guided Q4 revenue to $50.0 billion with roughly 86% gross margin. Watch whether HBM4E, targeted for calendar 2027 volume, sustains pricing momentum. Intel’s tell is Q2, guided to $13.8 billion to $14.8 billion. Foundry needs external customer traction before 14A commitments harden. Mehrotra disposed of 31,434 shares at prices up to $979.37 in late May, a small dent in confidence.
Why Micron Leads for AI Exposure Now Micron is the cleaner AI expression today. A forward P/E near 7, $18.304 billion in quarterly free cash flow, and locked-in HBM demand are compelling if AI capex holds. Intel fits a patient investor waiting on 18A ramps, foundry breakeven, and a real GAAP turn. Its shares are up 226.15% YTD, pricing in hope at a forward multiple near 159. If memory pricing cracks, the thesis for both names shifts. For now, Micron is the chipmaker printing cash while Intel is still spending to catch up.
Don't wait: the analyst who called NVIDIA in 2010 just revealed his top 10 AI stocks. See the full list FREE now.
Live Coverage Updates appear automatically as they are published.
Live Updates 1 hour ago
Live
PepsiCo (Nasdaq: PEP) stock fell 4% after earnings came in a penny light, even as revenue cleared expectations. The softer read came from the U.S. consumer, with management pointing to tighter household budgets, inflation pressure, and weaker North American beverage demand.
2 hours ago
Live
Memory is becoming one of the clearest pressure points in the AI buildout. Global memory sales climbed 31.7% from the prior month to a record $74.6 billion, reflecting the strain that AI demand is putting on supply chains. NAND sales rose 40.7% to $25.8 billion, while DRAM reached $48 billion, reinforcing how much of the AI trade now depends on the chips that feed and store data.
UBS expects the squeeze to persist, with sharp price increases and supply shortages potentially lasting into mid-2028. That backdrop could favor Micron, Samsung, SK Hynix, and SanDisk. Bernstein is still bullish in the near term, but sees a slower pace of price gains ahead as weaker consumer demand starts to take some heat out of the market.
This article will be updated throughout the day, so check back often for more daily updates.
The Nasdaq Composite pushed higher Thursday morning as chip stocks moved back into market leadership, giving tech investors a reason to look past another flare-up in U.S.-Iran tensions. The Nasdaq rose 0.6%, outpacing a 0.3% gain in the S&P 500, while the Dow hovered near the flatline. Semiconductors were the clearest pocket of strength. The VanEck Semiconductor ETF climbed about 4%, buoyed by a 7.9% jump in Micron (Nasdaq: MU) and a 6% gain in SanDisk (Nasdaq; SNDK), as investors returned to the AI memory trade after a rough stretch for chip names.
The rebound came against a more complicated macro backdrop. Renewed fighting around Iran and the Strait of Hormuz kept oil risk in focus, even as crude prices backed away from the worst-case scenario. Software stocks, meanwhile, were weaker after KeyBanc downgraded Salesforce (Nasdaq: CRM) adding pressure to the SaaS side of the tech trade just as semiconductors regained momentum.
Act now: the analyst who called NVIDIA in 2010 just named his top 10 AI stocks — and Meta didn't make the cut. Grab the names FREE today.
Here’s a look at where things stand as of pre-morning trading:
Dow Jones Industrial Average: 52,400 Up 0.10%
Nasdaq Composite: 29,705 Up 1.5%
S&P 500: 7,515 Up 0.44%
Market Movers SK Hynix is reportedly guiding its U.S. ADR offering at $149 per share, a 3.1% premium to its Korea close. The pricing keeps investor appetite for AI-linked memory names front and center.
Micron (Nasdaq: MU) is raising the stakes in U.S. chipmaking, saying it now expects to invest $250 billion domestically through 2035. The company also announced up to $3 billion in new spending aimed at strengthening the U.S. semiconductor supply chain and expanding the manufacturing base needed for next-generation technology.
