Last week was miserable for Micron (NASDAQ:MU) stock, with the maker of DRAM and NAND flash memory chips losing nearly 15% on worries that Chinese DRAM company ChangXin Memory Technologies was bringing to market “4F square” technology to increase DRAM storage density — and begin stealing market share from Micron.
Monday morning, things are looking better for Micron, though, and the stock is up 4% as of 10:35 a.m. ET.
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Image source: Micron.
Dell sounds the all-clear for memory stocks
You can thank Michael Dell for that — and Wall Street bankers, too.
Quoted in The Wall Street Journal Friday, the Dell founder CEO predicted the ongoing shortage of computer memory is “gonna get worse” in 2027. Perversely, that’s good news for Micron because when memory supplies are too low, memory prices go higher — and so do Micron’s profit margins.
Separately this morning, analysts at Wall Street banks Mizuho and KeyBanc both chimed in to support memory stocks. Mizuho predicts demand for agentic AI will keep NAND supply tight and force prices higher throughout 2027. KeyBanc likewise predicts price increases in NAND, as reports.
What it means for Micron stock
Admittedly, NAND demand is more of a bull case for Sandisk than for Micron. Micron only gets about 26% of its revenue from NAND flash sales, after all; 73% of its business is in selling DRAM, and Micron is in fact the world’s third-biggest supplier of DRAM.
But that’s fine. Even a small boost to NAND prices, on top of the price hikes it’s already enjoying, is good news for Micron. With the stock already trading under 25 times trailing earnings — and just 7x forward earnings — Micron stock still looks like a buy to me.
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