Track market-moving stories before they get noisy

Micron Technology (MU +2.46%) and Sandisk (SNDK -1.82%) have delivered stellar returns so far this year, driven by the incredible demand for memory chips deployed in artificial intelligence (AI) data centers.

While Micron stock has jumped by more than 3x in 2026, clocking a 220% jump as of this writing, Sandisk's gains are even more impressive at 480%. Of course, both stocks have experienced volatility lately, but the strong fundamentals of the memory market suggest that they can step on the gas once again.

We will take a closer look at the prospects of Micron and Sandisk in this article to find out which memory stock could deliver bigger gains to investors over the next three years.

Image source: The Motley Fool.

Micron enjoys an edge over Sandisk Though Sandisk stock has outperformed Micron this year, investors will do well to note that the latter is in a better position to capitalize on the memory boom. That's because Micron sells both dynamic random-access memory (DRAM) and NAND flash storage products. Sandisk, meanwhile, is a pure-play NAND flash manufacturer.

MU Micron Technology$877.55+$21.06 (+2.46%)

NASDAQ · As of 4:00 PM ET 10/23/26

Micron, therefore, is benefiting from the massive surge in demand for both DRAM and NAND flash. Specifically, the DRAM business produced 73% of Micron's top line in the previous quarter, reaching almost $40 billion in revenue. Micron's exposure to the DRAM business allows the company to capitalize on the fast-growing high-bandwidth memory (HBM) space, where both volumes and shipments are rising rapidly.

Micron management noted on the latest earnings call that HBM sales are growing faster than conventional DRAM sales. That isn't surprising, as HBM plays a central role in quickly transporting huge data sets in AI chip clusters, ensuring that accelerator chips don't sit idle waiting for data. Even better, strong HBM demand is fueling Micron's bottom-line growth. The company notes that it has raised HBM pricing "significantly" for 2027, suggesting that its strong earnings growth rate is sustainable.

Additionally, semiconductor equipment giant ASML recently noted that supply shortages in the memory industry are widening in both size and time horizon. Similarly, SK Hynix estimates that DRAM undersupply will widen in 2027, and new capacity will only come online in June 2029. As such, Micron's DRAM business is poised for healthy growth over the next three years.

On the other hand, the NAND flash market is also expected to remain undersupplied for the next three years. This is great news for both Micron and Sandisk. Chinese NAND flash company YMTC recently noted that the NAND flash shortage is likely to persist until the end of 2029.

It is easy to see why demand for NAND flash is poised to substantially exceed supply. AI data centers require a lot of storage to store enormous data sets needed to train AI models and continuously feed data for inference and agentic AI applications. Given that traditional hard-disk drives (HDDs) are reportedly in short supply until 2028, AI data centers are turning to enterprise solid-state drives (SSDs).

However, the phenomenal demand for enterprise SSDs has led to a massive price spike. Tom's Hardware reported in August that the price of a 30TB enterprise SSD has surged by 6.5x in just a year. The strong pricing environment is likely to continue for the next three years amid the ongoing supply shortage.

Also, smartphone and personal computer (PC) shipments are declining due to high memory costs. This will create strong pent-up demand in the coming years, indicating that the improvement in Sandisk and Micron's margins will continue. Micron, however, has an additional catalyst in the form of the DRAM market, which explains why it is anticipated to deliver stronger bottom-line growth than Sandisk.

The verdict Though Sandisk is a pure-play NAND flash company, its market share of 11% is lower than Micron's 15%, according to Counterpoint Research. Additionally, Micron's share of the NAND flash market improved by two percentage points year over year in the second quarter of 2026, while Sandisk maintained its share.

Meanwhile, Micron has 24% DRAM market share, and its share increased by two percentage points year over year in Q2. All this explains why analysts are expecting Micron's earnings per share to grow at a faster pace in the long run compared to Sandisk.

Data by YCharts

What's more, Micron is the cheaper semiconductor stock to buy right now.

Data by YCharts

So, Micron clearly seems like a much better growth stock to buy and hold over the next three years to benefit from the memory boom. It is more attractively valued, is present in both the DRAM and NAND flash markets, and is likely to grow at a significantly faster pace than Sandisk. These factors could help Micron outperform Sandisk over the next three years.

E. Ohman J or Asset Management AB boosted its holdings in shares of Micron Technology, Inc. (NASDAQ: MU) by 1.8% in the third quarter, according to its most recent filing with the Securities and Exchange Commission. The firm owned 40,554 shares of the semiconductor manufacturer's stock after acquiring an additional 730 shares during

Being a memory chip stock investor during 2026 has been incredibly rewarding. Two of the best performers are Sandisk (SNDK -1.82%) and Micron Technology (MU +2.46%), and each has delivered impressive returns over the past year. The reason is simple: Memory chip demand is at an all-time high, and supply has run out. Therefore, prices on memory chips have skyrocketed. This has been massively beneficial to Sandisk's and Micron's profit pictures, and each has achieved record margins.

While both stocks are doing quite well, I think there's one clear winner here, and it has far more upside moving forward.

Image source: Getty Images.

Micron and Sandisk are thriving in today's environment
Micron and Sandisk both make memory chips, but the areas they focus on are different. Both Sandisk and Micron make NAND memory, which is used for long-term data storage, often in devices like solid-state drives. Micron also makes DRAM memory, which is used for quick information access in computing devices. Both of these are important, but one segment of Micron's business stands out.

MU Micron Technology$877.55+$21.06 (+2.46%)

NASDAQ · As of 4:00 PM ET 10/23/26

A subsegment of DRAM memory is HBM -- high bandwidth memory. HBM is what is used inside computing units like graphics processing units (GPUs), and Micron points out that industry HBM shipments will grow at a faster pace than conventional DRAM. For 2027 and 2028, Micron expects industry NAND and DRAM shipments to grow in the low to mid-20% range both years. So, there isn't going to be a lot of growth in these two industries, but with HBM growing faster than DRAM, it will give Micron an edge over Sandisk.

Micron also announced an industry-first partnership: a custom HBM chip for Nvidia (NVDA -0.59%). This is a big deal, as Nvidia and its peers were just using off-the-shelf memory chips. But with Micron entering into a partnership with Nvidia, this could lead to a more contractual situation, stabilizing Micron's revenue.

This is an issue for both Sandisk and Micron, as unstable revenue and cash flows are common in the industry. Memory chips are cyclical, and prices can rise and fall with demand. You can see this come to life in Micron's and Sandisk's profit margins, as they are highest when demand is great -- like it is right now.

Data by YCharts.

Both companies are taking steps to mitigate the effects of a downturn by entering into long-term supply agreements with their clients. Basically, Micron and Sandisk are trading the upside of higher memory chip prices for guaranteed revenue. This reduces the ceiling, but also raises the floor of business performance. Since this industry has been plagued by prolonged underperformance due to low demand, this is a smart move. Micron estimates it has now secured about 35% of its revenue through 2030. Sandisk has signed about 50% of its clients to these kinds of contracts.

This is a major evolution for both companies, and it could lead the market to value their stocks higher.

Micron and Sandisk are both cheap
Because the market is expecting a cyclical downturn from both companies at any moment, their stocks don't trade at very high premiums.

Data by YCharts. PE = price-to-earnings.

However, with both companies taking steps to close their cyclical potential, I think they should trade at a nearly average premium for big tech stocks. If they can rally to something like 20 times earnings by the end of their respective fiscal years, that could lead to the stocks tripling or quadrupling in value by this time next year.

That's a huge performance, but that will only occur if the market understands that these two have fundamentally shifted their business to be less exposed to cyclical downturns.

So, which is the winner? I think it's clearly Micron. Micron has exposure to HBM, which will be the highest growth area within the memory chip industry. It's also trading at a far cheaper price tag than Sandisk, giving it more upside. While Sandisk is still a solid pick, Micron offers greater return potential.

Micron Technology, Inc‘s (NASDAQ:MU) next memory architecture could help AI processors move data faster, but getting more memory closer to compute comes with a physical trade-off: heat.

Key Takeaways Q3 earnings are currently expected to increase by 26.2% YoY on 12.1% higher revenues. Several Mag 7 members are soon expected to report, including GOOGL, MSFT, and AMZN.Estimates for Q4 and full-year 2027 have trended higher, providing a strong earnings outlook overall.
We have a third of S&P 500 members on deck to report Q3 results this week, including three Mag 7 members – Alphabet (GOOGL - Free Report) and Microsoft (MSFT - Free Report) on Wednesday and Amazon (AMZN - Free Report) on Thursday. By the end of this week, we will have seen Q3 results from more than 50% of S&P 500 members.

With results from about a quarter of S&P 500 members already out, we see a continuation of the broad-based strength we've seen in the last few reporting cycles. While the growth pace remains strong, it does not compare favorably with other recent periods, particularly when some of the outlier numbers are excluded. Most importantly, the revisions trend remains positive, with estimates for 2026 Q4 and full-year 2027 continuing to rise.