Meta Platforms (Nasdaq: META) is reportedly moving deeper into custom silicon, with its Iris AI chip expected to enter production in September, according to Reuters. The chip is part of Meta’s in-house training and inference accelerator roadmap, a sign the company wants more control over the hardware powering its AI ambitions. Meta is also planning a roughly $10 billion data center in Sturgeon County, Alberta, marking its first such facility in Canada. The 1-gigawatt project, expected to rely largely on natural gas, would require about 3,000 construction workers and create roughly 300 full-time jobs.
Act now: the analyst who called NVIDIA in 2010 just named his top 10 AI stocks — and Meta didn't make the cut. Grab the names FREE today.
Micron Technology (NASDAQ:MU | MU Price Prediction) has been the wildest ride in the AI memory trade. The stock rallied from $119.73 a year ago to a 52-week high of $1,254.81, then pulled back to $938.38 after a Samsung-triggered memory selloff. My question: is another leg higher coming, or is fair value already in the price?
Our 24/7 Wall St. price target for Micron is $957.48 over the next 12 months, implying roughly 2% upside from here. That is a hold, but with a high confidence read of 90%. The stock is essentially at fair value after an epic run.
24/7 Wall St. Price Target Summary Metric Value Current Price $938.38 24/7 Wall St. Price Target $957.48 Upside 2.04% Recommendation HOLD Confidence Level 90% A 683% Rally, Then a Reset Micron is up 683.77% over the past year and up 228.99% year-to-date, but the tape has cooled off fast. Shares fell 18.69% in the past week after Samsung reported a record $58 billion Q2 operating profit that triggered a sector-wide sell-the-news reaction. Analysts view the pullback as a “healthy reset” within a memory supercycle.
The fundamentals do not look like a top. Fiscal Q3 2026 revenue hit $41.46 billion, up 345.72% YoY, with non-GAAP EPS of $25.11 beating consensus by 23.79%. GAAP gross margin expanded to 84.6% from 37.7% a year ago, and management guided Q4 revenue to $50.0 billion with EPS of $31.
Why Bulls See a Path to $1,486 The bull case is anchored by Wall Street itself. The consensus target sits at $1,486 across 40 buy or strong-buy ratings versus one strong sell. Our own bull scenario points to $1,333.31, a 42.09% return.
The catalysts are stacked: HBM4 is already in high-volume shipments, HBM4E on 1-gamma DRAM targets 2027 volume, and Micron just secured long-term memory supply agreements with Ford and General Motors for next-generation vehicles.
CEO Sanjay Mehrotra says “multi-year Strategic Customer Agreements will significantly enhance the durability and predictability” of results. If those contracts anchor pricing into 2027, $1,300+ is defensible.
Act now: the analyst who called NVIDIA in 2010 just named his top 10 AI stocks — and Micron Technology didn't make the cut. Grab the names FREE today.
What Could Go Wrong Memory is cyclical, and the biggest risk is a supply flood. SK Hynix is preparing a $28-29 billion Nasdaq IPO, with proceeds funding new fabs, and Apple is reportedly testing CXMT chips for China devices.
Add hyperscaler research into memory compression techniques and the demand side could soften faster than expected. Michael Burry has reportedly shorted the name citing “AI hype”. Our bear case lands at $698.10, a 25.61% decline.
The counterfactual for bears: capex is running at $7.83 billion a quarter, up 166.37% YoY, and while that pressures near-term free cash conversion, it reflects locked-in demand from Strategic Customer Agreements rather than speculative building.
Hold for Now, Buy the Reset My 24/7 Wall St. price target of $957.48 with 90% confidence keeps me at hold. The valuation gap between our model and the Street target is really a debate about whether HBM pricing normalizes in 2027 or holds firm.
I’d be a buyer here if Micron closes above $1,000 on Q4 results confirming the $50 billion revenue guide. I’d stay patient if SK Hynix’s IPO drains capital from the memory trade.
Year 24/7 Wall St. Price Target 2026 $957 2027 $1,050 2028 $1,000 2029 $1,060 2030 $1,121 These projections assume Micron continues executing on HBM4 and its Strategic Customer Agreements. Significant upside or downside could come from the pace of AI capex and how quickly Chinese and Korean supply reaches the market.
