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.
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ChipsFeature
Cheaper Than Micron, Closer to Nvidia: The Massive New AI Stock Debut
South Korea’s SK Hynix is set to catapult into the top ranks of American tech stocks when it starts trading in the U.S. on Friday. It could be the next big winner in artificial intelligence.
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Fundstrat’s Tom Lee returned to CNBC’s Morning Call Sheet on Thursday, July 9, alongside JonesTrading’s Mike O’Rourke and Vital Knowledge’s Adam Crisafulli, to discuss a market that is simultaneously celebrating the AI build-out while rotating into value and defensive names.
Lee argued: “AI is probably one of the most important structural stories in our lifetime.” He paired that with a second observation that inflation could ease in the back half of 2026: “I think inflation pressures are actually easing. And I think there’s a lot of companies and groups that are going to benefit from that.” The disinflation backdrop supports his thesis. Core PCE was 3.41% year over year in May 2026, and WTI crude has dropped to $72.08 per barrel, down roughly 9.96% over the past month from an April spike to $114.58.
NVIDIA: Why the AI Infrastructure Boom Is Far From Over NVIDIA (NASDAQ:NVDA | NVDA Price Prediction) remains the clearest embodiment of Lee’s structural call. Q1 FY2027 revenue reached $81.615 billion, up 85.23% year over year, with Data Center at $75.246 billion and networking growing 199%. CEO Jensen Huang described “the buildout of AI factories, the largest infrastructure expansion in human history” in the company’s SEC filing. Supply-related commitments now sit at $119.0 billion.
Despite these developments, shares are up only 9.58% year to date, a valuation compression that supports O’Rourke’s thesis: “The hyperscalers, their business models are changing. They’re becoming 21st-century industrial companies that may warrant lower multiples.”
Microsoft: Compressing Multiple, Expanding AI Business Microsoft (NASDAQ:MSFT) illustrates the tension. Satya Nadella disclosed that “our AI business surpassed an annual revenue run rate of $37 billion, up 123% year-over-year,” and Azure grew 40%. Even so, the stock is down 20.38% year to date, with capex ballooning to $30.88 billion in the quarter.
For readers interested in how AI power demand and infrastructure could create new opportunities, our team’s Free Report: 7 Stocks Powering the AI Boom (That Aren’t Chipmakers) is worth reading.
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SK Hynix’s IPO Could Pressure Micron Micron (NASDAQ:MU) posted fiscal Q3 revenue of $41.46 billion, up 345.7%, with non-GAAP EPS of $25.11 and Q4 guidance of $50.0 billion ± $1.0 billion. CEO Sanjay Mehrotra tied the results to “the strategic value of memory in the AI era.” The stock is up 232.64% year-to-date and trades at a forward P/E near 6. The wildcard: SK Hynix, the world’s largest memory maker, begins U.S. trading tomorrow, and Reddit investors are debating whether capital will rotate from Micron to its newly listed peer.
Johnson & Johnson: The Value Rotation in Action Johnson & Johnson (NYSE:JNJ) captures the defensive bid Lee flagged. Q1 2026 revenue rose 9.9% to $24.06 billion, the dividend was raised 3.1% to $1.34 per quarter, marking 64 consecutive years of growth, and FY2026 adjusted EPS guidance now sits at $11.45 to $11.65. Shares are up 28.69% year-to-date with a beta of just 0.235, exactly the disinflation beneficiary profile Lee described.
What to Watch Lee’s argument is that both AI and defensive stocks can work if inflation continues to cool. AI remains the long-term structural growth story, but easing price pressures could allow sectors that have lagged during the AI rally to participate more meaningfully.
Q2 earnings will provide the first major test. Investors will be watching whether hyperscalers continue to support massive AI infrastructure spending while corporate results show improving breadth across the market. If both trends hold, the rally may become less dependent on a handful of AI leaders and more broadly supported across sectors.
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Investment supports GlobalWafers’ U.S. wafer manufacturing expansion and other strategic investments for long-term supply assurance July 09, 2026 08:30 ET | Source: Micron Technology, Inc.
BOISE, Idaho, July 09, 2026 (GLOBE NEWSWIRE) -- Micron Technology, Inc. (Nasdaq: MU) today announced plans to invest up to $3 billion to strengthen the U.S. semiconductor supply-chain ecosystem and enable the critical semiconductor manufacturing footprint needed for future technology innovation. The investment reflects Micron's commitment to securing a reliable U.S. supply of critical manufacturing materials, enhancing supply assurance, improving long-term planning flexibility, and supporting the growing demand for advanced memory and storage solutions driven by artificial intelligence and other data-intensive applications.
As part of Micron’s planned investment into the U.S. supply chain, the company will provide GlobalWafers Co., Ltd. with $500 million in strategic financing support to advance the development and manufacturing capabilities of its GlobalWafers America 300mm raw silicon wafer manufacturing facility in Sherman, Texas. The companies will also enter into a 10-year supply agreement that will provide Micron with access to significant raw silicon wafer capacity to support its long-term manufacturing plans and bolster the critical semiconductor manufacturing ecosystem in the United States.
"Securing a reliable supply of critical input materials is essential to supporting Micron’s long-term growth and technology roadmap," said Ben Tessone, senior vice president and chief procurement officer at Micron Technology. "Micron’s strategic investment in the U.S. semiconductor ecosystem and GlobalWafers' raw silicon wafer manufacturing facility reflects our commitment to strengthening supply assurance, deepening collaboration with key suppliers, and supporting the expansion of the semiconductor supply chain and manufacturing infrastructure in the United States. Together, these efforts help build a more resilient supply chain that can support future innovation and growing demand for advanced memory solutions."
"Micron has long been an important partner of GlobalWafers, and we are honored to further deepen our strategic collaboration and jointly support the stable supply of critical materials for the semiconductor industry. GlobalWafers is currently the only raw silicon wafer supplier participating in the CHIPS for America Program that is capable of locally producing advanced 300mm wafers in the United States," said Doris Hsu, Chairperson and CEO of GlobalWafers. "Through this close collaboration with Micron, we are not only continuing to meet market demand for high-quality semiconductor wafers, but also helping to strengthen local manufacturing capabilities and supply chain resilience, working hand in hand with Micron to support the continued growth of the U.S. semiconductor ecosystem."
Beyond manufacturing expansion and long-term supply commitments, Micron and GlobalWafers intend to explore collaboration on next-generation wafer technologies and process innovations to support future semiconductor manufacturing requirements.
The proposed transaction remains subject to definitive agreements, customary approvals and closing conditions.
U.S. Secretary of Commerce Howard Lutnick:
“Micron’s pledge of $3 billion to strengthen the U.S. semiconductor supply chain and expand domestic manufacturing capabilities is making the United States stronger in a sector that is vital to our economy and our technological leadership,” said Commerce Secretary Howard Lutnick. “When great companies invest in America, build in America, and bet on American workers, we create the conditions for our country and companies to succeed.”
U.S. Trade Representative Ambassador Jamieson Greer:
“Memory chips are vital to the infrastructure we depend on, from satellites and cars to medical devices and defense systems. President Trump’s trade agenda is safeguarding these critical industries by incentivizing companies to build, invest, and innovate on American soil. Micron’s additional investment of $3 billion will further expand our domestic manufacturing footprint, creating more jobs, enhancing our supply chain resilience, and strengthening our semiconductor ecosystem.”
U.S. Sen. John Cornyn:
“Micron’s $500 million investment in GlobalWafers is great news for North Texas and the Lone Star State’s semiconductor industry,” said Sen. Cornyn. “This project will not only expand the GlobalWafers facility in Sherman but also help create new jobs and strengthen our nation’s chip manufacturing capabilities, and I look forward to seeing these positive developments in Texas’ Silicon Prairie.”
U.S. Rep. Pat Fallon:
“Consistent, reliable access to critical materials is essential for the U.S. to maintain a robust and resilient supply chain here at home,” commented Congressman Pat Fallon (TX-04). “This is welcome news that Micron has announced a major investment in the silicon wafer manufacturing facility here in Sherman, TX. Not only is this announcement a testament to the fact that North Texas continues to attract critical economic development, but it is also a major step forward towards shoring up domestic semiconductor manufacturing. This facility is a benefit both to Texas’ Fourth District and U.S. national security.”
Sherman Mayor Shawn Teamann:
"The city of Sherman’s central role in the domestic semiconductor ecosystem has transformed our city into the hub of the North Texas 'Silicon Prairie,' with billions of dollars in investment and thousands of new jobs,” said Sherman Mayor Shawn Teamann. “Micron’s commitment to support GlobalWafers’ expansion is a huge step forward for the U.S. semiconductor industry, the State of Texas, and our growing, historic city. We’re thrilled to have a world class company like Micron investing in the future of this great nation, right here in Sherman."
About Micron Technology, Inc.
Micron Technology, Inc. is an industry leader in innovative memory and storage solutions, transforming how the world uses information to enrich life for all. With a relentless focus on our customers, technology leadership and manufacturing and operational excellence, Micron delivers a rich portfolio of high-performance DRAM, NAND and NOR memory and storage products. Every day, the innovations that our people create fuel the data economy, enabling advances in artificial intelligence (AI) and compute-intensive applications that unleash opportunities — from the data center to the intelligent edge and across the client and mobile user experience. To learn more about Micron Technology, Inc. (Nasdaq: MU), visit micron.com.
Forward-Looking Statements
This press release contains forward-looking statements, including statements regarding demand growth, investment amounts and timing, and development of the U.S. semiconductor supply chain. These forward-looking statements are subject to a number of risks and uncertainties that could cause actual results to differ materially. Please refer to the documents Micron files with the Securities and Exchange Commission, specifically its most recent Form 10-K and Form 10-Q. These documents contain and identify important factors that could cause actual results to differ materially from those contained in these forward-looking statements. These certain factors can be found at https://investors.micron.com/risk-factor. Although Micron believes that the expectations reflected in the forward-looking statements are reasonable, Micron cannot guarantee future results, levels of activity, or achievements. Micron is under no duty to update any of the forward-looking statements after the date of this press release to conform these statements to actual results.
Micron Technology (MU +6.88%) has been one of the best-performing stocks in the artificial intelligence (AI) space. Over the last year, it has risen by more than 680%, even factoring in a pullback in recent days.
Nonetheless, memory was historically a highly commoditized product, with prices governed largely by the laws of supply and demand. When the tech sector needed more than producers could supply, memory prices surged. When those manufacturers built more foundries and supply surpassed demand, prices experienced steep declines. That cycle has repeated many times.
Knowing that, should investors worry about that occurring in the next three years, or can they still expect to win with this semiconductor stock over that time frame?
Image source: The Motley Fool.
Micron's memory market Although the memory chip cycle is a persistent concern in the industry, Micron can expect the high-demand phase of this one to be prolonged thanks to demand for its high-bandwidth memory (HBM). HBM is a critical component in AI build-outs, and Micron is one of only three companies that manufacture it at meaningful scale.
Thus, Micron's stock success over the next three years will likely depend on how the market for HBM fares. Its revenue continues to surge, and forecasts point to robust growth for the foreseeable future. Analysts on average project 247% growth for fiscal 2026 and 81% in fiscal 2027. Although investors typically do not react well to slowing growth under any circumstances, it remains unclear whether they would turn on the stock for that reason.
Also, analysts expect the HBM market to remain supply-constrained through 2027. Fortunately, even if supply does catch up with demand at that point, the market is tight enough now that Micron has been able to compel its largest customers to sign five-year contracts for its products instead of the one-year contracts that were previously the industry standard. This means that even if demand slows, Micron can probably command high memory prices for years to come.
Moreover, earlier in the year, Micron forecast a 40% compound annual growth rate for the total addressable market for HBM through 2028. Even if the company's growth were to slow to that rate, its stock would likely stay ahead of the S&P 500 (^GSPC +0.40%), which has delivered average returns of 15% annually over the previous 10 years.
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Furthermore, its net income in the first nine months of fiscal 2026 (a period that ended May 28) was more than $47 billion, far above the $5.3 billion earned during the same period in fiscal 2025. This has lowered its P/E ratio to just 21 times earnings, and its forward P/E of 13 probably means more multiple compression is coming.
Hence, with revenue growth likely to continue over the next three years, investors should expect a significant rise in Micron stock, though not necessarily the higher valuations that tend to accompany such revenue growth.
Over the next three years, Micron stock will likely outperform the S&P 500.
Admittedly, Micron stock has a history of dramatic reversals when supply catches (or exceeds) demand. If that occurs, it could temporarily undermine Micron's investment thesis, so investors should watch the HBM market closely.
However, the outsize demand for HBM means supply is unlikely to catch up for years. Also, even though its revenue growth rates will almost certainly slow, a scenario where Micron's returns lag the S&P 500 seems unimaginable under current circumstances.
Thus, while the chip industry's cycles have probably not disappeared, investors probably won't have to worry about a dramatic negative turn over the next three years.
Micron logo is seen in this illustration taken June 11, 2026. REUTERS/Dado Ruvic/Illustration Purchase Licensing Rights, opens new tab
July 9 (Reuters) - Micron Technology (MU.O), opens new tab said on Thursday it plans to invest more than $250 billion in the U.S. through 2035, driven by surging demand for memory chips in the AI era and President Donald Trump's push to bolster domestic chip production.
The new investment plan represents a jump from the $200 billion that Micron announced last June, which was already increased by $30 billion from its original spending plans.
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As part of the investment, Micron said it would spend $3 billion on strengthening the U.S. semiconductor supply chain, of which $500 million will be used to fund advancements in GlobalWafers' 300-mm raw silicon wafer manufacturing facility in Sherman, Texas.
Shares of Micron were up more than 6% in premarket trading.
Micron and GlobalWafers will also enter into a 10-year supply agreement that will provide Micron access to significant raw silicon wafer capacity to support its long-term manufacturing plans.
Reporting by Anhata Rooprai in Bengaluru; Editing by Arun Koyyur and Leroy Leo
Our Standards: The Thomson Reuters Trust Principles., opens new tab
Yet despite the breathtaking run, Wall Street is still valuing the memory-chip maker more conservatively than some of its biggest semiconductor peers.
That raises an intriguing question for investors: Has Micron’s stock outrun its fundamentals—or have its fundamentals outrun the stock?
Micron Is Still The Cheapest AI Chip GiantOn a forward earnings basis, Micron trades at just 6.1 times expected earnings, according to Benzinga Pro data.
The gap is particularly striking given that Micron sits at the heart of the AI infrastructure buildout. The company’s HBM chips have become a critical component inside AI servers, benefiting from the same spending wave that’s powering demand for Nvidia’s GPUs.
The valuation disconnect becomes even more notable when viewed alongside Micron’s growth metrics. Its PEG ratio stands at just 0.139, compared with 0.628 for Nvidia and 1.239 for AMD, suggesting analysts expect earnings growth to remain robust relative to the stock’s valuation.
Micron Stock Chart Suggests Momentum Is Cooling, Not BreakingTechnically, Micron stock’s long-term trend remains firmly intact.
Chart created using Benzinga Pro
The stock continues to trade above its 50-day and 200-day moving averages, with both rising, signaling that the broader uptrend remains healthy despite recent volatility.
Meanwhile, momentum has begun to cool after the explosive rally.
The MACD (moving average convergence/divergence) indicator remains in positive territory, but the indicator has crossed below its signal line, while the histogram has turned negative—often an early sign that bullish momentum is easing.
Meanwhile, the RSI (relative strength index) has cooled to around 50, indicating the stock has worked off much of its overbought condition following its extraordinary rally.
Rather than signaling a breakdown, the technical picture points to a period of consolidation as investors digest one of the semiconductor sector’s strongest runs.
Investment TakeawayMicron’s rally has been extraordinary—but so has its earnings outlook.
Normally, stocks that gain more than 700% command premium valuations. Micron is the exception. Despite becoming one of the biggest beneficiaries of the AI memory boom, it still trades at a fraction of the forward earnings multiples assigned to Nvidia, AMD and Intel.
