Key Takeaways Micron sees agentic AI raising memory needs across accelerator, CPU and storage racks in data centers.Micron's Q3'26 revenues hit a record $41.46B, up 345.7% year over year and 73.7% sequentially.Micron is shipping HBM4 at high volume, while HBM4E is expected to enter production in 2027. Micron Technology, Inc. (MU - Free Report) is positioned to benefit from the next phase of artificial intelligence (AI) as agentic AI moves beyond simple responses toward systems that can reason, plan and execute tasks. These workloads require more memory capacity and bandwidth, potentially creating a larger opportunity for Micron across high-bandwidth memory (HBM), server DRAM and data center storage.
During its third-quarter fiscal 2026 results, Micron stated that agentic AI is reshaping data center infrastructure by increasing memory needs beyond accelerator racks to CPU (Central Processing Unit) racks used for agent control and program execution, as well as storage racks for expanding context. The company expects industry data center DRAM and NAND bit shipments in 2026 to more than double from two years earlier.
Micron is already seeing strong financial benefits from AI demand. Third-quarter fiscal 2026 revenues reached a record $41.46 billion, up 345.7% year over year and 73.7% sequentially. Its Core Data Center Business unit generated $11.52 billion in revenues, up from $1.53 billion in the year-ago quarter and $5.69 billion in the previous quarter.
Micron's product portfolio is also evolving for agentic workloads. Its HBM4 36GB 12-high memory can deliver up to a 2.6-times increase in LLM (large language model) inference throughput under the company's tested conditions. Its PCIe Gen6 SSD (solid-state drive) is also designed specifically for agentic AI workloads.
With HBM4 already in high-volume shipments and HBM4E expected to enter production in 2027, Micron has multiple avenues to capture rising memory demand. If agentic AI adoption expands as expected, the shift could make memory an even more important part of AI infrastructure spending and support Micron's long-term growth.
The Zacks Consensus Estimate for Micron’s fiscal 2026 and 2027 revenues is currently pegged at $129.61 billion and $248.08 billion, respectively. The consensus mark for revenues suggests year-over-year growth of 246.8% for fiscal 2026 and 91.4% for fiscal 2027.
How Do Micron’s Competitors Stack Up in Agentic AI?SK Hynix (SKHY - Free Report) is Micron’s most direct competitor in HBM, making it well positioned as agentic AI increases memory requirements. Its early HBM leadership gives it an important advantage. The rapid buildout of AI data centers has triggered a global shortage of memory products, driving demand across industries ranging from cloud computing to consumer electronics.
As a key supplier of AI memory chips to NVIDIA, SK Hynix is well-positioned to capitalize on the AI boom. Leveraging its relationship with NVIDIA, the company is expanding its manufacturing capacity to keep pace with rising demand fueled by the ongoing global AI investment cycle. In the recently reported results for the second quarter of 2026, SK Hynix’s revenues surged 257% year over year, while net income jumped 1,242%.
Sandisk Corporation (SNDK - Free Report) offers a different competitive threat through NAND and enterprise SSDs. As agentic AI creates larger data and storage requirements, the company can benefit from rising adoption of the same. In the fourth quarter of fiscal 2026, Sandisk’s revenues soared 372% year over year to $8.97 billion, while non-GAAP net income jumped to $6.16 billion from $42 million in the year-ago quarter. The company is benefiting from AI-led demand that is lifting enterprise SSD adoption and supporting pricing across NAND end markets. Its data center revenues surged 437% year over year to $5.15 billion in fiscal 2026.
SanDisk also has signed long-term supply agreements, adding some demand visibility. During its fourth-quarter fiscal 2026 earnings call, Sandisk revealed that it holds eight long-term contracts with six customers worth $93.9 billion.
Micron has an advantage from its broad exposure to HBM, DRAM and NAND. If agentic AI expands rapidly, this diversified portfolio could allow MU to capture demand across both compute and storage infrastructure.
Micron’s Price Performance, Valuation and EstimatesShares of Micron have surged around 228.8% year to date compared with the Zacks Computer and Technology sector’s return of 18.8%.
From a valuation standpoint, MU trades at a forward price-to-earnings ratio of 6.08, significantly lower than the sector’s average of 21.58.
Micron Technology 12-Month Forward P/E Ratio
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Micron’s fiscal 2026 and 2027 earnings implies a year-over-year increase of 791% and 113.7%, respectively. Bottom-line estimates for fiscal 2026 have been revised upward over the past 30 days, while estimates for fiscal 2027 have been revised northward in the past 60 days.
Image Source: Zacks Investment Research
Micron currently sports a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Arvest Investments Inc. decreased its holdings in shares of Micron Technology, Inc. (NASDAQ:MU – Free Report) by 25.5% during the second quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The firm owned 3,354 shares of the semiconductor manufacturer’s stock after selling 1,147 shares during the quarter. Micron Technology comprises approximately 0.5% of Arvest Investments Inc.’s portfolio, making the stock its 28th biggest holding. Arvest Investments Inc.’s holdings in Micron Technology were worth $3,872,000 as of its most recent SEC filing.
Several other institutional investors have also recently made changes to their positions in the stock. Vanguard Group Inc. grew its position in shares of Micron Technology by 1.9% in the fourth quarter. Vanguard Group Inc. now owns 106,608,094 shares of the semiconductor manufacturer’s stock valued at $30,427,016,000 after purchasing an additional 1,954,644 shares in the last quarter. State Street Corp lifted its holdings in Micron Technology by 2.1% during the 4th quarter. State Street Corp now owns 52,749,817 shares of the semiconductor manufacturer’s stock worth $15,061,310,000 after purchasing an additional 1,090,644 shares in the last quarter. Norges Bank bought a new position in Micron Technology in the 4th quarter worth about $6,433,456,000. Morgan Stanley boosted its stake in Micron Technology by 5.1% in the 4th quarter. Morgan Stanley now owns 16,396,655 shares of the semiconductor manufacturer’s stock worth $4,679,771,000 after purchasing an additional 794,289 shares during the period. Finally, Northern Trust Corp grew its holdings in Micron Technology by 1.9% during the 4th quarter. Northern Trust Corp now owns 10,654,349 shares of the semiconductor manufacturer’s stock valued at $3,040,858,000 after buying an additional 194,550 shares in the last quarter. Hedge funds and other institutional investors own 80.84% of the company’s stock.
Micron Technology Stock Down 7.0% Shares of NASDAQ MU opened at $941.15 on Wednesday. The company has a current ratio of 3.42, a quick ratio of 2.98 and a debt-to-equity ratio of 0.05. The business has a 50-day moving average of $966.84 and a 200-day moving average of $686.90. The firm has a market capitalization of $1.06 trillion, a price-to-earnings ratio of 21.31 and a beta of 2.19. Micron Technology, Inc. has a 12 month low of $113.46 and a 12 month high of $1,255.00.
Micron Technology (NASDAQ:MU – Get Free Report) last announced its earnings results on Wednesday, June 24th. The semiconductor manufacturer reported $25.11 earnings per share for the quarter, beating analysts’ consensus estimates of $21.39 by $3.72. Micron Technology had a net margin of 55.91% and a return on equity of 71.13%. The business had revenue of $41.46 billion for the quarter, compared to the consensus estimate of $35.91 billion. During the same period last year, the firm posted $1.91 earnings per share. Micron Technology’s quarterly revenue was up 345.8% on a year-over-year basis. Micron Technology has set its Q4 2026 guidance at 30.000-32.000 EPS. Sell-side analysts expect that Micron Technology, Inc. will post 72.93 earnings per share for the current fiscal year. Micron Technology Announces Dividend The business also recently declared a quarterly dividend, which was paid on Tuesday, July 21st. Stockholders of record on Monday, July 6th were issued a $0.15 dividend. The ex-dividend date of this dividend was Monday, July 6th. This represents a $0.60 dividend on an annualized basis and a dividend yield of 0.1%. Micron Technology’s dividend payout ratio is presently 1.36%.
Analyst Upgrades and Downgrades MU has been the topic of several analyst reports. Mizuho upped their price target on Micron Technology from $1,150.00 to $1,375.00 and gave the company an “outperform” rating in a research report on Thursday, June 25th. Barclays raised their price objective on shares of Micron Technology from $1,175.00 to $2,000.00 and gave the company an “overweight” rating in a research report on Thursday, June 25th. Rosenblatt Securities upped their target price on shares of Micron Technology from $1,200.00 to $1,500.00 and gave the stock a “buy” rating in a report on Thursday, June 25th. Melius Research started coverage on shares of Micron Technology in a research note on Monday, April 27th. They issued a “buy” rating and a $700.00 target price on the stock. Finally, Morgan Stanley raised their price target on shares of Micron Technology from $1,050.00 to $1,200.00 and gave the company an “overweight” rating in a report on Thursday, June 25th. Three analysts have rated the stock with a Strong Buy rating, thirty-two have assigned a Buy rating and two have assigned a Hold rating to the company. Based on data from MarketBeat.com, Micron Technology currently has an average rating of “Buy” and an average target price of $1,259.97.
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Key Micron Technology News Here are the key news stories impacting Micron Technology this week:
Positive Sentiment: Micron’s long-term AI opportunity remains a key bullish argument. Demand for high-bandwidth memory (HBM) used in AI data centers is absorbing significant wafer capacity, while Micron’s 2026 HBM output is reportedly fully allocated under long-term agreements. Uncle Sam’s Chip Trick: How the Government Built a Silicon Moat Positive Sentiment: U.S. efforts to discourage technology companies from purchasing memory from Chinese suppliers could reduce competition and strengthen Micron’s pricing power with domestic and allied customers. Micron’s planned U.S. manufacturing investments may benefit from this policy environment. Micron shares rise as White House pushes Apple away from Chinese memory chips Positive Sentiment: Bank of America reiterated a Buy rating and a $1,550 price target, arguing that concerns about a peak in the memory cycle are overblown and forecasting substantial long-term earnings growth. Analyst issues new Micron stock price target Neutral Sentiment: Micron’s recent quarterly results were exceptionally strong, with revenue up sharply year over year and earnings above consensus. However, the stock’s large advance has raised expectations and increased sensitivity to any signs of slowing demand or valuation concerns. Negative Sentiment: Higher Treasury yields are pressuring high-growth technology valuations and raising the financing cost of AI infrastructure. Investors also rotated out of heavily extended AI winners after Monday’s rally. AI chip stocks were riding high. Here’s why Micron and others are now pulling back Negative Sentiment: A report suggesting NVIDIA may use less memory in a future Rubin Ultra system raised concerns about the durability of Micron’s HBM growth. Separately, Appaloosa reportedly reduced its Micron position by 41% in the second quarter, adding to profit-taking concerns. Nvidia Is Cutting Rubin Ultra’s Memory Insider Activity at Micron Technology In other news, EVP April S. Arnzen sold 40,000 shares of Micron Technology stock in a transaction on Wednesday, July 1st. The shares were sold at an average price of $1,083.94, for a total transaction of $43,357,600.00. Following the completion of the sale, the executive vice president directly owned 85,737 shares of the company’s stock, valued at approximately $92,933,763.78. The trade was a 31.81% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. Also, Director Lynn A. Dugle sold 1,300 shares of the company’s stock in a transaction on Tuesday, June 30th. The stock was sold at an average price of $1,150.43, for a total transaction of $1,495,559.00. Following the completion of the transaction, the director owned 17,728 shares of the company’s stock, valued at $20,394,823.04. This trade represents a 6.83% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last 90 days, insiders have sold 162,179 shares of company stock worth $167,811,861. Corporate insiders own 0.24% of the company’s stock.
Micron Technology Company Profile (Free Report)
Micron Technology, Inc is a global semiconductor company that designs and manufactures memory and storage solutions. Its product portfolio includes dynamic random-access memory (DRAM), NAND flash memory, solid-state drives (SSDs), memory modules and embedded memory solutions for a wide range of computing and electronic devices. Micron supplies components used in data centers, enterprise and cloud infrastructure, client computing, mobile devices, automotive systems and industrial applications, and also markets consumer-facing products under the Crucial brand.
Founded in 1978 and headquartered in Boise, Idaho, Micron has grown into an international manufacturer with research, development and production facilities across multiple regions.
Further Reading Five stocks we like better than Micron Technology The AI Boom Is Turning This Cable Maker Into a Stock to Watch A Star Investor Just Trimmed Amazon—Here’s What It means Wendy’s Deal Buzz May Give Fast-Food Investors a New Reason to Look Home Depot Analysts See a Path to $375 and Beyond Want to see what other hedge funds are holding MU? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Micron Technology, Inc. (NASDAQ:MU – Free Report).
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BCS Wealth Management bought a new stake in Micron Technology, Inc. (NASDAQ:MU – Free Report) during the 2nd quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The institutional investor bought 554 shares of the semiconductor manufacturer’s stock, valued at approximately $639,000.
Other institutional investors and hedge funds have also added to or reduced their stakes in the company. High Note Wealth LLC boosted its stake in shares of Micron Technology by 65.4% in the 4th quarter. High Note Wealth LLC now owns 86 shares of the semiconductor manufacturer’s stock valued at $25,000 after purchasing an additional 34 shares during the last quarter. Kohmann Bosshard Financial Services LLC acquired a new stake in shares of Micron Technology during the first quarter worth $27,000. Bayban bought a new position in Micron Technology during the fourth quarter worth $29,000. Joseph Group Capital Management bought a new position in Micron Technology during the fourth quarter worth $31,000. Finally, Luken Investment Analytics LLC bought a new position in Micron Technology during the fourth quarter worth $31,000. Institutional investors and hedge funds own 80.84% of the company’s stock.
Insider Buying and Selling In other news, Director Lynn A. Dugle sold 1,300 shares of the firm’s stock in a transaction that occurred on Tuesday, June 30th. The stock was sold at an average price of $1,150.43, for a total value of $1,495,559.00. Following the transaction, the director owned 17,728 shares in the company, valued at $20,394,823.04. This trade represents a 6.83% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink. Also, CEO Sanjay Mehrotra sold 31,285 shares of Micron Technology stock in a transaction that occurred on Friday, July 24th. The shares were sold at an average price of $926.83, for a total value of $28,995,876.55. Following the transaction, the chief executive officer directly owned 313,218 shares in the company, valued at approximately $290,299,838.94. The trade was a 9.08% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last ninety days, insiders sold 162,179 shares of company stock valued at $167,811,861. 0.24% of the stock is owned by company insiders.
Micron Technology Stock Down 7.0% Micron Technology stock opened at $941.15 on Wednesday. The firm has a market capitalization of $1.06 trillion, a price-to-earnings ratio of 21.31 and a beta of 2.19. The firm’s fifty day moving average price is $966.84 and its two-hundred day moving average price is $686.90. Micron Technology, Inc. has a 1-year low of $113.46 and a 1-year high of $1,255.00. The company has a current ratio of 3.42, a quick ratio of 2.98 and a debt-to-equity ratio of 0.05. Micron Technology (NASDAQ:MU – Get Free Report) last posted its earnings results on Wednesday, June 24th. The semiconductor manufacturer reported $25.11 earnings per share for the quarter, topping analysts’ consensus estimates of $21.39 by $3.72. Micron Technology had a net margin of 55.91% and a return on equity of 71.13%. The company had revenue of $41.46 billion for the quarter, compared to analyst estimates of $35.91 billion. During the same quarter in the prior year, the business posted $1.91 EPS. The firm’s revenue was up 345.8% compared to the same quarter last year. Micron Technology has set its Q4 2026 guidance at 30.000-32.000 EPS. On average, equities research analysts predict that Micron Technology, Inc. will post 72.93 earnings per share for the current fiscal year.
Micron Technology Announces Dividend The business also recently disclosed a quarterly dividend, which was paid on Tuesday, July 21st. Shareholders of record on Monday, July 6th were issued a dividend of $0.15 per share. This represents a $0.60 dividend on an annualized basis and a yield of 0.1%. The ex-dividend date of this dividend was Monday, July 6th. Micron Technology’s payout ratio is currently 1.36%.
Analysts Set New Price Targets A number of brokerages have commented on MU. Cantor Fitzgerald reaffirmed an “overweight” rating and set a $1,500.00 price target on shares of Micron Technology in a research report on Thursday, June 25th. Stifel Nicolaus lifted their target price on Micron Technology from $550.00 to $1,500.00 and gave the stock a “buy” rating in a report on Thursday, June 18th. Weiss Ratings reiterated a “buy (b)” rating on shares of Micron Technology in a report on Friday, August 7th. Seaport Research Partners reissued a “buy” rating on shares of Micron Technology in a research note on Friday. Finally, Royal Bank Of Canada increased their price target on Micron Technology from $1,200.00 to $1,500.00 and gave the stock an “outperform” rating in a report on Thursday, June 25th. Three research analysts have rated the stock with a Strong Buy rating, thirty-two have issued a Buy rating and two have issued a Hold rating to the company. Based on data from MarketBeat, the stock has a consensus rating of “Buy” and an average target price of $1,259.97.
Get Our Latest Analysis on MU
Key Headlines Impacting Micron Technology Here are the key news stories impacting Micron Technology this week:
Positive Sentiment: Micron’s long-term AI opportunity remains a key bullish argument. Demand for high-bandwidth memory (HBM) used in AI data centers is absorbing significant wafer capacity, while Micron’s 2026 HBM output is reportedly fully allocated under long-term agreements. Uncle Sam’s Chip Trick: How the Government Built a Silicon Moat Positive Sentiment: U.S. efforts to discourage technology companies from purchasing memory from Chinese suppliers could reduce competition and strengthen Micron’s pricing power with domestic and allied customers. Micron’s planned U.S. manufacturing investments may benefit from this policy environment. Micron shares rise as White House pushes Apple away from Chinese memory chips Positive Sentiment: Bank of America reiterated a Buy rating and a $1,550 price target, arguing that concerns about a peak in the memory cycle are overblown and forecasting substantial long-term earnings growth. Analyst issues new Micron stock price target Neutral Sentiment: Micron’s recent quarterly results were exceptionally strong, with revenue up sharply year over year and earnings above consensus. However, the stock’s large advance has raised expectations and increased sensitivity to any signs of slowing demand or valuation concerns. Negative Sentiment: Higher Treasury yields are pressuring high-growth technology valuations and raising the financing cost of AI infrastructure. Investors also rotated out of heavily extended AI winners after Monday’s rally. AI chip stocks were riding high. Here’s why Micron and others are now pulling back Negative Sentiment: A report suggesting NVIDIA may use less memory in a future Rubin Ultra system raised concerns about the durability of Micron’s HBM growth. Separately, Appaloosa reportedly reduced its Micron position by 41% in the second quarter, adding to profit-taking concerns. Nvidia Is Cutting Rubin Ultra’s Memory (Free Report)
Micron Technology, Inc is a global semiconductor company that designs and manufactures memory and storage solutions. Its product portfolio includes dynamic random-access memory (DRAM), NAND flash memory, solid-state drives (SSDs), memory modules and embedded memory solutions for a wide range of computing and electronic devices. Micron supplies components used in data centers, enterprise and cloud infrastructure, client computing, mobile devices, automotive systems and industrial applications, and also markets consumer-facing products under the Crucial brand.