Looking at overall expectations for the quarter, combining the actual results from the 121 S&P 500 members that have reported already with estimates for the still-to-come companies, Q3 earnings are currently expected to increase by +26.2% from the same period last year on +12.2% higher revenues, the 8th straight quarter of double-digit earnings growth for the index.

The Tech sector continues to be a major growth contributor, but the momentum is broad-based, with 14 of the 16 Zacks sectors on track to enjoy positive earnings growth and 6 generating double-digit earnings growth in Q3.

The quarterly chart below details actual results alongside Q3 2026 growth expectations and forward projections.

Image Source: Zacks Investment Research

As noted earlier, the revisions trend has been positive, sustaining the favorable trend in place for almost a year. Estimates for Q3 increased after the quarter got underway, and we are seeing a similar trend at play for 2026 Q4 estimates, as the chart below shows.

Image Source: Zacks Investment Research

This positive revision behavior is not new; it extends a tailwind that has been building for nearly a year. The positive revisions were at first concentrated in Technology and, more recently, Energy following Middle East supply disruptions. However, for 2026 Q4 and also what we saw for Q3, the favorable estimate revisions have broadened significantly, rising across 7 of the 16 Zacks sectors—including Industrials, Basic Materials, Finance, Aerospace and Conglomerates alongside Tech and Energy since the start of October.

On the negative side, Q4 estimates have come down since the start of October for 9 sectors, with the major declines at the Transportation, Autos, Consumer Staples, Consumer Discretionary, Construction, and Utilities sectors.

It is important to note that estimates for full-year 2027 have also been similarly trending higher, which we show a little later in this note.

Sector Focus: Broad-Based Strength

This week’s reporting line-up, comprising 172 S&P 500 members, is a representative sample of the index as a whole, ranging from the aforementioned Mag 7 members to Coca-Cola, Boeing, Caterpillar, Visa, Eli Lilly, and a host of Finance and other companies. 

The 6 sectors expected to enjoy double-digit earnings growth in Q3 are Aerospace (up +186.7%), Energy (+128%), Tech (+45.3%), Basic Materials (+32.6%), Transportation (+11.1%), and Industrial Products (+14.4%).

Q3 earnings growth for the S&P 500 index drops to +21.6% from +26.2% once the Energy sector’s contribution is excluded from the index. Excluding the Tech sector, Q3 earnings growth for the rest of the index drops to +16.1%.

For the Mag 7 group, we already have actual results from Meta (META - Free Report) and Tesla (TSLA - Free Report) , and this week will bring results from Alphabet, Amazon, and Microsoft. The expectation is that Q3 earnings for the Mag 7 will increase by +22.3% on +23.1% revenues, as the chart below shows.

Image Source: Zacks Investment Research

Excluding the Mag 7 group’s contribution, Q3 earnings for the rest of the index would actually improve to +27.6% (from +26.2%).

The chart below shows quarterly earnings and revenue growth expectations for the Tech sector as a whole.

Image Source: Zacks Investment Research

The Q3 earnings and revenue growth rate drops to +23.1% from +45.3% once the substantial contributions from Nvidia (NVDA - Free Report) , Micron (MU - Free Report) , and Alphabet (GOOGL - Free Report) are excluded, as the chart below shows.

Image Source: Zacks Investment Research

Q3 Earnings Season Scorecard

Through Friday, October 23rd, we have seen Q3 results from 121 S&P 500 members, or 24.2% of the index’s total membership. Total earnings for these companies are up +31.5% from the same period last year on +12.2% higher revenues, with 80.7% beating EPS estimates and 69.7% beating revenues estimates.

The comparison charts below show the earnings and revenue growth rates for these companies compared to other recent periods.

Image Source: Zacks Investment Research

The very strong earnings and revenue growth pace for this group of 45 S&P 500 members is mostly due to Micron, whose Q3 earnings increased +1075.7% from the year-earlier level. Excluding the Micron contribution, Q3 earnings for the remaining 120 index members that have reported would be up +14%.

The chart below shows the Q3 earnings growth pace for the companies that have reported, with and without Micron, across recent periods.

Image Source: Zacks Investment Research

The comparison charts below show the Q3 EPS and revenue beat percentages for these companies compared to other recent periods.

Image Source: Zacks Investment Research

For the Finance sector, we now have Q3 results from 55.3% of the sector’s market capitalization in the S&P 500 index. Total earnings for these Finance sector companies are up +10% from the same period last year on +8.7% higher revenues, with 80.6% beating EPS estimates and 52.8% beating revenue estimates.

The comparison charts below put the Q3 earnings and revenue growth rates in a historical context.

Image Source: Zacks Investment Research

The comparison charts below show the Q3 EPS and revenue beat percentages in a historical context.

Image Source: Zacks Investment Research

As you can see above, not only are the growth rates tracking below other recent periods, but Finance sector companies also seem to be struggling to beat consensus EPS and revenue estimates.

The Earnings Big Picture

The chart below shows the aggregate growth picture for the S&P 500 index on a calendar year basis.

Image Source: Zacks Investment Research

As we noted earlier, estimates for full-year 2027 are experiencing the same positive and broad-based revisions trend that we noted earlier in the context of 2026 Q4. The chart below shows how aggregate 2027 earnings expectations have evolved since the start of July.

Image Source: Zacks Investment Research

For a detailed view of the evolving earnings picture, please check out our weekly Earnings Trends report here >>>> Q3 Earnings Season Ramps Up, Outlook for Q4 and Full-Year 2027 Improves

Micron, SK Hynix and SanDisk shares traded higher on Friday as a rebound in the broader semiconductor sector lifted investor sentiment following a technology-led selloff in the previous session. Micron MU gained more than 3%, while SK Hynix rose over 4% and SanDisk advanced 1.4%.

SummaryMicron Technology retains a Strong Buy rating, supported by robust guidance and a compelling valuation at 5.6x earnings.MU guides for 22% sequential weekly revenue growth and expects margins to bottom in fiscal 2027 before improving as HBM pricing lifts.A $35.16 billion buyback authorization, unlocking Dec. 9, 2026, is sized off real cash and is well-covered by MU’s balance sheet.Risks from China’s CXMT targeting high-margin DRAM are acknowledged, but current price levels already discount much of the potential downside. JHVEPhoto/iStock Editorial via Getty Images

When I last wrote about Micron Technology, Inc. (MU) on Sept. 18, the stock was at $977.50. In the weeks since, Micron delivered a blowout quarter, with revenue coming in at $54.23

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Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

Micron Technology (MU -6.26%) is one of this year's biggest artificial intelligence (AI) success stories. The maker of memory and storage solutions has seen its earnings and price performance skyrocket amid high demand for its products. In the latest quarter, revenue soared a mind-boggling 379% to $54 billion, and the stock price has advanced in the triple digits this year.

In fact, the stock has climbed so much that it even surpassed $1,200 earlier this year. It's since given back some of the gain and now trades at about $900. This fantastic performance helped the company reach a market capitalization of more than $1 trillion, putting it on par with the "Magnificent Seven" tech stocks, each valued in the trillions of dollars.

Now, with its stock price hovering just under $1,000, will Micron announce a stock split? Let's consider the possibilities.

Image source: Getty Images.

Memory's crucial role in AIFirst, let's talk about Micron's path so far. Though the company opened its doors nearly 50 years ago and has increased revenue over time, revenue truly took off in recent quarters. Memory plays a crucial role in AI from start to finish, meaning it's necessary for the training of models as well as for the application of AI to real-world situations. This use of AI in the real world may be carried out by AI agents, which consider a problem and then take steps to solve it as a human would in the past.

Agentic AI is where the revenue opportunity really may gain momentum, as memory is needed in an ongoing manner. This could result in growth over time as AI is used by companies and individuals. Many investors are betting on this and have piled into Micron stock, driving it to tremendous gains.

Now, let's turn our attention to the subject of stock splits. They automatically lower the individual price of each share, but they don't change the company's market value or anything fundamental. The process involves offering additional shares to current holders, according to the ratio of the split. So, a person who held one share valued at $1,000, in a 10-for-1 split, would hold 10 shares with the same value following the operation.

The motive for such a move is simple: It allows the company to bring its stock to a broader range of potential investors. Some investors can't afford to invest $1,000 and don't have access to fractional shares -- so a stock split gives them the ability to get in on this player that was previously out of reach.

Stocks that trade around $1,000It's also important to keep in mind that certain investors shy away from stocks that trade around the $1,000 level, seeing them as expensive even if valuation says otherwise. So a stock split could make the stock more attractive to these investors too.