Act now: the analyst who called NVIDIA in 2010 just named his top 10 AI stocks — and Micron Technology didn't make the cut. Grab the names FREE today.
Artificial intelligence has turned memory chips into one of the most valuable pieces of the semiconductor supply chain. Nvidia‘s (NASDAQ:NVDA | NVDA Price Prediction) AI accelerators grab the headlines, but high-bandwidth memory (HBM) has quietly become just as essential because advanced AI chips can’t deliver peak performance without it.
Until now, U.S. investors looking to capitalize on that trend have had few direct options beyond Micron Technology (NASDAQ:MU). That changes tomorrow when South Korean memory leader SK hynix begins trading on Nasdaq through American depositary receipts (ADR) priced at $149 each, giving investors another way to invest in one of AI’s hottest markets.
A Rare Opportunity Comes With Plenty of Excitement SK hynix — which will trade on Nasdaq under the ticker SKHY — priced its ADRs at $149, roughly a 3% premium to where its shares trade in South Korea. The company is expected to raise approximately $28 billion, making it one of the year’s largest listings and drawing comparisons to last month’s blockbuster SpaceX (NASDAQ:SPCX) debut.
That excitement makes sense. SK hynix sits at the center of the AI memory boom:
Company HBM Market Share DRAM Market Share SK hynix 58% 38% Samsung Electronics 21% 29% Micron Technology 21% 22% Together, Samsung, SK hynix, and Micron control essentially all HBM production and roughly 90% of the global DRAM market. That’s an enviable competitive position in an industry benefiting from AI data center spending that continues climbing.
Let’s also remember that U.S. investors have had limited access to this opportunity. Buying SK hynix previously required investing directly in the Korean market, making tomorrow’s Nasdaq listing a meaningful milestone.
The Memory Boom May Be Peaking That said, timing matters. Micron offers a useful reminder of how quickly sentiment can shift. After reaching record highs in late June, the stock has surrendered roughly one-quarter of its value as investors began questioning whether memory pricing has become too aggressive.
The concerns aren’t difficult to understand. Historically, memory has been among the semiconductor industry’s most cyclical businesses. High prices encourage manufacturers to expand production. Customers respond by delaying purchases or seeking lower-cost alternatives. Eventually supply catches demand, inventories build, and prices decline.
Don't wait: the analyst who called NVIDIA in 2010 just revealed his top 10 AI stocks. See the full list FREE now.
We’re beginning to see early signs of that cycle again. Elevated memory prices are squeezing margins for consumer electronics manufacturers, particularly smartphone and PC makers. As procurement teams push back against rising costs, investors are wondering whether today’s record HBM pricing can last.
Ironically, SK hynix may be coming public just as enthusiasm begins cooling.
Granted, AI infrastructure spending remains robust, and memory demand could stay elevated longer than previous cycles because hyperscale cloud providers continue investing billions of dollars in AI data centers.
Still, investors should separate the business from the stock. SpaceX dominates the space sector and generated enormous excitement following its debut — but has given back all of its early gains. IPO enthusiasm often creates prices that reflect near-perfect expectations rather than realistic outcomes.
Key Takeaway In short, SK hynix deserves a place on every semiconductor investor’s watchlist, but that doesn’t automatically make its $149 debut price a bargain. The company is entering Nasdaq as the world’s HBM leader during an AI investment boom, yet history shows memory cycles rarely stay favorable forever.
With Micron already correcting about 25% from its recent highs and questions emerging about memory pricing, patience may prove the better strategy. Great businesses can still become mediocre investments when investors pay peak-cycle prices, and SK hynix may be arriving just as the memory trade begins to lose momentum.
Don't wait: the analyst who called NVIDIA in 2010 just revealed his top 10 AI stocks. See the full list FREE now.