Founded in 1978 and headquartered in Boise, Idaho, Micron has grown into an international manufacturer with research, development and production facilities across multiple regions.
Featured Stories Five stocks we like better than Micron Technology The AI Boom Is Turning This Cable Maker Into a Stock to Watch A Star Investor Just Trimmed Amazon—Here’s What It means Wendy’s Deal Buzz May Give Fast-Food Investors a New Reason to Look Home Depot Analysts See a Path to $375 and Beyond Want to see what other hedge funds are holding MU? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Micron Technology, Inc. (NASDAQ:MU – Free Report).
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SK hynix Inc. (NASDAQ:SKHY) has established itself as the market leader in AI memory, but its valuation still looks surprisingly modest compared with rival Micron Technology, Inc. (NASDAQ:MU).
That’s the disconnect investors may want to consider, as the AI boom turns high-bandwidth memory (HBM) into one of the semiconductor industry‘s most valuable assets.
According to Benzinga Pro, SK Hynix trades at a trailing price-to-earnings ratio of 9.7x, compared with 21.3x for Micron. The gap is equally notable on an EV-to-EBITDA basis, where SK Hynix trades at 8.2x versus Micron’s 15.3x.
SK Hynix Leads the AI Memory Race, but the Valuation Says OtherwiseAs Nvidia Corp’s (NASDAQ:NVDA) leading supplier of high-bandwidth memory for its latest AI accelerators, SK Hynix continues to expand production capacity to meet surging demand. Management has repeatedly highlighted robust AI-driven demand, and this week announced a record 40 trillion won ($28.6 billion) share buyback alongside an enhanced shareholder return policy, citing confidence in its long-term cash generation.
Despite those advantages, the stock continues to trade at a substantially lower trailing multiple than Micron.
Forward valuations tell a different story. SK Hynix trades at roughly 6.0x forward earnings, almost identical to Micron’s 6.1x.
That suggests investors expect strong earnings growth from both companies over the coming year, even though the market currently assigns a much richer trailing multiple to Micron.
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The Valuation Gap May Reflect More Than AI FundamentalsThe disparity does not necessarily mean one stock is mispriced.
Micron and SK Hynix operate in the same industry but are listed in different markets, face different investor bases and are subject to different geopolitical and governance considerations. Those factors can influence valuation multiples independently of operating performance.
Our inference is that the market may also be assigning a persistent “Korea discount” to SK Hynix—a phenomenon long discussed by investors in South Korean equities due to governance structures, capital allocation practices, and geopolitical risk.
SK Hynix itself appears intent on narrowing that perception through more aggressive shareholder returns, including its newly announced buyback and commitment to return more than 50% of cumulative free cash flow generated between 2025 and 2027.
Technical Momentum Is Turning Positive for SK Hynix StockThe valuation story is unfolding alongside improving price action.
Chart created using Benzinga Pro
According to Benzinga Pro, SK Hynix shares have reclaimed both their 8-day and 20-day moving averages, while the shorter-term average has crossed above the longer-term average. Momentum indicators have also strengthened, with the Moving Average Convergence Divergence (MACD) indicator turning positive and the Relative Strength Index (RSI) hovering around 52, suggesting the recent rally is gaining momentum without yet entering overbought territory.
Technical indicators do not predict future performance, but they suggest investors have begun rewarding the company’s improving fundamentals following its latest capital allocation announcement.
What Investors Should Watch NextThe more important comparison may not be today’s valuation multiple but whether SK Hynix can sustain its leadership in the AI memory market.
If demand for HBM remains robust, capacity expansions stay on track, and the company continues to pair strong earnings growth with shareholder-friendly capital allocation, investors may begin to question why the industry’s AI memory leader still trades at such a meaningful discount to one of its closest peers.
Whether that gap narrows—or persists—could become one of the more closely watched valuation stories in semiconductors over the coming year.
Shares of SK Hynix (NASDAQ:SKHY) are climbing 6% in Wednesday morning trading to $164.70 after the Korean memory giant approved the largest treasury share cancellation in the history of South Korean listed companies. The move follows a session in which SK Hynix stock closed down 9% at $155.62.
The announcement is lifting sentiment across memory names. Micron Technology (NASDAQ:MU | MU Price Prediction) stock is up 3% to $967.93, while SanDisk (NASDAQ:SNDK) shares are climbing 5% to $1,703. The Roundhill Memory ETF (CBOE:DRAM) is up 4% to $57.26 as the concentrated basket rides the same tape.
The rebound arrives amid a broader debate about how long the AI-driven memory upcycle can persist. Wednesday’s bounce answers Tuesday’s selloff, but the tension between record capital returns and record fab spending sits at the center of the story.
Record Treasury Share Cancellation Fuels the Move SK Hynix approved a plan to repurchase and cancel 40 trillion won, about $28.6 billion, of treasury shares. The board resolution covers roughly 24.07 million shares, 3.3% of total shares outstanding, based on the closing price of 1,662,000 won the day before the vote. The repurchase period runs from August 20 through November 19, and all acquired shares will be canceled upon completion.
Management also revised the 2025 to 2027 shareholder return commitment upward, moving from a ceiling of 50% of cumulative free cash flow to a floor above that level, delivered through repurchases, cancellations, and cash dividends. Fixed and special dividends are under consideration, with details due alongside third-quarter earnings likely in late October. The company said its intrinsic value “is not fully reflected in its current stock price.”
The scale is possible thanks to a fortress balance sheet. Net cash sat at approximately 69 trillion won, about $49.36 billion, at the end of the second quarter. Last week the company approved 54 trillion won of investment to build two new fabrication plants in South Korea, one for DRAM in Yongin and one for NAND flash in Cheongju.
Peer Memory Names Follow Higher Micron Technology stock is riding the group tailwind after a blowout June quarter. The company reported fiscal Q3 2026 revenue of $41.46 billion, up 345.7% year over year (YoY), with non-GAAP EPS of $25.11 beating consensus by 23.8%. Micron has been more restrained on buybacks because of a buyback limit tied to its CHIPS Act grants, a restriction that lifts in December.
SanDisk shares are extending an already sharp run, with the company reporting fiscal Q4 2026 revenue of $8.965 billion on August 5 and full year FY2026 datacenter revenue up 437% YoY. Earlier this month SanDisk added $14 billion to its share repurchase authorization, taking the total exercisable limit to $15.5 billion, and that capital-return signal is a big reason SanDisk stock has run 585% year to date (YTD).
The Roundhill Memory ETF and Concentration Risk The Roundhill Memory ETF tracks the broader rebound across memory manufacturers. Top holdings include Samsung Electronics at 25.0%, SK Hynix at 24.2%, and Micron Technology at 23.8%, with the top three collectively representing 73.0% of net assets. SanDisk sits at 4.7%.
This is a narrow fund. It rises and falls with the memory cycle rather than the broader chip sector, which means the ETF magnifies both the upside from AI-driven demand and the downside from any pricing rollover. Investors weighing the ETF should size positions with that concentration in mind.
What to Watch The tension for the sector is real. SK Hynix is committing enormous capital to buybacks at the same time it is spending enormous capital on new fabs, and investor Cathie Wood has said she is steering clear of memory stocks, arguing memory is becoming increasingly expensive and will push engineers toward AI systems that need less of it.
Traders can watch for whether Wednesday’s gains hold into the close and how the ADRs settle against the Nasdaq debut. The company listed ADRs on July 10, and the stock remains 12% below its Nasdaq debut opening price. Additional detail on dividend policy is expected with third-quarter earnings in late October, and Micron’s post-December capital-return posture will be the next major test of whether the memory group’s buyback wave has legs.
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The latest 13F filing season just came by, and as we gain a glimpse of what some of our favorite hedge funds have been up to in the second quarter, investors might have a breadcrumb trail to follow as the bull market takes its next turn and the most volatile time of the year comes rolling along.
Given the robustness of the bull market and the landing of Space Exploration Technologies (NASDAQ:SPCX | SPCX Price Prediction), which actually saw quite a bit of activity among some of the big-name hedge funds last quarter, it’s been one of the most eventful summers for the market in a long time. As September hits, things could get even more interesting, especially as correction watchers look to brace themselves for a broad drawdown that I’m sure you’ve heard by now is starting to come overdue.
While I wouldn’t rush into SpaceX right here just because your favorite hedge fund initiated a small position, I would have a look at a tech-focused investor like Altimeter Capital’s Brad Gerstner to see what he’s been up to amid the ongoing AI revolution and whether or not he’s ready to pull back on his enthusiasm, specifically with regard to the AI revolution.
Brad Gerstner was quite busy last quarter What makes Gerstner so interesting is that his specialty is tech, and he’s not afraid to embrace volatility to beef up the growthiness of his portfolio.
Unsurprisingly, a tech bull like Gerstner doesn’t see an AI bubble. And with buying activity in the second quarter, that suggests the man is treating recent volatility, specifically surrounding the semiconductor names, as more of a buying opportunity (more of a “healthy consolidation” than the beginning of the end that some bears have been calling for) than a sign to profit-take; Alitmeter may very well be one of the best-positioned to come rallying back in the second half plays out and nerves begin to calm.
So, where did Mr. Gerstner lean into in the latest quarter? The man was one of many who bought some SpaceX. Given the position comprises around 3% of the portfolio, it’s one of the biggest votes of confidence from a big-name investor.
Big bets on Cerebras, Micron and more Of course, Gerstner didn’t just stop at SpaceX in what was a choppy quarter for tech. His fund also backed up the truck on Cerebras Systems (NASDAQ:CBRS), adding to Micron (NASDAQ:MU), and a handful of other semi stocks. To say he’s made the most of the choppiness in the semis would be a big understatement. Of course, it’ll be interesting to see what he’s been buying in the third quarter since things have only gotten more turbulent for the semis.
With Cerebras shares, the silicon innovator behind those dinner plate-shaped chips, tanking nearly 13% on Tuesday’s session, questions linger about what the future holds for the $52.3 billion firm, which could win big as an OpenAI partner.
In my view, Cerebras is one of the best AI chip diversifiers a semi portfolio could ask for as the agentic era hits and labs seek to chip away at inference latency and costs. When it comes to the up-and-coming AI chip play, this latest near-$2 billion bet isn’t Gernster’s first rodeo. When paired alongside Nvidia (NASDAQ:NVDA), I think it’s safe to say that Altimer has a potent one-two punch in chips that will be tough to match.
As for braving the dip in Micron, I think it’s a bold move. With DRAM/NAND demand swelling with little relief in sight, I’d say the move has a pretty good chance of paying off.
The bottom line With a relatively concentrated portfolio and a modest (around 20) number of stocks alongside a long-term investment focus, Brad Gerstner and Alimeter Capital, I believe, stand out as one of the better tech funds to keep tabs on. With his venture background and willingness to bet big on his best ideas, I do view the man as well-equipped to score big in this AI bull run as it looks to extend.
Contact [email protected] for any questions or corrections.
Shares of Micron Technology (MU -7.02%) have soared over the past year as memory shortages fueled explosive growth in revenue and profits. With the stock up by more than 700%, the company's market cap recently crossed $1 trillion, yet the stock still trades at a cheap-looking valuation of about 7 times next year's consensus earnings estimate.
That valuation sits well below Nvidia's roughly 18 forward price-to-earnings (P/E) multiple. So why the discount on Micron -- and is it warranted?
Image source: The Motley Fool.
Investors are cautious despite booming demand In its fiscal 2026 third quarter, Micron delivered a 346% year-over-year revenue jump, and analysts expect a similar increase in fiscal Q4. But investors aren't ready to start ignoring the memory market's boom-and-bust history.
Over the past 10 years, Micron has at times seen its revenue drop by as much as 50% in a single year. That matches the occasional downward swings in memory chip selling prices. That type of volatility explains why investors tend to pay a low multiple for the stock even during good times -- because they expect the next memory market downturn will eventually arrive.
Trailing-12-month earnings have hit a record $44 per share and just doubled year over year in the most recent quarter. But Micron's results were choppy before fiscal 2025. From fiscal 2017 through fiscal 2025, earnings rose 72% in total, which isn't much over eight years.
The current memory boom might last for another year or two. On the June earnings call, management said it has no clear line of sight for when memory supply will fully catch up to demand. This statement supports expectations for higher prices and profit growth in the near term.
The question is what happens after 2028. That's when the gap between supply and demand is expected to shrink as Micron and its competitors gradually bring expanded manufacturing capacity online. SK Hynix expects to add some production capacity as early as next year, which keeps investors cautious about how long memory prices can stay this elevated as supply catches up to demand.
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The market rewards consistency Nvidia faces a similar cyclical risk, but it's more tied to the broader semiconductor industry's demand cycles. The market is willing to award the GPU leader a higher forward earnings multiple because its business typically doesn't experience the same extreme degree of cyclicality that Micron faces.
Nvidia has posted occasional dips in earnings, yet from 2012 through 2022 -- before the AI boom even began -- its earnings grew almost 1,000% total. Investors generally award higher multiples to companies with steadier earnings growth than to those with sharper swings.
The key variable to watch is Micron's new strategic customer agreements -- deals that lock in prices and volumes for much longer than was previously common in the memory space. Management expects these deals to be transformative for the business, with 16 contracts signed so far, each lasting five years. In time, management expects strategic customer agreements to account for more than half of its revenue, making its future revenue more stable.
If these agreements lead to more durable revenue and a firmer pricing floor for memory, investors could start to assign Micron a higher earnings multiple, narrowing its valuation gap with Nvidia.
Micron offers a compelling risk/reward via a January 2028 options structure, capturing 92% of upside while capping downside at $5,300 versus $100,000 for shares. MU's SSD business just cleared $5B in a quarter, with NAND growing 361% YoY, and management signaling buybacks after December. Long-term customer agreements lock in $22B of demand through 2028, providing high visibility and mitigating near-term volatility concerns.
Buy Micron Technology (MU). The selloff is being driven by momentum/algorithmic unwinds and higher Treasury yields, not a collapse in AI-server memory demand. TrendForce and supplier data point to continued NAND support, and Macquarie’s “worst memory crunch in history” view implies supply constraints persist for years—so the 7% down move is likely an overreaction.
Key Risk: A real demand break: hyperscalers cut AI capex or data-center orders, turning the memory crunch into a surplus.
KOSPI memory hedge-sell (short Samsung/SK Hynix)
Sell (short) Samsung Electronics (005930.KS) and SK Hynix (000660.KS) on rallies. They’re high-beta, crowded AI/memory positions that amplify global chip risk-off moves; the article shows they drove 71% of KOSPI losses in July and that prior declines were largely forced unwinds, not fundamentals. Until yields cool and US semis stabilize, these names can keep overshooting lower.
Key Risk: Yields fall fast and the US semiconductor complex rebounds, forcing a crowded-covering rally in Korean memory stocks.
Samsung Electronics and SK Hynix shares fell sharply Wednesday as Tuesday’s US semiconductor rout spread across the Pacific, dragging South Korea’s market lower.
SK Hynix dropped as much as 9.63% in early trading and Samsung fell 7.64%, while the KOSPI triggered a sell-off after opening nearly 5% lower.
By 11:20 AM local time, SK Hynix was down 8.36% and Samsung 7.08%.
The move followed a Wall Street session. Micron Technology sank 7% to $940.76, SanDisk lost 9% and US-listed SK Hynix fell 9.2%.
The Philadelphia Semiconductor Index dropped 5% as rising bond yields and tensions in the Middle East pushed investors out of technology shares.
The transmission from Wall Street to Seoul was unusually direct.
Micron entered Tuesday after rising almost 18% over the previous five sessions, but the rebound reversed as investors cut exposure to chip stocks.
Nvidia fell 2.3%, while other semiconductor and data-storage names sold off.
Mizuho Securities trading desk analyst Jordan Klein attributed part of the US decline to machine-driven trading amid thin mid-August volumes.
That matters because memory shares have become high-momentum trades, where algorithmic selling and rapid shifts in positioning can exaggerate market moves.
Higher Treasury yields added another pressure point. The US 30-year yield reached its highest level since 2007 on Tuesday as elevated oil prices revived inflation concerns.
Jefferies analyst Jeffrey Favuzza told MarketWatch that high Treasury yields were among the factors weighing on semiconductor shares.
Samsung and SK Hynix have an outsized influence on South Korea’s market, making any global semiconductor retreat particularly painful for the KOSPI.
Macquarie analysis showed the two companies accounted for 71% of the KOSPI’s losses during July’s rout. Together they fell 48%, compared with 26% for the rest of the market.
That episode showed how positioning can magnify fundamental concerns.
During the July selloff, KB Securities’ Peter Kim told Reuters that the decline was “not driven by fundamental deterioration,” but by liquidity, sentiment and forced unwinding of leveraged single-stock ETFs.
Société Générale’s Frank Benzimra made a similar point, telling Reuters at the time that Korean AI equities had become “a very crowded trade which is being unwound.”
The contradiction is that industry data have not suddenly turned bearish.
TrendForce said on Tuesday that strong AI-server demand should continue supporting NAND flash growth in the third quarter.
Data-centre purchases kept the market undersupplied in the second quarter, while combined revenue for the five largest NAND suppliers jumped 77% sequentially to $68.87 billion.
Samsung remained the largest supplier by revenue, followed by SK Hynix and Micron.
Macquarie has gone further, telling Business Insider that the industry faces the “worst memory crunch in history” and that supply constraints may not ease for three years.
It described AI inference-driven memory demand as “off the charts.”
Micron's (MU -7.02%) management elaborated on the most important factors impacting the business.