Is a stock split a likely move for Micron right now? Though the stock has come down from its peak, it still has posted a huge gain and once again is approaching the $1,000 mark. A stock split could make it an easier buy for smaller retail investors, and it also could deliver a message of confidence from the company itself. If a company launches a split, this implies that it's confident that the stock may once again take off and rise considerably.

MU Micron Technology$856.49-$57.18 (-6.26%)

NASDAQ · As of 4:00 PM ET 10/22/26

Micron has completed three stock splits in the past, but the most recent was more than 25 years ago. So stock splits haven't been a part of the company's strategy for quite some time.

Meanwhile, the AI boom continues to march on, with high demand for memory and storage and encouraging messages from Micron and fellow memory players. Still, it's possible that Micron and peers may face certain headwinds as the story unfolds. For example, memory supply is tight now, but as this situation improves, memory prices may decline. At the same time, any slowdown in AI investment could weigh on revenue and stock performance.

Considering all of these points, and particularly the fact that Micron stock has fallen from its highs, I don't think the company will rush to announce a stock split in the coming weeks. 

Axxcess Wealth Management LLC decreased its holdings in Micron Technology, Inc. (NASDAQ: MU) by 24.8% in the third quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The fund owned 10,385 shares of the semiconductor manufacturer's stock after selling 3,424 shares during the period. Axxcess Wealth

In the latest trading session, Micron (MU - Free Report) closed at $856.49, marking a -6.26% move from the previous day. This move lagged the S&P 500's daily loss of 1.21%. Meanwhile, the Dow experienced a rise of 0.02%, and the technology-dominated Nasdaq saw a decrease of 2.6%.

Heading into today, shares of the chipmaker had lost 14.76% over the past month, lagging the Computer and Technology sector's loss of 3.87% and the S&P 500's loss of 0.03%.

The investment community will be closely monitoring the performance of Micron in its forthcoming earnings report. On that day, Micron is projected to report earnings of $38.2 per share, which would represent year-over-year growth of 699.16%. Alongside, our most recent consensus estimate is anticipating revenue of $62.04 billion, indicating a 354.75% upward movement from the same quarter last year.

For the full year, the Zacks Consensus Estimates are projecting earnings of $177.73 per share and revenue of $277.53 billion, which would represent changes of +135.34% and +108.37%, respectively, from the prior year.

It's also important for investors to be aware of any recent modifications to analyst estimates for Micron. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.

The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 11.57% upward. Currently, Micron is carrying a Zacks Rank of #1 (Strong Buy).

Looking at its valuation, Micron is holding a Forward P/E ratio of 5.14. This expresses a discount compared to the average Forward P/E of 19.6 of its industry.

Meanwhile, MU's PEG ratio is currently 0.16. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Computer - Integrated Systems industry had an average PEG ratio of 1.43 as trading concluded yesterday.

The Computer - Integrated Systems industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 36, putting it in the top 15% of all 250+ industries.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.

Including the flood of Q3 earnings results from the morning of October 22nd, we now have quarterly results from 112 S&P 500 members or 22.4% of the index’s total membership. Total earnings for these companies are up +30.9% from the same period last year on +11.8% higher revenues, with 80.4% beating EPS estimates and 68.8% beating revenue estimates.

The Q3 earnings and revenue growth pace is tracking modestly below other recent periods, particularly when the reported Q3 growth rates are adjusted for Micron’s (MU - Free Report) blockbuster results. The reported Q3 earnings and revenue growth rates decline to +13.1% (from +30.9%) and +8.5% (from +11.8%) when Micron is excluded from the reported results. 

The comparison charts below show the Q3 earnings and revenue growth excluding Micron’s substantial contribution

Image Source: Zacks Investment Research

The Q3 EPS and revenue beats percentages are tracking below what we had seen from this same group of companies in other recent periods, but otherwise in-line with historical averages.

Given the positive revisions trend in place ahead of the start of the Q3 reporting cycle that had pushed estimates higher, companies will not only need to beat elevated consensus estimates, but also provide positive guidance and outlook for the coming periods. We are off to a good start on those fronts at this stage, as estimates for 2026 Q4 and full-year 2026 are maintaining the favorable revisions momentum that was in place before this earnings season got underway. We will see if this positive trend will remain in place as we move into the heart into the Q3 earnings season in the coming days.

For more details about the Q3 earnings season and evolving expectations for the coming periods, please check out our weekly Earnings Trends report here >>> Q3 Earnings Season Ramps Up, Outlook for Q4 and Full-Year 2027 Improve

Micron Technology stock MU fell on Thursday as investors reassessed the outlook for artificial intelligence spending, even as Nvidia CEO Jensen Huang said memory demand was unlikely to ease and D.A. Davidson reiterated its bullish view on the chipmaker.

Micron shares dropped 5.5%, reversing a 2% gain in the previous session.

Other memory-related stocks also declined, with SK Hynix’s US-listed shares falling 6%, while SanDisk and Western Digital lost more than 8% and 7% respectively.

The market reaction came as Micron announced a new quarterly employee bonus programme tied to company performance, alongside additional compensation measures for workers in Taiwan following union pressure over the distribution of profits from the AI boom.

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Micron’s AI memory story is still the swing factor for MU shares.

51% of retail investor accounts lose money when trading CFDs with this provider.

AI memory demand remains a key focus for investorsHuang told CNBC that a surplus of memory was unlikely by 2029, highlighting the continued importance of memory chips as AI systems become more advanced.

“One of the things that’s really great about memory is that you can always use more of it,” Huang said.

Memory chips are an important component of AI infrastructure, supporting systems that require greater memory capacity and bandwidth.

However, uncertainty about the sustainability of AI-related spending continues to weigh on semiconductor stocks.

D.A. Davidson managing director and technology research head Gil Luria maintained a positive outlook on Micron after attending a webcast focused on the company’s upcoming innovations and position in the memory market.

“We see Micron as having a leadership position in memory technology, with far wider moats than are implied by the current valuation,” Luria said in a note on Wednesday.

The firm reiterated its Buy rating and $3,000 price target.

With Micron closing near $914 on Wednesday, the target implied that the stock could more than triple.

“Memory is integral to the AI product,” Luria wrote, adding that greater memory content and bandwidth could allow AI systems to operate at a higher level.

D.A. Davidson also highlighted Micron’s position across three key memory technologies: dynamic random-access memory (DRAM), NAND and high-bandwidth memory (HBM).

Separately, Micron said on Thursday it would introduce quarterly employee payments linked to company performance from fiscal 2027.

The scheme will supplement its existing annual incentive programme and apply to employees globally.

The quarterly bonus pool will be calculated using profit after tax minus projected capital spending for the following quarter, with fiscal 2026 serving as the baseline.

Half of the payment will be made in cash after results, while the remainder will be distributed in shares that vest after one year.

Micron did not disclose a fixed percentage of earnings allocated to employees or the total amount reserved for the programme.

The announcement followed an agreement reached on Wednesday with a union at the company’s larger Taichung operations in Taiwan.

Talks with a separate union in Taoyuan remained ongoing on Thursday.

The Taoyuan union has called for a transparent arrangement allocating 15% of Micron’s operating profit to employees worldwide.

It said workers should receive a greater share of the gains generated by AI demand.

Micron said it would continue discussions with the Taoyuan union while increasing the maximum payment available under its annual incentive plan.

In Taiwan, the company will raise employer retirement contributions to 10% from 8%, provide three additional paid days off, increase shift allowances and make structural salary adjustments.

From December 1, 2026, the monthly allowance for day-shift workers will increase to NT4,500(138) from NT1,500(46).

Micron said the Taiwan-specific changes were intended to strengthen its competitiveness in the local market.

The company’s approach differs from arrangements at South Korean rivals Samsung Electronics and SK Hynix.

SK Hynix has agreed to allocate 10% of annual operating profit to an employee bonus pool, while Samsung agreed to reserve 10.5% of its semiconductor division’s operating profit for special bonuses, subject to profitability targets.

Micron’s quarterly payments will also be affected by capital spending, potentially limiting bonuses while the company invests in expanding production capacity.

Investors are spooked by Tesla's cut to its near-term spending target and Lam Research's weaker-than-expected forecast,

Brad Gerstner says we are on the brink of superintelligence and whoever controls the most compute wins, but the company doing the heaviest spending may not be the one pocketing the profits.

SpaceX (NASDAQ:SPCX | SPCX Price Prediction) closed at $159.31 on October 21, up 7.79%, after reporting third-quarter revenue of $14.60 billion. That same day, Altimeter Capital founder and CEO Brad Gerstner explained why he thinks Elon Musk is spending so heavily.

“Elon understands we’re at the brink of the singularity. We’re entering superintelligence. And whoever has the most scale, capital, compute and data wins the game of superintelligence,” Gerstner said.

Gerstner said Musk plans to stand up 10 GW of computing power next year. That would be about 25% of all U.S. capacity additions, and it would take roughly $400 billion of capital.