Whether that gap reflects an overlooked opportunity or a justified discount will ultimately depend on one thing: whether Micron can continue converting AI-driven memory demand into the kind of earnings growth that has powered its historic rally so far.
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Stock futures are slightly higher this morning as investors monitor developments in the Middle East; PepsiCo's results narrowly beat Wall Street estimates as strength in international markets offset sluggish sales in North America; Korean memory chip maker SK Hynix is reportedly seeing heavy demand for its upcoming U.S. stock listing; AstraZeneca shares are sinking after a disappointing heart drug trial; and Levi Strauss shares are falling after the denim apparel maker issued weak guidance. Here's what you need to know today.
Micron raises its planned U.S. investment to more than $250 billion through 2035 and celebrates a construction milestone at what will be the largest semiconductor manufacturing site in U.S. history July 09, 2026 08:45 ET | Source: Micron Technology, Inc.
CLAY, N.Y., July 09, 2026 (GLOBE NEWSWIRE) -- Micron Technology, Inc. (Nasdaq: MU) today announced it is accelerating its planned U.S. fab and technology investments and increasing its expected spend to more than $250 billion through 2035, driven by surging demand for memory in the AI era.
Micron anticipates that the increase in investments will support its long-term goal of producing 40% of its DRAM in the U.S. while creating additional good-paying direct and indirect jobs. The expanded investment reflects Micron’s confidence in its technology leadership and continued demand for its leading-edge memory products.
The announcement comes as Micron celebrates the first concrete pour milestone at its Clay, New York site, which occurs more than one quarter ahead of the original plan and marks the transition from site preparation to vertical construction. As announced earlier today, Micron also plans to invest up to $3 billion to develop the domestic semiconductor supply chain ecosystem in support of its U.S. manufacturing footprint.
Today, Micron Chairman, President and CEO Sanjay Mehrotra will host the concrete pour, joined by supplier partners and federal, state and local leaders, including U.S. Secretary of Commerce Howard Lutnick, New York Governor Kathy Hochul, Small Business Administration Administrator Kelly Loeffler, U.S. Chief Technology Officer Dr. Ethan Klein, Onondaga County Executive Ryan McMahon, U.S. Congressman John Mannion, U.S. Congresswoman Claudia Tenney, and Town of Clay Deputy Supervisor Joe Bick.
"As America celebrates its 250th anniversary, data and memory are foundational to the modern economy — and Micron is increasing our U.S. investments to more than $250 billion through 2035 to meet that moment," said Sanjay Mehrotra, Micron Chairman, President, and CEO. "I want to thank President Trump, Secretary Lutnick, Governor Hochul, Senator Schumer, County Executive McMahon, and our partners across government and the community for their leadership. Reaching this milestone ahead of schedule reflects the speed and determination behind this project. Micron is proud to bring the world's most advanced memory manufacturing to Central New York, strengthen the domestic semiconductor supply chain and help secure America's technology leadership for generations to come."
A Media Snippet accompanying this announcement is available by clicking on this link.
“President Trump has made it clear that America is where you should build your business and the world is responding rapidly. Today, Micron pours the foundation on its massive semiconductor campus in upstate New York and increases its American investment commitment to $250 billion, creating nearly 100,000 jobs and providing leading-edge memory supply here in the United States,” said Commerce Secretary Howard Lutnick. “The Trump economic model clearly shows there has never been a better time to invest in the United States.”
"Today's milestone marks another major step for Micron in Central New York, and what makes it even more remarkable is that we're here in July — months ahead of schedule — pouring the concrete foundation,” said Governor Kathy Hochul. “This is the largest private investment in New York State history, and it's already delivering for New Yorkers, our state economy, and our local businesses. With up to 50,000 jobs on the horizon, we are building the future of American memory manufacturing right here in Central New York, and we are building it fast."
Rapid progress in Central New York
Less than six months after breaking ground in January 2026, Micron has completed key early site work and is transitioning to vertical construction. Micron recently selected Bechtel to partner on the engineering, procurement and construction for the first New York fab. Jacobs, the architectural and engineering design partner, and Gilbane Building Company, the preconstruction and site infrastructure contractor, will also join the celebration.
To date, Micron, in partnership with Gilbane on the early site works phase, has directed approximately $675 million — more than half of the total awarded value to date — to New York-based contractors, suppliers, and subcontractors, including companies from Syracuse, Liverpool, Rome, Rochester, Watertown, Buffalo, and Binghamton. More than 80% of the workers on site to date have been New York residents, reflecting the project's impact on upstate New York businesses and communities.
Building the facility will require thousands of skilled craft professionals at peak construction, creating opportunities for union trades, apprentices, local training program graduates, specialty contractors and suppliers. With up to four fabs, Micron’s New York project is the largest private investment in state history and is expected to generate 50,000 jobs in New York, including 9,000 direct Micron jobs.
Building America's memory across the United States
The New York project is the cornerstone of Micron's U.S. investment plan. Micron is also making rapid progress in Idaho, with first wafer output expected in mid-calendar 2027 for the first fab and late calendar 2028 for the second. Earlier this year in Virginia, Micron launched initial production of its 1α (1-alpha) DDR4 technology, supporting customers’ long lifecycle product needs in auto, industrial, medical, aerospace and defense markets.
Together, these projects are expected to create more than 90,000 jobs and advance U.S. economic and national security goals. As Micron makes these investments, the company will remain disciplined in its approach and responsive to the market environment to appropriately align its supply plans.
“This milestone in Central New York shows Micron’s U.S. manufacturing strategy moving from planning to meaningful local impact,” said Manish Bhatia, Micron Executive Vice President of Global Operations. “As we build the capacity, workforce and supplier base needed for the AI era, we are creating opportunities for New York businesses, skilled trades and communities to grow with us. What we are building here will contribute to a thriving semiconductor hub in Central New York, complementing Micron’s existing sites in Idaho and Virginia.”
Investing in the Central New York Community
In honor of America's 250th anniversary, Micron recently announced a $250 million investment in Trump Accounts to reach one million children and families. The company will offer a one-time $250 seed deposit for eligible children in the communities where it operates, including Central New York, as well as an employee match benefit. To date, Micron has also committed more than $50 million to community priorities across Central New York, supporting workforce development, STEM education and other training needs, veterans’ initiatives, housing, transportation, and childcare.
Photos from the event will be available after 3 p.m. ET here.
Kelly Loeffler, Administrator of the U.S. Small Business Administration:
"Micron's massive investment in Central New York – part of a $250 billion investment nationwide – is exactly the kind of bold, American-made commitment that President Trump's agenda was designed to unleash. When a company of Micron's scale puts down roots, it has a powerful effect across our economy – not only by creating 50,000 new jobs and thousands of new work orders for local job creators, but also by strengthening small businesses across America who depend on leading-edge semiconductor technology to fuel every vital industry, from defense to energy. SBA is proud to support the small manufacturers, contractors, and local businesses that will grow alongside Micron's fab as the company advances this Administration’s mission to rebuild American industrial dominance.”
U.S. Chief Technology Officer Dr. Ethan Klein:
"The Trump Administration is committed to achieving unrivaled American leadership in AI, microelectronics, and the full semiconductor supply chain — and milestones like this one show we are turning that commitment into reality. Micron's $250 billion U.S. investments in leading-edge memory manufacturing and R&D will directly power the next generation of American innovation, and we are proud to see that future taking shape right here on American soil."
U.S. Senator Charles E. Schumer:
“Micron’s first concrete pour marks concrete progress towards bringing America’s largest semiconductor manufacturing facility to life right here in Central New York! Micron’s chips are in demand more than ever, and their Central New York project and the 50,000 jobs it’ll create put New York on the global map for advanced chip production. Micron’s total $250 billion U.S. investment is transformative for manufacturing in America and New York. I delivered a $6.1 billion CHIPS grant and billions more in Investment Tax Credit assistance from my CHIPS & Science Law to make this historic project possible. Today, we celebrate a new chapter for American chip manufacturing with Upstate New York leading the way.”
U.S. Congresswoman Claudia Tenney:
“I know how important Micron's investment is to this community — and today's milestone makes that investment tangible. Pouring the first concrete ahead of schedule is a testament to what American workers and American ingenuity can accomplish when Washington opens the path for industry to succeed. By expanding the Advanced Manufacturing Investment Credit through the One Big Beautiful Bill and championing the Working Families Tax Cut Act, Congress has sent a clear signal that the United States is committed to long-term technological leadership and supporting the next generation. Micron's $250 billion investment in making leading-edge memory in the U.S. will create good-paying jobs and strengthen our national security.”
U.S. Congressman John Mannion:
"Pouring the first concrete at Micron's Clay fab — ahead of schedule — is proof that this project is delivering for Central New York. From championing Green CHIPS in the state legislature to fighting for federal investment in Congress, I have been proud to help lay the groundwork for what will become the largest semiconductor manufacturing site in U.S. history, and part of a $250 billion Micron investment across the country. This is an investment in the thousands of workers, families, and businesses of Central New York who will build this facility and help secure America's dominance in the global semiconductor industry for generations to come."
Onondaga County Executive Ryan McMahon:
"Today's milestone is a proud and defining moment for Onondaga County, Central New York, and the country. Pouring the first concrete at Micron's historic New York campus is proof of what this community can achieve when we set ambitious goals, work together, and refuse to slow down. Reaching this milestone months ahead of schedule reflects the grit of the people of Central New York — and the strength of the partnership we have built with Micron. This project to build leading-edge memory locally will reshape the trajectory of our region for generations, and today reminds us that when Onondaga County comes together with purpose, we don't just meet expectations — we exceed them."
Matt Nesbitt, President, Central & Northern New York Building Trades:
“The Central and Northern New York Building and Construction Trades Council could not be more excited for the monumental event today. We are poised and ready for the challenge of building the largest construction project in the history of New York State. The invaluable partnership that our council has forged with Micron to prepare for this historic project is about to be on full display as we build one of the largest chip manufacturing facilities in the United States.”
Justin Driscoll, President & CEO, New York Power Authority:
“Today’s milestone at Micron’s Clay site reflects the growing momentum behind this transformative project. NYPA low-cost power allocations played a vital role in attracting this once-in-a-generation investment that will strengthen New York’s economy, create tens of thousands of good jobs, and cement New York’s role as a global leader in advanced manufacturing.”
David Anderson, President, NY Creates:
"Micron’s announcement that construction is already moving ahead of schedule is exciting for Central New York and for the future of domestic semiconductor manufacturing. This milestone represents tangible progress on a transformational project that will strengthen America’s memory chips leadership and the related supply chain, create thousands of high-tech careers, and generate lasting economic impact across the region. At the same time, NY Creates is proud to partner with Micron on our High NA EUV Lithography Center and the Industrial Manufacturing Technician (IMT) Apprenticeship Program, which advance the capabilities and talent needed to further strengthen the nation’s innovation ecosystem.”
Rob Simpson, Chief Executive Officer, CenterState CEO:
“This is one more important milestone in the foundation we are building for our region's economic resurgence and our country's national security. We are grateful to Micron for their continued partnership and investment in our region and excited to carry this message forward to the global semi-conductor supply chain — Central New York is quickly becoming one of the most important centers for memory and chip manufacturing in the world."
About Micron Technology, Inc.
Micron Technology, Inc. is an industry leader in innovative memory and storage solutions, transforming how the world uses information to enrich life for all. With a relentless focus on our customers, technology leadership and manufacturing and operational excellence, Micron delivers a rich portfolio of high-performance DRAM, NAND and NOR memory and storage products. Every day, the innovations that our people create fuel the data economy, enabling advances in artificial intelligence (AI) and compute-intensive applications that unleash opportunities — from the data center to the intelligent edge and across the client and mobile user experience. To learn more about Micron Technology, Inc. (Nasdaq: MU), visit micron.com.
Forward-Looking Statements
This press release contains forward-looking statements, including statements regarding expected acceleration and expansion of construction projects, target U.S.-based DRAM production, anticipated research and development expansion, expected timing of first wafer output, planned manufacturing, supply chain and community investments, job creation and workforce expansion, and expected economic and community impacts. These forward-looking statements are subject to a number of risks and uncertainties that could cause actual results to differ materially. Please refer to the documents Micron files with the Securities and Exchange Commission, specifically its most recent Form 10-K and Form 10-Q. These documents contain and identify important factors that could cause actual results to differ materially from those contained in these forward-looking statements. These certain factors can be found at https://investors.micron.com/risk-factor. Although Micron believes that the expectations reflected in the forward-looking statements are reasonable, Micron cannot guarantee future results, levels of activity, or achievements. Micron is under no duty to update any of the forward-looking statements after the date of this press release to conform these statements to actual results.
It’s been the big question on the minds of tech investors in the past few weeks: have Micron (NASDAQ:MU | MU Price Prediction) and the broad basket of semiconductor stocks finally peaked out? And is this the moment that investors are betting against the DRAM stocks — which includes Dr. Michael Burry of The Big Short fame himself, who said he was short Micron last week — finally profit from the rollover? Of course, there have been a few moments like this in the past year, when Micron and the broader basket of memory chip stocks slipped by double-digit percentage points in just a few sessions.
Buyers of those past dips were rewarded quite quickly as Micron and the broad basket went on to continue where they left off before a quick correction. Given the V-shaped bounces we’ve seen from such dips, it’s like there was no correction at all for those investors who didn’t check into their positions daily or weekly. In any case, the mood certainly seems just a bit more unsettled this time around, with shares of Micron now in a bear market, off about 22% from all-time highs hit in June.
The semis have been rocked, but they’re not out yet Meanwhile, some of the Magnificent Seven and the rest of the tech trade have held relatively steady.
Indeed, whether there’s a rotation or the rise of a new leadership group within AI and tech remains the big question. In my humble opinion, the latest dip might prove to be another big bump on the road higher for the memory makers. When it comes to the fundamentals, things are still very much firing on all cylinders.
It’s hard to procure more high-bandwidth memory (HBM). It’s sold out, and the line to secure more supply is quite long, to say the least. Nothing has changed about that. With SK Hynix poised to make a big splash with an IPO on the Nasdaq, there’s also potential for the DRAM makers to reheat again in record time. That’s the risk for the bears looking to go short after the latest move.
As it turns out, it’s not so easy to bet against one of the fiercest momentum trades in the market. As the next generation of GPUs (and what will follow that) go on sale, there’s a serious risk that HBM could remain in short supply through 2028 and even going into 2029 in spite of expansion efforts made by the Big Three memory makers.
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The hardware deficit isn’t getting any better Like it or not, the hardware deficit is in a terrible state, and it could get so much worse before it gets any better, as I noted in a prior piece. Sure, memory chips are commodities, but in this AI revolution, the narrative may have fundamentally changed. When you consider Jevons Paradox (cheaper AI compute leading to more usage), HPM demand might just act as a flywheel that keeps on spinning ever faster.
When it comes to the Wall Street pros, they seem little moved by the latest slide in Micron. Sell-side analysts have been aggressively raising the bar on their price targets, and until we see some of them lower the bar after a nasty slide, the consensus seems to be that the dip is buyable, and they might be far off.
At this juncture, the Street-high price target, belonging to Melius Research, sits at a lofty $2,200 per share — that’s a gain of around 133% from here. The bull points are the monopolistic environment in the U.S. (that comes with pricing power) and incredible fundamentals (that might not normalize all too quickly).
The bottom line In short, Micron’s in the perfect zone right now, and it’s becoming really hard to time any sort of top, given all data suggests more of the same will probably be up ahead. Apart from Dr. Burry, you’re not going to find many bears in the sell-side analyst camp.
Unless you’re willing to go against the grain and run the risk of getting squeezed, I think it’s best not to follow the shorts into a name that will probably only fold if a hyperscaler scales back — something that’s still unthinkable given it feels like being at a poker table where everybody just raises or calls, given how massive the pot has become and how towering their chip stacks are still.