SummaryMicron Technology, Inc. delivered a record-breaking quarter, with revenue up 346% YoY and operating income surging 2,456%, driven by AI-fueled memory demand.MU’s growth is powered by Strategic Customer Agreements: 16 take-or-pay contracts locking in floor margins above historical peaks and $100B+ in minimum revenue.Guidance calls for Q4 revenue of $50B and 86% gross margin, with tight memory supply expected through 2027 and a commitment to return 100% of excess cash to shareholders.While SCAs cap upside for 40% of revenue at peak 2026 prices, the new floor transforms MU’s risk profile, justifying a Strong Buy rating despite some foregone upside. JHVEPhoto/iStock Editorial via Getty Images
Every once in a while, a company reports a quarter so loudly that the point gets drowned out by its own applause. Now, Micron Technology, Inc. (MU) has had runs like this before, and
4.33K Followers
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.
Analyst’s Disclosure: I/we have a beneficial long position in the shares of MU either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.
The Micron Technology logo is displayed on a smartphone screen with the company's website in the background, in Creteil, France, on May 27, 2026. The American semiconductor company officially crosses the symbolic threshold of $1 trillion in market capitalization on Wall Street the previous day. (Photo by Samuel Boivin/NurPhoto via Getty Images)
NurPhoto via Getty Images
This article was written by Doug Nathman, with research by his team at Trefis.
Micron (MU) shares have soared by almost 8x in the last year, elevating its market valuation to over $1 trillion. This surge has been driven by high-bandwidth memory (HBM), which complements the AI accelerators from Nvidia (NVDA) and AMD (AMD), forming the backbone of AI infrastructure development.
In the past, memory has consistently been one of the most cyclical sectors within the semiconductor business, with DRAM navigating through boom-and-bust trends every three to four years. Explore a detailed account of previous memory cycles for Micron.
This time around, however, numerous factors within the market appear distinct. AI clientele are entering into multi-year supply contracts, a limited number of hyperscalers account for a significant portion of demand, and HBM is closely coupled with AI accelerators rather than offered as an independent commodity.
The pressing question is whether these structural transformations are sufficient to alter the industry’s well-established patterns. That’s what investors need to ascertain.
Tighter Coupling, Fewer CustomersHBM has transitioned away from being a commodity memory solution. Unlike standard DRAM, which fits into separate memory slots, HBM is packaged directly with the AI accelerator through sophisticated chip packaging techniques. It is collaboratively designed and certified for a particular GPU generation, involving significantly lengthier qualification processes compared to commodity DRAM. As HBM is integral to the GPU package, each new GPU generation generally introduces a corresponding new generation of HBM.
MORE FOR YOU
This alters Micron's customer composition. Rather than distributing memory to numerous PC manufacturers, server OEMs, and cloud service providers, HBM demand is now heavily concentrated among Nvidia, AMD, and a select few hyperscalers creating their own AI chips. The lengthy qualification processes benefit Micron. Once a memory supplier is approved for a GPU platform, clients hesitate to change suppliers since validating a new one can take years rather than just quarters. This leads to increased switching costs and enhanced revenue predictability.
The downside is the concentration of customers. A decrease in AI infrastructure expenditures from just one significant GPU client or hyperscaler could disproportionately affect Micron's HBM revenue. During prior memory cycles, declines in one market segment were often balanced by demand from others. In the case of HBM, this buffer is considerably smaller.
What’s Truly New: Take-Or-Pay ContractsThe most compelling evidence that this cycle might differ is the long-term take-or-pay agreements, a rarity in the DRAM sector. Micron has secured 16 multi-year take-or-pay contracts. Once all intended agreements are finalized, the company anticipates that more than half of its revenue will be secured by these contracts, with approximately 40% subject to fixed or ceiling pricing. Check Micron's growth and margins compared to peers.
These contracts don’t erase risk, but they alter the distribution of it. They offer Micron enhanced revenue visibility and lessen vulnerability to abrupt price declines. In exchange, clients agree to procure capacity even if market conditions deteriorate.