SpaceX now installs 200,000 GB300 chips a month, he added. A few months ago, that was a full year’s pace.

For you as an investor, the question is who keeps the money. SpaceX pays to build the capacity, while chip and memory suppliers are booking the profits today (we rounded up seven companies providing the AI expansion beyond the chipmakers in a free report).

Scale Thesis Drives a $2.10 Trillion Valuation
The logic is a loop. More computing power trains bigger models, bigger models draw more users and data, and that usage pays for the next round of computing power.

SpaceX’s results suggest the loop is working. Its AI Solutions & Infrastructure segment brought in $7.60 billion of revenue, up 830%, with help from the $60 billion Cursor acquisition. The loop breaks down if bigger models deliver smaller gains, if cheaper models catch up to frontier quality, or if paying demand grows more slowly than capacity.

Gerstner expects three gigawatts by year-end, and COLOSSUS II has already brought rated capacity to 1.7 GW. Getting to 10 GW only pays off if demand keeps up with each new gigawatt.

Capital Is the Bottleneck a Merger Would Ease
Few companies can pay $400 billion in cash flow. SpaceX ended the second quarter with $93.52 billion in cash and spent $15.83 billion on AI compute in that quarter alone.

Gerstner sees a deal with Tesla (NASDAQ:TSLA) mainly as a way to finance that spending. A combined company would have more collateral, so it could borrow more, at lower rates, and reach scale sooner.

His best guess for a Tesla merger is $520 to $550 a share. That is roughly 35% to 42% above its $386.47 close, even as the stock is down 14.06% this year.

The risk falls on Tesla shareholders, who would take on SpaceX’s spending even as Tesla’s own operating income fell to $718 million. A deal would also need approval from a majority of all outstanding Tesla shares.

Why Lenders Favor NVIDIA Hardware
Gerstner’s most original point is about collateral. A lender can value standard NVIDIA (NASDAQ:NVDA) GPUs more easily than custom chips, because many buyers could use a seized GPU.

That gives NVIDIA pricing power when credit is tight. A builder that borrows to fund an expansion will likely pay more for hardware a bank will lend against.

NVIDIA has built on that edge. It is working with Apollo, BlackRock, Blackstone, Brookfield, Goldman Sachs and KKR to raise over $500 billion in outside capital, and SpaceX AI is a lead partner for its Vera CPUs. Companies that design their own chips may save on each unit, but they could end up paying more to borrow against them.

Suppliers Are Collecting the Margins Now
Gerstner cited NVIDIA’s 75% gross margin and Micron Technology (NASDAQ:MU) at 86%, both raised by shortages. He noted that NVIDIA stock has risen 18x in three years.

NVIDIA guided to roughly 74.0% gross margin, and management said it remains supply constrained. Those margins will likely narrow once supply catches up.

SpaceX carries the depreciation risk because GPUs lose value quickly. Cursor also added $1.2 billion of share-based compensation in the third quarter.

Key Risks SPCX Shareholders Face Next
SPCX carries significant risk at a $2.10 trillion market cap. Its shareholders pay for the expansion and take on depreciation, power, GPU supply, and execution risks tied to Musk’s timelines.

Circular financing adds risk because chip vendors are helping fund the customers that buy their chips. If demand stalls, that support turns into excess capacity.

NVIDIA appears better positioned. It sells chips to whichever lab wins, it has the financing edge Gerstner described, and its P/E of about 45 is far below Tesla’s 402.

NVIDIA closed at $221.97, up 22.82% over the past year, after making $59.69 billion last quarter. The next thing to watch is whether margins hold as Vera Rubin scales up.

Contact [email protected] for any questions or corrections.

Micron stock was falling on Thursday alongside much of the rest of the chip and AI space but could triple in price from here.

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Buy Micron on conditions, not hype

Buy Micron (MU). The article says memory-market conditions could persist 2–3 years even if valuation doesn’t expand much. If the selloff is driven by broad “AI spend uncertainty,” MU can outperform because memory demand is a longer-lived bottleneck and less tied to one company’s robotaxi/AI infrastructure timeline.

Key Risk: Memory demand rolls over sooner than expected (AI infrastructure build slows broadly), crushing pricing and utilization before the 2–3 year window plays out.

Sell NVDA/AMD basket

Sell Nvidia and AMD (NVDA, AMD). The news is a demand-confidence problem: Tesla cut 2026 capex while Meta raised its floor, and investors are punishing any sign that AI spend won’t translate into accelerating orders. When the biggest AI customers send mixed signals, the market stops paying for “AI growth” and starts paying for near-term visibility—exactly what this article highlights.

Key Risk: AI capex guidance from hyperscalers stabilizes and order visibility improves fast, forcing a sharp rebound in accelerator/advanced-processor demand expectations.

Nvidia, AMD and Micron stocks fell sharply in US premarket trading on Thursday as investors questioned whether the artificial intelligence boom can satisfy Wall Street when its biggest customers are sending conflicting spending signals.

Nvidia dropped 2.4%, while AMD and Micron were among semiconductor stocks declining between 2.9% and 5.3% in an early market snapshot.

Nasdaq 100 futures slid 1.93%, reversing part of Wednesday's technology-led recovery.

Tesla's reduced investment forecast raised questions about future expansion, while Meta Platforms increased its minimum spending commitment.

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Nvidia can swing hard when customers disagree on AI budgets.

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Tesla reduced its 2026 capital expenditure forecast to approximately $20 billion from more than $25 billion, even as quarterly free cash flow reached $1.53 billion.

Its $4.73 billion in capital spending was substantially below analyst expectations. The lower investment helped cash generation but raised questions about the pace of Tesla's robotaxi, robotics and AI infrastructure expansion.

Shares fell approximately 5.3% before the bell.

Tim Waterer, chief market analyst at KCM Trade told Bloomberg that investors were proving difficult to satisfy. Higher capital expenditure raises concerns about returns, while reducing spending creates doubts about future growth.

However, Tesla has not established how much of the reduction involves AI infrastructure rather than other investments.

Meta reported $64.6 billion in third-quarter revenue, up 26% from a year earlier, while raising the lower end of its annual capital expenditure forecast to $135 billion from $130 billion. The upper limit remains $145 billion.

Its earnings release also showed negative free cash flow of $2.12 billion, reflecting substantial infrastructure investment.

Operating profit was affected by a separate $9.89 billion legal charge, meaning the entire decline in operating margins cannot be attributed to AI expenditure.

Importantly, Meta shares initially rose after the results as investors welcomed encouraging adoption of its AI products.

Nevertheless, Ben Barringer, head of technology research at Quilter Cheviot, told The Wall Street Journal that elevated expectations were making it increasingly difficult for technology companies to deliver results strong enough to satisfy investors.

Lam Research reported record quarterly revenue of $8.22 billion and adjusted earnings of $2.20 a share, exceeding expectations.

Yet its shares fell approximately 8.5% premarket after the semiconductor-equipment maker forecast around $8.6 billion in revenue for the following quarter, broadly matching consensus.

The reaction illustrates how investors are demanding more than historical earnings strength.

Nvidia supplies AI accelerators, AMD competes in advanced processors, and Micron provides memory essential to AI computing. All three depend on customers continuing to expand capacity.

Stifel analyst Brian Chin, speaking to MarketWatch, argued that favourable memory-market conditions could persist for another two to three years, even if Micron's valuation does not rise significantly.

Brent crude above $112 added another potential inflation and financing headwind.

Micron Technology (MU +1.96%) is playing a key role in the artificial intelligence (AI) story, and that's made it one of this year's most popular stocks. This company makes the memory and storage that are essential to the use of AI. This has supercharged earnings growth, and the stock price has taken off as investors recognized this company's position in a high-potential market. The AI market is expected to soar into the trillions by the early 2030s, and Micron is well placed to benefit.

Still, the stock has advanced more than 1,000% over three years, and in 2026 it's heading for a gain of more than 200%. With this in mind, you may be wondering if there's much fuel left in the tank. Is Micron a millionaire-maker stock after its 2026 run? Let's find out.

Image source: Getty Images.

A traditionally cyclical market First, let's consider Micron's path so far. This tech giant has been around for decades, serving the needs of tech companies with its products. This market has always been cyclical, with memory chip demand ebbing and flowing over the years. That has resulted in some dips and peaks in revenue, but over time, this tech giant has grown its relationships with customers and its earnings. So, it's a well-established memory player that investors can count on over time -- even if demand slows on occasion, this pattern is expected.

MU Revenue (Annual) data by YCharts

The AI boom represented a fresh growth opportunity for Micron. The company's memory chips have been useful throughout the AI story, as memory and storage are needed for model training as well as the application of AI to real-world problems. But revenue growth truly took off in recent quarters as the agentic AI opportunity emerged.