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Micron Technology shares surged 6% in premarket trading on Thursday after the memory-chip maker announced plans to invest up to $3 billion to strengthen the US semiconductor supply chain.
The bullish analyst commentary and improving sentiment toward AI-related memory demand further supported the stock.
Micron Technology said it plans to invest up to $3 billion to expand the US semiconductor supply-chain ecosystem and support the manufacturing footprint needed for future technology innovation.
"The investment reflects Micron's commitment to securing a reliable US supply of critical manufacturing materials, enhancing supply assurance, improving long-term planning flexibility, and supporting the growing demand for advanced memory and storage solutions driven by artificial intelligence and other data-intensive applications", the company said in its press release.
As part of the initiative, Micron will provide GlobalWafers Co., Ltd. with $500 million in strategic financing to help expand the company's GlobalWafers America 300mm raw silicon wafer manufacturing facility in Sherman, Texas.
The companies also plan to enter into a 10-year supply agreement that will give Micron access to significant raw silicon wafer capacity to support its long-term manufacturing plans and strengthen the US semiconductor manufacturing ecosystem.
Beyond the manufacturing expansion, Micron and GlobalWafers said they intend to explore collaboration on next-generation wafer technologies and process innovations to support future semiconductor manufacturing requirements.
Micron shares rose 6% in premarket trading on Thursday, extending a rebound that followed gains by South Korean memory-chip makers Samsung and SK Hynix during the Asian trading session.
The recovery comes after Micron's stock had retreated from levels above $1,200 in late June as investors grew concerned about whether the pace of artificial intelligence spending that has fueled demand for memory chips could be sustained.
Sentiment appeared to improve after SK Hynix climbed more than 5% in local trading on Wednesday, helping lift confidence across the memory-chip sector.
Analysts remain positive on AI-driven memory demandBank of America analyst Vivek Arya reiterated a Buy rating on Micron and maintained a price target of $1,550.
Arya said global cloud and AI infrastructure spending could reach $1.5 trillion by 2027, with between 35% and 40% of that spending directed toward memory components.
He argued that investors are underestimating the shift in memory from a highly cyclical product to a strategic component of AI infrastructure.
Arya's $1,550 price target is based on a sum-of-the-parts valuation.
It values Micron's traditional cyclical memory business at around three times its expected 2028 book value while assigning its high-bandwidth memory business a price-to-earnings multiple of 31 times forecast 2028 earnings.
UBS also maintained a positive view on the memory market.
The brokerage raised its forecast for DRAM contract prices, projecting DDR prices to increase 32% quarter on quarter in the third quarter, up from its previous estimate of 17%.
The stronger pricing outlook adds to expectations that demand for memory products will remain supported as AI infrastructure investments continue, even after recent concerns over the sustainability of AI-related spending weighed on semiconductor stocks.
Micron benefits from structural tailwinds as tight DRAM and NAND market conditions are expected to persist until at least post-2028 due to surging AI inference workloads. Long-term strategic customer agreements now cover 20% of DRAM and 33% of NAND volume, stabilizing pricing and driving projected gross margins above 60% by 2030. Emerging Chinese competitors are expanding market share but remain technologically lagged by 2 to 5 years and pose minimal threat as their supply is contained domestically.
Index Dow Jones -0,12 % na 52286,93 b., S&P 500 +0,32 % na 7506,42 b., Nasdaq Composite +0,53 % na 26008,92 b.
Technologické akcie dnes táhnou index S&P 500 nahoru, podpořeny silnou poptávkou po americkém IPO jihokorejského výrobce paměťových čipů SK Hynix. Nabídka je podle lidí obeznámených s danou záležitostí více než sedmkrát přepsána. Cena emise byla stanovena na 149 USD za jeden americký depozitní certifikát, přičemž akcie se mají začít obchodovat na burze v pátek.
Micron (+7,2 %) oznámil urychlení plánovaných investic do amerických výrobních závodů a technologií. Celkové výdaje by měly do roku 2035 přesáhnout 250 mld. USD, oproti původně plánovaným 200 mld. USD. Cílem je vyrábět 40 % veškeré paměti DRAM v USA, přičemž první výstup z výrobní linky v Idahu se očekává v polovině roku 2027.
Naopak akcie Paramount Skydance klesají 7,8 % poté, co analytická společnost Arete Research snížila své doporučení na „prodat" a stanovila nejnižší cílovou cenu na trhu. Důvodem je obava z vysokého zadlužení, které by společnosti přinesla případná fúze s Warner Bros. Discovery.
Akcie IBM a Microsoftu také oslabují poté, co Bloomberg News informoval, že Starbucks vyvíjí vlastní interní nástroje s pomocí umělé inteligence, které by mohly nahradit software nakupovaný od těchto společností. Řetězec káváren buduje alternativy k systému Microsoftu pro sledování zásob a nástroji IBM pro správu údržby. Část nového softwaru by mohla být nasazena do konce příštího roku, pokud projde testováním.
Výrobce nápojů a potravin PepsiCo (-4,8 %) zveřejnil výsledky hospodaření za druhé čtvrtletí roku fiskálního roku 2026. Organické tržby vzrostly o 2,4 %, čímž mírně zaostaly za odhadem analytiků, přičemž segment potravin v Severní Americe organicky klesl o 2 %. Tržby a jádrový zisk na akcii odhady mírně překonaly a společnost potvrdila celoroční výhled organického růstu tržeb.
Společnost Meta Platforms (-2,7 %) plánuje od září zahájit výrobu vlastního AI čipu, a to jako součást plánu na navýšení celkové výpočetní kapacity na 14 gigawattů v příštím roce. Vyplývá to z interního mema, které měla agentura Reuters k dispozici.
Index S&P 500 +0,32 % na 7506,42 b. Nejsilnější sektory S&P Změna Nejslabší sektory S&P Změna Informační technologie +1,5 % Nezbytná spotřeba -1,8 % Průmysl +0,9 % Komunikační služby -1,5 % Utility +0,2 % Zbytná spotřeba -0,7 % Nejsilnější akcie S&P Změna Nejslabší akcie S&P Změna Lam Research Corp (LRCX) +11 % Paramount Skydance Corp (PSKY) -7,8 % Lumentum Holdings (LITE) +10,0 % PepsiCo (PEP) -4,8 % Applied Materials (AMAT) +9,6 % FactSet Research Systems (FDS) -4,4 % KLA Corp (KLAC) +9,4 % Palantir Technologies (PLTR) -4,0 % Ciena Corp (CIEN) +8,6 % Gartner (IT) -3,8 % Zdroj: Bloomberg
Chip stocks were set for a rebound on Thursday as investors stepped back into the AI hardware trade after two brutal sessions of profit-taking.
Micron rose 3.5% in premarket trading to $982.05, while AMD and Intel also gained over 2.5% after recent Wall Street target hikes helped restore some confidence in the sector.
The bounce follows a sharp selloff across Korea, Japan and the US, where investors briefly questioned whether the AI chip rally had run too far, too fast.
The reversal began after one of the sharpest global chip selloffs of the year.
Samsung Electronics reported preliminary second-quarter operating profit of 89.4 trillion won on Tuesday, with sales of about 171 trillion won, confirming a record quarter driven by AI memory demand.
But instead of rallying, Korean chip stocks sold off as investors treated the results as a “sell-the-news” moment.
South Korea’s Kospi fell into technical bear-market territory on Wednesday, down 22.8% from its June 22 peak.
Samsung lost 6.3% and SK Hynix dropped 5.7% in that session, extending a two-day rout tied to fears about stretched AI valuations, higher oil prices and interest-rate risk.
The earlier selling was even more dramatic as the Kospi ended 7.9% lower last week, with SK Hynix down 14.6%, Samsung off 9.1% and Japan’s Kioxia tumbling more than 13.5% as the memory trade unwound.
By Thursday, dip-buying had returned. Kioxia rose 8.3% in Japan, while Samsung and SK Hynix also gained as investors rotated back into memory names ahead of SK Hynix’s US listing.
The reason the rebound has traction is that analysts have not treated the pullback as a break in the AI cycle.
Bank of America’s Vivek Arya reiterated a Buy rating on Micron and kept a $1,550 price target.
Arya argued that global cloud and AI infrastructure spending could reach $1.5 trillion by 2027, with 35%-40% directed toward memory components.
His view is that investors are underestimating how memory is shifting from a deeply cyclical product into a strategic AI resource.
UBS also stayed bullish on memory. The firm raised its DRAM contract-price forecasts, with DDR prices now expected to rise 32% quarter-on-quarter in the third quarter, nearly double its earlier 17% forecast.
AMD has its own bull case as Goldman Sachs analyst James Schneider raised his AMD target to $640 from $450, citing strong AI demand and the rising role of high-performance CPUs in agentic AI workloads.
Intel’s rebound story is more about turnaround as HSBC analyst Frank Lee doubled his Intel target to $200 from $100, saying server CPU growth and the foundry business could deliver more value than investors expect.
HSBC expects design commitments in Intel Foundry to begin in the second half of 2026.
Also read- Intel, AMD stocks outperformed Nvidia in H1: what's next?
The bullish notes do not remove the risks and Intel is the clearest example of the same phenomenon.
HSBC’s $200 target is far above broader Street expectations, and the thesis depends heavily on foundry customers turning early engagement into real design commitments.
There is also a broader valuation issue as Bank of America’s bubble-risk warning for technology and semiconductor stocks earlier this month showed that even bullish analysts are watching how crowded the trade has become.
The next tests arrive quickly. SK Hynix’s Nasdaq ADRs are due to begin trading on July 10, after Reuters reported that the $28 billion US share sale was more than seven times oversubscribed.
That debut will be a real-time measure of investor appetite for AI memory exposure.
Micron Technology (MU +1.24%) put up more staggering results in its fiscal 2026 third quarter, fueled by the surging demand for its artificial intelligence memory chips.
In the period, which ended May 28, Micron generated $41.5 billion in revenue, a 74% increase from the previous quarter and a 346% year-over-year increase. Earnings were equally staggering, with net income up 105% from the previous quarter and up 205% year over year to $28.2 billion. These results shattered analysts' consensus estimates.
The chipmaker also issued guidance for its fiscal Q4 that blew analysts' estimates out of the water. The company expects $50 billion in revenue, up 20% from fiscal Q3, and earnings of $30.73 per share, up 25% from the last quarter. Analysts were expecting $42.5 billion in revenue for the current fiscal quarter.
The driver of all this growth, of course, is the tech sector's insatiable demand for Micron's high bandwidth memory, or HBM chips, which are used in data center servers to store the massive amounts of information required for AI workloads.
Image source: Getty Images.
Micron has not only sold out all of the HBM chips it will be able to manufacture for the rest of 2026, but has also presold its complete production capacity through 2027. And on the fiscal Q3 earnings call, CEO Sanjay Mehrotra said he expects "tight conditions to persist beyond calendar 2027 as a result of AI-driven demand across all segments coupled with structural supply constraints."
Pricing power The combination of wild demand and constrained supply across the memory sector has provided Micron with significant pricing power. Across its cloud memory, data center, and mobile businesses, it has been able to raise prices significantly.
In cloud memory, revenue was up 78% sequentially, and gross margins jumped by 9 percentage points to 83%. Data center revenue rose 103% sequentially, driven by higher pricing and a favorable product mix. Gross margins soared by 12 percentage points to 87%. And in mobile, revenue climbed 49% from the previous quarter, with gross margins rising 9 percentage points to 87%.
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Further, Micron inked what it is calling strategic customer agreements (SCAs) with 16 of its customers. These SCAs will transform its business model, creating contracts with three- and five-year terms, and pricing bands for each client. They are designed to improve cash flow and margins, and increase the company's financial stability.
By the end of the term of those agreements, management believes that at least half of the company's revenue will be locked in under these SCAs.
Micron stock is already up 229% this year, and there are no signs of its business slowing down. The company is benefiting from a large backlog, massive demand for its products, pricing power, and a memory supercycle that is expected to run through at least 2028.
Even after the stock's huge gains, Micron is still a value, thanks to its incredible earnings power. It is trading at just 21 times earnings, 6 times 1-year forward earnings, and it has a minuscule five-year PEG ratio of 0.14. For all these reasons, Micron Technology remains a no-brainer buy right now.
SummaryMicron Technology is rated a strong buy, driven by robust AI demand, supply constraints, and exceptional Q3 results with significant upside potential.Q3 revenues surged nearly 75% sequentially to $41.5 billion, with gross margins expanding to 85% and operating margins reaching 81%, reflecting broad-based pricing power.Guidance points to $49–$51 billion in Q4 revenues, supported by long-term Strategic Customer Agreements and persistent supply bottlenecks extending beyond 2027.My updated price target for MU is $1,775 (base case), with upside to $2,200, as free cash flow and margins are set to soar despite elevated CapEx.Looking for more investing ideas like this one? Get them exclusively at The Aerospace Forum. Learn More » mesh cube/iStock via Getty Images
Robust AI demand is creating a strong foundation for memory stocks such as Micron Technology (MU), driving a strong buy rating for the name. While I am bullish on Micron Technology stock, we note that
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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.
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Ford Motor (F - Free Report) ) has quietly become one of the more intriguing turnaround stories in the automotive sector.
Fresh off announcing a long-term strategic partnership with Micron Technology (MU - Free Report) ), Ford has joined its semiconductor partner on the coveted Zacks Rank #1 (Strong Buy) list, thanks to favorable earnings estimate revisions.
The combination of strengthening fundamentals, improving supply-chain security, and growing exposure to next-generation vehicle technology may warrant a closer look from investors.
Ford and Micron Strengthen Their PartnershipEarlier this week, Ford and Micron announced a Strategic Customer Agreement (SCA) designed to secure a long-term supply of automotive memory and storage solutions for Ford's next generation of connected and software-defined vehicles.
Under the agreement, Micron will expand production of key automotive memory products while continuing to invest in U.S.-based manufacturing capacity, including its Dynamic Random Access Memory (DRAM) facility in Virginia.
The agreement represents more than just another supplier relationship.
To that point, modern vehicles require much more memory than previous generations as advanced driver-assistance systems (ADAS), infotainment platforms, over-the-air software updates, and AI-powered computing continue to become standard features.
As vehicles increasingly resemble computers on wheels, dependable access to advanced memory chips becomes a competitive advantage.
Ford isn't the only Detroit automaker strengthening ties with Micron. General Motors (GM - Free Report) ), whose stock currently sports a Zacks Rank #2 (Buy), has also collaborated with the memory-chip maker to help secure advanced automotive memory and storage solutions for its next-generation vehicle platforms.
The parallel partnerships highlight how leading automakers are prioritizing resilient semiconductor supply chains as connected vehicles, ADAS, and software-defined architectures require increasingly sophisticated memory technology.
Ford CEO Jim Farley noted that producing the high-volume vehicles of the future requires a resilient domestic supply chain, while Micron CEO Sanjay Mehrotra emphasized that intelligent, data-intensive vehicles will continue driving demand for advanced memory and storage solutions.
Why the Partnership Really MattersThe automotive industry learned a costly lesson during the semiconductor shortages that followed the pandemic.
Production delays and factory shutdowns highlighted the risks of relying on fragmented global supply chains for critical components.
Ford's agreement with Micron seeks to reduce those risks by providing greater supply assurance for future vehicle programs while supporting domestic semiconductor manufacturing.
The partnership should also support Ford's broader transition toward software-defined vehicles, electric vehicles (EVs), and autonomous driving technologies, all of which require significantly greater computing power and memory content than traditional automobiles.
Although the agreement alone won't transform Ford's financial performance overnight, it reduces a key operational risk while positioning the company to better compete as automotive technology continues to evolve.
Ford's Earnings Outlook Is ImprovingPerhaps even more encouraging for investors is Ford's improving earnings outlook.