*Stock prices used were the afternoon prices of Aug. 15, 2026. The video was published on Aug.17, 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.
Micron (MU - Free Report) closed at $941.10 in the latest trading session, marking a -6.98% move from the prior day. The stock's performance was behind the S&P 500's daily loss of 0.69%. Elsewhere, the Dow saw a downswing of 0.22%, while the tech-heavy Nasdaq depreciated by 1.33%.
The chipmaker's stock has climbed by 16.9% in the past month, exceeding the Computer and Technology sector's gain of 5.97% and the S&P 500's gain of 3.96%.
Market participants will be closely following the financial results of Micron in its upcoming release. In that report, analysts expect Micron to post earnings of $31.39 per share. This would mark year-over-year growth of 935.97%. Meanwhile, our latest consensus estimate is calling for revenue of $50.76 billion, up 348.58% from the prior-year quarter.
For the full year, the Zacks Consensus Estimates project earnings of $73.86 per share and a revenue of $129.61 billion, demonstrating changes of +790.95% and +246.76%, respectively, from the preceding year.
Investors might also notice recent changes to analyst estimates for Micron. These revisions help to show the ever-changing nature of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, there's been a 0.01% rise in the Zacks Consensus EPS estimate. At present, Micron boasts a Zacks Rank of #2 (Buy).
Valuation is also important, so investors should note that Micron has a Forward P/E ratio of 13.7 right now. This indicates a discount in contrast to its industry's Forward P/E of 21.51.
The Computer - Integrated Systems industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 43, finds itself in the top 18% echelons of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
Two memory leaders, two very different moats. See how AI demand, manufacturing scale, diversification, and cycle risk could shape their long-term investment potential.
, the memory-chip powerhouse at the center of the AI infrastructure boom, dropped approximately 7% to $940.89 Tuesday morning as investors slammed the brakes on high-flying AI stocks. Rising Treasury yields triggered a broad risk-off move across semiconductors, with the Nasdaq and chip names taking the hit as investors questioned whether the AI trade had moved too far, too fast.
But here is the key point: Micron's business is not slowing down. The stock is falling because expectations are sky-high, not because the AI memory story is broken. Micron's fiscal third-quarter revenue surged to $41.46 billion, compared with $23.86 billion in the previous quarter and just $9.3 billion a year earlier. Operating cash flow jumped to $25.39 billion, while GAAP net income reached $28.24 billion. The numbers show a company riding one of the strongest memory cycles in its history.
The real battle is valuation. Micron shares have exploded more than 700% over the past year, according to Barron's, creating a stock that now demands near-perfect execution.
The GF Value chart tells the story: Micron trades at $941.49, roughly 60.62% above its GF Value estimate of $586.15. The market is already pricing in a massive AI-driven future. Micron may still have one of the best AI memory stories in the market, but after a historic rally, even great companies can face brutal pullbacks when investors decide the price has run ahead of reality.
Micron Technology Inc. (MU, Financials), the memory-chip maker, saw several big hedge funds head for the exits in the second quarter after one of the strongest
Palantir Technologies ( PLTR ), Micron Technology ( MU ) and Space Exploration Technologies Corp. ( SPCX ) represent three of the most compelling companies in the market today, each sitting at the center of some of the world's most important investment themes. They also generate unusually wide disagreement among investors, attracting both exuberant bulls and deeply skeptical bears.
Key Takeaways NVIDIA's fiscal Q1 2027 revenues rose 85% as data center sales surged 92% year over year. Micron expects fiscal Q4 revenues of $50 billion and an approximately 86% gross margin on strong HBM demand.Micron trades at 13.7 times forward earnings versus NVIDIA's 24.76, offering a more attractive valuation. Banking on the artificial intelligence (AI) boom, Micron Technology (MU - Free Report) , led by Sanjay Mehrotra, has significantly outperformed Wall Street darling NVIDIA Corporation (NVDA - Free Report) this year, gaining 253.9% compared with NVDA’s 20.7%. Let’s examine their recent performances and assess whether Micron offers a more attractive investment case –
Image Source: Zacks Investment Research
The Bullish Case for NVDA StockNVIDIA reported revenues of $81.6 billion in the fiscal first quarter of 2027, up 85% year over year and 20% quarter over quarter, according to the company’s press release. The strong performance was driven by incessant demand for NVIDIA’s state-of-the-art AI chips and computing platforms.
Meanwhile, major cloud providers continued to ramp up investments in NVIDIA’s graphics processing units (GPUs) as they increased spending on AI infrastructure, helping drive robust growth in the company’s data center business segment. Data center revenues hit a record $75.2 billion, representing a 92% year-over-year jump and 21% growth from the prior quarter.
Revenues are expected to reach $91 billion, plus or minus 2%, in the fiscal second quarter of 2027, driven by strong AI demand. Growth is not limited to sales, as the company expects to maintain robust profitability. NVIDIA projects a non-GAAP gross margin of 75%, plus or minus 0.5%, in the fiscal second quarter, in line with the 75% margin reported in the fiscal first quarter.
The Bullish Case for MU Stock Micron reported revenues of $41.46 billion in the fiscal third quarter of 2026, well above the $23.86 billion reported in the previous quarter and the $9.3 billion reported a year ago, according to the company’s press release.
Strong demand for Micron’s advanced high-bandwidth memory (“HBM”) chips fueled the company’s top-line growth. The demand for HBM chips used in AI servers remains strong, as they are efficient at handling complex AI workloads and offer greater power efficiency.
The company further expects revenues to increase to approximately $50 billion in the fiscal fourth quarter of 2026. The company also projects a strong gross margin of around 86% for the fiscal fourth quarter, fueled by strong AI memory demand and favorable pricing.
Micron Has the Edge Over NVIDIA: Why It’s the Better AI Buy Strong demand for NVIDIA’s AI GPUs and Micron’s HBM chips is driving revenue growth and profitability for both companies and supports a bullish outlook. However, at current levels, Micron appears more attractively valued than NVIDIA. Per the price/earnings ratio, MU trades at 13.7 forward earnings compared with NVDA’s forward earnings multiple of 24.76.
Image Source: Zacks Investment Research
NVIDIA’s premium valuation requires sustained strong growth to justify further upside, while Micron may have a greater potential to outperform through steady earnings growth. NVIDIA’s growth story may hit roadblocks if there is a potential slowdown in AI spending, while export curbs on the sale of chips to China could weigh on the company’s margin.
On the other hand, HBM supply constraints amid strong demand have improved Micron’s revenue visibility and are likely to boost its profit margins. Thus, at present, Micron appears to be the more compelling investment opportunity.
While Micron has a Zacks Rank #1 (Strong Buy), NVIDIA has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank stocks here.
Key Takeaways NVIDIA's AI infrastructure demand remains strong, but China-related restrictions pose a key risk.Micron's surging memory revenue highlights the strategic value of memory in the AI era.D-Wave and Rigetti are advancing quantum computing as bookings, revenue and R&D support grow. The U.S.-China technology race is increasingly becoming a contest over artificial intelligence, quantum computing, semiconductors, critical minerals and control of strategic technology supply chains. The latest escalation came on Aug. 14, when Reuters reported that Washington is preparing to urge countries participating in the U.S.-led AI cooperation to choose between the U.S. and China's competing technology ecosystems. The effort builds on Pax Silica, a U.S.-led initiative aimed at securing supply chains for AI, semiconductors and critical minerals.
Against this backdrop, four stocks, NVIDIA (NVDA - Free Report) , Micron Technology (MU - Free Report) , D-Wave Quantum (QBTS - Free Report) and Rigetti Computing (RGTI - Free Report) provide significant exposure to different layers of the emerging U.S.-led advanced-technology ecosystem.
Let’s get into more detail.
Strong AI Demand Offsets a Mixed Global Economic BackdropThe strategic push comes as the global economy faces a relatively moderate and uneven growth environment. Going by its July Economic Outlook, the International Monetary Fund (IMF) projects 3% global GDP growth in 2026, while China's economy is expected to expand 4.6%.
Notably, the IMF says AI-driven demand is supporting economies integrated into the global technology value chain, even as the Middle East conflict weighs on activity and global disinflation has stalled. This divergence shows the growing importance of technology investment as a source of productivity and capital spending, while geopolitical fragmentation is prompting governments and companies to strengthen supply-chain resilience.
U.S. policymakers are simultaneously navigating persistent inflation and a softer labor market. The Federal Reserve maintained the federal funds target range at 3.5%-3.75% on July 29, noting that inflation remained elevated relative to its 2% goal, while productivity growth and capital investment remained strong. Meanwhile, U.S. nonfarm payrolls fell by 23,000 in July, sharply below expectations, although the unemployment rate edged down to 4.1% as labor-force participation declined (the U.S. Bureau of Labor Statistics).
The mixed backdrop makes companies positioned to benefit from long-term technology investment particularly relevant, as robust AI infrastructure spending and growing strategic support for quantum computing create opportunities across the next generation of advanced technologies.
4 Stocks Grabbing the LimelightNVIDIA: It remains the dominant supplier of accelerated computing for AI infrastructure. Fiscal first-quarter 2027 revenues surged 85% year over year, while Data Center revenues jumped 92%. The company guided fiscal second-quarter revenues of approximately $91 billion, although the outlook assumes no Data Center compute revenues from China. With fiscal second-quarter results due Aug. 26, NVIDIA offers direct exposure to continued AI infrastructure spending, while China-related restrictions remain a key risk.
This Zacks Rank #2 (Buy) stock is projected to report 99.1% earnings growth for the fiscal second quarter on 96.2% revenue growth over the year-ago period. NVDA’s average price target of $305.85 represents an increase of 35.93% from the last closing price of $225.01.
Image Source: Zacks Investment Research
Micron: It provides exposure to a critical layer of the AI infrastructure stack beyond accelerators. Fiscal third-quarter 2026 revenues soared to $41.46 billion from $9.30 billion a year earlier. Cloud Memory revenues climbed to $13.77 billion and Core Data Center revenues reached $11.52 billion. Micron said its strong results and outlook reflect the strategic value of memory in the AI era. Its investments in technology, products and supply also support the broader push to strengthen semiconductor capacity.
This Zacks Rank #2 stock is projected to report 935.9% earnings growth for the fiscal fourth quarter on 348.6% revenue growth over the year-ago period. MU’s average price target of $1496.09 represents an increase of 47.87% from the last closing price of $1011.75.
Image Source: Zacks Investment Research
D-Wave: Its first-half 2026 bookings surged 1,120% year over year, while production applications accounted for 37.3% of quantum-computing-as-a-service revenues, up from 9.8% a year earlier. However, second-quarter revenues were marginally down year over year, affected by the early stage of commercialization. The combination of rapidly expanding bookings and increasing production use cases provides a potential long-term catalyst.
This Zacks Rank #3 (Hold) stock is projected to report 82.9% earnings growth for the third quarter of 2026 on 5.7% revenue growth over the year-ago period. QBTS’ average price target of $35.79 represents an increase of 71.47% from the last closing price of $20.87.
Image Source: Zacks Investment Research
Rigetti: It provides exposure to superconducting, gate-based quantum computing. Second-quarter 2026 revenues increased to $5.1 million from $1.8 million a year earlier, while cash, cash equivalents and available-for-sale investments totaled $541.3 million at quarter-end. The company also signed a U.S. Department of Commerce letter of intent for up to $100 million over three years to support quantum R&D.
This Zacks Rank #3 stock is projected to report 71.9% earnings growth for 2026 on 246.4% revenue growth over the year-ago period. RGTI’s average price target of $29.55 represents an increase of 58.28% from the last closing price of $18.67. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Chip stocks tumbled Tuesday in a broad reversal from Monday's solid gains, leaving investors with whiplash. Decliners included Micron (MU) stock and other memory names, and Nvidia (NVDA) and fellow AI chipmakers.
The Philadelphia semiconductor index, known as SOX, fell more than 5% in afternoon trades on the stock market today. On Monday, the SOX, which includes the 30 largest chip stocks traded in the U.S., rose 1.6%.
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EZ Primary Research CEO and AI skeptic Ed Zitron breaks down why he believes the debt fueling the AI buildout is unsustainable, with spending racing ahead of revenue and the entire boom increasingly dependent on credit markets continuing to fund the next wave of data centers.
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After leading the charge higher on Monday, memory-chip stocks plunged on Tuesday. Micron stock retreated more than 7% to 939.18. Sandisk (SNDK) sank 9% to 1,623.44. SK Hynix (SKHY) fell more than 8% to 156.90.
Meanwhile, makers of processors for artificial intelligence also slumped on Tuesday. Nvidia stock slid more than 2% to 219.53. AMD (AMD) dropped more than 5% to 477.98. Broadcom (AVGO) slipped nearly 3% to 380.81.
The biggest losers on the SOX index on Tuesday were networking-chip makers Coherent (COHR) and Credo Technology (CRDO). In recent trades on Tuesday, Coherent crashed more than 12% to 308.89, while Credo plunged nearly 13% to 246.71.
In a client note, Mizuho Securities trading-desk analyst Jordan Klein chalked up the declines to machine trading as volumes in general remain low in mid-August.
Follow Patrick Seitz on X at @IBD_PSeitz for more stories on consumer technology, software and semiconductor stocks.
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Micron Technology (NASDAQ:MU | MU Price Prediction) closed the most recent session at $1,011.75, capping a 254.71% year-to-date run driven by an AI memory cycle that CEO Sanjay Mehrotra called a structural transformation of the industry.
Our 24/7 Wall St. price target for Micron is $964.63, implying -0.72% from here, and our recommendation is hold with high conviction.
24/7 Wall St. Price Target Summary Metric Value Current Price $1,011.75 24/7 Wall St. Price Target $964.63 Upside/Downside -0.72% Recommendation HOLD Confidence Level 90% Why We Could Be Wrong Our 24/7 Wall St. price target of $964.63 sits just below current levels. Real upside could come from 16 Strategic Customer Agreements locking in roughly $100 billion of minimum-priced revenue, or from HBM4 ramping twice as fast as HBM3E. Consensus analyst targets sit far higher.
A 254% YTD Run, Then a Cooldown Micron has climbed 738.41% over one year and 17.51% in the past week, but shares sit about 20% below the 52-week high of $1,254.81.
Q3 FY26 results showed memory’s AI leverage: revenue of $41.46 billion beat consensus by 17.60%, non-GAAP EPS of $25.11 beat by 23.79%, and GAAP gross margin expanded to 84.6% from 37.7% a year earlier. Q4 guidance calls for record revenue of $50 billion and EPS of $31.
The Case for $1,500+ Bulls have real ammunition. The average analyst price target sits at $1,501.98, backed by 9 strong buy and 31 buy ratings against zero sells. The forward P/E on trailing consensus is just 6, a valuation that assumes memory profits collapse rather than compound.
Mehrotra told analysts floor prices in SCAs deliver “a very robust gross margin for Micron, well above our peak quarterly margins in any past cycle.”
Data center revenue already exceeds $25 billion quarterly, Micron has shipped over $1 billion in HBM4 revenue, and management sees tight supply persisting beyond calendar 2027. Our bull-case scenario points to $1,334.11 over 12 months.
What Could Go Wrong Memory cycles are memory cycles. CapEx of $7.83 billion in a single quarter and full-year fiscal 2026 spending near $27 billion leave little margin for demand slippage. Beta of 2.213 means a broad AI de-rate cuts deeper here than most names.
Our bear scenario targets $705.83. Counterfactual: much of that CapEx funds the Idaho and New York fabs plus $18 billion in customer cash deposits that offset the spend.
How Micron Compares to Western Digital and Sandisk Western Digital (NASDAQ:WDC) is the cleanest HDD-only peer, riding the same hyperscaler storage buildout. WDC trades at a trailing P/E of 15 and forward P/E of 18, with Q4 revenue of $2.6B up 9% YoY.
SanDisk (NASDAQ:SNDK) is the pure-play NAND comparable. Sandisk trades at a forward P/E of 26 with an analyst target of $2,107.70. Micron’s forward P/E of 6 is a fraction of both, which explains the analyst-versus-model gap. The peer group makes our 24/7 Wall St. price target look conservative on multiples but appropriate given cycle risk.
Company Forward P/E Trailing P/E Micron 6 22 Western Digital 18 15 Sandisk 26 22 Micron Price Prediction 2026-2030 The 24/7 Wall St. price target is $964.63, recommendation hold, confidence 90%. A pullback toward $850 would look more attractive if HBM4 yields and SCA cash deposits keep landing on schedule. The setup weakens if hyperscaler CapEx guides soften into 2027.
Year 24/7 Wall St. Price Target 2026 $965 2027 $1,050 2028 $1,120 2029 $1,180 2030 $1,250 These projections assume Micron executes on its SCA-backed pricing framework and HBM roadmap. Meaningful upside toward the bull scenario of $2,058.69 by 2031 depends on tight supply persisting.
Contact [email protected] for any questions or corrections.
In the AI infrastructure boom, Nvidia (NVDA -2.15%) sells the brains of the AI factory while Micron (MU -7.46%) supplies the memory that keeps those brains fed with data, and that difference shapes which stock will benefit more from the current phase of this historic spending wave. In my view, Nvidia is the clearer winner because a greater fraction of every dollar of hyperscaler capex is spent on its accelerators than goes toward memory chips of the type that Micron manufactures. Micron still looks like a powerful second-derivative play, since AI servers can't be built without the high-bandwidth memory it supplies.
The money flow this year is wildly high. The hyperscalers themselves say they plan to spend hundreds of billions of dollars in 2026 alone to expand AI data centers, GPU clusters, networking, and power infrastructure, a sharp jump from already elevated 2025 levels. One estimate puts combined capex for Amazon, Microsoft, Alphabet, and Meta Platforms at around $700 billion, with roughly two-thirds of that directed toward AI infrastructure rather than traditional cloud. Within that budget, the largest line item is the AI server stack itself, where accelerated servers built around high-end GPUs drive most of the component revenue growth. And of course, the hyperscalers are not the only tech players building data centers now.
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Nvidia sits directly in the center of this buying spree. Its data center business now revolves around entire racks of AI computing power, not just single chips. Systems like the GB200 Grace Blackwell Superchip and GB200 NVL72 tie together dozens of CPUs and GPUs into logical accelerators that can train and serve trillion-parameter models more efficiently than the prior-generation Hopper platforms. Hyperscalers are lining up to deploy these systems in their AI clouds, with massive companies committing to offer GB200 NVL72 instances to customers who want to run large language models at scale. All this sounds dense, but the basic point is that Nvidia products are in steady demand.
