However, a mix of technical signals, institutional positioning, and analyst expectations suggests the bottom is in, and a rebound is at hand. The question is what could trigger the rebound, and the answer is earnings results.
Micron (NASDAQ:MU | MU Price Prediction) shares continue to be the talk of the town this year, with the memory chip juggernaut continuing to gain, even as the rest of tech plunges into a correction.
Samsung expects a more than eightfold increase in first-quarter profit, boding well for memory-chip rival Micron.
Sandisk, Western Digital, Micron, and other AI momentum plays have soared. History shows many eventually pull back.
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Shares of Micron have skyrocketed more than 300% over the last year. Micron's rally is supported by robust demand for memory and storage solutions amid an AI infrastructure supercycle.
Micron remains a buy despite the market's knee-jerk selloff following Alphabet's TurboQuant memory efficiency breakthrough. AI-driven demand has pushed the memory market into a rare, severe supply deficit, with hyperscalers locking in multi-year contracts. Traditional valuation metrics are challenged by memory's cyclicality, but MU's premium is justified by unprecedented demand visibility.
Recently, Zacks.com users have been paying close attention to Micron (MU). This makes it worthwhile to examine what the stock has in store.
Micron trades at an insanely cheap valuation multiple. However, the company needs to prove that its business is being driven by structural tailwinds and that it isn't nearing the top of another memory cycle.
Micron Technology, Inc. remains a Buy after a sharp correction, with fears of peak memory demand seen as overblown. MU's earnings power is robust, driven by AI-related memory demand and a significant backlog, despite Google's TurboQuant announcement. Concerns over increased capex and cyclical risk are likely overstated; MU is expected to see nearly 600% EPS growth this fiscal year and 70% in fiscal 2027.
MU's NAND surge rides on AI-driven SSD demand, with data center traction and tight supply setting up strong growth momentum through FY27.