The stock has recently climbed to a Zacks Rank #1 (Strong Buy) as analysts have become increasingly optimistic about the auto giant’s earnings prospects.
Positive earnings estimate revisions often reflect growing confidence in improving profitability, stronger execution, or favorable business trends, making them one of the more powerful indicators followed by the Zacks Rank system.
Ford now joins Micron in obtaining a strong buy rating, indicating Wall Street has become increasingly constructive on both companies for very different reasons.
For Micron, optimism has centered on booming AI-driven memory demand. For Ford, improving earnings expectations appear to reflect stronger operating fundamentals and increased confidence in management's execution.
As shown below, Ford’s FY26 and FY27 EPS estimates have ticked higher over the last 60 days and have now spiked 31% and 28% from a year ago, respectively.
The Micron partnership is reason to believe this reassuring trend could continue, especially as Ford’s supply chain and operational execution are likely to strengthen.
Image Source: Zacks Investment Research
Ford’s annual earnings are now expected to spike 50% this year and are projected to increase another 12% in FY27 to $1.83 per share.
Image Source: Zacks Investment Research
Ford Stock Still Offers Intriguing ValueDespite improving sentiment, Ford continues to trade at a relatively inexpensive valuation compared to the broader market.
Ford’s stock remains well below the earnings multiples typically assigned to many technology and growth companies, providing investors with a margin of safety should operating results continue improving, and the company’s outlook is indeed lifted by its Micron partnership.
Ford also generates meaningful automotive cash flow while investing heavily in EVs, software, and manufacturing modernization.
If management can successfully balance those investments with continued profitability in its traditional truck and commercial vehicle businesses, the current valuation could prove attractive for long-term investors.
At $13 a share, Ford stock trades at 8X forward earnings and just 0.2X forward sales. This is notably beneath its Zacks Automotive-Domestic Industry averages of 18X (P/E) and 0.6X (P/S), respectively, while offering even sharper discounts to the benchmark S&P 500.
Image Source: Zacks Investment Research
While GM trades at a cheaper forward earnings multiple of 5X, Ford's 4% annual dividend yield could make its investment story, including its new partnership with Micron, more compelling for long-term investors. Ford's dividend yield also stands well above the S&P 500's average of roughly 1.03%, with GM’s at 0.95%.
Image Source: Zacks Investment Research
Bottom LineFord's new strategic partnership with Micron is another indication that the automaker is positioning itself for the next generation of intelligent, software-driven vehicles. More importantly, the agreement strengthens supply-chain resilience at a time when advanced semiconductors are becoming increasingly critical to automotive production.
While the Micron partnership alone isn't a reason to buy Ford stock, it complements an improving fundamental outlook. With Ford now joining Micron on the coveted Zacks Rank #1 (Strong Buy) list, supported by favorable earnings estimate revisions, investors looking for an attractively valued industrial turnaround may find that Ford deserves renewed attention.
Micron Technology (MU +1.24%) and Sandisk (SNDK +6.51%) have been among the hottest stocks on the market this year, delivering stunning returns to investors due to their phenomenal revenue and earnings growth.
Micron stock has nearly tripled in 2026 already, while Sandisk has clocked a terrific jump of 489%. However, both memory stocks have recently experienced significant pullbacks. While shares of Micron have retreated 22% after hitting a 52-week high on June 25, Sandisk is down 30% since reaching its 52-week high on June 22.
However, these pullbacks have nothing to do with the memory market's prospects. Instead, Wall Street is worried that rising memory costs could reduce demand for products such as smartphones and consoles, thereby hurting the margins of companies selling consumer electronics. But it is a pretty well-known fact that the sales of smartphones, personal computers (PCs), and consoles have been declining due to the memory shortage, and this hasn't done anything to dent the prospects of Micron and Sandisk.
As such, the recent pullback in these high-flying growth stocks is a buying opportunity. Let me explain why.
Image source: The Motley Fool.
The memory market isn't dictated by smartphones and PCs anymore There was a time when poor sales of smartphones, PCs, and consoles negatively impacted memory demand, as these devices were the primary consumers of these chips. For instance, Micron's financial performance was woeful in 2022 due to a decline in smartphone and PC sales. Market research firm IDC estimates that smartphone sales in 2026 could drop almost 14%, while PC shipments could shrink by 11.3%.
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Additionally, U.S. shipments of Sony's PlayStation 5 console dropped 58% year over year last month, while Xbox units dropped 12%. Ideally, the steep declines in shipments of these consumer devices should have wrecked the memory market, causing oversupply and price declines. However, that hasn't been the case due to artificial intelligence (AI).
AI data centers require faster compute and more storage to run AI workloads, such as training models and running inference applications. AI accelerator chips, such as graphics cards and custom AI processors, need to be fed large data sets quickly so they don't sit idle and waste energy. This is where the incredibly fast high-bandwidth memory (HBM) steps in.
HBM is manufactured by packaging multiple dynamic random-access memory (DRAM) dies vertically, which explains why it offers at least 10x the bandwidth of conventional DRAM, depending on the configuration. So, HBM is ideal for handling AI data center workloads. And because HBM is made by stacking multiple DRAM chips, it uses 3x the wafer capacity of conventional DRAM.
HBM has created a structural change in the memory market. More than half of the DRAM that's manufactured is now used in data centers, according to Counterpoint Research. Also, HBM demand isn't going to slow down any time soon, with Bloomberg Intelligence estimating that this market could clock annual growth of 42% through 2033.
Also, as AI workloads are data-intensive, the demand for NAND flash is also rising at a phenomenal pace. According to McKinsey, shipments of NAND flash-based enterprise solid-state drives (SSDs) could increase at an annual rate of 35% through 2030 in a base-case scenario, primarily due to generative AI adoption.
As a result, it won't be surprising to see shipments of consumer electronics devices remain under pressure going forward, as memory makers scramble to address the requirements of data centers. Moreover, memory industry participants note that the additional capacity they plan to bring online may not be enough to address the shortage.
So, the recent sell-off in Sandisk and Micron doesn't seem justified. But the good news is that investors can now buy these AI stocks at attractive levels.
Buying Micron and Sandisk is a no-brainer right now Sandisk's latest fiscal 2026 has just ended, and analysts are forecasting that the company's earnings grew by a whopping 2,120% during the year to $66.41 per share. Similarly, Micron's earnings in the ongoing fiscal year are anticipated to jump by 785% to $73.32 per share. The solid prospects of the memory market explain why analysts have become bullish about their prospects and anticipate their terrific growth to continue.
Data by YCharts
What's more, both stocks are trading at really attractive levels when their stunning earnings growth is considered.
Data by YCharts
The tech-laden Nasdaq Composite index, for comparison, has an average earnings multiple of 39. Given that the AI-fueled growth of the memory market is poised to continue, it won't be surprising to see Sandisk and Micron delivering the outstanding bottom-line growth that analysts are anticipating.
That's why savvy investors can consider capitalizing on the recent pullback in these two stocks, as it won't be long before they regain their mojo and start soaring once again.
Micron (MU +1.24%) shares are down over 20% from its all-time high.
*Stock prices used were the afternoon prices of July 6, 2026. The video was published on July 8, 2026.
Parkev Tatevosian, CFA has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Micron Technology. The Motley Fool has a disclosure policy. Parkev Tatevosian is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through his link, he will earn some extra money that supports his channel. His opinions remain his own and are unaffected by The Motley Fool.
HomeIndustriesTech StocksTech StocksInvestors in memory stocks are looking for signs that elevated pricing can be sustained for years without demand sufferingJuly 8, 2026, 3:00 p.m. ET
After driving Micron Technology shares dramatically higher over the past year, investors seem to be getting more discerning.
Specifically, in the face of “sky high” expectations for the memory market, investors are demanding proof that the cycle can remain tight through the next two years, Shay Boloor, chief market strategist at Futurum Equities, told MarketWatch.
Nvidia (NVDA +3.74%) has been on a run of historical projections since the artificial intelligence (AI) build-out began in 2023. If you invested $10,000 in Nvidia's stock at the start of 2023, that sum has now grown to be worth more than $131,170. That's an excellent return in a short time frame, but it's unlikely to deliver that level of return over the next few years. So, many investors are searching for other stocks that can deliver similar returns to Nvidia.
I think I've identified two AI winners at different stages of hypergrowth, and both look like strong stock picks now.
Image source: Getty Images.
Micron Technology Micron Technology (MU +1.24%) has actually been a better investment than Nvidia since 2023. That same $10,000 invested is now worth roughly $181,000, although the bulk of that return has come in the past year. Still, I think Micron is just in the middle phase of its expansion.
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Micron is thriving from the memory chip shortage caused by the massive AI build-out. AI hyperscalers are creating a massive demand that the memory chip industry just isn't built to handle, so supply is low, and demand is high. This is driving prices higher, boosting Micron's revenue and earnings. During its last quarterly earnings report, Micron informed investors that tight market conditions will persist beyond 2027, indicating that there is still more growth on the way.
Furthermore, Micron doesn't command a very high premium for the stock. It can be purchased for just 12.3 times forward earnings, far less than many other AI-centric stocks.
Data by YCharts.
So, with more growth in store and the stock trading for an attractive valuation, Micron stock looks primed to soar higher over the next few years. While the major returns have already occurred, Micron could easily double or triple from here without becoming overvalued. Nvidia likely will not do that anytime soon, so buying Micron now could be like buying Nvidia in late 2024.
Nebius Group Nebius Group (NBIS +11.49%) is in a far earlier stage than either Micron or Nvidia. It's a neocloud company, which means it's focused on AI-first cloud computing. It has a wildly popular platform, and it's growing rapidly as a result. In Q1 alone, Nebius' revenue skyrocketed 684% year over year. That's part of a larger growth trend, as Wall Street analysts project 544% growth in 2026 and 234% in 2027.
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Few stocks have the growth upside Nebius offers, making it well positioned to deliver incredible returns over the next few years. However, Nebius is facing one challenge it hasn't faced in a while: profitability. Nebius is an early-stage company and doesn't have any other businesses to fund its AI build-out. This means it must seek outside investors to become shareholders or take on debt to fund its expansion. Nvidia is actually one of those, and has invested alongside Nebius to ensure it has the most up-to-date products available first. Nvidia interacts with nearly every AI company on the market, and if it's choosing to invest in Nebius, that should tell you a lot about its potential.
However, until Nebius reaches profitability, it's always going to present a major execution risk. Fortunately, several cloud companies are already generating a ton of profits, so there is a pathway. It could be several years before investors see profitability, as Nebius builds out as much computing space as possible while the industry is hot. Investing in Nebius now could be like investing in Nvidia two decades ago, and the upside is immense. However, it could also flop if it cannot get to profitability. I'm still bullish on Nebius, but the risk is far greater than investing in Nvidia itself or Micron.
Key Takeaways Micron reported fiscal Q3 revenues of $41.46B and expects about $50B in fiscal Q4. MU lifted fiscal Q3 gross margin to 84.6% on strong AI memory demand and pricing.Analysts' average price target implies 44.48% upside from the last closing price. For quite some time, Micron Technology, Inc. (MU - Free Report) has been one of the most sought-after artificial intelligence (AI) infrastructure stocks, as its memory chips are vital components powering AI graphics processing units and data centers. However, the stock is presently down more than 10% from its post-fiscal third-quarter 2026 earnings high.
The pullback isn’t due to weak earnings. Micron’s fiscal third-quarter results beat Wall Street expectations, and the guidance is also strong, fueled by robust AI memory demand. The decline was due to post-earnings profit-taking, as Micron’s shares had already rallied ahead of earnings. Moreover, Samsung Electronics Co., Ltd.’s earnings report raised concerns about the sustainability of the current high memory prices, triggering a broad selloff across memory players.
Therefore, investors may view this recent fall as a temporary setback driven by concerns about the durability of the memory cycle rather than any fundamental issues in Micron’s business. The company’s fundamentals remained strong, as reflected in its strong earnings and upbeat outlook, positioning the stock for potential upside as market sentiment improves. Let’s see in detail –
Micron’s AI Memory Business Fuels Record Revenue Growth For the fiscal third quarter, Micron’s revenues were $41.46 billion, up 74% sequentially, according to investors.micron.com. Revenues for the fiscal fourth quarter of 2026 are expected to be $50 billion, reflecting strong demand for its state-of-the-art high-bandwidth memory chips used in AI servers.
Additionally, Micron’s gross margin expanded significantly to 84.6% for the fiscal third quarter, up from 37.7% a year ago, reflecting improved pricing power and robust demand for its cutting-edge AI memory products. These results highlight the strengths in Micron’s business and support its growth outlook.
Buy Micron Stock Hand Over Fist Micron’s fundamentals remained intact despite the recent pullback. Its revenue growth remains strong, margins expanded, and increasing AI-driven memory demand has strengthened its growth outlook, making the recent weakness an attractive buying opportunity.
Let’s not forget, brokers are also optimistic about Micron’s growth prospects. They forecast the average short-term price target for MU stock at $1,422.77, implying a 44.5% increase from the last closing price of $984.75. The highest target is $2,000, suggesting a potential upside of 103.1%.
Image Source: Zacks Investment Research
Micron, therefore, has a Zacks Rank #1 (Strong Buy), and its expected earnings growth rate for the current year is 791%. The Zacks Consensus Estimate of $73.86 for MU’s earnings per share is up 502% year over year (read more: Micron & 2 Momentum Stocks to Buy in July for Explosive Upside).
Citi Wealth’s CIO Weekly Bulletin flags a subtle but important shift in the global memory landscape: China’s domestic memory chips are now "gaining international recognition."
SNDK stock is moving. See the chart and price action here. Citi Warns On Global Pricing PressureAs buyers start to view Chinese DRAM and NAND as acceptable alternatives rather than last‑resort substitutes, pricing power at established leaders could erode.
Citi points directly to global price pressure risk: China’s chips "gaining international recognition" could "pressure global memory pricing."
In practice, that means hyperscalers and other customers suddenly have more credible suppliers to play off against Micron and SanDisk in contract negotiations.
Even if Chinese producers remain a step behind on power efficiency or density, their willingness to compete aggressively on price can cap upside in contract DRAM and NAND, particularly in commoditized segments like client SSDs, mobile LPDDR, and mid‑range enterprise storage.
When the memory cycle turns down, additional low‑cost capacity from China makes each downturn harsher and delays the usual healing via disciplined supply cuts, warns Citi.
From Oligopoly to Margin OverhangFor Micron and SanDisk, the threat is less about an overnight loss of share and more about a persistent "margin overhang" narrative.
Investors have historically paid up when a handful of global champions could consolidate supply, ride demand shocks from AI and cloud, and then restore profitability through controlled capital spending.
A world in which Chinese DRAM and NAND become standard line items for global procurement desks complicates that playbook. It suggests lower peak margins in up‑cycles, deeper troughs in down‑cycles, and more volatile returns on incremental fabs and technology transitions.
The Citi bulletin captures this asymmetry: recognition for China’s memory producers is a positive development for the new entrants, but it is a valuation headwind for incumbents whose earnings power rests on the assumption that the supply remains tight.
Going forward, a key question for Micron and SanDisk is whether they can differentiate enough to offset the pressure coming from China’s newly recognized memory chip suppliers.
Photo: Quality Stock Arts / Shutterstock
This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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The company warned that surging demand for artificial intelligence would keep memory supplies tight for years, fundamentally reshaping an industry long known for boom-and-bust cycles.
Now, two of the technology industry’s biggest names appear to be illustrating different sides of that same story.
For Micron investors, Apple’s pricing decision and Samsung’s latest profit outlook aren’t isolated events. Together, they suggest the AI memory thesis Micron outlined is beginning to play out across the broader technology ecosystem.
Apple Showed the Cost of Tight SupplyLast month, Apple raised prices on several hardware products, citing higher costs for memory and storage components as AI infrastructure spending tightened supply.
The move surprised many investors because it highlighted something rarely seen in consumer electronics: memory costs becoming significant enough to influence retail pricing.