Nvidia's roadmap also continues to push the limits of performance and memory. Architectures like Blackwell and its new Vera Rubin processors combine vast computing throughput with enormous pools of high bandwidth memory (HBM), turning racks into "AI factories." That keeps Nvidia at the absolute center of procurement decisions when cloud providers are calculating how many clusters they will need to handle their training and inferencing workloads in 2026 and beyond.
Image source: Getty Images.
What Micron actually sells Micron doesn't build accelerators. It builds the memory products that can rapidly supply the data to those accelerators so that they can work at full speed. Its HBM3E products are already shipping in volume, and Nvidia has chosen them as the high bandwidth memory stack for its H200 and Blackwell GPUs. Micron's HBM3E offers more than 1.2 terabytes per second of bandwidth per stack, with pin speeds above 9.2 gigabits per second and about 30% lower power usage than competing devices, a combination that's ideal for dense AI training clusters where power and cooling are tight.
The company has moved aggressively to secure its place in the AI build-out. Management has already locked in price and volume agreements for all of the HBM that it will be able to produce in 2026, including its upcoming HBM4 products. Its internal forecasts are that the HBM market will grow from roughly $35 billion in 2025 to around $100 billion in 2028, and Micron aims to hold a share similar to its position in broader DRAM. As such, it will benefit from both volume growth and scarcity pricing as AI clusters demand an ever-larger amount of memory per GPU.
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Who actually benefits more In absolute terms, Nvidia still captures a larger share of the AI infrastructure dollars. Hundreds of billions in hyperscaler capex are flowing into GPU-based servers, and GPUs and accelerators are the largest component group within those budgets. Every AI campus or AI factory that goes up in 2026 gets its specs set up first around Nvidia's computing roadmap; only after that can the focus shift to the memory, networking, and power needed to support it.
Micron's advantage is leverage. It doesn't need to win every socket in the server to thrive. Instead, it needs tight supply, high attach rates for HBM per accelerator, and firm long-term contracts, all of which are already in place for the current cycle. For investors trying to figure out which stock will benefit more from the AI infrastructure build-out in 2026, Nvidia is the one with more direct exposure to the GPU gold rush.
Micah Zimmerman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet, Amazon, Meta Platforms, Micron Technology, Microsoft, and Nvidia. The Motley Fool has a disclosure policy.
Micron Technology MU shares fell on Tuesday as the broader semiconductor sector came under pressure from rising Treasury yields and concerns about higher financing costs for artificial intelligence infrastructure.
The decline interrupted a strong run for the memory-chip maker, which had climbed above $1,000 in the previous session.
Micron shares fell 7.7% to $934.
South Korean memory-chip maker SK Hynix fell 9.2%, while SanDisk declined nearly 10%.
The semiconductor selloff came as Treasury yields climbed, raising concerns about borrowing costs and the potential impact on companies investing heavily in AI infrastructure.
Micron's total debt stood at $5.72 billion as of May, meaning the main concern is less about the company's own borrowing and more about whether its major customers could reduce spending on AI infrastructure as funding becomes more expensive.
Achilleas Georgolopoulos, a senior market analyst at Trading Point XM, said AI-related investment is heading toward trillions of dollars and that higher funding costs, energy prices and commodity costs could make that investment more expensive.
The pressure extended across the semiconductor industry. Advanced Micro Devices fell 5.4%, Intel dropped 7.3% and Nvidia declined 2.4%. Custom-chip makers Marvell Technology and Broadcom fell 8.4% and 2.9%, respectively.
Coherent, Ciena and Lumentum Holdings were among the S&P 500's biggest decliners, each falling at least 9% during Tuesday's session.
Micron has gained more than 700% over the past 12 months, making the stock particularly sensitive to changes in investor expectations and market sentiment.
David Wagner, head of equity at Aptus Capital Advisors, said the latest decline could indicate that investors were taking profits after recent gains in AI hardware stocks.
Ion Jauregui, an analyst at ActivTrades, also pointed to the scale of recent gains, saying volatility and profit-taking could remain elevated among high-beta technology stocks.
The pullback follows a period of strong momentum across chip stocks as investors have become increasingly confident about the durability of AI-related capital spending.
However, rising expectations have also increased the potential for sharp moves when sentiment changes.
AI developments added another factor to the market's focus. Jefferies equities trading analyst Jeffrey Favuzza noted that the selloff followed weakness in Asia-listed technology stocks and could be linked to concerns about elevated Treasury yields.
Memory demand remains a key supportDespite the selloff, analysts pointed to continued demand for memory and storage products as a potential support for the sector.
Paul Meeks, head of technology research at Freedom Capital Markets, said memory companies have "sterling fundamentals," while bearish investors remain concerned about a potential collapse in commodity chip pricing.
Meeks also highlighted long-term customer agreements being signed by Micron and SanDisk.
Both companies have said floor pricing under multiyear agreements is guaranteed to be higher than peak pricing seen during previous memory booms.
Jauregui said demand for memory and storage products remains strong and is increasing rapidly.
He added that greater confidence in sustained AI capital expenditure should support the broader semiconductor sector.
However, with expectations rising alongside share prices, investors could remain sensitive to any signs that AI spending or semiconductor demand is weakening.
Jauregui said he remained bullish on the structural AI story while cautioning about short-term risks if expectations soften.
Micron Technology (MU -6.65%) has delivered eye-popping gains of more than 8x over the past year, driven by an incredible increase in the company's revenue and earnings amid a favorable memory pricing environment.
However, investors have been booking profits in Micron stock lately. It has slipped 16% from the 52-week high it reached a couple of months ago, and that's quite surprising, since Micron's stunning growth isn't showing any signs of slowing. In fact, a closer look at the memory market's demand-supply dynamics will make it clear that the catalyst driving Micron's phenomenal growth over the past year is here to stay over the next year as well.
But will that be enough for this semiconductor stock to regain its mojo and jump another 200% by the end of 2027? Let's find out.
Source: Micron Technology.
Meet the historical trend that has led to an astronomical jump in Micron stockArtificial intelligence (AI) data centers require faster compute memory to move huge data sets quickly to graphics processing units (GPUs), server processors, and custom AI chips. This faster compute is enabled by stacking multiple dynamic random-access memory (DRAM) chips to create high-bandwidth memory (HBM).
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As a result, manufacturing HBM requires 3x the wafer capacity of a conventional DRAM chip. It is worth noting that global HBM revenue nearly doubled in 2025, according to Yole Group. Not surprisingly, memory demand has substantially exceeded supply, as memory manufacturers have prioritized HBM production due to higher margins.
JPMorgan notes that DRAM prices will jump by a whopping 400% from the beginning of 2024 to the end of 2026. As Micron derives over three-fourths of its revenue from DRAM sales, it is easy to see why the company's revenue and earnings growth have shot up over the past year.
MU Revenue (TTM) data by YCharts
The good news for Micron investors is that the memory market's growth is poised to continue in 2027. Market research firm TrendForce estimates that the global DRAM market's revenue could increase to $903.3 billion in 2027 from $618.7 billion this year. Micron has a 25% share of the DRAM market, according to Counterpoint Research. A similar share will increase the company's DRAM revenue to almost $226 billion in 2027, based on TrendForce's DRAM market size estimate.
That's significantly higher than the $90 billion in revenue Micron has generated over the trailing twelve months. Also, Micron's share of NAND flash memory stood at 13% at the end of the previous quarter. It is worth noting that NAND flash memory accounts for the rest of Micron's top line. So, the 40% increase in global NAND flash revenue expected next year to $379.4 billion bodes well for Micron investors.
A 10% share of the NAND flash market in 2027 would bring Micron's revenue from this segment to almost $38 billion. In all, the company's revenue could exceed $260 billion in calendar 2027 if we combine projected NAND and DRAM revenue. That's almost triple the revenue Micron has generated over the past year.
Moreover, Micron's bottom line should also keep growing at an incredible pace. That's because the memory supply shortage isn't expected to go away any time soon. Micron CEO Sanjay Mehrotra remarked on the company's June earnings call:
We expect tight conditions to persist beyond calendar 2027 as a result of AI-driven demand across all segments coupled with structural supply constraints.Micron peer SK Hynix recently noted that 2027 could be the worst year for the memory industry in terms of supply. This explains why analysts have become bullish on Micron's earnings growth for the current and next fiscal years.
MU EPS Estimates for Current Fiscal Year data by YCharts
But can the stock really jump by another 200%?We have already seen that Micron has the potential to generate $260 billion in revenue next year, driven by its healthy DRAM and NAND flash market share and the solid growth in both these markets. Micron currently trades at 12 times sales, a slight premium to the U.S. tech sector's average sales multiple of 7.6.
However, Micron's red-hot growth justifies the premium, and it won't be surprising to see it command a bigger premium in the future. Assuming it trades at 15 times sales at the end of 2027 and its revenue hits $260 billion, Micron's market cap could jump to $3.9 trillion. That's 242% higher than its current market cap, indicating that this AI stock could indeed jump by more than 200% by the end of next year, and that's why growth-oriented investors can still consider buying Micron as its bull run isn't over yet.
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The artificial-intelligence buildout is creating an unusual problem for semiconductor investors: demand is arriving faster than the supply chain can deliver the most advanced components. High-bandwidth memory, or HBM, is at the center of that squeeze because AI accelerators need enormous amounts of fast memory to keep their processors fed with data.
That has been a major tailwind for Micron Technology (NASDAQ:MU | MU Price Prediction) and SK hynix (NASDAQ:SKHY), whose HBM businesses are expanding alongside AI infrastructure spending. Now, however, a new wrinkle has appeared: Nvidia (NASDAQ:NVDA) is reportedly testing lower-memory configurations for its next-generation Rubin Ultra accelerators. That has raised concerns about “despec” risk.
What Does Despec Mean For Micron? Despec simply means reducing the amount or performance of a component from its original specification.
For Micron shareholders, that matters because every AI accelerator equipped with less HBM represents fewer memory bits sold. If Nvidia moves Rubin Ultra from a planned 1 terabyte of HBM to configurations as low as 192GB, the potential hit to memory demand could be meaningful.
The concern is not theoretical. According to BofA Global Research note, Nvidia is evaluating Rubin Ultra configurations ranging from 192GB to 288GB because of HBM supply constraints and HBM4e qualification delays.
But there is an important catch: Less memory comes with a performance penalty.
Supply chains are buckling under the AI boom, forcing a high-stakes engineering compromise. See why Nvidia’s shift to lower-memory specs is putting Micron shareholders on high alert. The Numbers Point Toward A Bottleneck, Not A New Normal BofA’s analysis says performance falls sharply below 500GB, making a return to much higher memory capacities more likely as supply improves. Nvidia’s own July technical documentation shows its standard Rubin GPU already supports up to 288GB of HBM4 and 22 terabytes (TB) per second of memory bandwidth.
That makes the current despec look more like an engineering compromise than a change in what AI systems ultimately need.
Ironically, the broader HBM supply chain is moving in the opposite direction. BofA says upcoming HBM4e and HBM5 generations are already being designed around 12-high and 16-high stacks, supporting roughly 500GB to 1TB of memory per accelerator. In other words, the industry is building more memory capacity into future products at the same time Nvidia is testing lower-capacity Rubin Ultra configurations.
BofA also argues that roughly 1TB ultimately becomes a “must-have” for Rubin Ultra, particularly as physical AI workloads demand larger memory pools.
What This Means For Micron Investors Nvidia’s testing of 192GB and 288GB configurations could reduce HBM content per Rubin Ultra accelerator during the initial ramp. That could create a temporary volume headwind for Micron and SK hynix if constrained HBM4e availability forces Nvidia to ship lower-memory versions.
But the bigger trend remains intact: AI workloads are becoming more memory-intensive, not less. Nvidia says Vera Rubin is designed for agentic AI and massive long-context workloads, with the platform already ramping into production. Those workloads make memory capacity increasingly important, while physical AI adds another demand driver.
Granted, investors should watch Rubin Ultra’s final configuration closely. A prolonged shift toward lower-memory accelerators would change the HBM growth story.
Key Takeaway For Micron shareholders, “despec” risk is worth monitoring but doesn’t yet undermine the investment thesis. The 192 GB to 288 GB configurations appear tied to near-term HBM4e supply and qualification constraints, while performance deteriorates below 500GB and the industry is already moving toward 500GB-to-1TB accelerators.
In the end, that looks more like a temporary supply bottleneck than a collapse in HBM content. The momentum behind Micron and SK hynix remains intact as AI accelerators demand more memory, not less.
Contact [email protected] for any questions or corrections.
BTC Capital Management Inc. purchased a new stake in Micron Technology, Inc. (NASDAQ:MU – Free Report) in the 2nd quarter, according to its most recent filing with the SEC. The institutional investor purchased 14,756 shares of the semiconductor manufacturer’s stock, valued at approximately $17,033,000. Micron Technology makes up about 1.0% of BTC Capital Management Inc.’s investment portfolio, making the stock its 19th largest holding.
Several other hedge funds also recently added to or reduced their stakes in MU. High Note Wealth LLC grew its stake in shares of Micron Technology by 65.4% in the fourth quarter. High Note Wealth LLC now owns 86 shares of the semiconductor manufacturer’s stock valued at $25,000 after buying an additional 34 shares in the last quarter. Kohmann Bosshard Financial Services LLC purchased a new stake in shares of Micron Technology during the 1st quarter valued at about $27,000. Bayban acquired a new position in Micron Technology during the 4th quarter worth approximately $29,000. GHP Investment Advisors Inc. lifted its position in Micron Technology by 91.2% during the 4th quarter. GHP Investment Advisors Inc. now owns 109 shares of the semiconductor manufacturer’s stock worth $31,000 after acquiring an additional 52 shares in the last quarter. Finally, Joseph Group Capital Management purchased a new position in Micron Technology in the 4th quarter worth approximately $31,000. 80.84% of the stock is owned by hedge funds and other institutional investors.
Analyst Upgrades and Downgrades A number of analysts have recently issued reports on the stock. TD Cowen reiterated a “buy” rating on shares of Micron Technology in a research note on Friday, July 10th. Wolfe Research set a $1,500.00 target price on shares of Micron Technology in a research note on Thursday, June 25th. Bank of America raised their price target on shares of Micron Technology from $950.00 to $1,500.00 and gave the company a “buy” rating in a report on Tuesday, June 23rd. Wedbush lifted their price target on shares of Micron Technology from $1,300.00 to $1,400.00 and gave the stock an “outperform” rating in a research note on Thursday, June 25th. Finally, Erste Group Bank upgraded shares of Micron Technology from a “hold” rating to a “buy” rating in a report on Thursday, June 25th. Four analysts have rated the stock with a Strong Buy rating, thirty-two have assigned a Buy rating and two have assigned a Hold rating to the company. According to MarketBeat.com, the stock presently has a consensus rating of “Buy” and an average target price of $1,259.97.
Read Our Latest Research Report on MU Insider Transactions at Micron Technology In other news, EVP April S. Arnzen sold 40,000 shares of Micron Technology stock in a transaction that occurred on Wednesday, July 1st. The stock was sold at an average price of $1,083.94, for a total value of $43,357,600.00. Following the completion of the transaction, the executive vice president owned 85,737 shares in the company, valued at approximately $92,933,763.78. This trade represents a 31.81% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, CAO Scott R. Allen sold 879 shares of the company’s stock in a transaction that occurred on Thursday, July 23rd. The shares were sold at an average price of $1,000.00, for a total value of $879,000.00. Following the sale, the chief accounting officer directly owned 34,958 shares in the company, valued at approximately $34,958,000. This represents a 2.45% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 162,179 shares of company stock valued at $167,811,861 over the last ninety days. 0.24% of the stock is currently owned by company insiders.
Micron Technology News Summary Here are the key news stories impacting Micron Technology this week:
Positive Sentiment: AI-driven memory shortage: Demand for high-bandwidth memory (HBM) used in AI data centers continues to absorb manufacturing capacity. HBM requires substantially more wafer capacity than conventional DRAM, supporting tight supply, higher pricing and stronger margins for Micron. Industry growth targets and fully allocated HBM production suggest the shortage could persist. Why This Memory Chip Boom May Have More Staying Power Than History Suggests Positive Sentiment: U.S. policy reduces Chinese competition: Reports that the White House is discouraging U.S. technology companies from sourcing conventional memory chips from Chinese suppliers, including Apple’s potential suppliers, improved sentiment toward Micron and other Western memory producers. The policy could strengthen Micron’s negotiating position and support longer-term domestic demand. Micron Shares Rise as White House Pushes Apple Away From Chinese Memory Chips Positive Sentiment: Upbeat analyst outlook: Bank of America maintained a Buy rating and a $1,550 price target, arguing that concerns about a cyclical peak are overstated. The firm projects Micron’s earnings could exceed $230 per share by fiscal 2030, while recent quarterly results showed $41.46 billion in revenue and $25.11 in EPS, both well ahead of estimates. BofA Sees Micron EPS Topping $230 by FY30 Positive Sentiment: Broader AI enthusiasm: Comments from Elon Musk emphasizing the importance of memory and storage for agentic AI helped lift Micron alongside SanDisk and other memory stocks. Comparisons with AMD and NVIDIA also highlighted Micron’s rapid earnings growth and relatively lower valuation. Elon Musk Just Uttered Massively Bullish Words for Micron Neutral Sentiment: Institutional profit-taking: Appaloosa Management reduced its Micron position by 41%, while Stanley Druckenmiller’s Duquesne Family Office exited the stock. The selling may reflect profit-taking after the enormous rally, although Micron remains a major holding for some investors. Hedge Fund Heavyweights Are Dumping Micron Negative Sentiment: Risks remain elevated: Micron’s sharp advance leaves the stock vulnerable to valuation compression, profit-taking, a broader technology pullback and any eventual increase in memory supply. Intel is also exploring new memory architectures, potentially creating a longer-term competitive threat. Intel Eyes a Memory Comeback Micron Technology Stock Up 4.1% Shares of NASDAQ:MU opened at $1,011.75 on Tuesday. The firm has a market cap of $1.14 trillion, a PE ratio of 22.91 and a beta of 2.19. The company has a fifty day simple moving average of $966.74 and a 200 day simple moving average of $683.34. The company has a current ratio of 3.42, a quick ratio of 2.98 and a debt-to-equity ratio of 0.05. Micron Technology, Inc. has a 12-month low of $113.46 and a 12-month high of $1,255.00.