Nevertheless, this protection is only partial. Approximately half of Micron's revenue still resides outside these contracts. Should AI infrastructure investment fall short, or if future AI models become more memory-efficient than anticipated, pricing pressures might still arise in the non-contracted segment of the business.
Signs of Customer Hesitation Are Already SurfaceMajor technology firms are expected to allocate over $600 billion for capital expenditures this year. A significant portion of this expenditure is directed towards AI data centers along with the GPUs and HBM that support them. However, the entities ultimately funding AI services may start to adopt a more cautious approach.
Tesla has placed a cap of $200 per week on employee spending for AI tools as of July 6. Uber, Meta and Walmart have implemented similar restrictions as usage-based pricing has made AI expenses more apparent. While these measures are relatively minor, they demonstrate that companies are starting to closely evaluate AI expenditures rather than viewing them as boundless.
Concurrently, the uptake of enterprise AI has proven slower than many anticipated. Incorporating AI into established workflows, redesigning business processes, and promoting employee acceptance continue to present significant obstacles. If businesses struggle to achieve favorable returns on their AI investments, the rate of future infrastructure spending may eventually slow, challenging the assumption that the current high demand for HBM will endure for years.
Opportunities such as those presented by Micron illustrate how individual semiconductor stocks can experience significant increases during technological transitions, but they also entail focused exposure to industry cycles, capacity expansions, and execution risks. A disciplined portfolio strategy can help mitigate these risks while still engaging in long-term growth trajectories. Trefis’s High Quality (HQ) Portfolio has consistently outperformed its market benchmark since inception, with cumulative returns exceeding 105%.
Micron shares rose 7% on Thursday as the company announced a new round of investments aimed at boosting the U.S. semiconductor supply chain, and plans to accelerate its spending in the country through 2035.
The new strategic investment of up to $3 billion includes $500 million for Taiwanese-headquartered GlobalWafers to expand its wafer development and manufacturing in its Texas facilities, and also comes with a 10-year supply agreement for raw silicon wafer capacity.
"Securing a reliable supply of critical input materials is essential to supporting Micron's long-term growth and technology roadmap," said Ben Tessone, Micron's chief procurement officer, in a press release.
In a separate announcement, the chipmaker said it will also raise its planned U.S. investment to $250 billion through 2035, roughly a $50 billion increase, as memory demand from the artificial intelligence buildout skyrockets.
Other names in the chip space rallied on Thursday, with Applied Materials, KLA Corp and Lam Research up 7%, ARM Holdings up 11%.
Read more CNBC tech newsChinese lidar maker with Nvidia ties accused of being cyber risk for U.S.China's Alibaba bans Anthropic AI for employees after 'distillation attack' accusationSpaceX President Gwynne Shotwell to donate stock to Trump AccountsMicrosoft cuts 4,800 jobs, as Xbox unit downsizes and plans to spin off four gaming studioswatch now
Micron Technology Inc (NASDAQ:MU) shares rose 7% on Thursday after the company announced plans to invest up to $3 billion to strengthen the U.S. semiconductor supply chain and support future manufacturing capacity.
The investment includes $500 million in strategic financing support for GlobalWafers to advance development of its GlobalWafers America 300mm raw silicon wafer manufacturing facility in Sherman, Texas.
The companies also plan to enter into a 10-year supply agreement that would provide Micron with access to additional raw silicon wafer capacity.
Micron said the investment is intended to improve supply assurance, increase long-term planning flexibility and support demand for advanced memory and storage solutions driven by artificial intelligence and other data-intensive applications.
“Securing a reliable supply of critical input materials is essential to supporting Micron’s long-term growth and technology roadmap,” Ben Tessone, senior vice president and chief procurement officer at Micron, said in a statement.
GlobalWafers CEO Doris Hsu added that the partnership with Micron would support the expansion of local semiconductor manufacturing capabilities and strengthen supply chain resilience in the US.
Micron and GlobalWafers also plan to explore collaboration on next-generation wafer technologies and process innovations.
The proposed transaction remains subject to definitive agreements, customary approvals and closing conditions.