Agentic AI involves AI addressing an issue on behalf of a human and taking various steps to complete tasks. This represents an almost limitless opportunity for memory and storage companies, as these chips are needed on an ongoing basis for AI agents to operate. By comparison, training needs the memory capacity once, as the training is happening. So agentic AI represents a much bigger growth opportunity for memory makers like Micron. This is great news, because agentic AI is expected to be used more and more as AI is applied in the real world.

MU Micron Technology$913.67+$17.60 (+1.96%)

NASDAQ · As of 4:00 PM ET 10/21/26

Micron's revenue soars to a record Demand today for Micron's chips has taken off, and the only thing holding back growth to a certain degree is supply. Even with this headwind, Micron's revenue in the recent quarter soared more than 370% to a record of $54 billion, and the company expects the current fiscal year to be even stronger than the recently completed 2026 fiscal year.

Still, the supply situation may greatly improve over the next couple of years, and that could weigh on prices. Meanwhile, any slowdown in the AI infrastructure build-out also could hurt Micron. The industry has been known to be cyclical, as I said above, so after such gains, a dip could be on the horizon.

With all of this in mind, is Micron a millionaire-maker stock after its recent performance? A look into the past shows us that if we had invested $10,000 in Micron three years ago, the value of that investment would now be about $135,000. That's fantastic, but it's far from $1 million. So Micron's gain would have to be extremely big, and you would have to invest a huge amount to make it to $1 million. Investors shouldn't make this kind of bet because it's much too risky, and an easier path to wealth exists. This path involves diversifying across a broad range of quality stocks and holding on for at least five to 10 years.

Micron on its own is unlikely to make you a millionaire. But as part of a basket of great stocks that you're willing to own for a number of years, this tech giant could help do the job -- and potentially set you off on the path to millions.

Micron's (MU +1.96%) business has been on an undeniable roll. The company's last quarterly report crushed expectations, with non-GAAP (generally accepted accounting principles) adjusted earnings per share of $33.42 on revenue of $54.23 billion, blowing past the average Wall Street target for adjusted earnings per share of $31.72 on sales of $51.07 billion.

Even better, the company issued guidance for the current quarter that crushed expectations. The memory chip leader said that it expects to post sales of roughly $61.5 billion in the current quarter and adjusted earnings of $38.15 per share. Meanwhile, the average Wall Street estimate had only targeted sales of roughly $57 billion and per-share earnings of $35.40.

Micron is expected to release its next earnings report sometime in December. Here's why the stock could be worth buying ahead of the company's next quarterly release.

Image source: Getty Images.

Micron's recent wins haven't translated into valuation gains yet
Despite strong quarterly reports and very encouraging forward guidance, Micron stock has actually lost ground since its last quarterly report. The company's share price is now down roughly 25.5%, as of this writing.

There are a few big reasons for the company's valuation pullback. For starters, the stock has seen massive gains over the last year even after some recent sell-offs. Investors have also become less confident in the macroeconomic backdrop due to factors including sticky inflation, elevated bond yields, and the likelihood of further interest rate hikes. Adding another complicating factor, the market is concerned about the impact of competition from Chinese memory companies on Micron's pricing power.

MU Micron Technology$913.67+$17.60 (+1.96%)

NASDAQ · As of 4:00 PM ET 10/21/26

While the potential for macroeconomic conditions to worsen and increased competition pose meaningful risks to Micron stock, the company is likely to deliver another stellar report when it releases earnings in a couple of months. Micron has been building an impressive track record of earnings beats, and there's a good chance that its sales and earnings will once again blow past its guidance ranges. Demand for Micron's high bandwidth memory (HBM) chips for artificial intelligence processors is incredibly high, and there's little indication that pricing power will slip in the near future.

Micron's next quarterly report also roughly coincides with an upcoming major shift in the company's capital return policy. Due to the terms connected with the company taking a loan through the CHIPS Act in 2024, Micron has been prevented from buying back its own stock for two years.

That restriction is now on the verge of lapsing, and the company is gearing up to return a massive amount of cash to shareholders. Most of this will take the form of stock buybacks, but it also wouldn't be surprising to see the company announce a huge dividend increase at some point in December.

With Micron's business momentum looking incredibly strong and the company set to buy back $35.16 billion of its own stock and potentially announce a major dividend increase, buying the company's shares amid recent volatility could be a good move.

4 Stocks With Demand So Sticky That the AI Sell-Off Barely Touched Them at AllMicron Technology NASDAQ: MU outlined a technology and product roadmap centered on rising artificial-intelligence memory and storage requirements, including plans for next-generation DRAM, high-bandwidth memory, NAND and advanced packaging technologies.

During the company’s technology and product leadership webinar, President and Chief Technology and Products Officer Scott DeBoer said AI is changing the role of memory from a supporting component to a central constraint on system performance, capacity and cost per token. He said Micron aims to advance memory, storage and compute together through higher bandwidth, larger capacities, improved power efficiency and closer product collaboration with customers.

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DRAM roadmap and 3D transition The AI Sell-Off Continues—These 3 Stocks Keep Raising Guidance AnywayDeBoer said Micron’s 1-gamma DRAM node is in high-volume manufacturing and will serve as the foundation for products introduced over the coming 12 months. The company expects its 1-delta DRAM node to enter volume production in the second half of 2027, targeting a mid-20% percentage improvement in bit density while optimizing the technology for AI-oriented products including HBM5, vertical HBM and vertical edge inference memory.

Micron also described work on 1-epsilon, 1-zeta and eta-generation technologies, including wafer bonding, High-NA EUV, new materials and other process innovations. DeBoer said the company has confidence in several additional generations of planar DRAM scaling before introducing 3D DRAM.

MarketBeat Week in Review – 10/12 - 10/16While Micron has 3D DRAM on its roadmap, DeBoer said deployment timing will depend on cost, complexity and device-performance considerations. He pushed back on the view that 4F² DRAM architectures inherently provide a density advantage over 6F² designs, saying capacitor pitch is the foundational determinant of DRAM bit density.

“When we look out from Micron’s point of view as the leading-edge technology company, when we look at scaling 4F² beyond where we’re sitting today, it’s physics,” DeBoer said during the question-and-answer session. “There’s fundamental problems with 4F² scaling, that ultimately will lead to 3D DRAM coming in instead of 4F².”

HBM expansion and vertical memory Micron said it is in high-volume manufacturing with HBM4 and is developing both standard and customized HBM products. The company expects custom HBM designs to incorporate customer-specific memory and logic intellectual property into the base die, while standard HBM products will remain part of the market.

The company also described a future category called vertical HBM, in which memory is integrated directly on top of processing units. DeBoer said the architecture is intended primarily to deliver substantially greater bandwidth, while capacity will scale at a different pace because of thermal-management challenges.

Advanced packaging and hybrid bonding will be increasingly important to those products, according to Micron. DeBoer said hybrid bonding is necessary as interconnect pitches tighten, and he cited both bandwidth and thermal benefits. The company is also developing higher-stack HBM designs and thermal technologies, including heat spreaders positioned over hotter areas of an HBM base die.

Micron said it will use foundry nodes for future standard and custom HBM base dies. DeBoer said HBM4 did not require more advanced CMOS for Micron to achieve its power and performance objectives, but HBM4E will require more advanced CMOS to meet speed and power requirements.

New DRAM and NAND products Micron highlighted several forthcoming DRAM offerings. LPDDR6 is expected to provide 35% better power performance than LPDDR5, with greater improvement on some densities, according to the company. Micron also said it is working with customers on DDR6, which it described as offering twice the bandwidth of DDR5, and plans a 1-terabyte RDIMM following its recently sampled 512-gigabyte DDR5 RDIMM.

On NAND, Micron said its Generation 11 technology will ramp in the second half of 2027. The company said G11 will more than double bit density compared with its Generation 9 NAND, target 1.5 times the I/O speed and reduce data-transfer energy. The node will use wafer-on-wafer bonding and have more than 400 layers.

Micron is also pursuing what it calls AI-class NAND in two areas:

High-IOPS, SLC-based NAND designs using small blocks for ultra-fast storage products. High-bandwidth NAND using TSV-stacked NAND and logic dies positioned closer to compute resources. DeBoer said the company will determine the appropriate designs in collaboration with customers, given different performance and cost requirements across data center, automotive and edge applications.

AI tools, investment and customer collaboration Micron said it is using AI internally to speed product development and manufacturing execution. DeBoer cited a data center controller design that moved from silicon to tape-out in half the time of the prior generation, as well as a data center SSD development effort completed with 60% less time than the preceding generation.

The company also pointed to longer-term investments, including expanded Micron Ventures activity, work at Albany NanoTech on advanced lithography and a previously announced $10 billion, 10-year commitment to Micron Research Labs. DeBoer said the company is collaborating with partners ranging from startup Liqid to Meta, with Micron and Meta recently publishing a white paper focused on optimizing LPDDR6 for data centers.