Micron Technology (NASDAQ:MU – Get Free Report) last announced its quarterly earnings data on Wednesday, June 24th. The semiconductor manufacturer reported $25.11 earnings per share for the quarter, topping the consensus estimate of $21.39 by $3.72. The company had revenue of $41.46 billion during the quarter, compared to analyst estimates of $35.91 billion. Micron Technology had a net margin of 55.91% and a return on equity of 71.13%. The firm’s revenue for the quarter was up 345.8% compared to the same quarter last year. During the same period last year, the business earned $1.91 EPS. Micron Technology has set its Q4 2026 guidance at 30.000-32.000 EPS. On average, equities research analysts anticipate that Micron Technology, Inc. will post 72.93 EPS for the current fiscal year.
Micron Technology Dividend Announcement The company also recently declared a quarterly dividend, which was paid on Tuesday, July 21st. Investors of record on Monday, July 6th were paid a $0.15 dividend. This represents a $0.60 dividend on an annualized basis and a yield of 0.1%. The ex-dividend date was Monday, July 6th. Micron Technology’s dividend payout ratio (DPR) is 1.36%.
Micron Technology Profile (Free Report)
Micron Technology, Inc is a global semiconductor company that designs and manufactures memory and storage solutions. Its product portfolio includes dynamic random-access memory (DRAM), NAND flash memory, solid-state drives (SSDs), memory modules and embedded memory solutions for a wide range of computing and electronic devices. Micron supplies components used in data centers, enterprise and cloud infrastructure, client computing, mobile devices, automotive systems and industrial applications, and also markets consumer-facing products under the Crucial brand.
Founded in 1978 and headquartered in Boise, Idaho, Micron has grown into an international manufacturer with research, development and production facilities across multiple regions.
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Crossmark Global Holdings Inc. raised its holdings in shares of Micron Technology, Inc. (NASDAQ:MU – Free Report) by 18.1% in the 2nd quarter, according to its most recent Form 13F filing with the Securities & Exchange Commission. The fund owned 67,693 shares of the semiconductor manufacturer’s stock after purchasing an additional 10,372 shares during the quarter. Micron Technology accounts for about 1.0% of Crossmark Global Holdings Inc.’s portfolio, making the stock its 9th largest position. Crossmark Global Holdings Inc.’s holdings in Micron Technology were worth $78,137,000 as of its most recent SEC filing.
Other hedge funds have also recently made changes to their positions in the company. Coastwise Capital Group LLC bought a new position in shares of Micron Technology in the 2nd quarter valued at about $352,000. Truefg LLC bought a new stake in Micron Technology during the second quarter worth approximately $231,000. Waystone Advisors LLC purchased a new stake in Micron Technology during the second quarter valued at approximately $298,000. Integrated Financial Solutions Inc. raised its position in Micron Technology by 339.2% during the second quarter. Integrated Financial Solutions Inc. now owns 2,798 shares of the semiconductor manufacturer’s stock valued at $3,230,000 after purchasing an additional 2,161 shares during the period. Finally, Ledyard National Bank bought a new stake in shares of Micron Technology in the 2nd quarter valued at approximately $1,723,000. 80.84% of the stock is currently owned by hedge funds and other institutional investors.
Insider Activity In other Micron Technology news, CEO Sanjay Mehrotra sold 37,439 shares of the stock in a transaction dated Friday, May 29th. The shares were sold at an average price of $960.38, for a total transaction of $35,955,666.82. Following the completion of the sale, the chief executive officer directly owned 387,064 shares of the company’s stock, valued at approximately $371,728,524.32. This represents a 8.82% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which can be accessed through this hyperlink. Also, CAO Scott R. Allen sold 879 shares of the firm’s stock in a transaction dated Thursday, July 23rd. The shares were sold at an average price of $1,000.00, for a total transaction of $879,000.00. Following the completion of the sale, the chief accounting officer owned 34,958 shares in the company, valued at $34,958,000. This represents a 2.45% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last three months, insiders have sold 162,179 shares of company stock valued at $167,811,861. Company insiders own 0.24% of the company’s stock.
Key Micron Technology News Here are the key news stories impacting Micron Technology this week: Positive Sentiment: AI-driven memory shortage: Demand for high-bandwidth memory (HBM) used in AI data centers continues to absorb manufacturing capacity. HBM requires substantially more wafer capacity than conventional DRAM, supporting tight supply, higher pricing and stronger margins for Micron. Industry growth targets and fully allocated HBM production suggest the shortage could persist. Why This Memory Chip Boom May Have More Staying Power Than History Suggests Positive Sentiment: U.S. policy reduces Chinese competition: Reports that the White House is discouraging U.S. technology companies from sourcing conventional memory chips from Chinese suppliers, including Apple’s potential suppliers, improved sentiment toward Micron and other Western memory producers. The policy could strengthen Micron’s negotiating position and support longer-term domestic demand. Micron Shares Rise as White House Pushes Apple Away From Chinese Memory Chips Positive Sentiment: Upbeat analyst outlook: Bank of America maintained a Buy rating and a $1,550 price target, arguing that concerns about a cyclical peak are overstated. The firm projects Micron’s earnings could exceed $230 per share by fiscal 2030, while recent quarterly results showed $41.46 billion in revenue and $25.11 in EPS, both well ahead of estimates. BofA Sees Micron EPS Topping $230 by FY30 Positive Sentiment: Broader AI enthusiasm: Comments from Elon Musk emphasizing the importance of memory and storage for agentic AI helped lift Micron alongside SanDisk and other memory stocks. Comparisons with AMD and NVIDIA also highlighted Micron’s rapid earnings growth and relatively lower valuation. Elon Musk Just Uttered Massively Bullish Words for Micron Neutral Sentiment: Institutional profit-taking: Appaloosa Management reduced its Micron position by 41%, while Stanley Druckenmiller’s Duquesne Family Office exited the stock. The selling may reflect profit-taking after the enormous rally, although Micron remains a major holding for some investors. Hedge Fund Heavyweights Are Dumping Micron Negative Sentiment: Risks remain elevated: Micron’s sharp advance leaves the stock vulnerable to valuation compression, profit-taking, a broader technology pullback and any eventual increase in memory supply. Intel is also exploring new memory architectures, potentially creating a longer-term competitive threat. Intel Eyes a Memory Comeback NASDAQ:MU opened at $1,011.75 on Tuesday. The company has a debt-to-equity ratio of 0.05, a current ratio of 3.42 and a quick ratio of 2.98. The firm has a market cap of $1.14 trillion, a PE ratio of 22.91 and a beta of 2.19. The company has a 50-day moving average of $966.74 and a 200 day moving average of $683.34. Micron Technology, Inc. has a 1-year low of $113.46 and a 1-year high of $1,255.00.
Micron Technology (NASDAQ:MU – Get Free Report) last posted its earnings results on Wednesday, June 24th. The semiconductor manufacturer reported $25.11 earnings per share for the quarter, topping analysts’ consensus estimates of $21.39 by $3.72. The company had revenue of $41.46 billion during the quarter, compared to analyst estimates of $35.91 billion. Micron Technology had a return on equity of 71.13% and a net margin of 55.91%.Micron Technology’s revenue was up 345.8% on a year-over-year basis. During the same quarter in the prior year, the business earned $1.91 earnings per share. Micron Technology has set its Q4 2026 guidance at 30.000-32.000 EPS. As a group, research analysts anticipate that Micron Technology, Inc. will post 72.93 EPS for the current fiscal year.
Micron Technology Dividend Announcement The company also recently announced a quarterly dividend, which was paid on Tuesday, July 21st. Shareholders of record on Monday, July 6th were issued a $0.15 dividend. The ex-dividend date was Monday, July 6th. This represents a $0.60 dividend on an annualized basis and a yield of 0.1%. Micron Technology’s payout ratio is currently 1.36%.
Analyst Upgrades and Downgrades A number of equities analysts have recently commented on MU shares. Weiss Ratings reiterated a “buy (b)” rating on shares of Micron Technology in a report on Friday, August 7th. Bank of America raised their target price on shares of Micron Technology from $950.00 to $1,500.00 and gave the stock a “buy” rating in a report on Tuesday, June 23rd. Wolfe Research set a $1,500.00 price target on shares of Micron Technology in a report on Thursday, June 25th. Mizuho increased their price objective on shares of Micron Technology from $1,150.00 to $1,375.00 and gave the stock an “outperform” rating in a research report on Thursday, June 25th. Finally, Raymond James Financial increased their price objective on shares of Micron Technology from $1,100.00 to $1,500.00 and gave the stock an “outperform” rating in a research report on Thursday, June 25th. Four equities research analysts have rated the stock with a Strong Buy rating, thirty-two have issued a Buy rating and two have assigned a Hold rating to the company. According to MarketBeat, the stock has an average rating of “Buy” and a consensus target price of $1,259.97.
Read Our Latest Stock Analysis on Micron Technology
Micron Technology Profile (Free Report)
Micron Technology, Inc is a global semiconductor company that designs and manufactures memory and storage solutions. Its product portfolio includes dynamic random-access memory (DRAM), NAND flash memory, solid-state drives (SSDs), memory modules and embedded memory solutions for a wide range of computing and electronic devices. Micron supplies components used in data centers, enterprise and cloud infrastructure, client computing, mobile devices, automotive systems and industrial applications, and also markets consumer-facing products under the Crucial brand.
Founded in 1978 and headquartered in Boise, Idaho, Micron has grown into an international manufacturer with research, development and production facilities across multiple regions.
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Integrated Financial Solutions Inc. raised its stake in Micron Technology, Inc. (NASDAQ:MU – Free Report) by 339.2% during the 2nd quarter, according to its most recent filing with the Securities and Exchange Commission. The fund owned 2,798 shares of the semiconductor manufacturer’s stock after purchasing an additional 2,161 shares during the quarter. Micron Technology accounts for 1.7% of Integrated Financial Solutions Inc.’s investment portfolio, making the stock its 14th biggest holding. Integrated Financial Solutions Inc.’s holdings in Micron Technology were worth $3,230,000 as of its most recent filing with the Securities and Exchange Commission.
A number of other institutional investors have also modified their holdings of MU. Ledyard National Bank purchased a new stake in shares of Micron Technology during the second quarter worth approximately $1,723,000. Patriot Financial Group Insurance Agency LLC grew its position in Micron Technology by 91.4% in the 2nd quarter. Patriot Financial Group Insurance Agency LLC now owns 10,384 shares of the semiconductor manufacturer’s stock valued at $11,987,000 after buying an additional 4,958 shares during the last quarter. Riversedge Advisors LLC grew its position in Micron Technology by 4.2% in the 2nd quarter. Riversedge Advisors LLC now owns 2,399 shares of the semiconductor manufacturer’s stock valued at $2,769,000 after buying an additional 96 shares during the last quarter. Ramiah Investment Group acquired a new position in Micron Technology in the 2nd quarter valued at $420,000. Finally, Penobscot Wealth Management purchased a new stake in shares of Micron Technology in the second quarter valued at about $522,000. Institutional investors and hedge funds own 80.84% of the company’s stock.
Micron Technology Stock Performance Shares of MU opened at $1,011.75 on Tuesday. The company has a current ratio of 3.42, a quick ratio of 2.98 and a debt-to-equity ratio of 0.05. The stock has a market cap of $1.14 trillion, a P/E ratio of 22.91 and a beta of 2.19. The company has a 50-day moving average of $966.74 and a two-hundred day moving average of $683.34. Micron Technology, Inc. has a 12-month low of $113.46 and a 12-month high of $1,255.00.
Micron Technology (NASDAQ:MU – Get Free Report) last released its quarterly earnings results on Wednesday, June 24th. The semiconductor manufacturer reported $25.11 EPS for the quarter, beating the consensus estimate of $21.39 by $3.72. The business had revenue of $41.46 billion for the quarter, compared to analyst estimates of $35.91 billion. Micron Technology had a net margin of 55.91% and a return on equity of 71.13%. The company’s quarterly revenue was up 345.8% on a year-over-year basis. During the same period in the prior year, the business earned $1.91 earnings per share. Micron Technology has set its Q4 2026 guidance at 30.000-32.000 EPS. As a group, research analysts predict that Micron Technology, Inc. will post 72.93 EPS for the current fiscal year. Micron Technology Announces Dividend The company also recently announced a quarterly dividend, which was paid on Tuesday, July 21st. Investors of record on Monday, July 6th were paid a $0.15 dividend. The ex-dividend date of this dividend was Monday, July 6th. This represents a $0.60 annualized dividend and a yield of 0.1%. Micron Technology’s payout ratio is presently 1.36%.
Wall Street Analysts Forecast Growth MU has been the topic of a number of analyst reports. Raymond James Financial lifted their price objective on Micron Technology from $1,100.00 to $1,500.00 and gave the company an “outperform” rating in a report on Thursday, June 25th. The Goldman Sachs Group raised their price target on Micron Technology from $900.00 to $1,100.00 and gave the company a “neutral” rating in a report on Thursday, June 25th. Mizuho upped their price objective on Micron Technology from $1,150.00 to $1,375.00 and gave the stock an “outperform” rating in a report on Thursday, June 25th. UBS Group reiterated a “buy” rating on shares of Micron Technology in a research report on Monday, August 10th. Finally, Barclays raised their target price on Micron Technology from $1,175.00 to $2,000.00 and gave the company an “overweight” rating in a report on Thursday, June 25th. Four equities research analysts have rated the stock with a Strong Buy rating, thirty-two have issued a Buy rating and two have assigned a Hold rating to the company. Based on data from MarketBeat, the stock has an average rating of “Buy” and a consensus target price of $1,259.97.
Check Out Our Latest Research Report on Micron Technology
Insider Activity In other news, CAO Scott R. Allen sold 879 shares of the firm’s stock in a transaction on Thursday, July 23rd. The stock was sold at an average price of $1,000.00, for a total transaction of $879,000.00. Following the sale, the chief accounting officer owned 34,958 shares in the company, valued at $34,958,000. This trade represents a 2.45% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, CEO Sanjay Mehrotra sold 37,439 shares of Micron Technology stock in a transaction on Friday, May 29th. The shares were sold at an average price of $960.38, for a total value of $35,955,666.82. Following the completion of the sale, the chief executive officer directly owned 387,064 shares of the company’s stock, valued at approximately $371,728,524.32. This represents a 8.82% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 162,179 shares of company stock valued at $167,811,861 in the last 90 days. Company insiders own 0.24% of the company’s stock.
Key Micron Technology News Here are the key news stories impacting Micron Technology this week:
Positive Sentiment: AI-driven memory shortage: Demand for high-bandwidth memory (HBM) used in AI data centers continues to absorb manufacturing capacity. HBM requires substantially more wafer capacity than conventional DRAM, supporting tight supply, higher pricing and stronger margins for Micron. Industry growth targets and fully allocated HBM production suggest the shortage could persist. Why This Memory Chip Boom May Have More Staying Power Than History Suggests Positive Sentiment: U.S. policy reduces Chinese competition: Reports that the White House is discouraging U.S. technology companies from sourcing conventional memory chips from Chinese suppliers, including Apple’s potential suppliers, improved sentiment toward Micron and other Western memory producers. The policy could strengthen Micron’s negotiating position and support longer-term domestic demand. Micron Shares Rise as White House Pushes Apple Away From Chinese Memory Chips Positive Sentiment: Upbeat analyst outlook: Bank of America maintained a Buy rating and a $1,550 price target, arguing that concerns about a cyclical peak are overstated. The firm projects Micron’s earnings could exceed $230 per share by fiscal 2030, while recent quarterly results showed $41.46 billion in revenue and $25.11 in EPS, both well ahead of estimates. BofA Sees Micron EPS Topping $230 by FY30 Positive Sentiment: Broader AI enthusiasm: Comments from Elon Musk emphasizing the importance of memory and storage for agentic AI helped lift Micron alongside SanDisk and other memory stocks. Comparisons with AMD and NVIDIA also highlighted Micron’s rapid earnings growth and relatively lower valuation. Elon Musk Just Uttered Massively Bullish Words for Micron Neutral Sentiment: Institutional profit-taking: Appaloosa Management reduced its Micron position by 41%, while Stanley Druckenmiller’s Duquesne Family Office exited the stock. The selling may reflect profit-taking after the enormous rally, although Micron remains a major holding for some investors. Hedge Fund Heavyweights Are Dumping Micron Negative Sentiment: Risks remain elevated: Micron’s sharp advance leaves the stock vulnerable to valuation compression, profit-taking, a broader technology pullback and any eventual increase in memory supply. Intel is also exploring new memory architectures, potentially creating a longer-term competitive threat. Intel Eyes a Memory Comeback Micron Technology Profile (Free Report)
Micron Technology, Inc is a global semiconductor company that designs and manufactures memory and storage solutions. Its product portfolio includes dynamic random-access memory (DRAM), NAND flash memory, solid-state drives (SSDs), memory modules and embedded memory solutions for a wide range of computing and electronic devices. Micron supplies components used in data centers, enterprise and cloud infrastructure, client computing, mobile devices, automotive systems and industrial applications, and also markets consumer-facing products under the Crucial brand.
Founded in 1978 and headquartered in Boise, Idaho, Micron has grown into an international manufacturer with research, development and production facilities across multiple regions.
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Sandisk (SNDK -5.59%) has been by far the best-performing S&P 500 (^GSPC -0.51%) stock in 2026 with a 544% year to date gain as of the market close on Aug. 13. Sandisk is followed by Dell Technologies, Seagate Technology, Micron Technology (MU -4.20%) -- which now has a market cap of more than $1 trillion -- Intel, Western Digital, Marvell Technology, Hewlett Packard Enterprise, Lumentum, and Advanced Micro Devices. So the 10 best-performing S&P 500 stocks are all tech stocks with significant exposure to the boom in artificial intelligence (AI) spending.
Given that concentration, you may think that large-cap tech stocks are driving the market to new heights. But surprisingly, small-cap stocks are outperforming mid-, large-, and mega-cap stocks in 2026 -- as well as the S&P 500 and Nasdaq-100 -- which is the largest non-financial companies by market cap in the Nasdaq Composite (^IXIC -1.28%)
Here's why the Vanguard Morningstar Small-Cap ETF (VB -0.60%) presents one of the best ways to invest in small-cap stocks, and why the exchange-traded fund could be a buy now.