For Micron, however, it echoed what management had already been saying.
During its fiscal third-quarter earnings call, CEO Sanjay Mehrotra said the company still had “no line of sight” to when memory supply would catch up with AI-driven demand, adding that tight market conditions were expected to persist beyond calendar 2027.
Samsung Showed Who BenefitsIf Apple demonstrated where those higher costs ultimately land, Samsung’s latest outlook illustrated where much of the pricing power is flowing.
This week, the South Korean electronics company forecasted a sharp year-over-year increase in second-quarter operating profit, driven largely by continued strength in AI memory demand.
While Samsung and Micron report on different fiscal calendars, the guidance reinforces the broader industry dynamic Micron has been describing: AI infrastructure spending is creating a more favorable environment for memory suppliers.
One Thesis, Two OutcomesThe contrast is striking. On one side, device makers such as Apple are paying more for memory and, in some cases, passing those costs on to consumers.
On the other hand, memory manufacturers are reporting stronger profitability as tighter supply improves pricing power.
Micron argued weeks ago that AI had transformed memory from a cyclical commodity into a strategic technology bottleneck.
Recent developments at Apple and Samsung suggest that transformation is becoming increasingly visible beyond Micron’s own earnings reports.
Why It Matters for InvestorsMicron also disclosed roughly $22 billion in long-term customer commitments for its high-bandwidth memory products, underscoring confidence that AI-driven demand will remain strong as hyperscale cloud providers continue to expand their infrastructure.
Apple’s price increases showed the downstream effects of tighter memory markets.
Samsung’s profit forecast highlighted the upstream benefits.
Taken together, they reinforce a thesis Micron has been making for months: as AI spending accelerates, memory is no longer simply another semiconductor component—it’s becoming one of the industry’s most valuable constraints.
Image via Shutterstock
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The recommendations of Wall Street analysts are often relied on by investors when deciding whether to buy, sell, or hold a stock. Media reports about these brokerage-firm-employed (or sell-side) analysts changing their ratings often affect a stock's price. Do they really matter, though?
Let's take a look at what these Wall Street heavyweights have to say about Micron (MU - Free Report) before we discuss the reliability of brokerage recommendations and how to use them to your advantage.
Micron currently has an average brokerage recommendation (ABR) of 1.31, on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) made by 42 brokerage firms. An ABR of 1.31 approximates between Strong Buy and Buy.
Of the 42 recommendations that derive the current ABR, 33 are Strong Buy and five are Buy. Strong Buy and Buy respectively account for 78.6% and 11.9% of all recommendations.
Brokerage Recommendation Trends for MU
Check price target & stock forecast for Micron here>>>
The ABR suggests buying Micron, but making an investment decision solely on the basis of this information might not be a good idea. According to several studies, brokerage recommendations have little to no success guiding investors to choose stocks with the most potential for price appreciation.
Do you wonder why? As a result of the vested interest of brokerage firms in a stock they cover, their analysts tend to rate it with a strong positive bias. According to our research, brokerage firms assign five "Strong Buy" recommendations for every "Strong Sell" recommendation.
In other words, their interests aren't always aligned with retail investors, rarely indicating where the price of a stock could actually be heading. Therefore, the best use of this information could be validating your own research or an indicator that has proven to be highly successful in predicting a stock's price movement.
With an impressive externally audited track record, our proprietary stock rating tool, the Zacks Rank, which classifies stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), is a reliable indicator of a stock's near-term price performance. So, validating the Zacks Rank with ABR could go a long way in making a profitable investment decision.
ABR Should Not Be Confused With Zacks RankAlthough both Zacks Rank and ABR are displayed in a range of 1--5, they are different measures altogether.
Broker recommendations are the sole basis for calculating the ABR, which is typically displayed in decimals (such as 1.28). The Zacks Rank, on the other hand, is a quantitative model designed to harness the power of earnings estimate revisions. It is displayed in whole numbers -- 1 to 5.
Analysts employed by brokerage firms have been and continue to be overly optimistic with their recommendations. Since the ratings issued by these analysts are more favorable than their research would support because of the vested interest of their employers, they mislead investors far more often than they guide.
On the other hand, earnings estimate revisions are at the core of the Zacks Rank. And empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
In addition, the different Zacks Rank grades are applied proportionately to all stocks for which brokerage analysts provide current-year earnings estimates. In other words, this tool always maintains a balance among its five ranks.
Another key difference between the ABR and Zacks Rank is freshness. The ABR is not necessarily up-to-date when you look at it. But, since brokerage analysts keep revising their earnings estimates to account for a company's changing business trends, and their actions get reflected in the Zacks Rank quickly enough, it is always timely in indicating future price movements.
Is MU a Good Investment?Looking at the earnings estimate revisions for Micron, the Zacks Consensus Estimate for the current year has increased 23.8% over the past month to $73.86.
Analysts' growing optimism over the company's earnings prospects, as indicated by strong agreement among them in revising EPS estimates higher, could be a legitimate reason for the stock to soar in the near term.
The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #1 (Strong Buy) for Micron. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Therefore, the Buy-equivalent ABR for Micron may serve as a useful guide for investors.
SummaryMicron Technology, Inc. delivered an extraordinary Q3, prompting a rating upgrade to buy as AI-driven demand fuels record revenue and margin growth.MU Q3 revenues soared 346% y/y to $41.46B, with gross margins at 84.6% and operating margins at 80.4%, surpassing even leading fabless peers.Management guided Q4 revenues to $50B and gross margins to 86%, with $100B in minimum contracted revenue de-risking future capex.Despite recent market jitters and a 30% pullback from highs, MU’s structural AI demand and take-or-pay contracts support a bullish long-term thesis. JHVEPhoto/iStock Editorial via Getty Images
I wanted to go over Micron Technology, Inc.'s (MU) Q3 earnings, which reignited my confidence in the company and, given the recent drop in its share price, allowed me to change my rating back
4.59K 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.
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.
Tech retakes command of markets for Wednesday's trading session, which @CharlesSchwab's Nathan Peterson points to as the most important corner of Wall Street. He talks about the rampant volatility gripping single stocks like Micron (MU) and ETFs like the PHLX Semiconductor Index (SOX) to explain why he sees "bias to the upside.
Micron (MU +1.26%) has been an incredibly popular stock to invest in over the past few months. So far in 2026, it's up around 225%, making it the second-best stock in the S&P 500 (^GSPC 0.51%) this year. However, it has sold off over the past few days with general weakness in the AI sector, and is down nearly 20% from its all-time high.
The same catalysts that existed a few months ago are still present today, so this short-term sell-off looks like a great buying opportunity. In fact, many investors are wondering if Micron's stock is their ticket to becoming a millionaire. Is this possible? Or has it already come too far? Let's take a look.
Image source: The Motley Fool.
Micron still has major upside ahead Any stock could be a millionaire maker depending on the initial investment threshold. I could provide you with countless stocks that will turn $999,000 into $1 million and be considered successful, but that's not the ultimate goal. The real goal is to find stocks with massive upside that can deliver 10x, 100x, or even 1,000x returns. Normally, I like to set the bar at 100x as a millionaire-maker return, which would transform a $10,000 investment into $1 million. With Micron's valuation of $1.1 trillion, a 100x return would make it a $110 trillion company. That's not a realistic bar to obtain, but what about 10x returns over the extremely long term?
That's a bit more realistic, so let's focus our energy there.
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Micron makes memory chips, which are in short supply due to massive demand from the AI build-out. Short supply and strong demand are causing prices to soar, dragging Micron's revenue and profits along for the ride. Micron's growth has gone parabolic, with its revenue two quarters ago coming in at $23.9 billion, its latest quarter coming in at $41.5 billion, and next quarter expected to be around $50 billion. That's an incredible trajectory, and it could continue for some time.
Micron told investors it expects market tightness to continue beyond 2027, meaning there are still several quarters' worth of strong growth ahead for Micron. That could lead to strong returns, but will it be enough to achieve 10x returns?
Wall Street analysts project Micron's earnings per share to reach $152.62 in fiscal year 2027 (ending August 2027) and $165.94 in fiscal year 2028. Should Micron's stock reach those levels in 2028 and trade for 25 times earnings, it would be worth around $4,150 per share. At today's $984 share price, that represents a little over a 4x return, which falls well short of the required threshold.
Micron's stock may not be a millionaire maker, but it could still outperform the market and its peers pretty handily over the next few years. That makes it a strong stock pick, and I think investors should still treat it as such.
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President Trump rang the opening bells of the NYSE and NASDAQ from the Oval Office on July 4, 2026, officially launching Trump Accounts. Two days later, he told reporters: “If we have a good market like we do now, they’re going to become actually very rich. They’ll have hundreds of thousands of dollars. Think of that.” As of launch, more than 6 million accounts have been opened, and 1.4 million children will receive the $1,000 federal pilot contribution.
The claim is achievable but depends on assumptions most families will not meet. Here is what the math actually says.
What a Trump Account Actually Is Created under the One Big Beautiful Bill Act signed July 4, 2025, Trump Accounts (also called 530A accounts) are a form of traditional IRA opened on behalf of a child. Any US citizen under age 18 with a Social Security number is eligible. Contributions go in with after-tax dollars, earnings grow tax-deferred, and withdrawals are taxed as ordinary income.
Money must be invested in mutual funds or ETFs tracking the S&P 500 or another primarily US equity index, with expense ratios capped at 0.10%. The default fund is the State Street SPDR Portfolio S&P 500 ETF (NYSEARCA:SPYM), with a 0.02% expense ratio. Parents open one through IRS Form 4547 or the TrumpAccounts.gov app, and each child can have only one.
The Free Money Is the Unambiguous Win The federal government is depositing a one-time $1,000 pilot contribution for US citizens born between January 1, 2025 and December 31, 2028, and it does not count against the annual contribution limit. On July 4, the administration seeded over 500,000 eligible children’s accounts.
Private money is stacking on top. The Michael & Susan Dell Foundation committed $6.25 billion to give $250 to every child under age 11 in qualifying ZIP codes, up to 25 million children. Micron Technology (NASDAQ:MU | MU Price Prediction) committed $250 million, and the Dalio Foundation is contributing $250 for select children in Connecticut. In NYC alone, roughly 754,200 children are eligible for the Dell grant, worth $188.5 million. Philanthropic and government contributions do not count toward the annual cap.
Three Scenarios, Three Very Different Outcomes All figures below are projections from TrumpAccounts.gov using the S&P 500’s historical average return of roughly 10% annually. For context, the S&P 500 has returned about 253% over the past ten years, but future returns are not guaranteed.
Seed money only. Just the $1,000 at birth, no additional contributions. Projected value: about $6,000 by age 18, $15,000 by age 27, and $243,000 by age 55. Modest at 18. Meaningful retirement money at 55 if left alone. Seed plus maximum contributions. $1,000 seed plus $5,000 per year until age 18. Projected: $271,000 by age 18, $742,000 by age 27, $13 million by age 55. Life-changing, but requires $90,000 in total family contributions over 18 years. Median US household income is about $80,000, so $5,000 per year is about 6% of gross income. For most families, that is unrealistic. Seed plus $50 per month. $1,000 seed plus $600 per year for 18 years. Approximate outcome: $35,000 to $40,000 at age 18, and $500,000 to $600,000 by age 55 if untouched. This is the realistic middle path. The Tax Detail Almost Nobody Is Explaining Only out-of-pocket contributions from parents and family create tax basis. The government’s $1,000 seed, employer contributions, and nonprofit contributions are fully taxable on withdrawal, along with every dollar of earnings.
The example from the account rules: an account funded with $4,000 from parents and $1,000 from the government grows to $40,000. Only $4,000 comes out tax-free. The remaining $36,000 is fully taxable as ordinary income. Contributions are not tax-deductible, and withdrawals before age 59 and a half trigger income tax plus a 10% penalty, with exceptions for education and first-time home purchases.
When Trump Accounts Win, and When They Don’t For education funding, a 529 plan wins because qualified education withdrawals are completely tax-free. For a teenager with a paycheck, a custodial Roth IRA wins with tax-free growth, tax-free qualified withdrawals, a $7,500 contribution limit, and broader investment choices. Against doing nothing, Trump Accounts win if the child qualifies for the federal $1,000 or the Dell $250.
One overlooked risk, per J.P. Morgan Wealth Management: “Parents and guardians should assess their comfort level with the child gaining full control of the funds at age 18, this involves predicting whether their newborn will be ready to manage what could be a five- or six-figure sum in their teen years.”
The Verdict and the Action Step Trump’s $13 million figure is technically achievable with 18 straight years of $5,000 contributions, roughly historical market returns, and a child who leaves the account untouched until 55. The realistic middle scenario produces meaningful money at 18 and genuine retirement wealth at 55 if left alone.
If your child qualifies for the federal $1,000 or the Dell $250, open the account now. Free money compounding for 18 years is always worth claiming.
Contact [email protected] for any questions or corrections.
SummaryMicron and Sandisk have both seen significant valuation expansion, with the pair trade thesis now played out; I rate both stocks Hold.MU's Q3 revenue surged ~350% YoY, but price ceilings and supply constraints now cap further upside, reducing explosive multiple expansion potential.Sandisk's earnings revisions remain strong, supported by robust NAND pricing, but elevated multiples and sector rotation risks temper further bullishness.With SK Hynix's impending listing and both companies signaling buybacks, I see limited near-term catalysts and recommend taking profits, awaiting sector clarity. Prostock-Studio/iStock via Getty Images
A couple of months back, I suggested a pair trade for two of the hottest names in the memory space that was undergoing a strong momentum bull run - Sandisk Corporation (SNDK) and
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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.
Two stocks have defined the market so far in 2026: Sandisk (SNDK 7.26%) and Micron (MU 5.25%). These two are leading the S&P 500 (^GSPC 0.45%) in performance and have been the stocks to own this year.
Micron is lagging a bit behind Sandisk, only rising 242% so far this year. Sandisk is leading the way at 635% growth, but that figure was more than 800% a few days ago before the most recent round of tech stock sell-offs.
These two are about as red-hot as it gets, yet they're each down around 20% from their all-time highs established just days ago.
If you missed out on these two, now could be your chance to buy them on sale, as the same catalysts that propelled their stocks higher in the first half of 2026 will remain present through the end of 2026 and into 2027.
Image source: Getty Images.
The memory chip market remains tight Both Micron and Sandisk are memory chip fabricators. Memory chips are useful for information recall in computing devices. They are vital, whether it's in a GPU for data centers processing artificial intelligence (AI) workflows, a smartphone, or a laptop. Memory chips are used in everything.
While there are a few types of memory that are used in different situations, there isn't much that sets one manufacturer apart from another. As a result, the market is highly commoditized, making it highly sensitive to supply-and-demand dynamics.
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With unprecedented demand for memory chips coming from the data center build-out, the memory chip production industry wasn't ready for this massive spike. With high demand and low supply, prices skyrocketed, allowing Micron and Sandisk (and its peers) to benefit from soaring prices. That's the primary reason for its rise, but investors are likely concerned about demand dropping eventually.
That's a valid concern, but it may not be for a while. During Micron's recent earnings call, its management team said they expect "tight conditions" to persist in the DRAM and NAND memory markets beyond 2027.
The reason for that is two-fold: First, data center demand is rising because AI hyperscalers are far from done building out data centers. Second, many memory chip fabricators are scrambling to build new facilities to meet demand, and those aren't expected to come online until 2027 or later. Even then, it will remain unknown whether the new supply will be able to meet eventual data center demand, as it could still be a bottleneck.
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Regardless, the factors that caused these two stocks to skyrocket in 2026 will remain active over the next year and a half. That's plenty of time to make a solid return on investment from these two stocks, as another catalyst for their rise is still active.
The stocks appear cheap, as well Because the memory chip market is commoditized and had relatively low growth, the market didn't value these stocks highly a year ago. Both Sandisk and Micron shares traded for as little as 1 to 2 times forward earnings at this time last year.
