Some investors have been worried about Micron's role serving Nvidia's forthcoming chip lineup, but one analyst says he still likes the company's positioning.
Micron (MU) has been one of the stocks most watched by Zacks.com users lately. So, it is worth exploring what lies ahead for the stock.
When it comes to electronic devices, the technology sector is facing some major hurdles: Smartphone production from Apple, Qualcomm, Xiaomi, and ARM Holdings are all being reduced.
AI's hardware needs are creating a memory shortage that Micron is well positioned to profit from. The company is exiting the consumer PC memory market and building a gigantic factory in New York to meet the market's needs.
Shares of Micron (NASDAQ:MU) were pretty much unstoppable before shares swiftly corrected by more than 13% this week.
Micron Technology remains a top 'AI picks and shovels' play, directly benefiting from surging AI data center capex by tech giants. Micron's margins are expanding due to an 'unprecedented' AI memory chip shortage, with further tightening likely as 2026 capex accelerates. Despite a 4x share price increase in 12 months, Micron trades at an attractive 11.5x FY2026 forward P/E, supported by robust EPS growth.
The recent 10% drop in Micron Technology (MU) to roughly $370 has sparked a significant discussion: is this an ideal entry point into an AI-powered supercycle or a fundamental decline due to fierce competition? While the wider semiconductor downturn was triggered by a "momentum break" and technical fatigue, Micron's specific trajectory is guided by its struggle for supremacy in High-Bandwidth Memory (HBM).
MU surges 315% in a year as AI-driven memory demand lifts results, while the stock still trades at a discount to peers.
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Micron Technology has a remarkable history of rapid rallies, seeing its stock price soar over 50% in less than two months on several occasions, particularly in pivotal years such as 2013 and 2020. Moreover, it has recorded increases exceeding 30% in comparable short timeframes on many instances.
Micron (MU) reached $419.42 at the closing of the latest trading day, reflecting a -4.2% change compared to its last close.
Micron (MU) stock has been in a strong bull run since April 2025, when it bottomed at $62. It has soared to $415, making it one of the top gainers in the S&P 500 Index and Nasdaq 100.