Image source: Getty Images.
An AI-driven rally In 2022, the S&P 500 fell 19%, and the Nasdaq-100 fell 33%, as investors questioned valuations and digested inflationary pressures. But on Nov. 30, 2022, OpenAI released ChatGPT for free. What has followed has been nothing short of paradigm-shifting momentum in the U.S. stock market -- driven largely by artificial intelligence (AI), the technology sector, and mega-cap growth stocks.
The gains were so large that Bank of America analyst Michael Hartnett popularized the term "Magnificent Seven" in 2023 to describe seven tech-fueled mega-cap growth stocks -- Nvidia (NVDA -1.97%), Apple, Alphabet, Microsoft, Amazon, Meta Platforms, and Tesla. The AI-driven rally has expanded significantly beyond the Magnificent Seven, with the biggest winners in 2026 largely companies benefiting from record AI capital spending -- from memory chip stocks to networking companies to semiconductor equipment makers.
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Changing of the guard Despite the rallies in tech stocks like Sandisk and Micron, there has been a slowdown in the mega-cap dominance. In fact, Nvidia and Amazon are the only Magnificent Seven stocks that are outperforming the S&P 500 year to date -- and Meta Platforms and Tesla have declined.
NVDA data by YCharts
Big gains in semiconductor stocks have certainly contributed to strong 2026 performances in the S&P 500 and Nasdaq-100. But dig deeper, and there's an equally interesting force at play -- which is the rebound in mid- and small-cap stocks.
^NDX data by YCharts
The boom in AI growth stocks coincided with the Nasdaq-100 more than doubling during the past five years, which is particularly impressive considering that period includes the 2022 sell-off. At the same time, small-cap stocks were drastically underperforming their large-cap peers. But in 2026, small caps are doing better than other large and mega-caps, as well as the major indexes.
VB Total Return Level data by YCharts
Small-cap stocks remain a good value Funds like the Vanguard Morningstar Small-Cap ETF tend to perform well when investors question mega-cap growth stock valuations and shift toward value stocks. Even after its strong performance in 2026, the Small-Cap ETF features a mere 22.3 price-to-earnings (P/E) ratio, which is noticeably lower than the Vanguard S&P 500 ETF's (VOO -0.43%) 27.5 P/E ratio.
Unlike the S&P 500, which has more than half of its weighting in just 5% of its holdings, the Vanguard Small-Call ETF has 1,311 holdings, and the largest holding makes up just 0.54% of the fund. Top holdings in the Vanguard S&P 500 ETF include well-known companies like Nvidia, Alphabet, and Apple -- which make up a combined 20.5% of the ETF. The top holdings in the Vanguard Morningstar Small-Cap ETF are companies you may have never heard of, like Credo Technology, Jabil, Revolution Medicines, and Astera Labs.
The easiest way to visualize the difference between the Small-Cap ETF and the S&P 500 ETF is to look at their sector components.
Sector
Vanguard Morningstar Small-Cap ETF
Vanguard S&P 500 ETF
Industrials
22.4%
8.8%
Technology and Communications
16.8%
47.7%
Consumer Discretionary
12.8%
9.3%
Financials
12.3%
11.8%
Healthcare
12.3%
8.9%
Real Estate
7.4%
1.8%
Basic Materials
4.7%
1.8%
Energy
4.4%
3%
Utilities
3.6%
2.2%
Consumer Staples
3.3%
4.6%
Other
0%
0.1%
Data source: Vanguard.
As you can see in the table, the Vanguard S&P 500 ETF has a far higher weighting in technology and communications than the Small-Cap ETF, which is highly concentrated in value and cyclically focused sectors. In addition to having a lower valuation, the Small-Cap ETF also has a higher dividend yield of 1.3%, compared to just 1% for the Vanguard S&P 500 ETF. And both ETFs have identical 0.03% expense ratios -- which is just $0.30 for every $1,000 invested.
A good ETF for value investors The best reason to invest in an ETF is if it fills a particular need in your portfolio -- especially one that is hard to replicate through buying individual stocks. If your portfolio is already built around mega- and large-cap S&P 500 stocks, then buying the Vanguard S&P 500 ETF can be redundant and duplicate existing holdings. Whereas the Vanguard Small-Cap ETF would provide significant diversification, as many of its holdings are stocks you may be less familiar with.
In sum, the Vanguard Small-Cap ETF is a good buy for investors looking for an ultra-low-cost way to get exposure to a basket of more than 1,000 stocks -- most of which they probably don't already own.
Bank of America is an advertising partner of Motley Fool Money. Daniel Foelber has positions in Nvidia and has the following options: short August 2026 $240 calls on Nvidia. The Motley Fool has positions in and recommends Advanced Micro Devices, Alphabet, Amazon, Apple, Hewlett Packard Enterprise, Intel, Lumentum, Marvell Technology, Meta Platforms, Micron Technology, Microsoft, Nvidia, Tesla, Vanguard S&P 500 ETF, and Western Digital. The Motley Fool recommends Astera Labs. The Motley Fool has a disclosure policy.
BofA Securities has reiterated its ‘Buy’ rating on Micron Technology (NASDAQ: MU) and maintained a stock price target of $1,550.
The target, issued by BofA analyst Vivek Arya, implies potential upside of about 48% from MU’s last closing price of $1,011.
MU stock price chart. Source: Finbold The reaffirmed rating follows Micron’s addition to BofA’s US 1 List and reflects growing confidence that the memory industry is entering a more durable phase with stronger long-term earnings potential.
According to BofA, Micron’s earnings outlook is supported by structural changes in the memory market rather than the traditional boom-and-bust cycle that has historically defined the sector.
The firm highlighted expectations for more disciplined industry supply growth and stronger customer commitments, factors that could support sustained profitability and higher earnings power over time.
BofA also cited assumptions similar to those presented at SK hynix’s recent analyst event, suggesting Micron could eventually generate more than $230 in earnings per share.
Under that framework, Micron could deliver fiscal 2030 earnings per share of between $200 and $250 while achieving annual EPS growth of more than 30% from fiscal 2026 through fiscal 2030.
Wall Street bullish take on MU stock Those projections are well above current Wall Street expectations, which generally forecast peak earnings per share of roughly $160 to $170 over the next one to two years.
The latest Micron stock forecast aligns with broader Wall Street sentiment. According to TipRanks data, 30 analysts currently cover the stock, with 29 ‘Buy’ ratings and one ‘Hold’ rating, resulting in a ‘Strong Buy’ consensus.
MU 12-month stock price chart. Source: TipRanks The average 12-month Micron price target stands at $1,568.39, implying approximately 55% upside from recent trading levels. The highest analyst target is $2,200, while the lowest is $1,100.
With BofA maintaining one of the more bullish outlooks on the semiconductor company, investors remain focused on whether improving memory market conditions can translate into sustained earnings growth and justify higher valuations for Micron stock.
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Micron Technology (NASDAQ: MU | MU Price Prediction) just delivered a fiscal Q3 that redefined what an AI memory cycle looks like, while SK Hynix (NASDAQ:SKHY) posted its own record quarter in Korean won and made its NASDAQ debut in July 2026 through a $26.5 billion foreign offering. With both HBM leaders now trading on the same exchange, US investors can finally weigh them side by side.
HBM4 Ramps Meet a Korean Giant Reintroducing Itself Micron’s June quarter was a step-change. Revenue hit $41.456 billion, up 345.7% year over year, with GAAP gross margin expanding to 84.6%. Cloud Memory alone contributed $13.769 billion, and Sanjay Mehrotra told analysts that “HBM4 12 high volume ramp is tracking twice as fast as HBM3E 12 high and we have already shipped over $1 billion in HBM4 revenue.” That is Micron chipping directly at SK Hynix’s flagship business.
SK Hynix answered with its own record: Q2 2026 revenue of 79.3 trillion won and operating profit of 60.5 trillion won, driven by HBM sales. A modest earnings miss triggered an initial 10% selloff in the ADR, yet analysts kept unanimous Buy ratings with 12-month targets averaging $245. Micron carries a heftier crowd: 40 Buys, 5 Holds, and a $1,501.98 average target.
One Locks In Customers. The Other Locks In Capacity. Lens Micron SK Hynix HBM Positioning HBM4 12-high shipping to lead AI accelerator customer Incumbent HBM3E supplier, HBM4 in qualification Capacity Bet Idaho, New York, Taiwan greenfield fabs $720 billion capacity-expansion plan Revenue Lock-in 16 SCAs, ~$100 billion cumulative floor-price revenue Traditional purchase orders, buyback catalyst pending Mehrotra’s take-or-pay agreements are the real weapon here. He said “even at the floor price… we expect the margins to be significantly above prior peak margins”, and those contracts will eventually cover roughly half of company revenue. SK Hynix leans on scale and its Nvidia relationship, which is a formidable moat but a less contractually rigid one.
The Next Test Is HBM4E and Supply Discipline Micron expects fiscal Q4 revenue of $50.0 billion with ~86% gross margin, and Mehrotra flagged that tight conditions should persist beyond calendar 2027. The variables to watch are whether SK Hynix keeps HBM4 qualification on pace at Nvidia and whether Micron’s HBM4E on 1-gamma DRAM stays on track for volume production in calendar 2027. Any slippage swaps the leader.
Why Micron Leads, but the Newcomer Warrants Respect Micron’s SCAs make the earnings stream harder to break than the market appreciates. A forward P/E of 6 against that contract book is a rare combination. That said, SK Hynix is now accessible, cheaper on some measures, and still the HBM incumbent. For Micron holders, the NASDAQ listing offers exposure to the same thesis through a second name. The single variable holding this cycle together is AI capex guidance from hyperscalers; a rollover there would reset the setup for both stocks.
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Investors analyzing what's driving semiconductor stocks should look at how two forces—trade policy and the demands of artificial intelligence—are reshaping institutional portfolios. Traditional cyclicality in the memory segment is giving way to something steadier and more structural.
This shift is propelled by federal protectionist policy and a tightening supply ceiling as high-performance compute (HPC) clusters consume global foundry capacity, fundamentally resetting the industry's long-term margin profile.
Washington is working to insulate critical technology supply chains, effectively establishing a federally guarded protectionist moat. At the same time, hyper-scaler data center demand is consuming global silicon wafer capacity, creating a structural shortage in advanced memory.
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This combination grants domestic producers unprecedented pricing power over hardware developers. Instead of competing on thin margins against subsidized foreign producers, domestic makers are securing multi-year, high-margin supply agreements. Investors who grasp how this geopolitical shield feeds directly into wider margins can spot these structural shifts before the market fully prices them in.
Washington Cuts off Cheap Foreign ChipsThis policy shift shows up most clearly in consumer hardware, where major technology companies face shrinking flexibility in component sourcing. A prime example occurred when federal trade officials cautioned consumer electronics leader Apple Inc. NASDAQ: AAPL against buying lower-cost memory components from foreign state-subsidized suppliers, including Yangtze Memory Technologies Corp and ChangXin Memory Technologies.
With hardware gross margins facing pressure from rising component costs, mega-cap buyers naturally sought cheaper alternatives overseas. However, the U.S. Department of Commerce made its position explicit: sourcing core memory components from blacklisted or foreign military-linked enterprises poses unacceptable national security risks. This regulatory stance removes low-cost foreign producers from the domestic supply chain, stripping buyers of their traditional negotiating leverage.
Micron Technology Today
MU
Micron Technology
$962.43 -49.32 (-4.87%)
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This is a fair market value price provided by Massive. Learn more.
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$1,255.000.06%
21.73
$1,259.97
Consequently, technology enterprises must commit to domestic and allied suppliers for their needs. Domestic manufacturers are capturing these guaranteed order volumes by investing heavily in reshoring production.
Micron Technology NASDAQ: MU committed approximately $250 billion to construct mega-fab facilities across Idaho and New York. These capital commitments align directly with federal industrial policy, creating a captive-customer dynamic in which domestic equipment manufacturers must secure long-term, non-cancelable supply agreements at prices that favor suppliers.
How AI Accelerators Gobble Global Silicon CapacityWhile trade restrictions establish a regulatory barrier, the physical supply of silicon memory is undergoing an equally dramatic contraction. The primary driver is the surge in demand for high-performance computing platforms built by chipmakers such as NVIDIA Corporation NASDAQ: NVDA and Advanced Micro Devices, Inc. NASDAQ: AMD.
To power modern intelligence models, advanced graphics processors require large stacks of high-bandwidth memory (HBM). Examining the physics of semiconductor manufacturing reveals the broader economic impact. Producing one bit of HBM requires roughly three times the silicon wafer capacity of standard DRAM. As foundries convert conventional manufacturing lines over to specialized packaging, global wafer capacity for standard consumer memory dries up.
This wafer conversion ratio creates a rising tide that expands pricing power across all memory categories. Manufacturers report that 100% of their 2026 HBM production capacity is fully allocated under non-cancelable long-term agreements. Because chipmakers like NVIDIA Corporation consume vast amounts of available foundry capacity, traditional hardware makers must compete for a shrinking pool of conventional memory, cementing high contract pricing across the hardware ecosystem.
Financial Data Proves Memory Pricing PowerRecent financial data from Micron provides concrete numerical proof of how this protectionist moat and supply deficit have converted into fundamental outperformance. In its Q3 fiscal year 2026 earnings report, Micron reported revenue of nearly $41.5 billion, representing a year-over-year increase of nearly 346%, and topped consensus earnings expectations at $25.11 per share. Management subsequently issued Q4 earnings guidance of $30 to $32 per share, outpacing Wall Street estimates.
Beyond top-line momentum, the true story lies in profitability and cash generation. Net profit margins expanded to nearly 56%, demonstrating that memory producers are no longer price takers. Analysts at Bank of America recently revised their long-term structural models, projecting that Micron's earnings could surpass $230 per share by fiscal year 2030 as high-margin contracts replace low-margin commodity DRAM.
Even with MU trading around $1,015 per share and carrying a market capitalization closing in on $1.15 trillion, its forward price-to-earnings ratio sits at a modest 13x to 14x. Institutional investors have taken notice, driving roughly $119 billion in gross institutional inflows into the stock over the trailing 12 months. This institutional accumulation reflects growing recognition that domestic protectionism is fundamentally altering the long-term earnings baseline.
Semiconductor Exposure: Positioned for the Protectionist ShiftThe convergence of federal trade mandates and supply deficits has altered semiconductor economics. By restricting foreign state-subsidized supply, Washington has underwritten a domestic protectionist moat that nearly guarantees captive demand for Western manufacturers.
While fundamental tailwinds remain powerful, investors should account for potential risks, including broader pullbacks in the technology sector, executive profit-taking following steep stock rallies, and construction timelines for new domestic fabs.
Those evaluating exposure to the sector might consider monitoring domestic memory manufacturers during short-term market consolidation, focusing on enterprises with high exposure to HBM production, or tracking changes in federal trade policy as key indicators for long-term position management.
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David Tepper’s Appaloosa LP disclosed its Q2 2026 13F on Friday, August 14, 2026, revealing a portfolio anchored by five mega-cap AI names: Amazon, Micron, Taiwan Semiconductor, Meta, and Alphabet. Focusing on the tech-heavy positions retail investors most often track, Tepper’s disclosed holdings in Amazon (NASDAQ:AMZN | AMZN Price Prediction), Micron Technology (NASDAQ:MU), NVIDIA (NASDAQ:NVDA), Meta Platforms (NASDAQ:META), and Alphabet (NASDAQ:GOOG) form the spine of a concentrated bet on AI infrastructure economics.
What Tepper Actually Did The filing reflects positions as of June 30, 2026. Amazon remained the top holding at 15.42% of the portfolio, roughly $1.19 billion across 5 million shares. Micron held the #2 slot at 14.57% ($1.13 billion, 975,000 shares), but Tepper cut the share count by 41%, a decisive round of profit-taking after the stock’s run. He added to the three other mega-cap AI names: Meta (+$130 million), Alphabet (+$157 million), and NVIDIA (+$49 million). He also exited Microsoft entirely, making the additions to META and GOOG a deliberate rotation inside hyperscaler exposure.
The Thesis Behind The Book The common thread is AI infrastructure monetization. Amazon’s Q2 earnings report gave Tepper his validation: AWS revenue hit $42.2 billion, up 36.7% year over year, with a $496 billion backlog and operating margin of 39%. CEO Andy Jassy told analysts the lion’s share of 2027 capacity is already reserved, with significant 2028 capacity spoken for. Alphabet’s Google Cloud grew 82% year over year to $24.8 billion, with backlog reaching $514 billion. NVIDIA’s Data Center segment ran at $75 billion, up 92%, with Q2 revenue guided to $91 billion. Meta, despite an EPS miss, posted ad revenue of $59.4 billion, up 27%, with price per ad up 12%.
The Micron trim is the interesting tell. Even after cutting 41% of the share count, Tepper kept it at 14.57% of the book. Micron’s 16 Strategic Customer Agreements now represent roughly $100 billion in cumulative minimum-price revenue, with floor margins well above prior peak cycles. He booked the parabolic gain but kept the structural exposure.
Should Retail Follow? Price action since the filing snapshot is mixed. From June 30 through August 14, AMZN rose 10.2%, NVDA gained 12.53%, and META added 4.72%. But MU fell 15.81% and GOOG slipped 2.77%. Tepper’s Micron trim looks well-timed; the additions to GOOG and META are still proving out.
The takeaway for a retirement-focused investor: this is a coherent AI-capex thesis, not a scattershot bet. The hyperscalers (AMZN, GOOG, META) are the demand side, NVIDIA is the pick-and-shovel, and Micron is the memory bottleneck. The other half of that trade sits with the power, cooling, and networking suppliers feeding the data-center buildout, which we profiled in a free report on seven AI infrastructure stocks that aren’t chipmakers. Valuations are stretched (NVDA trades at a trailing P/E of 34) but backed by locked-in backlogs measured in hundreds of billions. Following Tepper here is defensible; blindly matching his sizing is not. The signal worth copying is the discipline of trimming winners like Micron into strength while pressing the still-cheap Alphabet position.
Contact [email protected] for any questions or corrections.