SNDK PE Ratio (Forward) data by YCharts
However, despite their massive run-up in recent months, the stocks still trade for less than 14 times forward earnings. For reference, the S&P 500 (^GSPC 0.45%) trades for about 21.7 times forward earnings. Compared to the broader stock market, Sandisk and Micron appear undervalued and could easily double from today's levels over the next year or so.
That makes them well worth considering as investments, but you'll need to stay on top of them, as any report that memory chip companies are losing their pricing power could be a major catalyst for the stock to sell off. I think we're still a few years away from that happening, making them solid stocks to buy now.
As July begins, Sandisk (SNDK 7.26%) and Micron Technology (MU 5.25%) both stand out among memory semiconductor stocks with potential for sharp stock appreciation. Three distinct but interconnected developments are unfolding as earnings season comes into focus, reinforcing structural demand for AI memory and storage products.
These factors -- rooted in industry supply dynamics, corporate investment decisions, and sustained hyperscaler infrastructure spending -- create a favorable setup for Micron and Sandisk.
Image source: The Motley Fool.
1. SK Hynix is going public on the Nasdaq on July 10 On July 10, SK Hynix is scheduled to list on the Nasdaq through an initial public offering (IPO) of American depositary receipts (ADRs). The offering involves issuing approximately 17.9 million new shares targeting gross proceeds of roughly $28 billion. SK Hynix will use the capital to fund aggressive expansion efforts in high-bandwidth memory (HBM) and advanced packaging technologies critical for AI accelerators.
Listing on a major U.S. exchange brings heightened visibility and liquidity to one of the world's leading memory producers. Positive market reception for SK Hynix's debut will likely lift sentiment across the entire AI memory ecosystem, including direct peers such as Micron and suppliers of complementary NAND storage solutions like Sandisk. A successful offering should help reduce perceived risks around cyclicality in the memory sector, potentially drawing incremental capital flows into related names.
2. Trillions of dollars are pouring into memory capacity A number of memory manufacturers recently announced commitments to large-scale expansions, reflecting optimism in sustained AI-driven demand.
In late June, the South Korean government announced that Samsung Electronics and SK Hynix will invest a combined $520 billion to construct four new memory fabrication plants in the southwestern region of the country. This initiative stems from a longer-term plan in which Samsung and SK Hynix plan to invest $2 trillion across related megaprojects.
Meanwhile, Micron recently broke ground on a $9 billion expansion of its facility in western Japan. The project targets to ramp production of high-bandwidth memory (HBM) chips as demand continues to skyrocket. Additionally, Micron is investing $200 billion for new fabs in the states of New York, Idaho, and Virginia.
I see these coordinated investments as evidence of a robust, multiyear demand cycle for AI memory. New capacity requires years to come online, meaning near-term shortages for dynamic random-access memory (DRAM), NAND, and HBM are likely to persist. For Micron, these expansions directly enhance its ability to capture additional HBM and DRAM share in ongoing hyperscale data center build-outs. For Sandisk, broader industry capacity growth should support stable pricing and volume in enterprise NAND flash storage.
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3. Watch for capex plans as earnings season approaches Earnings season is fast approaching. As usual, the spotlight on the technology sector will focus primarily on capital expenditure (capex) plans from the hyperscalers. The dominant theme over the last couple of years has been accelerating AI infrastructure spending by Amazon, Microsoft, Alphabet, and Meta Platforms. This trajectory is expected to continue because products ranging from graphics processing units (GPUs), application-specific integrated circuits (ASICs), memory and storage, networking equipment, and high-capacity switches have become central to big tech's competitive positioning and long-term AI strategy.
AMZN Capital Expenditures (TTM) data by YCharts.
Since the hyperscalers face intense pressure to deliver more capable AI services to their customers, delaying or scaling back growth roadmaps risks ceding ground in a market where first-mover advantages in model performance and inference efficiency translate directly into revenue and profits. As a result, I think capex guidance will likely remain elevated or potentially increase, sustaining demand for related HBM, DRAM, and NAND offerings.
These growth tailwinds mitigate the cyclical narrative for memory and storage stocks The three catalysts discussed above converge to create a compelling setup for Micron and Sandisk. The SK Hynix listing validates the memory sector's growth narrative and will likely attract newfound attention. The synchronized capacity expansions demonstrate that industry leaders are confident in sustained demand over the coming years and are strategically positioning supply. Lastly, expanding hyperscaler AI capex budgets provides a floor supporting the shift in memory consumption from primarily consumer-driven cycles toward enterprise AI infrastructure.
As of this writing (July 6), Micron and Sandisk are the top-two performing stocks in the Nasdaq-100 this year. While both stocks have risen sharply, Micron trades at a modest forward price-to-earnings (P/E) multiple of 6.4, while Sandisk's forward P/E is a bit richer at 26.7. Nevertheless, both multiples are muted when compared to peak levels that other leading AI chip stocks witnessed throughout the AI revolution.
This setup favors continued upside for Micron and Sandisk in the near term, while the underlying tailwinds appear more durable than traditional memory cycles. As a result, I think this leaves room for further valuation expansion in AI memory stocks as these catalysts continue to materialize throughout the AI infrastructure era.
Samsung Electronics (SSNLF +0.00%) just issued preliminary results pointing to the most profitable quarter in its history. The South Korean electronics giant said Tuesday that it expects second-quarter operating profit of about 89.4 trillion won, or roughly $58 billion. That is a more than 19-fold jump from a year ago. And revenue is expected to come in around 171 trillion won, up about 129% year over year. The surge was driven by strong demand for high-bandwidth memory and high-capacity DRAM -- both fueled by heavy investment in artificial intelligence (AI) servers.
And memory stocks fell on the news. Samsung's own shares sank more than 10% at one point in Seoul on the news. Micron (MU 5.25%), the biggest U.S. memory maker, fell just as sharply. Storage specialists Western Digital and Sandisk slid right alongside it.
A 19-fold profit jump from the world's largest memory chipmaker should have lifted the whole sector. Instead, it dragged the group lower. So, why the backward reaction?
Image source: Getty Images.
Priced in, and then some The simplest explanation is that investors already expected numbers like these. Micron stock has soared about 242% in 2026 as of this writing, and it crossed $1 trillion in market value along the way. A run like that doesn't happen unless the market is already counting on blowout results quarter after quarter.
And Micron has been delivering them. In its fiscal third quarter (the period ended May 28, 2026), revenue soared 346% year over year to a record $41.5 billion. That was up 74% from the prior quarter alone, so the growth is still accelerating, not fading. Additionally, its adjusted earnings per share came in at $25.11, and the company's non-GAAP (adjusted) gross margin reached a remarkable 84.9%.
Even more, Micron's outlook was arguably even better than the quarter. Management guided for fiscal fourth-quarter revenue of about $50 billion, up from $41.5 billion, with adjusted earnings per share of roughly $31.
And its cash generation is just as striking. Micron generated about $18.3 billion of adjusted free cash flow in the quarter, even as it poured money into new capacity. Of course, the company still pays a token dividend of just $0.15 a share. But most of its cash is being reinvested in the boom.
"Micron's record fiscal Q3 financial results and even stronger outlook for Q4 reflect the strategic value of memory in the AI era," said Micron CEO Sanjay Mehrotra in the company's fiscal third-quarter earnings release.
When Samsung confirmed Tuesday that the memory boom is still raging, it didn't tell investors anything they hadn't already bet on.
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The peak-cycle debate There is a second, more worrying reading of the sell-off. Some investors may be starting to wonder whether earnings like these are as good as it gets.
Memory is a deeply cyclical industry. When supply eventually catches up with demand, prices and profits can fall fast. And historically, the bigger the boom, the harder the bust tends to be.
Micron's valuation captures that unease. After its premarket decline, the stock trades at about 21 times trailing earnings. But look at the forward math and the picture changes. If the company delivers its fiscal fourth-quarter guidance, earnings per share for that single quarter would annualize to more than $120. At about $935 per share, that works out to less than 8 times run rate earnings. In other words, the market is already pricing in a big drop in Micron's earnings power at some point. The only debate is when it comes.
For its part, Micron doesn't see the boom ending soon. The company said in its fiscal third-quarter update that it expects market tightness for DRAM and NAND to persist beyond 2027.
So what should Micron shareholders do with Tuesday's dip?
I don't think Samsung's blowout quarter is a reason to sell. Nothing in the report was bad news for Micron. If anything, it confirmed that memory demand remains extraordinary. But after a 242% run this year, I wouldn't chase the stock here either. A cheap-looking multiple on peak-cycle earnings can be a trap in this industry, and Tuesday's sell-off shows how fast sentiment can turn. Personally, I'll be sitting on the sidelines, hoping for an even more attractive entry point.
On the June 27 episode of the Animal Spirits podcast, Michael Batnick and Paul Schroeder of Invesco spent a segment on something that should annoy anyone who thinks they understand the NASDAQ 100. As of that date, Micron (NASDAQ:MU | MU Price Prediction) carried a 5.7% weighting in QQQ (NASDAQ:QQQ) while Meta (NASDAQ:META) sat at just 2.6%, even though Meta’s total market cap was far larger. Batnick called it a head-scratcher.
Schroeder had a clean answer. The NASDAQ 100 uses a free-float-adjusted methodology, not raw market cap, and Mark Zuckerberg’s stake reduces what actually counts.
The Micron Over Meta Head-Scratcher Micron Technology is having a year that forces indexers to notice. Fiscal Q3 revenue hit $41.46 billion, up 345.7% year over year, beating consensus by 17.6%. Non-GAAP EPS of $25.11 ran past the $20.28 estimate. Guidance for Q4 came in at $50 billion in revenue with gross margin around 86%. Shares are up 666% year to date and 707% over the last twelve months. Market cap sits around $1.04 trillion.
Meta Platforms is the bigger company. Market cap of roughly $1.33 trillion, trailing twelve month revenue near $215 billion, and Q1 EPS that beat consensus by 56.79%. Its QQQ weight is less than half of Micron’s. If you assumed the index tracked raw market cap, this is nonsense. So the methodology is doing something.
What Free Float Actually Means Free float is the share count actually available for outside investors to trade. Founder holdings, family trusts, and long-locked insider positions do not count toward the calculation. Schroeder told Batnick that Meta’s free float sits around 80 to 85%. Zuckerberg’s Class B super-voting stake plus other insider holdings shave what the NASDAQ committee counts when it calculates the weighting. Meta insider ownership sits at 10.2% of shares outstanding.
Meanwhile, Micron insiders own about 0.253% of the company, so the whole float is essentially available for the index to count. That is why a smaller company can outweigh a giant, and it is why Micron’s rerating flows straight into index weight without getting sanded down.
The Walmart Parallel Nobody Talks About Batnick reached for Walmart (NYSE:WMT) as the cleaner illustration. The Walton family owns so much of Walmart that its full market cap is not reflected in index weightings. Walmart is not in the NASDAQ 100, but the same free-float mechanic applies wherever it is used.
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Alpha Vantage reports Walmart insider ownership at 44.85%, with only about 4.37 billion shares in the true float out of roughly 7.96 billion outstanding. Walmart’s $880 billion market cap is real. For weighting purposes, only about half of it counts.
What You Actually Own When You Buy QQQ Schroeder made a second point worth chewing on. Quarterly rebalances re-rank existing constituents. They do not add or drop names. QQQ and QQQM turn over roughly 6 to 8% annually, and most of that churn comes from the annual reconstitution rather than the intra-year rebalances. The weight gap you see today is roughly the weight gap you will live with for a while.
Which brings up the practical point most retail investors miss. QQQ is often described as a market-cap index, but it uses a modified market-cap methodology with free-float adjustments and rebalancing caps applied by the index committee. Apple (NASDAQ:AAPL), with a market cap around $4.62 trillion and negligible insider ownership, sees its weight track its size closely.
Meta does not get that treatment because Zuckerberg does not sell. Micron gets the opposite treatment, with a nearly-100% tradeable float amplifying its rally into a weighting that dwarfs a company worth hundreds of billions more.
The takeaway is uncomfortable if you like tidy stories. Judging your QQQ exposure by market cap alone will mislead you. The full mechanics live in the Micron 8-K and its peers, and in the index prospectus itself. Weightings change every quarter. Whatever the current Micron to Meta gap looks like when you check tomorrow, the mechanism producing it will still be there.
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It's Tuesday, 1:45 p.m., and do you know where the Nasdaq is?
It's down 0.65% -- but that's not a patch on the damage being done today to the Direxion Daily Semiconductor Bull 3X Shares ETF (SOXL 15.09%), which crashed 14% this afternoon.
And Samsung is to blame.
Image source: Getty Images.
Korea sends the semi market South South Korean technology giant Samsung reported Q2 2026 earnings last night. Sales climbed 28% sequentially and more than doubled year over year. Operating profit surged many times over, to $58.4 billion.
And yet Samsung stock sold off 7% today. Why?
Korea's semiconductor giant beat analyst forecasts, but in a quirk of this artificial intelligence-fueled stock market, Samsung failed to beat investor expectations, which were for even higher numbers. This triggered a "buy the rumor, sell the news" phenomenon, with investors selling Samsung despite its good news, including confirmation that computer memory prices are still rising and that its profits are continuing to climb.
3x the risk, 3x the pain So how did this affect the Direxion Daily Semiconductor Bull 3X ETF? Well, the first thing you need to know is that Samsung isn't a component of this ETF, so logically, Samsung's 7% price decline shouldn't have affected it much at all.
And yet it did.
Worries over Samsung's failure to wow the market sparked a sell-off among other semiconductor stocks that are components of the ETF -- names like Nvidia (NVDA +0.62%), Micron (MU 5.25%), and Intel (INTC 10.06%), all of which are among the ETF's top 10 holdings.
Worse, Direxion's strategy of magnifying stock price movements 3x meant the Daily Semiconductor Bull 3X ETF suffered far greater losses than its components.
And that's how a 7% sell-off in one stock in Korea created a 14% loss here in the U.S. of A.
Rich Smith has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Intel, Micron Technology, and Nvidia. The Motley Fool has a disclosure policy.
The chip trade is having one of those days where every bull’s favorite narrative and every bear’s favorite chart are both correct at the same time. On Tuesday’s CNBC Morning Call Sheet segment, Steve Grasso, Warren Pies, and Doug Boneparth all zeroed in on the same signal. Samsung posted blowout earnings yet its stock fell 7%, dragging the whole semiconductor sector lower.
Samsung is not US-listed and neither is SK Hynix, but the read-through hit everything from NVIDIA (NASDAQ:NVDA | NVDA Price Prediction) to Micron Technology (NASDAQ:MU). Micron fell 6.32% intraday. Advanced Micro Devices (NASDAQ:AMD) fell 6.12%. Even Qualcomm (NASDAQ:QCOM), which barely participates in the AI training cycle, slid 2.13%.
Why Great Earnings Still Sank the Stock The panel’s argument is that the selloff was about margins and valuation exhaustion, not revenue weakness. Consider what “peak margins” actually looks like on the tape. Micron just reported GAAP gross margin of 84.6%, up from 37.7% the year prior, on revenue that grew 345.72% year over year. Management guided next quarter to $50 billion in revenue and roughly 86% gross margin. These are numbers you dream about at the top of a cycle, and that is exactly the problem. When a memory maker is earning 80-plus cents on every dollar of revenue, the market’s next question is always the same. Where does margin go from here? Not higher, usually. Grasso’s framing on the panel captures it. This is a commodity-style cycle, and you buy commodity semis at the trough or mid-cycle, not at 80% margins near the peak.
Valuation exhaustion is the technical name for that instinct. A stock can beat earnings, raise guidance, and still fall because the beat was already priced in. Reddit sentiment on Micron caught the tension in real time, with the dominant thread reading “I’m more confused by yesterday’s sell-off than the earnings.”
