Micron Technology, Inc. designs, develops, manufactures, and sells memory and storage products worldwide. The company operates through four segments: Compute and Networking Business Unit, Mobile Business Unit, Embedded Business Unit, and Storage Business Unit. It provides memory and storage technologies comprising dynamic random access memory semiconductor devices with low latency that provide high-speed data retrieval; non-volatile and re-writeable semiconductor storage devices; and non-volatile re-writable semiconductor memory devices that provide fast read speeds under the Micron and Crucial brands, as well as through private labels. The company offers memory products for the cloud server, enterprise, client, graphics, networking, industrial, and automotive markets, as well as for smartphone and other mobile-device markets; SSDs and component-level solutions for the enterprise and cloud, client, and consumer storage markets; discrete storage products in component and wafers; and memory and storage products for the automotive, industrial, and consumer markets. It markets its products through its direct sales force, independent sales representatives, distributors, and retailers; and web-based customer direct sales channel, as well as through channel and distribution partners. Micron Technology, Inc. was founded in 1978 and is headquartered in Boise, Idaho.

Micron looks like a company with very strong operating efficiency, but the market is already pricing in significantly more than what the current fundamental base confirms. Revenue, gross profit, EBITDA, operating profit, and net profit over recent periods have risen sharply, which points to a powerful cyclical recovery and strong management execution. Margins are also impressive: gross margin of 58.44%, operating margin of 48.34%, and net margin of 41.49% — very high levels even for the technology sector. At the same time, return on capital and assets remains outstanding: ROE of 40.84%, ROA of 27.66%, and ROI of 33.73%, while the year-over-year trend continues to improve steadily. The balance sheet also looks comfortable: debt/equity is only 0.13, current ratio is 2.90, and quick ratio is 2.32, meaning liquidity is high and leverage is moderate. On the other hand, dividend yield has fallen to 0.02, so the dividend factor adds almost no support to the valuation. The main restraining argument is the multiples: P/E of 48.74, P/S of 20.16, P/B of 16.07, and P/FCF of 114.37 are materially above industry medians, indicating an expensive valuation relative to current financial results. It is especially important that several multiples showed a strong increase by the latest date, meaning the price is running ahead of fundamentals faster than the metrics are improving. Even with strong growth in earnings and margins, this level of valuation leaves little margin of safety over a one-year horizon. Growth in net worth, assets, and equity confirms the strengthening of the financial base, but by itself does not compensate for such a large premium in the multiples. In the end, the company’s fundamentals are high quality and clearly better than the industry average, but the current price already reflects a very optimistic scenario. For an investor, this means there is upside potential, but it is limited by the high valuation, so it would be reasonable to slightly lower the target forecast and maintain a conservative approach.

Micron Technology, Inc.

Слабый индекс, значительно упал. Быки продолжают терять уверенность.

Weak index, significantly down. Bulls continue to lose confidence.

Средний индекс, значительно упал. Медведи в растерянности.

Medium index, significantly down. The bears are confused.

Сильный индекс, значительно упал. Рынок не поддерживает быков.

Strong index, significantly down. The market does not support the bulls.

Сильный индекс, незначительно вырос. Рынок на стороне медведей.

Strong index, slightly up. The market is on the bears' side.

Сильный индекс, значительно упал. Отток средств из лонгов на высоком уровне.

Strong index, significantly down. Outflow of funds from longs at a high level.

Сильный индекс, значительно вырос. Приток средств в шорты резко увеличился и находится на высоком уровне.

Strong index, significantly up. The inflow of funds into shorts has increased sharply and is at a high level.

Micron has strong margins, profitability, and a solid balance sheet, but its valuation multiples are noticeably overheated relative to the industry, so the assessment looks too optimistic.