The news also lifted shares across the broader semiconductor sector, with Advanced Micro Devices Inc (NASDAQ:AMD, XETRA:AMD) gaining 7%, Qualcomm Inc (NASDAQ:QCOM, XETRA:QCI) rising 4%, Taiwan Semiconductor Manufacturing Co (ADR) (NYSE:TSM) advancing 3%, Broadcom Inc (NASDAQ:AVGO, XETRA:1YD) up 2% and Applied Materials Inc (NASDAQ:AMAT, XETRA:AP2) climbing 6%.
Memory chip and storage stocks staged a strong recovery on Thursday, with investors rushing back into the sector after a sharp selloff triggered by Samsung Electronics' quarterly earnings earlier this week.
Micron Technology climbed more than 7%, while SanDisk SNDK gained about 7.5%.
Western Digital advanced over 7.2%, and Seagate Technology rose more than 6.5%, recovering a significant portion of the losses suffered during the broader semiconductor rout.
The rebound follows Samsung's preliminary quarterly earnings that sparked profit-taking across global chip stocks despite the South Korean memory giant reporting stronger-than-expected results.
Samsung's shares declined after the earnings announcement as investors locked in gains following the stock's sharp rally, dragging semiconductor and AI-related stocks lower worldwide.
The selling pressure was particularly severe in South Korea, where the Kospi briefly slipped into technical bear-market territory on Wednesday, falling 22.8% from its June 22 peak.
Despite the recent volatility, market participants increasingly viewed the correction as a healthy pullback rather than a sign of deteriorating fundamentals for the AI memory industry.
Micron, for instance, had fallen about 32% from the record high it touched shortly after its earnings report in late June, making the stock attractive to investors looking to buy into the AI theme at lower valuations.
Fresh industry data also supported the recovery.
According to UBS' July Memory Monthly report, global memory sales reached a record $74.6 billion, rising 31.7% month-on-month and outperforming the typical seasonal trend by 2.8 percentage points.
The strong demand has prompted both UBS and Bernstein to forecast meaningful increases in memory contract prices over the coming quarters, although the two firms differ on how long the current upcycle can be sustained.
Another positive signal for the sector came from reports that SK Hynix's upcoming US listing has attracted overwhelming investor demand, suggesting institutional investors remain confident about the long-term outlook for AI memory suppliers despite recent share-price volatility.
Investor sentiment also received a boost after Micron announced plans to invest more than $250 billion in the United States through 2035 to expand memory manufacturing capacity.
The investment reflects growing confidence that demand for high-bandwidth memory and other advanced memory chips used in artificial intelligence servers will remain robust for years.
The latest commitment represents a substantial increase from the $200 billion investment plan Micron announced last year, which itself had already been revised upward from earlier estimates.
SanDisk also benefited from a Reuters report that Meta Platforms plans to begin manufacturing an artificial intelligence chip from September as it expands computing capacity to support its AI ambitions.
According to the report, Meta has secured long-term supply agreements with several hardware vendors to support the expansion of its AI infrastructure.
The agreements reportedly include Samsung Electronics for memory chips, SanDisk for flash storage products, and Sumitomo Electric for fiber-optic equipment, underscoring continued investment by hyperscale technology companies in AI data centers.
The report reinforced expectations that enterprise spending on storage and memory products will remain elevated as companies race to build AI infrastructure.
Wall Street remains bullish on memoryBrokerages also continue to maintain an optimistic view of the memory sector despite the recent correction.
Bank of America recently reiterated its $1,550 price target on Micron, describing the company as its preferred memory stock.
The brokerage estimates that memory now accounts for 35% to 40% of cloud AI capital expenditure, roughly two to three times historical levels, while memory stocks continue to trade at less than 10 times forward earnings.
According to the firm, investors remain concerned about pricing sustainability, future supply additions and customer concentration.
However, it believes the market is underestimating the industry's transition toward longer-term supply agreements and more predictable pricing.
As memory chips become increasingly critical to AI infrastructure rather than behaving like traditional commodity products, the brokerage expects sector valuations to improve over time.