The Cycle Argument and the Summer Danger Zone Warren Pies added the macro overlay. South Korean chip costs are up around 90 to 100% this year, mostly Samsung and SK Hynix, and trees don’t grow to the sky. Parabolic moves invite sharp pullbacks even when the earnings back them up. His seasonal tell is worth writing down. The momentum factor has been down each of the last five Julys, so July into August will likely be nasty as the market level-sets the big semi trade.
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The prediction markets already agree. Polymarket puts the odds of NVIDIA closing above $200 on July 7 at just 2.2%, and the composite sentiment index on the stock has fallen 12.13 points over seven days. Micron is now trading well below its 50-day moving average of $852.09, with the stock down 20% over the past five days alone. The AI infrastructure buildout that Jensen Huang described in Nvidia’s Q1 filing as “the largest infrastructure expansion in human history” is still real. The long-term thesis staying intact and the near-term trade being dangerous are not contradictory positions. They coexist all the time.
How Not to Get Caught Doug Boneparth’s advice was the practical one. Be very careful taking new positions at these prices; for those not yet in, dollar-cost average rather than chase, because FOMO bites hardest right before vicious short-term drawdowns. If you already own the AI winners, the question is whether you trim into strength. If you don’t own them, chasing a stock that has run 300.3% in the past year, as AMD has, means paying today’s price for tomorrow’s guidance. AMD’s trailing P/E sits at 207x, and its bearish Reddit signal peaked on July 1 with a post titled “+$75k on AMD puts.”
Averaging in across weeks or months protects against the exact scenario the panel described. You may miss the last leg of the melt-up, but you won’t buy the peak of a parabolic move on a Monday and wake up down 15% by Friday. Watch what NVIDIA does next. Data Center Networking grew 199% year over year last quarter. If July gets nasty and that number holds in August, the level-set becomes the buying opportunity.
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Key Takeaways MU, STX and SNX passed a momentum screen from a universe of more than 7,743 stocks. Seagate has a Momentum Score of A and expects 84.3% earnings growth this year.TD SYNNEX pulled off a four-quarter 21.7% average earnings surprise and projects 43.1% earnings growth. Investors seeking exceptional returns should prioritize high-momentum stocks. To identify stocks with continued upside potential, they can adopt Richard Driehaus’s celebrated “buy high and sell higher” strategy, which secured him a place on Barron’s All-Century Team.
Based on the Driehaus momentum-investing approach, Micron Technology, Inc. (MU - Free Report) , Seagate Technology Holdings plc (STX - Free Report) and TD SYNNEX Corporation (SNX - Free Report) have emerged as strong momentum stocks, offering attractive entry opportunities for investors this July. MU, STX and SNX have generated remarkable one-year gains, surging 723.1%, 500.8% and 69.4%, respectively.
Inside the Driehaus Strategy: Spotting High-Momentum Opportunities Regarding the strategy, Driehaus once said: “I would much rather invest in a stock that’s increasing in price and take the risk that it may begin to decline than invest in a stock that’s already in decline and try to guess when it will turn around.” In line with this insight, the American Association of Individual Investors (“AAII”) considered the 50-day moving average one of the key criteria when creating a portfolio aligned with Driehaus’ philosophy.
It is calculated by dividing the numerator (month-end price minus 50-day moving average of month-end price) by the 50-day moving average of the month-end price. Another momentum indicator — positive relative strength — has also been included in this strategy. A positive percentage 50-day moving average indicates that the stock is trading above its 50-day moving average, signaling an uptrend.
Moreover, AAII found that Driehaus primarily focuses on strong earnings growth rates and impressive earnings projections to pick potential outperformers. Companies with a strong history of beating estimates are also given importance in this strategy, which was designed to provide better returns over the long term.
Research Wizard Stock Screening Criteria To make the strategy more profitable, we have considered only those stocks that have a Zacks Rank #1 (Strong Buy) and a Momentum Score of A or B. Our research shows that stocks with a Style Score of A or B, when combined with a Zacks Rank #1, offer the best upside potential.
• Zacks Rank equal to #1
No matter whether the market is good or bad, stocks with a Zacks Rank #1 have a proven history of outperformance. You can see the complete list of today’s Zacks #1 Rank stocks here.
• Last 5-year average EPS growth rates above 2%
Strong EPS growth history ensures an improving business
• Trailing 12-month EPS growth greater than 0 and industry median
Higher EPS growth compared to the industry average indicates superior earnings performance
• Last four-quarter average EPS surprise greater than 5%
Solid EPS surprise history indicates better price performance
• Positive percentage change in 50-day moving average and relative strength over 4 weeks
Positive percentage change in the 50-day moving average and the relative strength signal uptrend
• Momentum Score equal to or less than B
A favorable momentum score indicates that it is ideal to capitalize on the momentum with the highest probability of success.
These few parameters have narrowed the universe of more than 7,743 stocks to only 15.
Here are three of the 15 stocks:
Micron TechnologyMicron Technology is a global provider of memory and storage products. It has a Momentum Score of B. The trailing four-quarter earnings surprise for MU is 21.1%, on average. The company’s expected earnings growth rate for the current year is 791% (read more: Micron & 2 Profitable Stocks to Buy in July for Explosive Upside).
Seagate Technology Seagate Technology provides data storage technology and infrastructure solutions worldwide. It has a Momentum Score of A. The trailing four-quarter earnings surprise for STX is 10.7%, on average. The company’s expected earnings growth rate for the current year is 84.3% (read more: This AI Memory Stock Soars 600% - Could Be the Next NVIDIA).
TD SYNNEX TD SYNNEX operates as a global IT distributor and solutions aggregator. It has a Momentum Score of B. The trailing four-quarter earnings surprise for SNX is 21.7%, on average. The company’s expected earnings growth rate for the current year is 43.1%.
After starting the week strong, Micron (MU 5.87%) stock tumbled an unlucky 7.7% through 10:55 a.m. ET.
Blame Samsung for that.
Image source: Micron.
Korea sends the semi market South South Korean technology giant Samsung reported its Q2 2026 earnings last night. The news was objectively good -- sales up 28% sequentially, and more than double last year's Q2 revenue. Operating profit surged 19-fold, rising to $58.4 billion.
And yet Samsung stock sold off 7% today. Why?
The results beat analyst forecasts, but in a quirk of this overheated artificial intelligence-fueled stock market, investors expected Samsung to beat expectations. This triggered a "buy the rumor, sell the news" phenomenon in which investors sold Samsung stock despite its numbers being better than "expected" -- and despite Samsung confirming computer memory prices are still rising, and its profits are continuing to climb.
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What this means for Micron stock So how does all of this affect Micron, and why is it sparking a sell-off today?
Well, consider: Samsung is the world's biggest supplier of DRAM computer memory, used to make high-bandwidth memory (HBM) used in AI data centers. It's got a 38% share of the global market. SK Hynix, No. 2 in DRAM, is No. 1 in HBM with more than a 50% market share. Micron makes both NAND and DRAM memory, and its DRAM share is smaller -- about 22%, still enough for third place.
If things stay as they are, with prices rising and demand insatiable, Micron should do quite well. The problem is alongside announcing powerful profits, Samsung also said that it is building "massive semiconductor fabrication plants" to add supply to the market -- growing its market share, eating away at Micron's, and potentially closing the supply demand gap in the process.
This, in a nutshell, is why Micron stock is selling off today.
Rich Smith has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Micron Technology. The Motley Fool has a disclosure policy.
Shares of Micron Technology (MU 5.87%) have been coming under pressure of late. While the company has been generating strong numbers in recent quarters and its valuation is seemingly low with respect to earnings, it's been falling significantly in the past few days.
It's now down close to 30% from its 52-week high and is well below $1,000. Could now be the time to load up on the tech stock?
Image source: Getty Images.
Micron's stock has been much more volatile of late There haven't been any significant developments recently to explain why Micron's stock has been crashing. But the reality is that it's become much more volatile of late, leading to larger, more sudden price swings.
MU 30-Day Rolling Volatility data by YCharts
The chart above shows the stock's annualized standard deviation over the past 30 trading days. As Micron's value has risen sharply in recent months, volatility has become much more extreme. While this can open up opportunities to buy the stock at lower levels and potentially profit from significant gains, it also highlights the risks of owning the stock right now.
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Is Micron's stock a good buy on the dip? Given the volatility, investors may be tempted to buy the stock while it's trading lower, in the hopes that it'll bounce back up to the highs it reached last month when it was over $1,200. But there is no guarantee that will happen, and with the stock up more than 200% this year, it's already amassed some significant gains -- many investors may be eager to cash out, and if that happens, that could put more downward pressure on the stock.
While Micron may look cheap on earnings, part of the problem is that the market may struggle to price the stock correctly, given that the business is booming due to a shortage of memory and storage products and has been highly cyclical in the past. If that proves to be the case yet again and demand ends up declining, the stock could be due for a massive crash. Even if that may not happen for a few years, forward-thinking investors may already be pricing in that risk.
Although the stock's forward price-to-earnings multiple of six (which is based on analyst projections) may suggest Micron is incredibly undervalued despite its gains, that doesn't mean that there isn't significant risk with buying the stock today. Micron's volatility suggests this may not be a suitable investment for investors without a high tolerance for risk, and it's definitely not a slam-dunk buy just because it's trading lower than $1,000.
For today's Big 3, @Theotrade's Don Kaufman explains why Home Depot (HD) is going through a “necessary rotation,” sees a possibility for eBay (EBAY) shares to spike, and tilts bearish on Micron (MU) after its stellar surge. Don offers example options trades for his picks while Rick Ducat walks us through key levels to watch in the stock charts.
Micron Technology (NASDAQ: MU | MU Price Prediction) and Apple (NASDAQ: AAPL) just delivered earnings that expose opposite ends of the AI hardware trade. Micron reported $41.46 billion in fiscal Q3 revenue as data centers hoarded memory. Apple posted a record $111.184 billion March quarter while raising hardware prices to protect margins.
Memory Prices Explode. iPhone Volume Holds The Line. Micron’s quarter reads like a commodity super-cycle in motion. GAAP gross margin jumped to 84.6%, from 37.7% a year earlier, and Cloud Memory revenue hit $13.77 billion as hyperscalers scrambled for HBM4. CEO Sanjay Mehrotra told investors the results “reflect the strategic value of memory in the AI era” and pointed to multi-year Strategic Customer Agreements as evidence of locked-in pricing.
Apple’s story is steadier and more defensive. iPhone brought in $56.994 billion, Services set a fresh record at $30.976 billion, and Tim Cook cited “extraordinary demand for the iPhone 17 lineup.” But the company pushed through a 15% to 54% global price hike on MacBooks and iPads to absorb component inflation, a move that props up the P&L today and risks demand tomorrow.
Business Driver Micron Apple Main Growth Engine HBM and cloud DRAM iPhone plus Services flywheel YoY Revenue Growth 345.7% 16.6% Gross Margin 84.6% Roughly 47% Commodity Bottleneck vs. Elastic Consumer Wallet Micron is spending $7.83 billion in a single quarter on capacity because customers sign long contracts to guarantee supply through structural DRAM shortages locked in through 2027. Apple is defending margin by raising sticker prices on discretionary hardware, a strategy that works only until buyers push back.
Valuation sharpens the contrast. Micron trades at a forward P/E near 7 despite the run to $975.56. Apple sits at a forward P/E of 32 with a PEG near 2.5. One is priced for the cycle to break. The other is priced for perfection.
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The Next Test Is Whether Consumers Say No Micron guided fiscal Q4 to $50.0 billion in revenue and $31.00 in non-GAAP EPS, with gross margin approaching 86%. Watch whether HBM4E qualifications hold that pricing curve into calendar 2027. On the Apple side, keep an eye on unit demand after the MacBook and iPad price increases, and on the 96% market-implied probability of an iPhone 18 launch this year.
One skeptical note: Micron insiders, including CEO Mehrotra selling 94,078 shares into the rally, are taking chips off the table.
Why I Lean Toward Micron Right Now On the setup alone, Micron looks like the more interesting story. The math of a 7 forward multiple against triple-digit revenue growth and 80%-plus gross margins is hard to ignore, even accounting for cycle risk. Apple remains a fortress with a $100 billion buyback and 2.5 billion active devices. But price hikes to offset memory inflation tell me Cupertino is absorbing the squeeze, while Boise is dictating it. If AI capex cools sharply, I would revisit. Until then, the commodity bottleneck looks like the more compelling setup for research.
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SK Hynix's Nasdaq listing can not only reset the AI memory trade but also accelerate it. The company is weaponizing Wall Street to ensure it retains its leadership position in the hottest market since the AI boom started booming.
With control of approximately 60% of the high-bandwidth memory (HBM) market, which is critical for advanced computing, the opportunity is for investors to gain share in a leading memory pure-play at a discount to its peers. Estimates have SK Hynix Korean listing trading at approximately 8x forward earnings compared to Micron’s NASDAQ: MU 13.5x, suggesting an easy double-digit upside immediately upon listing.
While the upside potential for SK Hynix's U.S. listingis robust, there are a few things for investors to consider, the primary one being volatility. The listing will include the issuance of new shares, representing approximately 2.5% of the existing share count, which will provide a slight headwind for price action.
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The offset will likely be massive institutional backing, with several high-profile firms committing to large stakes. Institutional backers include Situational Awareness Partners, an investment firm founded by a former OpenAI researcher, and Coatue Management, a U.S.-based firm focused on technology.
SK Hynix Throws Down the Gauntlet, Micron Will RespondSK Hynix's U.S. listing is expected to raise as much as $28 billion in new capital. The money will be used to accelerate expansion plans and buy new equipment, both critical to meeting demand and maintaining product timelines.
The company is strengthening ties with NVIDIA NASDAQ: NVDA, ensuring it can deliver next-gen products when needed, including HBM4. HBM4 is critical to AI, as it breaks down the memory wall by enabling skyrocketing bandwidth with low power consumption, doubling the speed of HBM3 versions, and offering approximately 75% more memory capacity. The impact on AI will be tremendous.
Catalysts for SK Hynix's share price include the robust demand for HBM products, which are sold out through 2027, and pricing power. HBM memory pricing is up by high double digits, underpinning growth for SK Hynix and Micron, and is expected to remain hot for the foreseeable future. SK Hynix removed pricing caps that had been in place, allowing it to capture maximum upside while the HBM shortage persists.
Micron Technology Today
MU
Micron Technology
$922.66 -62.09 (-6.31%)
As of 02:45 PM Eastern
This is a fair market value price provided by Massive. Learn more.
52-Week Range$103.38▼
$1,255.00Dividend Yield0.07%
P/E Ratio20.90
Price Target$1,263.76
Micron, however, is not sitting idly by, allowing SK Hynix to gain share. It is actively expanding its own manufacturing capacity and HBM4 technology, including a major HBM4 hub in Japan, and realigning its die process to more closely align with NVIDIA standards so it can capture a larger share.
The likely outcome is that Micron breaks SK Hynix's near-monopoly with NVIDIA while cementing its position in the industry. Micron is also capitalizing on its unique position as the U.S.'s only domestic-based memory manufacturer, expanding facilities in Idaho and New York.
Micron May Experience Headwinds—Sell-Side Data Says Buy the DipWhile Micron’s outlook is equally bullish, there is potential for its share price action to lag SK Hynix, at least in the near- to mid-term. The risk is that investors will take profits and reduce their holdings of MU in order to shift capital into SK Hynix. In this scenario, the best-case is that MU’s stock price moves sideways within a range near existing highs, while the worst-case is that it experiences a more robust correction than it already has. Down more than 20% from its post-earnings highs as of early July, Micron’s share price could shed another 30% before hitting solid support.