Key Points
Micron, Sandisk, Western Digital, and Seagate all trade at least 30% below their 52-week highs.
Seagate reported fiscal fourth-quarter results that beat its own expectations this week and guided for more growth.
The four companies sell different products, and their earnings carry very different risks.
Memory and storage stocks have had a brutal stretch. Micron Technology (NASDAQ: MU), Sandisk (NASDAQ: SNDK), Western Digital (NASDAQ: WDC), and Seagate Technology (NASDAQ: STX) have been falling for days, mostly without company news. As of this writing, Micron and Seagate both trade about 35% below their 52-week highs, Western Digital about 42%, and Sandisk about 53%.
The market is selling all four as one trade. But these are three different businesses (DRAM and high-bandwidth memory, NAND flash, and hard drives), and the risks behind their earnings look nothing alike.
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With all four down hard, I'd buy two of them and leave the other two alone.
1. Micron: the broadest business, the cheapest stock
Micron sells DRAM, NAND flash, and the high-bandwidth memory (HBM) that sits next to AI (artificial intelligence) accelerators (the widest lineup of the four). And its results have gone vertical. Revenue in the company's fiscal third quarter (ended May 28, 2026) more than quadrupled year over year to $41.5 billion, up from $23.9 billion a quarter earlier. Net income reached $28.2 billion. And management's fiscal fourth-quarter forecast calls for about $50 billion of revenue at a gross margin of approximately 86%.
The stock fell hard anyway. At about $821 per share as of this writing, Micron trades at roughly 6 times analysts' consensus earnings forecast for the coming year. The market, it seems, is already assuming these earnings don't last.
2. Sandisk: the biggest swings in both directions
Sandisk is the purest memory bet of the group. It sells NAND flash (the storage chips in phones, laptops, and AI data centers), and surging prices have rebuilt its earnings almost overnight. Revenue in its fiscal third quarter (ended April 3, 2026) rose 251% year over year to $5.95 billion, and earnings per share came in at $23.03. A year earlier, the company was losing money.
But earnings this new depend on prices staying at levels the industry has rarely sustained, and the same leverage works in reverse. To the company's credit, Sandisk has signed five supply agreements that lock customers into firm multi-year commitments, a structure designed to soften future downturns. It also carries no debt.
Still, with results expected next week, I'd rather watch this one from the sidelines.
3. Western Digital: the same boom at a higher price
Western Digital makes hard drives for cloud data centers, and demand is not its problem. Fiscal third-quarter revenue rose 45% year over year to $3.3 billion, cloud customers accounted for 89% of it, and management guided for roughly 40% growth in the fiscal fourth quarter.
The problem is the price. Much of Western Digital's recent profit isn't from hard drives at all: $2.7 billion of its $3.2 billion in fiscal third-quarter net income was a pre-tax paper gain on the stake it kept in Sandisk when the two companies separated in 2025. And against analysts' consensus forecast for the next 12 months, the stock trades at about 30 times earnings. That's a higher price than its direct competitor gets, on the same boom.
4. Seagate: a strong quarter, just reported
Seagate, the larger of the two big U.S. hard drive makers, has the group's freshest numbers. Its fiscal fourth quarter, announced Tuesday, featured revenue of $3.6 billion, a non-GAAP (adjusted) gross margin of 52.7%, and adjusted earnings per share of $5.71. Full-year revenue rose 34% to $12.2 billion. And free cash flow hit a record $3.1 billion.
Management guided for about $4.1 billion of fiscal first-quarter revenue with adjusted earnings per share of about $7.30. And in April, it said nearly all of its data-center drive capacity was already committed through calendar 2027.
The report landed after Tuesday's close, hours after the stock had already slid 8.5% in the day's sell-off. At the pace its guidance implies, shares trade at about 26 times earnings, and the company pays a dividend, currently $0.74 per share each quarter.
The two I'd buy
I'd buy Micron and Seagate.
Both sell products AI data centers are short of. Both back their earnings with contracts or guidance the market can check within weeks. And both trade at arguably reasonable prices next to the earnings they're already delivering.
The two I'd avoid are the ones whose numbers need the most explaining. Sandisk's earnings arrived fast, and they lean hardest on spot pricing holding into 2027. Western Digital sells the same drives as Seagate at a higher multiple of next year's earnings, and much of its recent profit is investment gains.
Of course, memory is cyclical. When the cycle turns, all four of these stocks could fall together -- a good reason to keep positions modest. But for anyone set on owning the group through the swings, I think the broadest product lineup and the freshest numbers are the right places to be. Right now, those belong to Micron and Seagate.
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Daniel Sparks and his clients do not have positions in any of the stocks mentioned. The Motley Fool has positions in and recommends Micron Technology and Western Digital. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

The Memory Crash Has 4 Big Stocks Down 30% or More From Their Highs. I'd Buy 2 of Them.