In response to questions about AI system design, DeBoer said memory configurations will vary across training, inference, edge and rack-scale deployments. However, he said the underlying principle remains that more memory content and bandwidth improve system performance. He added that Micron does not expect memory supply to come into balance over the next two years, citing prior comments by company leadership.

About Micron Technology (NASDAQ:MU)Micron Technology, Inc is a semiconductor company that develops and manufactures memory and storage products. Its portfolio includes dynamic random-access memory (DRAM), NAND flash memory, NOR flash memory, solid-state drives, memory modules, and other semiconductor solutions used in data centers, personal computers, smartphones, automotive systems, industrial equipment, and consumer electronics.

The company also provides high-bandwidth memory and other advanced memory technologies designed to support artificial intelligence, high-performance computing, networking, and graphics applications.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected].

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ASML Holding (ASML +2.89%) is one of the most important companies in the semiconductor ecosystem. The company enjoys a monopoly in the market for extreme ultraviolet (EUV) lithography machines, which are used for printing advanced chips deployed in artificial intelligence (AI) data centers.

So, when ASML released its results for the third quarter of 2026 on Oct. 14, it became clear that the AI infrastructure boom is far from over. The Dutch semiconductor giant reported impressive growth in revenue and earnings and noted that it is struggling to meet strong customer demand.

We will take a closer look at ASML's results in this article and explain why they bode well for two other semiconductor stocks -- Nvidia (NVDA +2.30%) and Micron Technology (MU +2.37%).

Image source: Getty Images.

ASML sees AI hardware demand outpacing supply for the next two years, at leastASML sold 113 new lithography systems in the previous quarter, a massive increase over the year-ago period's sales of 66 units. Management's comments on the latest earnings call indicate that demand for its advanced chipmaking equipment will strengthen.

CEO Christophe Fouquet remarked:

Our leading edge high volume customers are sharing very good visibility, as a result of the increasing number of long term commitments they are securing with their customers. This extended visibility has led them to conclude that demand for their product will outpace supply through at least 2028.$1,677.95+$47.11 (+2.89%)

NASDAQ · As of 2:46 PM ET 10/21/26

ASML's machines are deployed by foundries, memory makers, and integrated device manufacturers. Its client list includes companies such as TSMC, Intel, Samsung, and Micron. So, ASML management's remarks that AI hardware demand will exceed supply at least through 2028 indicate that the favorable pricing environment fueling Nvidia and Micron's growth isn't going anywhere.

What's more, ASML's customers are interested in placing orders for 2029 and 2030 to meet the increasing demand for AI hardware. As a result, the company is now looking to expand its production capacity beyond the previously stated 2028 target of 30%. So, ASML's outlook should put to rest any concerns about a slowdown in the AI infrastructure space.

That's why now is a good time to buy chip stocks, following a recent dip in the sector, triggered mainly by concerns about rising financing costs due to higher interest rates.

Why investors should buy Nvidia and Micron following ASML's commentaryShares of Micron and Nvidia have pulled back over the past couple of weeks. While Micron stock is down 13% since Oct. 6, Nvidia has shed 9% of its value (as of this writing). The declines mean that investors can buy these AI stocks at extremely attractive valuations.

NVDA PE Ratio data by YCharts

Buying Nvidia and Micron at these levels is a no-brainer. Nvidia CEO Jensen Huang has already pointed out that the company's chip sales will double next year. Also, Nvidia management noted on the previous earnings call that it anticipates a 70% increase in revenue in fiscal 2028 in a supply-constrained environment.

Nvidia's earnings per share are expected to increase by 95% in the current fiscal year (ending in January 2027), followed by a 71% jump in the next one.

NVDA EPS Estimates for Current Fiscal Year data by YCharts

On the other hand, ASML management pointed out on the earnings call that "supply shortages across advanced logic and memory nodes continue to increase in size and in time horizon." This is great news for Micron investors. The company ended fiscal 2026 on a strong note, with revenue increasing 256% year over year to $133.19 billion and non-GAAP earnings per share increasing 9x year over year to $75.52.

Micron's earnings per share are expected to jump by more than 2x this fiscal year, followed by another double-digit increase in fiscal 2028.

MU EPS Estimates for Current Fiscal Year data by YCharts

We have already seen that both Micron and Nvidia trade at attractive forward earnings multiples, which are lower than the tech-laden Nasdaq Composite index's earnings multiple of 42. Given that both companies are on track to deliver impressive earnings growth over the next couple of fiscal years, they should ideally be rewarded with a premium valuation.

That's why I think now is the right time to buy these chip stocks amid the semiconductor sector's correction, as the strong growth prospects of Nvidia, Micron, and even ASML could send their shares flying higher in the long run.

Tech StocksAn analyst says Micron investors have gotten used to rapid growth but now have to reorient themselves around the idea that AI is more like a marathon

Micron Technology’s stock has seen a tough stretch recently as investors question the sustainability of artificial-intelligence spending and financing.

The fears aren’t exclusive to Micron MU, Stifel analyst Brian Chin told MarketWatch. But they nonetheless have investors wondering what could finally get one of the most notable AI stocks going again.

Micron Technology MU shares rose on Wednesday as strong results from SpaceX and an upbeat outlook from Super Micro Computer helped revive investor interest in artificial intelligence-related stocks, offering some relief after a difficult month for the memory chipmaker.

Micron shares gained around 2% during Wednesday's trading.

The stock had fallen 16% in October through Tuesday's close and was down 26% from its June peak, despite more than tripling in value this year.

Super Micro raised its fiscal first-quarter revenue guidance to between $18.5 billion and $19.5 billion, from a previous range of $14.5 billion to $15.5 billion.

SpaceX also reported strong quarterly results and indicated plans to spend as much as $40 billion in the fourth quarter.

The developments helped ease concerns about the sustainability of AI spending, although investors remain focused on memory demand, pricing, supply growth and financing risks across the sector.

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Micron’s AI-linked memory outlook is back in focus after volatility.

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AI demand and memory pricing remain key driversMicron's recent share-price weakness reflects broader concerns about whether the rapid expansion of AI infrastructure can be sustained.

Analysts have warned that memory manufacturers could face pressure if demand slows, as lower purchasing volumes could also weaken pricing.

Wedbush analyst Matt Bryson told MarketWatch that memory is more exposed to a slowdown than some other components because weaker demand can affect both volumes and prices.

Memory manufacturers have benefited from strong demand that has supported higher prices, but customers may become less willing to pay those prices if market conditions deteriorate.

However, Bryson said he saw no clear signs of slowing demand, although he expected the memory trade to remain volatile.

He also noted that the expansion of AI applications would require additional memory capacity to support computing workloads.

Stifel analyst Brian Chin told MarketWatch that concerns about a potential downturn in memory demand might be premature.

While some investors are focused on a possible negative shift within two quarters, Chin suggested that strong market conditions could persist for another two to three years.

Micron's valuation has become another point of discussion during the recent pullback. Chin estimated that the stock was trading at around five times his forecast forward earnings per share, but he was sceptical that investors would assign the company a higher valuation multiple.

He argued that the relatively low valuation could provide some downside protection if earnings continued to increase gradually.

Ryuta Makino, an analyst at Gabelli Funds, told MarketWatch that Micron compared favourably with storage stocks on valuation.

However, he also warned that mounting debt across the AI ecosystem could weigh on the company.

Some AI laboratories and newer cloud providers are experiencing negative free cash flow, while rising memory prices are increasing data-centre server costs.

Makino said this could intensify financing risks, even as he expected memory supply and demand conditions to tighten further into 2027 and 2028.

Supply growth is another consideration.

Micron and its competitors have plans to expand capacity, potentially putting pressure on memory prices if production increases too quickly.

Chin said difficulties faced by semiconductor equipment makers in ramping up chip-fabrication tools could constrain the pace of additional supply.

Separately, Micron's Taiwan unit and a union representing workers at its Taichung operations reached a labour agreement, prompting both sides to withdraw from mediation scheduled for October 22.

The agreement covers several issues, but its terms have not been disclosed.

The company and union said they would share details with affected employees in the coming days.

The development comes as a separate union representing workers at Micron's Taoyuan operations plans a one-day warning strike on Wednesday over bonuses and profit-sharing.

Mediation between the company and that union ended without an agreement in September.

Both unions have sought a permanent profit-sharing scheme that would allocate 15% of Micron's operating profit to quarterly bonuses.

The company employs approximately 15,000 people in Taiwan, where it produces memory chips used in AI servers and other devices.

Parkway Wealth Management Group LLC reduced its position in Micron Technology, Inc. (NASDAQ:MU – Free Report) by 44.7% during the third quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission. The institutional investor owned 5,256 shares of the semiconductor manufacturer’s stock after selling 4,241 shares during the period. Parkway Wealth Management Group LLC’s holdings in Micron Technology were worth $5,599,000 at the end of the most recent quarter.