The caveat is that sell-side interest, as reflected in the analysts and institutional data, remains very bullish on Micron, with a triple-strength tailwind in place. MarketBeat data reveal 38 analysts covering the name, a 92% Buy-side bias in the Buy consensus, and more than 35% upside potential relative to early-July support targets, with coverage rising, sentiment firming, and price targets trending higher over the near-, mid-, and long-term. It is not the consensus figures that matter but the trends, which are leading to the high range and suggest more than 100% is still ahead.
Micron’s stock price action reflects market strength, with a bullish MACD convergence. The MACD, or moving average convergence/divergence, measures market strength and momentum and, in this case, shows a strong, strengthening market more likely to retest its recent highs and move higher than to continue moving lower. The only question is the timing, and that may be by year’s end. Upcoming catalysts include Micron’s fiscal Q4 earnings release in September, along with reports from NVIDIA and Advanced Micro Devices NASDAQ: AMD, which are expected to confirm that AI demand continues to grow.
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Micron Technology (MU 6.40%) has had a phenomenal 2026 so far, rising around 240%, though it was up around 300% until a few days ago before artificial intelligence (AI)-centric stocks started to sell off. Regardless, Micron has had a great run, and it isn't looking to slow down anytime soon.
Micron recently announced another jaw-dropping quarter with huge growth and incredible expectations for the following quarter, dropping huge news that tight market conditions could last until 2028. If that occurs, Micron's stock could be primed for a major run, potentially positioning it to become the next Nvidia (NVDA +0.48%).
But is that possible? Let's see what it would take.
Image source: Getty Images.
Nvidia will be tough to catch, but Micron is trying its hardest Micron fabricates both NAND and DRAM memory. NAND memory is used in long-term storage devices such as solid-state drives (SSDs). In contrast, DRAM is used for high-speed memory, as needed by Nvidia's GPUs to rapidly access information as it's processed.
There has been strong demand for both types of memory due to the massive data center build-out, but supply hasn't kept up with this unprecedented demand. As a result, prices for memory chips have skyrocketed, allowing Micron to profit from the shortage.
As mentioned, new capacity for many in this industry won't be online until 2027 or later, creating a low supply of inventory for at least the next year and a half. That could lead to even higher memory chip prices, as demand for these devices isn't slowing down.
Nvidia has a strong read on data center build-out plans, as many clients are placing orders for devices well in advance of when they need them so they can quickly get them online once the data center infrastructure is ready. While the AI hyperscalers plan to spend $650 billion on data center capital expenditures this year, next year that figure could be over $1 trillion. That will lead to even higher demand for memory chips, as well as for Nvidia GPUs.
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In Micron's latest quarter, DRAM accounted for around 76% of total sales, with NAND accounting for the rest. So, for Micron to surpass Nvidia, its NAND sales would need to rise much faster than DRAM, since DRAM will likely grow at a similar rate to GPU demand.
I don't see that happening, but that doesn't mean Micron won't be a great stock to own. Next quarter, it expects $50 billion in revenue, or about half of what Nvidia is expected to generate. Those are still impressive figures, and I won't be surprised to see Micron keep climbing the ladder toward Nvidia. However, it will likely never catch up, as Nvidia benefits from similar tailwinds to Micron.
But how close can it get?
Micron could be a much larger company by this time next year Because the memory chip market is cyclical, it is often difficult to assign it a regular valuation. This plays into the analysis, as Micron would fare far better if the market assigned it a normal premium. So, let's analyze Micron's stock in two ways. I'll assign it a 15x earnings premium and a 25x earnings premium to see what the range of outcomes could be.
Micron operates on a non-standard fiscal year calendar, and its FY 2026 ends in August. So, I'll utilize FY 2027 projections. Wall Street analysts project earnings per share (EPS) of $149.64 next year, with the highest estimate at $221.27. At the midpoint, Micron's stock would trade between $2,244 and $3,741 per share, depending on whether it trades at 15 to 25 times earnings.
That equates to a market capitalization of about $2.5 trillion to $4.2 trillion -- not far off from Nvidia's current $4.7 trillion. Now, if the earnings come in at the high end of the projection and the stock trades for 25 times earnings, Micron's stock could be valued at $6.2 trillion -- a greater figure than Nvidia.
However, this won't happen in a vacuum because Nvidia's stock will likely rise if Micron's does. I don't think Micron can catch Nvidia, but it still a great company to invest in.
Micron Technology (NASDAQ:MU | MU Price Prediction) has become the memory story of the AI cycle. Cloud Memory revenue hit $13.769 billion in fiscal Q3 2026 alone, and non-GAAP gross margin ballooned to 84.9%. CEO Sanjay Mehrotra called it plainly: “Micron’s record fiscal Q3 financial results and even stronger outlook for Q4 reflect the strategic value of memory in the AI era.”
Shares are up 241.97% year to date, yet the stock just pulled back sharply. So can MU push through to $1,500 in 2027? Let’s do the math.
Why Micron Shares Just Got Hit Despite Blowout Numbers The pullback is real. MU fell 19.61% in the past week and 8.32% over the past month, even as YTD gains sit near 242%.
Two headlines drove the reversal. Michael Burry disclosed a short at $1,051.87, arguing the rally reflects “AI hype and FOMO rather than fundamentals”. Wall Street veteran Jordi Visser flagged the sell-off as a warning of a “mid-cycle slowdown” in the AI trade.
Add a beta of 2.142 and an ongoing class-action lawsuit alleging price fixing, and volatility becomes the price of admission. This is a stock that moves twice as hard as the tape in both directions.
Wall Street Sees Big Upside. Our Model Sees Fair Value. Analysts are unusually aligned. The consensus target is $1,486, with 9 Strong Buys, 31 Buys, 4 Holds, and just 1 Strong Sell. Bullish sentiment sits at 89%. Our own base case lands at $979.86, essentially flat, with a bull case of $1,335.98 and bear case of $713.77. Confidence is 90%.
My take: analysts are closer to right than our conservative base. When earnings acceleration is this violent (345.72% revenue growth), a P/E model built on trailing numbers understates the earnings trajectory.
The Path to $1,500 Per Share Reaching $1,500 from today’s price of $975.56 would require a gain of 53.8%. With forward EPS of $64.97, a price of $1,500 implies a forward P/E of 23x. Our base case of $979.86 already implies 22x, meaning the bold target requires roughly 1.5x of additional multiple expansion.
That target is achievable if the AI capex build holds. Q4 26 guidance already calls for $50 billion in revenue and non-GAAP EPS of $31. Cloud Memory quadrupled from $5.284 billion in Q1 to $13.769 billion in Q3. Mehrotra says “multi-year Strategic Customer Agreements will significantly enhance the durability and predictability” of results.
HBM4 is in high-volume shipments, HBM4E is targeting calendar 2027 volume, and a $9 billion Japan expansion adds supply. Cramer captured the shift: “Micron’s Become a Secular Growth Story, Not a Cyclical Story.” The risk: memory has always been cyclical, and Burry is betting that history rhymes.
Where Micron Trades Today vs Its Earnings Power At $975.56, MU trades at roughly 15x forward EPS of $64.97. Alpha Vantage pegs the forward P/E even lower at 7x on updated estimates. Either way, that is cheap relative to peers in the AI supply chain.
Shares sit between a 52-week high of $1,255 and a low of $103.23. The 10-year return of 7,903.59% shows the payoff when memory cycles turn. This is a compounding story if pricing power holds.
Is $1,500 Realistic? My Verdict $1,500 by 2027 means a 53.8% gain and a 23.1x forward multiple. That is a stretch, but a reasonable one.
Three things need to go right: HBM4 pricing must hold through the ramp, Strategic Customer Agreements need to convert into visible FY27 revenue, and the AI capex cycle cannot roll over. A demand air pocket from hyperscalers would derail it fast. Returns at this level shouldn’t be expected every year, but we’ve outlined the blueprint for how Micron could reach $1,500 in 2027.
WASHINGTON, DC - JULY 2: The Micron Technology logo is displayed at a booth at The Great American State Fair on the National Mall on July 2, 2026 in Washington, DC. (Photo by Kevin Carter/Getty Images)
Getty Images
This article was written by Doug Nathman, with research by his team at Trefis.
The company’s new long-term agreements aim to stabilize its volatile cycles, yet they may also place a limit on its historical profitability.
Following an increase of over 700% in the past year, it is reasonable to assert that Micron Technology (MU)’s shares are valued with high expectations. The company is seizing an unprecedented, AI-driven memory shortage, posting results that have exceeded both records and anticipations. Management has introduced a new strategy, a collection of long-term Strategic Customer Agreements (SCAs), intended to mitigate the pronounced cycles that have historically characterized this sector. However, embedded within this very solution is the potential for the stock’s most significant threat: the risk that Micron has exchanged future gains for the stability of the present.
Profitability Is Already At An Exceptional PeakTo begin with, consider the height. Micron’s net margin for the last twelve months is 41.5%, the highest it has reached in over five years and vastly different from its three-year average of 1.5%. Its operating margin presents a similar narrative at 48.4%, greatly surpassing its three-year average of 4.5%. For the forthcoming fourth quarter, the company has forecasted a gross margin of approximately 86.0%. These figures are considerable for a hardware enterprise, justifying a high valuation. The stock trades at a price-to-sales ratio of 22.4, well above its decade-high of 7.6. When performance metrics are so far removed from their historical averages, they have considerably more capacity to decline than to ascend. The market pricing reflects both present strong outcomes and the belief that this new profitability level is maintainable. Any regression towards historical averages would exert considerable pressure on the stock’s multiples.
The New Agreements May Establish A Margin CapThis is where the new customer contracts become crucial. These SCAs are intended to serve as a safeguard against the significant pricing volatility in the industry. However, they may also impose a limit. As management stated, “The largest agreements generally have a ceiling price for existing products at the current CQ2 market price.” These deals are not insignificant; the 16 agreements executed to date encompass approximately “20% of our DRAM volume and one-third of our NAND volume” across their multi-year duration. While this setup provides a valuable safety net for profits, it also indicates that a substantial segment of Micron’s business may not benefit if memory prices continue to escalate beyond the already elevated levels of today. The very mechanism designed to protect against declines could restrict the company’s capacity to achieve the significant earnings outperformance the market has come to anticipate. For a more detailed examination of how Micron is attempting to navigate this situation, you can investigate how the AI boom is assisting it in managing its oldest challenge. The peril is a revaluation of the stock, not due to the business failing, but because it can no longer surpass elevated expectations.
Following a substantial rally, the benchmark for success is exceedingly high. The company’s noteworthy strategic initiative to mitigate its business risks may have unintentionally limited the very upside for which investors are paying a premium. The crucial factor to monitor now is whether open-market memory prices persist in their climb; if they do, the performance of Micron’s non-contracted business will reveal the outcome.
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HomeIndustriesComputers/ElectronicsTech StocksTech Stocks‘Most investor feedback continues to point to a skittish AI tape,’ one analyst saysJuly 7, 2026, 10:29 a.m. ET
Micron Technology’s stock is falling hard on Tuesday as investors look past a massive profit boom at memory rival Samsung Electronics.
Shares of Micron MU are down 7.5%, while Sandisk’s stock SNDK is off 11% Tuesday morning. Storage makers Western Digital WDC and Seagate Technology STX are seeing their shares fall 10% and 7.6%, respectively, following big gains on Monday.
Key Takeaways Micron signed long-term memory and storage supply deals with Ford and General Motors.AI data centers, autos and tight DRAM and NAND supply are supporting Micron's growth outlook.MU is expanding capacity in Taiwan, Virginia and Idaho to meet rising long-term memory demand. Micron Technology (MU - Free Report) received another vote of confidence from the auto industry after signing a long-term agreement with Ford (F - Free Report) to supply memory and storage solutions for the automaker's next-generation vehicles. The deal comes just days after Micron announced a similar supply agreement with General Motors (GM - Free Report) , highlighting the chipmaker's growing role in powering increasingly software-defined vehicles.
The back-to-back agreements reflect a broader industry trend. Modern vehicles rely on advanced driver-assistance systems, connected features and sophisticated infotainment platforms. All these require greater amounts of memory and storage. At the same time, booming artificial intelligence (AI) investments have boosted demand for DRAM (Dynamic Random-Access Memory) used in data centers, pushing its prices higher.
For Micron, these automotive wins with Ford and General Motors complement an already strong AI-driven growth story. The company is expanding advanced DRAM production in Virginia to support long-term demand from automotive customers, while its leadership in high-bandwidth memory (HBM) for AI servers continues to benefit from surging AI infrastructure spending.
After the stock's remarkable rally over the past year, the key question for investors is whether these tailwinds still leave room for further upside.
Image Source: Zacks Investment Research
AI Boom and Tight Memory Supply Support Micron’s GrowthMicron continues to benefit from robust demand for memory chips across multiple end markets, including AI data centers, automotive, industrial and consumer applications. The company expects supply-demand conditions for both DRAM and NAND to remain tight beyond calendar 2027, creating a favorable pricing environment for memory manufacturers.
The strength of this backdrop was evident in Micron's third-quarter fiscal 2026 results, with both revenues and earnings comfortably surpassing analysts' expectations.
DRAM remained the primary growth engine, contributing 76% of total revenues. Sales from the segment jumped 67% sequentially, supported by higher selling prices and steady shipment growth.
Demand for Micron's HBM, a critical component in AI servers, continues to accelerate as cloud providers and chipmakers expand AI infrastructure. The company has already generated more than $1 billion in HBM4 revenues, while the volume ramp of its HBM4 12-high products is progressing twice as fast as the previous HBM3E generation. Reflecting this momentum, Micron now expects the HBM market to exceed $100 billion by calendar 2027, earlier than previously projected.
Capacity Expansion Strengthens MU’s Long-Term OutlookMicron is also investing to support future demand. Earlier this year, the company completed the acquisition of Powerchip Semiconductor Manufacturing Corporation's facility in Taiwan, expanding its manufacturing footprint. It now expects meaningful production from the Tongluo fab to begin by mid-2027, ahead of earlier expectations, while construction of a second cleanroom is underway to support future EUV-based manufacturing. Meanwhile, its Idaho DRAM facility remains on track.
Micron is also strengthening customer relationships through long-term supply agreements, having signed 16 multi-year take-or-pay contracts (as highlighted during the fiscal third-quarter 2026 earnings call) with binding volume commitments. Combined with its growing presence in AI, automotive and enterprise storage—including an expanding SSD business—these investments provide Micron with stronger revenue visibility and position it well to capitalize on rising memory demand over the coming years.
The Zacks Consensus Estimate for MU’s fiscal 2026 and 2027 sales implies year-over-year growth of 234% and 88%, respectively. The same for fiscal 2026 and 2027 EPS calls for an uptick of 790% and 107%, respectively.
See how the consensus mark for Micron’s EPS has been revised in the past 60 days.
Image Source: Zacks Investment Research
MU’s Valuation CheckDespite such a strong rally over the past year, Micron's valuation remains much more reasonable relative to the broader sector. The stock continues to be supported by improving profitability, rising earnings estimates and sustained demand for memory chips across AI, automotive and other end markets.
Image Source: Zacks Investment Research
Unlike many high-growth AI stocks that trade at stretched valuations, Micron is benefiting from both strong AI-driven demand and favorable memory pricing. As long as the company continues to execute on its HBM roadmap, expand capacity and capitalize on tight DRAM and NAND supply conditions, its current valuation still appears attractive for long-term investors.
MU Still a Screaming Buy at Current LevelsThe biggest mistake investors can make is assuming Micron's rally has already priced in its future. The company's business mix is becoming structurally stronger, supported by AI, long-term supply agreements and expanding end-market opportunities. It is a cash-rich company with a strong balance sheet. With earnings expected to grow rapidly and memory demand remaining favorable, Micron appears well-positioned for more upside and certainly deserves a place in long-term growth portfolios.
Micron sports a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Micron Technology, Inc. has delivered over 5x returns since coverage began last September. Acceleration in both top- and bottom-line results underpins continued bullish momentum for MU. AI-driven markets remain a key catalyst, and MU stock is still attractively valued if demand holds.