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I keep hitting the buy button on Micron Technology (NASDAQ:MU | MU Price Prediction) because for the first time in my investing life, the memory business is behaving like a utility instead of a rodeo. That is the whole confession. I have watched this industry burn shareholders through boom and bust cycles for decades, and I am now convinced the AI era has broken that pattern in a way that rewards patient capital.
The Thesis in Plain English Sanjay Mehrotra told investors on the June call that “the memory industry has been structurally transformed by the proliferation of AI” and that Micron expects tight conditions to persist beyond calendar 2027. That is a structural shortage with a multi-year runway. High-bandwidth memory has moved from commodity DRAM to an architectural bottleneck sitting on every AI accelerator, and Micron is the only U.S.-based memory manufacturer positioned to sell into it as AI memory shifts from commodity to architectural bottleneck.
Three Receipts That Keep Me Buying First, the numbers are no longer cyclical peaks. Fiscal Q3 2026 revenue landed at $41.456 billion, up 345.7% year over year, on non-GAAP EPS of $25.11, the seventh straight EPS beat. Non-GAAP gross margin hit 84.9%, a company record. Free cash flow reached $18.304 billion in a single quarter. Full fiscal 2025 revenue was $37.378 billion. Q3 alone eclipsed the entire prior year.
Second, the Strategic Customer Agreements do exactly what the memory industry has never had: contracted floor pricing. Micron has now signed 16 SCAs generating $22 billion in deposits and financial commitments, with approximately $100 billion in cumulative remaining performance obligations across 14 of them. Management stated the floor-price margins would be “well beyond the peaks that we experienced” in past cycles. That is the death of boom-bust in one sentence.
Third, the valuation still leaves room. At $1,011.75, MU trades at a forward P/E of 6 against Q4 guidance of $50 billion in revenue and $31.00 EPS at the midpoint. Analyst consensus target sits at $1,501.98 with 40 Buy ratings and zero Sells.
Why Not the Obvious Alternatives I could have parked the money in NVIDIA (NASDAQ:NVDA) or Broadcom (NASDAQ:AVGO). Both are stellar AI plays. Neither trades at a single-digit forward multiple. Micron’s forward P/E of 6 against the pricing power visible in an operating margin of 80.4% is the mispricing I keep exploiting. Western Digital (NASDAQ:WDC) is the closest storage peer, but it lacks HBM exposure. Micron shipped over $1 billion in HBM4 revenue already, with the 12-high ramp tracking twice as fast as its predecessor.
The Risk I Refuse to Dismiss Capital intensity is the real concern. Capex hit $7.826 billion in Q3 alone, with roughly $10 billion guided for Q4. The dotcom parallel that lit up r/wallstreetbets with 2,216 upvotes deserves respect. Concentration risk with the lead HBM4 customer is real. What changes my calculus is the SCA structure: take-or-pay agreements with cash deposits already on the balance sheet. The setup differs materially from 1999.
Why the Buy Button Stays Active Shareholders’ equity climbed to $100.724 billion, cash sits at $24.995 billion, and management committed to returning 100% of excess cash to shareholders over time starting December 2026. I own a compounding memory utility priced like a cyclical, and I will keep buying it until the market figures out which one it is.
Contact [email protected] for any questions or corrections.
Micron Technology (NASDAQ: MU) and SanDisk stock (NASDAQ: SNDK) fell sharply in US premarket trading on Tuesday, reversing Monday’s powerful memory-chip rally as investors cut exposure to 2026’s hottest AI winners.
Micron was indicated about 6% lower around 5:30 a.m. ET, while SanDisk was down 5.3%.
SK Hynix’s US-listed ADRs fell about 5.1%, even after its Seoul-listed shares had rallied earlier in the Asian session.
The retreat came without an obvious overnight deterioration in memory demand.
Instead, Nasdaq 100 futures dropped around 1.2% and the 30-year Treasury yield climbed to about 5.33%, its highest in nearly two decades, creating a tougher backdrop for richly valued technology stocks.
Micron gained 4.1% on Monday, SanDisk jumped 8.9% and SK Hynix’s ADRs added about 3% as investors returned to memory names after July’s violent selloff.
SanDisk had already risen roughly 35% over the five sessions through Friday before extending the rebound Monday.
Fresh enthusiasm came from AI infrastructure spending, SanDisk’s bullish investor-day targets and reports that US officials were discouraging Apple from sourcing memory chips from Chinese suppliers.
Yet the same momentum that powered those gains also leaves the trade vulnerable when investors reduce risk.
AvaTrade analyst Simon Friedman cautioned investors against chasing memory stocks after the rebound, MarketWatch reported, pointing to the sector’s recent volatility and the scale of July’s declines.
The underlying industry picture remains stronger than Tuesday’s stock moves suggest.
AI data centres continue to consume growing quantities of high-bandwidth memory, DRAM and flash storage while supply remains constrained.
Manufacturers are also signing longer-term customer agreements, improving visibility compared with previous cycles.
“The recent volatility in semiconductor stocks appears disconnected from any material change in long-term fundamentals,” ClearBridge Investments portfolio manager Divya Mathur told Reuters earlier this month.
Mathur added that share prices can react more sharply than the underlying outlook when investors reassess expectations and risk appetite.
Deutsche Bank analyst Melissa Weathers has similarly argued that this memory cycle “is different than others,” according to MarketWatch.
She expects DRAM supply to remain tight through 2027 and into 2028 as AI demand keeps pressure on high-bandwidth memory availability.
SanDisk shows why strong fundamentals can still produce violent equity moves.
At its investor day, the company targeted mid-to-high-teens annual revenue growth from fiscal 2028 through 2030 and adjusted gross margins around 80%, supported partly by multiyear customer agreements.
Bank of America analysts said the strategy suggests the memory industry “may be entering a more durable phase” than its historical boom-and-bust pattern, according to MarketWatch.
That optimism is also the problem.
After enormous gains across memory stocks, investors are demanding exceptional results.
Analysts noted that during an earlier August selloff, even strong earnings and upbeat forecasts were failing to satisfy investors because expectations had become so elevated.
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A ceasefire expired in the Middle East this morning. Memory chip stocks had another excellent day. The top stock market indexes split the difference.
The Nasdaq Composite (^IXIC -0.32%) is up 0.03% as of 12:26 p.m. ET, the S&P 500 (^GSPC -0.52%) is down 0.17%, and the Dow Jones Industrial Average (^DJI -0.51%) has fallen 0.31%, or roughly 200 points. The Dow went red minutes after the open and stayed down. The Nasdaq spent most of the morning in positive territory before drifting toward breakeven.
^IXIC data by YCharts
Why chip stocks are rallying through a geopolitical mess The June 17 memorandum of understanding between Washington and Tehran hit its 60-day deadline Monday with nothing signed. A senior Iranian official told Reuters that Tehran is going "fully offensive" and would use its military to break the U.S. naval blockade if talks fail.
President Trump, for his part, told Fox News he is in no rush and threatened to bomb Oman if it gets in the way of negotiations. Oman, for the record, has been trying to mediate the Iranian conflict.
Shipping through the Strait of Hormuz has essentially stopped. Three vessels crossed on Sunday against roughly 130 daily before the war began in February. Brent crude rose 0.7% to $89.13, which is a quiet day by recent standards.
Meanwhile, memory chips continue their remarkable run. SK Hynix (SKHY +3.04%) rose 6.5% and added roughly $83 billion in market value. Micron Technology (MU +4.13%) climbed 5.9% and rose above $1,000 per share again.
On a related note, Nvidia (NVDA -0.07%) rose 0.9% on news it will finance up to $105 billion in credit and compute for an OpenAI data center in Pike City, Ohio. The first 4.25 gigawatts of this 20-year project will arrive in 2028, reminding investors that OpenAI and partners are planning way ahead.
Image source: Getty Images.
But there was plenty of bearish Wall Street action, too.
Meta Platforms (META -3.54%) dropped 3.3% ahead of Tuesday's opening arguments in a federal trial in Oakland. 29 state attorneys general allege that the company designed Facebook and Instagram to get children addicted. In terms of index impact, Microsoft (MSFT -3.04%) was the S&P 500's biggest drag with a 2.4% drop, following a high-profile analyst note. Morgan Stanley noted that hyperscalers are spending a lot of upfront cash on AI data center builds. The payoff may take years to materialize, creating financial challenges in the meantime.
Hyperscaler investors heard the warning while the memory stocks took the same report as a bullish sign. Microsoft weighed on all three indexes more than any other stock this morning.
Index
Dow Jones Industrial AverageToday's Change
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-0.51
%)
-272.63
Index Level
53,459.78
The market keeps climbing a wall of worry The Invesco S&P 500 Equal Weight ETF (RSP -0.89%) fell 0.58%, more than three times the cap-weighted drop, and decliners beat advancers by about 1.5-to-1 on the NYSE. Most stocks had a bad Monday; a handful of chipmakers covered those widespread losses.
Perspective helps, though. The S&P 500 is within a whisper of last Thursday's record and up 13.6% on the year, with second-quarter earnings tracking near 50% growth. Rate hike odds for September have fallen to about 31% from roughly 50/50 just a week ago.
This week's retail earnings will matter more than they usually would. July retail sales fell for the first time in nine months and consumer sentiment dropped to 51.0. Some of the country's largest retailers are about to show whether that was a blip or a trend.
Anders Bylund has positions in Invesco S&P 500 Equal Weight ETF, Micron Technology, and Nvidia. The Motley Fool has positions in and recommends Meta Platforms, Micron Technology, Microsoft, and Nvidia. The Motley Fool has a disclosure policy.
Characteristics and Risks of Standardized Options: https://bit.ly/2v9tH6D. The price action of Micron (MU) shares have been a "rollercoaster," says Kevin Hincks.
In fiscal 2022, Micron Technology (MU +4.13%) earned $8.7 billion, one of the best years the memory maker had ever reported. In fiscal 2023, it lost $5.8 billion. Revenue nearly halved to $15.5 billion, and gross margin collapsed from 45% to negative 9%.
That is what the end of a memory boom looks like. And it is worth studying now, because Micron is in the middle of a far bigger one.
The company's net income over its last 12 reported months comes to $50.5 billion, nearly six times what that fiscal 2022 peak delivered. Its most recent reported quarter alone, the fiscal third quarter ended in May, brought in $28.2 billion of net income under generally accepted accounting principles (GAAP) -- double fiscal 2018's full-year record.
So what happens to memory earnings after a top? Micron's own income statement answers that question better than any forecast could.
Image source: Micron.
The bust, year by year The speed is the striking part. Micron's revenue fell 49% in fiscal 2023, to $15.5 billion from $30.8 billion the year before. Gross margin, 45.2% in fiscal 2022, finished fiscal 2023 at negative 9.1% -- meaning the company was selling chips for less than they cost to make. And the bottom line swung from an $8.7 billion profit to a $5.8 billion loss in the space of a single fiscal year.
Nothing about the company had broken. Memory chips are commodities, demand stalled, industry supply kept growing anyway, and prices fell until the profit was gone.
Of course, investors who watched it happen knew the script. It had run before.
The cycle before ran slower The 2023 bust wasn't a one-off, though the cycle before it took a different shape. Micron's net income peaked at $14.1 billion in fiscal 2018. It fell to $6.3 billion in fiscal 2019, then to $2.7 billion in fiscal 2020 -- down 81% from the peak over two years, without ever tipping into a loss.
The shapes differ, one fast and deep, the other slower and shallower. In both, though, most of the peak's earnings were gone within about two years of the top.
Zoom out further and the pattern holds. Micron has recorded an annual loss three times in the last 15 years, most recently in fiscal 2023.
Today's Change
(
4.13
%) $
40.09
Current Price
$
1,011.75
A peak of a different size The artificial intelligence (AI) boom running now dwarfs both of those cycles. Micron's revenue is running near $90 billion a year, against the $15.5 billion fiscal 2023 produced, and the June report showed quarterly sales at more than four times the year-ago level. And the quarter ahead is expected to be bigger still. Management's latest guidance called for about $50 billion of revenue in the fiscal fourth quarter alone.
Management, for its part, is behaving like a company that expects demand to hold -- and I don't doubt that today it does.
"Micron is investing at record levels in technology, products and supply to address our customers' rapidly growing demand," CEO Sanjay Mehrotra said in the company's June earnings release.
That sentence carries history's uncomfortable note, however. Memory busts have a way of being financed by the boom before them -- high prices paying for new supply until the new supply arrives. And the investment underway now is, by management's own description, at record levels.
With that said, Micron has built defenses this time that earlier cycles lacked. Its multi-year Strategic Customer Agreements lock in commitments years ahead, and management believes they will make its results significantly more durable and predictable.
They may. No previous cycle had them. But agreements can shape how a downturn arrives without preventing one.
History's message here is a modest one, then. Nothing in the record says this boom must end soon (the last two cycles gave little notice either way), and this one is larger, more profitable, and arguably better-defended than any before it.
As of this writing, the stock sits near $972, valuing the company around $1.1 trillion. The market is paying about 22 times earnings for a business it knows is cyclical.
The record, I believe, justifies respect in both directions. Micron has never had a run like this. It has also never held a peak. The swing from fiscal 2022 to fiscal 2023 took back the entire boom and then some, and fiscal 2023 is only three years back.
Key Takeaways Micron's HBM demand drove fiscal Q3 revenues to $41.46 billion, with $50 billion projected for fiscal Q4.AMD expects Q3 revenues of $13 billion as EPYC, Instinct and Helios products gain momentum. Micron's 72.5% ROE and 13.16 forward P/E compare favorably with AMD's 14.9% ROE and 68.68 P/E. With the rise of artificial intelligence (AI), both Micron Technology, Inc. (MU - Free Report) and Advanced Micro Devices, Inc. (AMD - Free Report) have benefited immensely, delivering strong revenue growth and profitability in their latest quarterly results. However, if investors had to choose between the two, which stock should it be?
Let’s take a look –
Reasons to Be Bullish on Micron Micron’s revenues for the fiscal third quarter of 2026 reached $41.46 billion, up from $9.3 billion a year earlier and $23.86 billion from the prior quarter, according to the company’s press release.
Exceptionally strong demand for Micron’s cutting-edge high-bandwidth memory (“HBM”) chips boosted the company’s top-line growth. Demand for HBM chips surged as hyperscalers increased spending on AI infrastructure. The HBM chips can efficiently manage complex AI workloads, while offering greater power efficiency.
Micron further expects revenues to rise to $50 billion, plus or minus $1 billion, in the fiscal fourth quarter of 2026, driven largely by continued strength in AI memory demand. The company’s multi-year strategic customer agreements have improved long-term revenue visibility and strengthened growth prospects. Meanwhile, Micron expects a strong gross margin of around 86% for the fiscal fourth quarter, banking on robust demand for its memory products and strong pricing power.
Reasons to Be Bullish on AMD AMD continues to witness rapid revenue growth along with expanding margins. In the second quarter of 2026, AMD’s revenues were $11.5 billion, up 50% year over year and 13% sequentially, according to the company’s press release. Data Center revenues in particular more than doubled year over year.
Demand for AMD’s EPYC server processors is accelerating, while its Instinct accelerators are scaling rapidly and the Helios platform begins its ramp-up. AMD now expects revenues to increase further to $13 billion, plus or minus $300 million in the third quarter of 2026. From the midpoint, it would be 41% year-over-year and 13% sequential growth. Data Center sales are also expected to accelerate in the second half of 2026.
Additionally, AMD expects a healthy non-GAAP gross margin of 56% for the third quarter, indicating that profitability continues to improve as revenue increases. Thus, AMD will be entering the second half of 2026 with considerable momentum.
Micron or AMD: Which AI Stock Is the Better Buy? Micron’s revenue and profitability outlook remains strong, driven by rising HBM demand, strategic customer agreements, and favorable pricing. Similarly, AMD’s growth outlook remains strong, driven by accelerating AI and data center demand, increasing product adoption, and improving profitability.
At the same time, both companies are maintaining strong balance sheets and appear well-positioned to navigate broader market volatility. Micron’s current ratio of 3.42 is excellent, given the memory chip industry’s cyclical nature. It provides a liquidity cushion to withstand short-term downturns.
AMD’s current ratio of 2.61 is lower than Micron’s but still indicates the company is financially sound. The lower ratio also suggests AMD is deploying its resources aggressively toward high-growth opportunities rather than holding excessive cash.
Image Source: Zacks Investment Research
However, Micron remains more efficient than AMD at generating returns on shareholders’ equity, as indicated by a higher return on equity (ROE). Micron’s ROE of 72.5% exceeds AMD’s ROE of 14.9%.
Image Source: Zacks Investment Research
Moreover, AMD’s premium valuation requires the company to consistently deliver strong earnings growth to support further upside. But Micron can simply outperform through steady and sustainable earnings growth. Per the price/earnings ratio, MU trades at 13.16 forward earnings compared with AMD’s forward earnings multiple of 68.68.
Image Source: Zacks Investment Research
Therefore, Micron remains a better buy now than AMD as it is more efficient in generating profits and trades at a more attractive valuation. Micron currently has a Zacks Rank #1 (Strong Buy), while AMD has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks Rank #1 stocks here.
Micron Technology Inc (NASDAQ:MU) is back above the $1,000 mark, extending a 2026 rally that has made the memory-chip stock one of the market’s hottest AI trades, keeping its leveraged ETF counterparts firmly in the spotlight.
Micron shares have gained about 260% year to date and climbed roughly 36% from their July low. The latest move is giving fresh momentum to two ETFs offering direct 2X exposure: Direxion Daily MU Bull 2X Shares (NASDAQ:MUU) and GraniteShares 2x Long MU Daily ETF (NASDAQ:MULL).
• GraniteShares 2x Long MU Daily ETF stock is surging to new heights today. What’s driving MULL stock higher?
MUU, MULL Amplify Micron’s MovesBoth funds target 200% of Micron’s daily return, making them among the most aggressive ETF vehicles for traders bullish on Micron.
MUU has delivered an extraordinary return in 2026. Market data shows the ETF has gained around 588% since the start of the year, although its July 15 20-for-1 split means historical share prices need to be adjusted when comparing performance.
MULL, meanwhile, is also designed to deliver 2X Micron’s daily percentage change and uses swaps to obtain that exposure. GraniteShares lists the fund as an active-trading vehicle and warns that daily resetting means its longer-term return can differ substantially from twice Micron’s cumulative performance.
The volatility cuts both ways.
