Micron Stock Rises After Analysts Predict Continued Memory Shortages
Last week was challenging for Micron Technology (NASDAQ: MU) as its stock dropped nearly 15% due to concerns over competition from Chinese DRAM company ChangXin Memory Technologies. However, on Monday, the stock rebounded with a gain of about 4%. The recovery is attributed in part to comments by Michael Dell, who warned that memory shortages will worsen through 2027. Analysts at Mizuho and KeyBanc also supported memory stocks, forecasting continued tight supply for NAND flash due to demand from agentic AI. While Micron derives most of its revenue from DRAM rather than NAND (only about 26%), any increase in NAND prices is still beneficial given the company's already strong pricing power. Micron’s stock currently trades at a low valuation, with forward earnings multiples around seven times and trailing earnings under 25 times. Analysts view this as an attractive entry point for investors despite the mixed short-term volatility.
Tickers: $MU
Topics: DRAM memory market Michael Dell Micron Technology NAND flash