The S&P 500 Index ($SPX) (SPY) on Wednesday closed down -1.52%, the Dow Jones Industrial Average ($DOWI) (DIA) closed down -2.19%, and the Nasdaq 100 Index ($IUXX) (QQQ) closed down -2.06%. September E-mini S&P futures (ESU26) fell -1.59%, and September E-mini Nasdaq futures (NQU26) fell -2.23%.
Stock indexes retreated on Wednesday, with the S&P 500 sliding to a 1-month low and the Nasdaq 100 sinking to a 3-month low. Chipmakers and AI infrastructure stocks sold off on Wednesday, leading the overall market lower. Also, heightened geopolitical risks are weighing on stocks as crude prices surged, and bond yields jumped when President Trump said the US will “hit Iran hard” after a recent attack from Iran that targeted a US base in Jordan.
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Stocks whipsawed Wednesday afternoon and briefly erased their losses before selling off again into the close after the FOMC kept interest rates unchanged in a hawkish Fed hold. Three Fed members dissented in favor of a quarter-point rate hike, and Fed Chair Warsh said the Fed is committed to “deliver price stability.” The 10-year T-note yield rose +4 bp to 4.64%.
Earnings results from Microsoft and Meta Platforms after Wednesday’s close will be looked at to see whether the vast spending behind the buildout of artificial intelligence can deliver adequate returns.
The FOMC, as expected, kept the fed funds target range unchanged at 3.50% to 3.75% in a 9-3 vote, with Cleveland Fed President Beth Hammack, Minneapolis Fed President Neel Kashkari, and Dallas Fed President Lorie Logan voting for a quarter-point rate hike.
The post-FOMC statement said, "Economic activity is expanding at a solid pace despite elevated uncertainty that owes, in part, to the conflict in the Middle East," adding that "productivity growth and capital investment are strong." Inflation remains elevated "in part reflecting supply shocks that have driven price increases in certain sectors, including energy."
Fed Chair Warsh said, "The economy is showing impressive resilience" even with recent shocks and policymakers "will not hesitate to act" if inflation remains elevated.
Sep WTI crude oil prices (CLU26) jumped by more than +6% on Wednesday as the recent lull in hostilities came to an abrupt end after the Islamic Revolutionary Guard Corps (IRGC) said it targeted a US airbase and command center in Jordan with ballistic missiles. The IRGC also claimed to have hit and halted three tankers attempting to transit through the Strait of Hormuz. Meanwhile, the US and Saudi Arabia launched a joint attack on "Iran-aligned terrorists" in Iraq after the IRGC directed them to target US forces and Saudi energy infrastructure.
Tensions remain high in the Middle East as the US maintains its blockade of Iranian oil shipments in the Persian Gulf. Also, diplomatic attempts to reopen the Strait of Hormuz appear to be at an impasse. Iranian Deputy Foreign Minister Gharibabadi said Oman's proposal for a route through the Strait of Hormuz, with 50% under Iran's control and 50% under Oman's, would not address Iran's concerns and that the inbound passage and part of the outbound channel must be entirely under Iran's control.
US MBA mortgage applications fell -6.4% in the week ended July 24, with the purchase mortgage sub-index down -3.6% and the refinancing mortgage sub-index down -9.9%. The average 30-year fixed rate mortgage rose +7 bp to an 11.5-month high of 6.76% from 6.69% the prior week.
The outlook for strong Q2 earnings, which continue this week, is a bullish factor for stocks. The markets are awaiting results from a raft of megacap technology companies this week, including Microsoft and Meta Platforms today, and Amazon.com and Apple on Thursday. Forecasts compiled by Bloomberg Intelligence suggest Q2 earnings may increase by +23%, close to Q1’s blowout earnings of +30%, which was more than double the +12% analysts had expected. AI spending is expected to account for most of earnings, with AI infrastructure stocks set to contribute nearly 60% of the S&P 500's earnings-per-share growth in Q2. So far, earnings results have been positive, with 87% of the 216 S&P 500 companies that have reported Q2 earnings beating estimates, according to Bloomberg data.
The markets are discounting a 56% chance of a +25 bp rate hike at the next FOMC meeting on September 15-16.