Other hedge funds have also modified their holdings of the company. M.E. Allison & CO. Inc. boosted its holdings in shares of Micron Technology by 0.8% in the 2nd quarter. M.E. Allison & CO. Inc. now owns 1,324 shares of the semiconductor manufacturer’s stock worth $1,528,000 after purchasing an additional 11 shares during the period. Purus Wealth Management LLC raised its stake in shares of Micron Technology by 1.4% in the third quarter. Purus Wealth Management LLC now owns 814 shares of the semiconductor manufacturer’s stock valued at $867,000 after acquiring an additional 11 shares during the period. Ables Iannone Moore & Associates Inc. lifted its holdings in shares of Micron Technology by 5.3% in the 3rd quarter. Ables Iannone Moore & Associates Inc. now owns 237 shares of the semiconductor manufacturer’s stock worth $252,000 after acquiring an additional 12 shares during the last quarter. Koesten Hirschmann & Crabtree INC. lifted its stake in Micron Technology by 5.6% in the third quarter. Koesten Hirschmann & Crabtree INC. now owns 228 shares of the semiconductor manufacturer’s stock worth $243,000 after purchasing an additional 12 shares during the last quarter. Finally, Cherrydale Wealth Management LLC raised its holdings in shares of Micron Technology by 1.4% in the second quarter. Cherrydale Wealth Management LLC now owns 972 shares of the semiconductor manufacturer’s stock worth $1,122,000 after buying an additional 13 shares during the period. 80.84% of the stock is owned by hedge funds and other institutional investors.

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

Positive Sentiment: Micron announced funding for Indium Corporation’s critical-minerals and high-purity materials processing expansion in New York. The investment, part of Micron’s planned U.S. supply-chain spending of up to $3 billion, is intended to improve access to materials needed for advanced memory production and reduce exposure to overseas supply disruptions. Micron Invests in New York Critical Minerals Processing With Indium Corporation Positive Sentiment: Bullish analysts continue to point to tight memory supply, rising contract prices, strong AI-related demand and a potential share repurchase program. Recent results and guidance also showed substantial revenue and earnings growth, supporting the view that Micron’s memory upcycle could extend through 2027 and beyond. Micron Stock Moves Higher: What’s Going On? Positive Sentiment: Some investors view MU as attractively valued relative to its earnings potential, with Wall Street highlighting its strong September-quarter performance, elevated memory prices and multiyear customer commitments as reasons for further upside. The Best Trillion-Dollar Stock to Buy Right Now, According to Wall Street Neutral Sentiment: Micron is scheduled to host a technology webinar on October 21, which could provide additional details on its AI-memory roadmap, manufacturing plans and demand outlook. Micron to Host Technology Webinar on Oct. 21 Negative Sentiment: A union at Micron’s Taoyuan facility in Taiwan plans to strike on October 22 over a bonus dispute. Because Taiwan is central to Micron’s DRAM production, investors are concerned about potential disruption, costs or shipment delays. Micron Union in Taiwan to Launch Strike Negative Sentiment: Memory stocks remain under pressure after a broader technology selloff revived fears that AI infrastructure spending and related valuations may be unsustainable. Investors are also questioning how long Micron’s unusually high profits can last as new capacity comes online and rivals respond. Micron Stock Falls Amid Three Warning Signals Negative Sentiment: China’s CXMT is progressing toward server-memory production, raising longer-term competitive and pricing concerns for Micron, particularly if Chinese suppliers expand despite export restrictions. Intel Versus Micron: Exposure to CXMT Analyst Upgrades and Downgrades Several analysts have recently weighed in on the company. Wells Fargo & Company decreased their target price on Micron Technology from $1,525.00 to $1,400.00 and set an “overweight” rating for the company in a research report on Wednesday, September 23rd. BMO Capital Markets restated an “outperform” rating on shares of Micron Technology in a report on Thursday, October 1st. JPMorgan Chase & Co. increased their price target on Micron Technology from $550.00 to $1,540.00 and gave the stock an “overweight” rating in a research report on Thursday, June 25th. The Goldman Sachs Group set a $1,250.00 price objective on shares of Micron Technology in a research note on Thursday, October 1st. Finally, Daiwa Securities Group boosted their price objective on shares of Micron Technology from $1,600.00 to $1,700.00 and gave the stock a “buy” rating in a research note on Friday, July 17th. One equities research analyst has rated the stock with a Strong Buy rating, forty-one have given a Buy rating and four have issued a Hold rating to the company’s stock. Based on data from MarketBeat, the company presently has an average rating of “Moderate Buy” and a consensus price target of $1,407.88. Check Out Our Latest Stock Analysis on MU

Micron Technology Price Performance NASDAQ MU opened at $896.07 on Wednesday. The company has a market cap of $1.01 trillion, a price-to-earnings ratio of 12.07, a PEG ratio of 0.16 and a beta of 2.22. The company has a debt-to-equity ratio of 0.03, a current ratio of 3.31 and a quick ratio of 2.94. The stock’s fifty day moving average price is $987.31 and its 200 day moving average price is $872.76. Micron Technology, Inc. has a 1 year low of $192.40 and a 1 year high of $1,255.00.

Micron Technology (NASDAQ:MU – Get Free Report) last announced its quarterly earnings data on Wednesday, September 30th. The semiconductor manufacturer reported $33.42 earnings per share (EPS) for the quarter, topping the consensus estimate of $31.77 by $1.65. Micron Technology had a return on equity of 92.62% and a net margin of 63.80%. The firm had revenue of $54.23 billion during the quarter, compared to analysts’ expectations of $51.33 billion. During the same period last year, the business posted $3.03 earnings per share. The company’s revenue for the quarter was up 379.1% compared to the same quarter last year. Micron Technology has set its Q1 2027 guidance at 37.150-39.150 EPS. As a group, equities research analysts forecast that Micron Technology, Inc. will post 177.03 earnings per share for the current year.

Micron Technology Dividend Announcement The company also recently declared a quarterly dividend, which will be paid on Thursday, October 29th. Investors of record on Wednesday, October 14th will be given a dividend of $0.15 per share. This represents a $0.60 annualized dividend and a yield of 0.1%. The ex-dividend date is Wednesday, October 14th. Micron Technology’s dividend payout ratio (DPR) is currently 0.81%.

Insider Activity In other news, CEO Sanjay Mehrotra sold 40,000 shares of the stock in a transaction that occurred on Friday, August 21st. The stock was sold at an average price of $968.90, for a total transaction of $38,756,000.00. Following the transaction, the chief executive officer owned 264,503 shares in the company, valued at $256,276,956.70. This trade represents a 13.14% decrease in their position. The sale was disclosed in a filing with the SEC, which is available at the SEC website. Also, EVP Sumit Sadana sold 15,000 shares of Micron Technology stock in a transaction dated Tuesday, August 18th. The shares were sold at an average price of $934.29, for a total transaction of $14,014,350.00. Following the completion of the sale, the executive vice president owned 191,021 shares in the company, valued at approximately $178,469,010.09. This trade represents a 7.28% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last ninety days, insiders have sold 124,424 shares of company stock worth $116,629,966. 0.24% of the stock is currently owned by insiders.

Micron Technology Company Profile (Free Report)

Micron Technology, Inc is a semiconductor company that develops and manufactures memory and storage products. Its portfolio includes dynamic random-access memory (DRAM), NAND flash memory, NOR flash memory, solid-state drives, memory modules, and other semiconductor solutions used in data centers, personal computers, smartphones, automotive systems, industrial equipment, and consumer electronics.

The company also provides high-bandwidth memory and other advanced memory technologies designed to support artificial intelligence, high-performance computing, networking, and graphics applications.

Read More Five stocks we like better than Micron Technology Aurora Rejects Curaleaf’s Higher Bid, But the Takeover Fight Isn’t Over Centrus Energy Is Building a Nuclear Fuel Powerhouse—Why Is Its Stock Struggling? Halliburton Gains Traction: Multiyear Upcycle Ahead Meta Platforms’ AI Comeback Faces an Earnings Test—And a $10 Billion Charge 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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Focused Alpha LLC reduced its holdings in Micron Technology, Inc. (NASDAQ:MU – Free Report) by 42.4% during the third quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The institutional investor owned 785 shares of the semiconductor manufacturer’s stock after selling 577 shares during the quarter. Focused Alpha LLC’s holdings in Micron Technology were worth $836,000 at the end of the most recent quarter.