For instance, in early June, MUU plunged almost 40% in a single session after Micron fell roughly 21%, before surging more than 80% again over the next couple of weeks, illustrating how quickly leverage can magnify a reversal.
AI Memory Demand Keeps the Trade HotThe fundamental backdrop remains supportive.
Micron’s HBM3E and HBM4 products are benefiting from surging demand for AI infrastructure, as hyperscalers expand data center capacity and Nvidia and AMD accelerators require increasingly sophisticated memory.
Early this month, JPMorgan strategist Jay Kwon warned in a note that the memory supply crunch could persist for another two years, with demand broadening from GPUs to CPUs, according to Yahoo Finance. Tight supply combined with stronger pricing could keep Micron’s revenue and earnings cycle elevated for longer than investors expect.
Trivariate Research’s Adam Parker has made an even more bullish case, arguing that consensus estimates may assume Micron’s earnings peak will fade too quickly. He suggested the company could generate close to $300 billion in free cash flow over two years and said he would not be surprised if Micron eventually reached a $1 trillion market capitalization.
Broader ETFs Also BenefitMicron’s strength is also filtering into diversified semiconductor and momentum ETFs.
iShares Semiconductor ETF (NASDAQ:SOXX) and VanEck Semiconductor ETF (NASDAQ:SMH) offer broader semiconductor exposure, while Strive US Semiconductor ETF (NYSE:SHOC), Global X AI Semiconductor & Quantum ETF (NASDAQ:CHPX) and First Trust Nasdaq Semiconductor ETF (NASDAQ:FTXL) have meaningful Micron positions of more than 12%. Invesco S&P 500 Momentum ETF (NYSE:SPMO) provides a broader momentum strategy with significant Micron exposure, while memory-focused Tuttle Capital Concentrated Memory Stack ETF (BATS:HBMX) offers another way to play the sector’s structural supply constraints.
For traders betting that Micron’s earnings cycle and AI-driven memory boom have further to run, however, the 2X products remain the highest-octane ETF expression of the thesis.
Americké akciové trhy dnes ztrácejí, když obnovené napětí na Blízkém východě, růst cen ropy a vyšší dlouhé dluhopisové výnosy převážují nad pokračujícím optimismem kolem umělé inteligence. S&P 500 klesá o 0,4 %, Nasdaq 100 odepisuje 0,3 %, Dow Jones ztrácí 0,6 % a MSCI World oslabuje o 0,3 %. Investory znejistily nové boje mezi Izraelem a Íránem podporovaným Hizballáhem v Libanonu i výroky prezidenta Donalda Trumpa, že nespěchá s ukončením války s Íránem. Výnos amerického desetiletého dluhopisu se znovu drží nad 4,7 %, což vytváří protivítr pro akcie, zejména po předchozím růstu trhu k rekordním úrovním. Tento týden bude pozornost směřovat k zápisu z posledního zasedání Fedu a výsledkům maloobchodních firem, jako jsou Walmart (WMT -0,95 %), Home Depot (HD -0,68 %) a Target (-1,62 %), které mají ukázat, zda slabší maloobchodní tržby byly jednorázovým výkyvem, nebo signálem horší kondice spotřebitele.
Sektorově je dnešní obchodování rozdělené. Většina titulů v indexu S&P 500 klesá, ale polovodiče táhnou technologický sektor do kladné nuly. Philadelphia Semiconductor Index přidává zhruba 2 %, když sentiment podpořila zpráva o prudkém růstu tržeb společnosti Anthropic. Naopak širší trh tíží dražší ropa a růst výnosů. Brent se vyšplhal k 90 USD za barel a WTI roste o 1,8 % na 83,90 USD, což obnovuje obavy z inflačních tlaků a možného dopadu na sazby Fedu. Výnos desetiletého amerického dluhopisu stoupá o 2 bazické body na 4,71 %. Třicetiletý americký výnos přidává 4 bazické body na 5,30 %, nejvýše od roku 2007. Bitcoin roste o 1,8 % na 64 176 USD a zlato posiluje o 0,9 % na 4 416,93 USD za unci.
Z jednotlivých titulů poutají největší pozornost akcie navázané na AI infrastrukturu. Intel (INTC +0,71 %) a Micron (MU +5,02 %) rostou spolu s širším polovodičovým sektorem poté, co Anthropic podle dokumentů pro investory vykázal meziroční růst tržeb za druhý kvartál nejméně čtrnáctinásobně, na více než 11,5 mld. USD, a zároveň dosáhl kladného upraveného provozního zisku. Nvidia (NVDA +0,28 %) je v centru pozornosti po zprávě, že se zavázala investovat až 105 mld. USD do podpory nového datacentrového kampusu v Ohiu, který má využívat OpenAI. Berkshire Hathaway (BRK.B -0,81 %) zvýšila podíly v Delta Air Lines (DAL -1,19 %) a Alphabetu (GOOGL -0,86 %), což ukazuje, že Greg Abel začíná využívat velkou hotovostní pozici konglomerátu. Nike (NKE -4,43 %) oslabuje po komentáři UBS, podle něhož očekávané zlepšení značkové dynamiky stále nepřichází. Raytheon Technologies (RTX +0,28 %) naopak zaujala kontraktem amerického námořnictva v hodnotě 22,9 mld. USD na urychlení výroby střel Tomahawk v době, kdy válka s Íránem zvyšuje tlak na doplňování zbrojních zásob.
Index Dow Jones -0,61 % na 53406,78 b.
S&P 500 -0,41 % na 7753,47 b.
Nasdaq Composite -0,29 % na 26652,8 b.
Index S&P 500 -0,41 % na 7753,47 b. Nejsilnější sektory S&P Změna Nejslabší sektory S&P Změna Energie +0,8 % Komunikační služby -1,7 % Průmysl +0,3 % Nezbytná spotřeba -1,4 % Informační technologie +0 % Zbytná spotřeba -1,3 % Nejsilnější akcie S&P Změna Nejslabší akcie S&P Změna Coherent Corp (COHR) +10 % Align Technology (ALGN) -5,8 % Sandisk Corp (SNDK) +9,2 % Charter Communications (CHTR) -5,7 % Lumentum Holdings (LITE) +6,3 % Constellation Brands (STZ) -5,6 % Marvell Technology (MRVL) +6,2 % Trade Desk (TTD) -5,5 % Ciena Corp (CIEN) +5,8 % Carvana (CVNA) -5,0 %
Martin Varecha
Fio banka, a.s.
Prohlášení
Korean memory chip manufacturer SK Hynix (SKHY +5.49%) stock jumped 4% through 10 a.m. ET Monday -- and it has Donald Trump to thank for it.
Over the weekend, Trump Commerce Secretary Howard Lutnick told The Wall Street Journal that the Trump administration "is not in favor" of plans floated by Apple (AAPL -0.90%) to solve its supply problems by buying memory chips from Yangtze Memory Technologies and CXMT in China.
Image source: Getty Images.
What this means for SK Hynix The Trump Administration doesn't necessarily favor Apple buying memory chips from Korea. White House spokesman Kush Desai is quoted as assuring investors that "reshoring semiconductor manufacturing [to America] is a top priority" -- which sounds like good news for DRAM specialist Micron (MU +5.62%) and flash memory expert Sandisk (SNDK +8.80%).
Still, given his druthers, I suspect the President would prefer Apple (and others) buy their memory chips from a friendly country such as South Korea rather than from China, which has a habit of underpricing rivals to drive them out of business -- then turning around and cutting off supply for geopolitical purposes.
Long story short, the President's policy could well benefit not just Micron and Sandisk, but their rival SK Hynix as well.
Today's Change
(
5.49
%) $
9.14
Current Price
$
175.47
What's next for SK Hynix stock So does this mean it's time for you to buy SK Hynix stock? Perhaps.
Priced today at 8.1 times trailing earnings, SK Hynix costs less than either Sandisk (at 21.4x) or Micron (at 21.7x earnings). Analysts polled by S&P Global Market Intelligence will tell you all three stocks are "buys," given Sandisk is expected to grow its earnings at nearly 40% annually over the next five years, and Micron might average closer to 173% per year. SK's right in the middle at a projected 86% growth rate.
That's good enough for me.
Rich Smith has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple and Micron Technology. The Motley Fool has a disclosure policy.
When deciding whether to buy, sell, or hold a stock, investors often rely on analyst recommendations. Media reports about rating changes by these brokerage-firm-employed (or sell-side) analysts often influence a stock's price, but are they really important?
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 1.26, 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 1.26 approximates between Strong Buy and Buy.
Of the 42 recommendations that derive the current ABR, 34 are Strong Buy and five are Buy. Strong Buy and Buy respectively account for 81% 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.
Are you wondering why? The vested interest of brokerage firms in a stock they cover often results in a strong positive bias of their analysts in rating it. Our research shows that for every "Strong Sell" recommendation, brokerage firms assign five "Strong Buy" recommendations.
This means that the interests of these institutions are not always aligned with those of retail investors, giving little insight into the direction of a stock's future price movement. It would therefore be best to use this information to validate your own analysis or a tool that has proven to be highly effective at predicting stock price movements.
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.
Zacks Rank Should Not Be Confused With ABRAlthough 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.
Furthermore, the different grades of the Zacks Rank are applied proportionately across all stocks for which brokerage analysts provide earnings estimates for the current year. In other words, at all times, this tool maintains a balance among the five ranks it assigns.
There is also a key difference between the ABR and Zacks Rank when it comes to freshness. When you look at the ABR, it may not be up-to-date. Nonetheless, since brokerage analysts constantly revise their earnings estimates to reflect changing business trends, and their actions get reflected in the Zacks Rank quickly enough, it is always timely in predicting future stock prices.
Is MU a Good Investment?Looking at the earnings estimate revisions for Micron, the Zacks Consensus Estimate for the current year has increased 0% 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.
Micron Technology (MU +5.62%) has been on a tear recently, and its run in this artificial intelligence (AI) era is about more than just selling more memory. Micron's run is about solving one of the quiet bottlenecks in artificial intelligence (AI) infrastructure, which is power, and that is where I think the story bleeds directly into utility stocks in a way the market has not fully priced in yet.
Image source: Getty Images.
Micron's latest numbers show just how central it has become to AI. In the third quarter of its fiscal 2026, total revenue hit $41.5 billion, up 346% year over year and marking the fifth straight quarterly record. DRAM revenue alone was $31.3 billion, up 343% and now 76% of total sales, while data center revenue topped $25 billion on an annualized run rate north of $100 billion. Analysts have pushed estimates higher, largely on the back of AI-driven demand for high-bandwidth memory (HBM) and high-performance dynamic random-access memory (DRAM).
Underneath those numbers is a very specific technology angle. Micron's HBM3E memory, which sits right next to Nvidia's H200 GPUs and AMD's next-generation accelerators, delivers more than 1.2 terabytes per second of bandwidth while using about 30% less power than competing offerings. This means that AI clusters can either cut their electricity bills or pack more GPUs into the same power envelope, which is exactly what hyperscalers care about now that power availability has become a defining constraint for scaling AI.
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Micron's U.S. investment push Micron just raised its planned U.S. investment to more than $250 billion through 2035, aiming to put about 40% of its DRAM output on American soil to supply AI data centers and to support more than 90,000 jobs. Its solid-state drive (SSD) business is also framed in power terms now.
When Micron announced its largest data center SSD earlier this year, the company explicitly said the breakthrough capacity gives operators "a critical new lever to improve rack‑level total cost of ownership, especially as power availability becomes a defining constraint for AI infrastructure scale." In other words, memory and storage have become part of the power story -- not separate from it
How utility stocks are affected Once you see that, it is hard not to look downstream at utilities. Deloitte estimates that U.S. AI data center power demand could grow more than 30 fold from about 4 gigawatts in 2024 to 123 gigawatts by 2035.
NextEra Energy (NEE -0.43%) calls this period "a golden age of power demand" and plans to build roughly 15 gigawatts of new capacity by 2035 on top of the 33 gigawatts it added over the past four years. Constellation Energy (CEG -2.36%), Entergy (ETR +0.16%), and NextEra are already being singled out as long-term beneficiaries of AI-driven load growth precisely because they own the generation, transmission, and regulated rates that will be used to feed all those Micron-powered racks.
Even more traditional names like Edison International (EIX -1.08%), parent of Southern California Edison, are starting to show up in AI power discussions. Edison offers a dividend of around 4.4% and has been highlighted as one of the higher-yielding utilities positioned to benefit from rising data center demand in its territory.
If AI data centers really become the new factories of this decade, the companies selling them electrons may end up with steadier, underappreciated growth than most investors expect from "boring" utilities.
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So yes, Micron is a pure AI winner, but it is also a reminder that the AI boom is turning into a utility story. The chips that save power at the rack level and the utilities that build the lines and generation behind those racks are both part of the same equation. The market has rewarded Micron for that role. I do not think it has fully rewarded the utilities yet, and that gap is where some of the more interesting opportunities may sit for patient investors.
AI companies are seeing improved financial performance, according to reports, and memory-chip companies may be able to better fend off Chinese competition with the help of U.S. officials.
Key Takeaways Micron has sold out its 2026 HBM supply, with significant 2027 production already committed.NVIDIA's data center revenues surged 92% year over year to $75.25 billion, about 92% of total sales.Micron trades at 6.29 times forward earnings versus NVIDIA's 20.54, supporting a stronger risk-reward case. Micron Technology, Inc. (MU - Free Report) and NVIDIA Corporation (NVDA - Free Report) are key players in the artificial intelligence (AI) semiconductor ecosystem, benefiting from surging demand for data center and AI-driven computing. NVIDIA dominates AI accelerators and full-stack computing, while Micron supplies the high-bandwidth memory (HBM) and storage that increasingly powerful AI systems need.
Both companies delivered exceptional results in the latest reported quarter, but their valuations and risk profiles are now very different. So, which AI chip stock offers the better investment opportunity today?
Let’s find out.
Micron: AI Memory Demand Creates a Powerful Growth EngineMicron's latest financial results make a strong investment case. In the last reported results for the third quarter of fiscal 2026, MU’s revenues soared 346% year over year to $41.46 billion, while non-GAAP earnings per share (EPS) surged to $25.11 from $1.91 in the year-ago quarter.
The biggest catalyst behind Micron Technology's growth is the booming demand for AI memory. Modern AI models require significantly larger memory capacity and much higher bandwidth than traditional computing workloads. This has increased demand for HBM, DDR5 DRAM and advanced data center SSDs, all of which are important parts of Micron Technology's product portfolio.
Major cloud providers and AI infrastructure companies continue to invest heavily in expanding their data centers. Amazon, Microsoft, Alphabet and Meta Platforms are expected to spend around $700 billion in capital expenditures in 2026. The majority of that spending is anticipated to go toward AI infrastructure, including data centers, networking equipment, advanced processors and memory solutions. This spending supports strong demand for Micron Technology's memory solutions, particularly as next-generation AI servers require more memory per system than previous generations.
The company has also strengthened its competitive position through technological leadership. Its latest HBM products offer improved performance, better power efficiency and higher capacity, making them attractive for AI accelerators used by leading chipmakers and cloud companies. The company has already sold out its HBM supply for the calendar year 2026, while a significant portion of 2027 production is already committed through long-term customer agreements.
As AI adoption expands across industries, memory content per server is expected to increase further, creating a long runway for Micron Technology's revenue growth. The Zacks Consensus Estimate for fiscal 2027 revenues and non-GAAP EPS indicates a year-over-year increase of 91.4% and 113.7%, respectively.
NVIDIA: AI Leadership Continues to Drive GrowthNVIDIA continues to deliver outstanding financial results. In the first quarter of fiscal 2027, revenues surged 85% year over year to $81.62 billion, while non-GAAP earnings per share jumped 140% to $1.87.
NVIDIA remains the clear leader in AI infrastructure. Cloud providers, enterprises and governments continue to invest billions of dollars in building AI data centers, and NVIDIA's graphics processing units (GPUs) remain the preferred choice for training and running advanced AI models.
The company's newest Blackwell and Vera Rubin AI platforms are seeing strong customer adoption due to their superior performance and energy efficiency. NVIDIA is also strengthening its position beyond GPUs through networking products such as InfiniBand, Spectrum-X Ethernet and NVLink, enabling it to capture a larger portion of AI infrastructure spending.
NVIDIA's latest numbers highlight this leadership. During the first quarter of fiscal 2027, the data center business generated $75.25 billion in revenues, accounting for roughly 92% of total sales. Revenues from the segment climbed 92% year over year and 21% sequentially, driven by rapid deployment of Blackwell 300 systems and growing networking demand.
Another key advantage is NVIDIA's software ecosystem. CUDA, along with its expanding AI software portfolio, creates high switching costs for customers, making it difficult for competitors to take market share. This competitive advantage extends well beyond hardware and should continue supporting long-term growth.
As AI adoption expands from model training to large-scale inference and enterprise deployment, NVIDIA is positioned to benefit across every major phase of the AI investment cycle. The Zacks Consensus Estimate for fiscal 2027 revenues and non-GAAP EPS indicates a year-over-year increase of 79.6% and 90.6%, respectively.
MU vs. NVDA: Price Performance and ValuationComparing the two stocks’ price performance, Micron has surged 240.5% year to date, outperforming NVIDIA’s gain of 20.8%.
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When comparing valuations, NVIDIA currently trades at a higher forward 12-month price-to-earnings (P/E) multiple of 20.54 compared to Micron’s 6.29. This suggests investors are paying a larger premium for NVDA stock, even though its forward earnings growth profile is lower than MU’s.
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NVIDIA deserves its premium because of its superior AI ecosystem, software moat and exceptional growth. However, the market is already pricing in a great deal of future success. Micron's valuation leaves more room for earnings growth and potential multiple expansion if AI-driven memory demand remains strong.
Final Verdict: Micron Is the Better Buy TodayNVIDIA remains an outstanding long-term AI company, but Micron looks like the better investment bet today. Its explosive earnings growth, surging HBM demand, improving business visibility and lower P/E multiple create a more attractive risk-reward profile.
Micron's HBM4 ramp and strategic customer agreements could make this memory upcycle more durable than previous cycles. With demand still exceeding supply, MU offers investors a compelling combination of AI exposure, earnings momentum and valuation support.
Currently, Micron sports a Zacks Rank #1 (Strong Buy), making the stock a must-pick compared with NVIDIA, which has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank stocks here.