A number of other hedge funds and other institutional investors have also made changes to their positions in the business. M.E. Allison & CO. Inc. boosted its holdings in Micron Technology by 0.8% during the second quarter. M.E. Allison & CO. Inc. now owns 1,324 shares of the semiconductor manufacturer’s stock worth $1,528,000 after buying an additional 11 shares in the last quarter. Purus Wealth Management LLC grew its position in Micron Technology by 1.4% in the third quarter. Purus Wealth Management LLC now owns 814 shares of the semiconductor manufacturer’s stock worth $867,000 after buying an additional 11 shares during the last quarter. Ables Iannone Moore & Associates Inc. grew its position in Micron Technology by 5.3% in the third quarter. Ables Iannone Moore & Associates Inc. now owns 237 shares of the semiconductor manufacturer’s stock worth $252,000 after buying an additional 12 shares during the last quarter. Koesten Hirschmann & Crabtree INC. increased its holdings in shares of Micron Technology by 5.6% in the third quarter. Koesten Hirschmann & Crabtree INC. now owns 228 shares of the semiconductor manufacturer’s stock valued at $243,000 after buying an additional 12 shares in the last quarter. Finally, Cherrydale Wealth Management LLC increased its holdings in shares of Micron Technology by 1.4% in the second quarter. Cherrydale Wealth Management LLC now owns 972 shares of the semiconductor manufacturer’s stock valued at $1,122,000 after buying an additional 13 shares in the last quarter. 80.84% of the stock is currently owned by institutional investors.

Insider Activity In other Micron Technology news, CAO Scott R. Allen sold 879 shares of the business’s stock in a transaction on Thursday, July 23rd. The shares were sold at an average price of $1,000.00, for a total transaction of $879,000.00. Following the sale, the chief accounting officer directly owned 34,958 shares of the company’s stock, valued at $34,958,000. The trade was a 2.45% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink. Also, EVP Sumit Sadana sold 15,000 shares of the stock in a transaction on Tuesday, August 18th. The shares were sold at an average price of $934.29, for a total value of $14,014,350.00. Following the completion of the sale, the executive vice president owned 191,021 shares of the company’s stock, valued at $178,469,010.09. The trade was a 7.28% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last 90 days, insiders sold 124,424 shares of company stock worth $116,629,966. Company insiders own 0.24% of the company’s stock.

Micron Technology Stock Performance Shares of MU opened at $896.07 on Wednesday. The company has a 50-day moving average of $987.31 and a two-hundred day moving average of $872.76. The stock has a market cap of $1.01 trillion, a price-to-earnings ratio of 12.07, a PEG ratio of 0.16 and a beta of 2.22. The company has a debt-to-equity ratio of 0.03, a current ratio of 3.31 and a quick ratio of 2.94. Micron Technology, Inc. has a one year low of $192.40 and a one year high of $1,255.00. Micron Technology (NASDAQ:MU – Get Free Report) last released its earnings results on Wednesday, September 30th. The semiconductor manufacturer reported $33.42 earnings per share for the quarter, topping the consensus estimate of $31.77 by $1.65. Micron Technology had a net margin of 63.80% and a return on equity of 92.62%. The business had revenue of $54.23 billion for the quarter, compared to the consensus estimate of $51.33 billion. During the same period last year, the firm posted $3.03 earnings per share. The firm’s quarterly revenue was up 379.1% compared to the same quarter last year. Micron Technology has set its Q1 2027 guidance at 37.150-39.150 EPS. On average, equities research analysts expect that Micron Technology, Inc. will post 177.03 earnings per share for the current year.

Micron Technology Dividend Announcement The company also recently disclosed a quarterly dividend, which will be paid on Thursday, October 29th. Investors of record on Wednesday, October 14th will be paid a $0.15 dividend. The ex-dividend date of this dividend is Wednesday, October 14th. This represents a $0.60 dividend on an annualized basis and a yield of 0.1%. Micron Technology’s dividend payout ratio (DPR) is currently 0.81%.

Wall Street Analyst Weigh In A number of brokerages have recently commented on MU. JPMorgan Chase & Co. increased their price objective on Micron Technology from $550.00 to $1,540.00 and gave the company an “overweight” rating in a research report on Thursday, June 25th. Needham & Company LLC restated a “buy” rating and issued a $1,650.00 target price on shares of Micron Technology in a report on Thursday, October 1st. Mizuho lifted their target price on Micron Technology from $1,300.00 to $1,400.00 and gave the stock an “outperform” rating in a report on Thursday, October 1st. UBS Group reaffirmed a “buy” rating and set a $1,625.00 target price (up from $535.00) on shares of Micron Technology in a research report on Wednesday, September 23rd. Finally, Itau BBA Securities boosted their target price on Micron Technology from $1,243.78 to $1,697.09 and gave the stock an “outperform” rating in a research report on Wednesday, July 22nd. One research analyst has rated the stock with a Strong Buy rating, forty-one have assigned a Buy rating and four have assigned a Hold rating to the stock. Based on data from MarketBeat, the company has an average rating of “Moderate Buy” and a consensus target price of $1,407.88.

Get Our Latest Research Report on MU

Trending Headlines about Micron Technology Here are the key news stories impacting Micron Technology this week:

Positive Sentiment: Micron announced funding for Indium Corporation’s critical-minerals and high-purity materials processing expansion in New York. The investment, part of Micron’s planned U.S. supply-chain spending of up to $3 billion, is intended to improve access to materials needed for advanced memory production and reduce exposure to overseas supply disruptions. Micron Invests in New York Critical Minerals Processing With Indium Corporation Positive Sentiment: Bullish analysts continue to point to tight memory supply, rising contract prices, strong AI-related demand and a potential share repurchase program. Recent results and guidance also showed substantial revenue and earnings growth, supporting the view that Micron’s memory upcycle could extend through 2027 and beyond. Micron Stock Moves Higher: What’s Going On? Positive Sentiment: Some investors view MU as attractively valued relative to its earnings potential, with Wall Street highlighting its strong September-quarter performance, elevated memory prices and multiyear customer commitments as reasons for further upside. The Best Trillion-Dollar Stock to Buy Right Now, According to Wall Street Neutral Sentiment: Micron is scheduled to host a technology webinar on October 21, which could provide additional details on its AI-memory roadmap, manufacturing plans and demand outlook. Micron to Host Technology Webinar on Oct. 21 Negative Sentiment: A union at Micron’s Taoyuan facility in Taiwan plans to strike on October 22 over a bonus dispute. Because Taiwan is central to Micron’s DRAM production, investors are concerned about potential disruption, costs or shipment delays. Micron Union in Taiwan to Launch Strike Negative Sentiment: Memory stocks remain under pressure after a broader technology selloff revived fears that AI infrastructure spending and related valuations may be unsustainable. Investors are also questioning how long Micron’s unusually high profits can last as new capacity comes online and rivals respond. Micron Stock Falls Amid Three Warning Signals Negative Sentiment: China’s CXMT is progressing toward server-memory production, raising longer-term competitive and pricing concerns for Micron, particularly if Chinese suppliers expand despite export restrictions. Intel Versus Micron: Exposure to CXMT Micron Technology Profile (Free Report)

Micron Technology, Inc is a semiconductor company that develops and manufactures memory and storage products. Its portfolio includes dynamic random-access memory (DRAM), NAND flash memory, NOR flash memory, solid-state drives, memory modules, and other semiconductor solutions used in data centers, personal computers, smartphones, automotive systems, industrial equipment, and consumer electronics.

The company also provides high-bandwidth memory and other advanced memory technologies designed to support artificial intelligence, high-performance computing, networking, and graphics applications.

See Also Five stocks we like better than Micron Technology Aurora Rejects Curaleaf’s Higher Bid, But the Takeover Fight Isn’t Over Centrus Energy Is Building a Nuclear Fuel Powerhouse—Why Is Its Stock Struggling? Halliburton Gains Traction: Multiyear Upcycle Ahead Meta Platforms’ AI Comeback Faces an Earnings Test—And a $10 Billion Charge Want to see what other hedge funds are holding MU? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Micron Technology, Inc. (NASDAQ:MU – Free Report).

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

Micron and the Taichung union withdrew from mediation after reaching an agreement. Summary

Micron shares rose more than 2% in premarket trading.

Memory-chip manufacturer Micron Technology Inc. (MU, Financials) is lowering some of its Taiwan labor risk after a deal with workers at its Taichung facility.

The accord caused both sides to pull out of proposed mediation on Oct. 22.

Terms were not given, but Micron and the union said they will give specifics to impacted workers in the coming days.

The deal is significant as Micron has one of its main production hubs in Taiwan, including Taichung, where it produces memory chips for AI servers and other devices.

But the labor question is not yet settled.

A different union representing workers in Taoyuan is still planning a one-day warning strike over bonuses and profit sharing.

The two unions have campaigned for a permanent arrangement to set aside 15% of Micron's operational profit for quarterly incentives.

For investors, the Taichung resolution reduces the possibility of a wider production interruption, but the Taoyuan disagreement still has to be followed attentively.

The next trigger is whether Micron can strike a similar deal with Taoyuan workers before the conflict turns worse.

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

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