Overseas stock markets settled mixed on Wednesday. The Euro Stoxx 50 closed down -0.65%. China's Shanghai Composite rebounded from a 1-week low and closed up +0.40%. Japan's Nikkei-225 Stock Average fell to a 2.25-month low and closed down -1.49%.
Interest Rates
September 10-year T-notes (ZNU6) on Wednesday closed down -1 tick. The 10-year T-note yield rose +3.3 bp to 4.639%. T-notes were under pressure from Wednesday’s +6% surge in crude oil prices, which raises inflation expectations and is hawkish for Fed policy. Also, the FOMC's hawkish hold on interest rates weighed on T-note prices after three Fed members dissented in favor of a 25 bp rate hike, and Fed Chair Warsh said policymakers "will not hesitate to act" if inflation remains elevated.
European government bond yields moved higher on Wednesday. The 10-year German bund yield rose +5.6 bp to 3.160%. The 10-year UK gilt yield rose +9.2 bp to 5.036%.
The German Jun import price index eased to 6.1% y/y from 6.8% y/y in May.
The markets are discounting a 90% chance of a +25 bp ECB rate hike at their next policy meeting on September 10.
US Stock Movers
Chipmakers and AI-infrastructure stocks fell sharply on Wednesday, weighing on the broader market. The Philadelphia Stock Exchange Semiconductor Index ($SOX) dropped to a 2.5-month low and closed down more than -5%. Nebius Group NV (NBIS) closed down more than -12% to lead losers in the Nasdaq 100, and KLA Corp (KLAC) closed down more than -10%. Also, Micron Technology (MU) closed down more than -9%, and Applied Materials (AMAT) and ARM Holdings (ARM) closed down by more than -8%. In addition, Sandisk (SNDK) and NXP Semiconductors NV (NXPI) closed down more than -7%, and Marvell Technology (MRVL) and Lam Research (LRCX) closed down more than -6%. Finally, Advanced Micro Devices (AMD), Microchip Technology (MCHP), and Intel (INTC) closed down more than -5%.
Airline stocks fell on Wednesday as crude oil prices surged. Alaska Air Group (ALK) closed down more than -5%, and Southwest Airlines (LUV) closed down more than -4%. Also, Delta Air Lines (DAL), American Airlines Group (AAL), and United Airlines Holdings (UAL) closed down more than -3%.
Trucking and freight companies were under pressure on Wednesday amid soaring crude oil prices. ArcBest (ARCB) closed down more than -5%, and FedEx Freight Holding (FDXF) closed down more than -4%. Also, Saia Inc (SAIA) closed down more than -3%, and Old Dominion Freight Line (ODFL) and XPO Inc (XPO) closed down more than -2%. In addition, Marten Transport Ltd (MRTN) closed down more than -1%.
Most software stocks rose on Wednesday as investors rotated out of chipmakers into software. Intuit (INTU) closed up more than +6%, and Adobe Systems (ADBE), Datadog (DDOG), and Workday (WDAY) closed up more than +5%. Also, Atlassian Corp (TEAM) and ServiceNow (NOW) closed up more than +4%, and Salesforce (CRM) closed up more than +3% to lead gainers in the Dow Jones Industrials. In addition, Autodesk (ADSK) closed up more than +3%, and Thomson Reuters (TRI) closed up more than +2%.
Energy producers and service providers rallied on Wednesday, as crude oil prices jumped by more than +6%. APA Corp (APA) closed up more than +5%, and Diamondback Energy (FANG) and Devon Energy (DVN) closed up more than +4%. Also, ConocoPhillips (COP) and Occidental Petroleum (OXY) closed up more than +3%, and ExxonMobil Holdings (XOM) and Chevron (CVX) closed up more than +2%.
Lennox International (LII) closed down more than -20% to lead losers in the S&P 500 after reporting Q2 net sales of $1.55 billion, weaker than the consensus of $1.56 billion.
Vertiv Holdings (VRT) closed down more than -17% after reporting Q2 net sales of $3.27 billion, below the consensus of $3.39 billion.
Masco Corp (MAS) closed down more than -11% after reporting Q2 net sales of $1.99 billion, weaker than the consensus of $2.08 billion.
Caterpillar (CAT) closed down more than -6% to lead losers in the Dow Jones industrials after Baird downgraded the stock to neutral from outperform, citing a growing trend of state and local government actions targeting data centers, a key growth driver for the company.
Avis Budget Group (CAR) closed down more than -6% after reporting Q2 EPS of 98 cents, well below the consensus of $1.91.
Humana (HUM) closed down more than -5% after it maintained its full-year profit outlook despite posting better-than-expected Q2 profit.
Garmin Ltd (GRMN) closed up more than +16% to lead gainers in the S&P 500 after reporting Q2 revenue of $2.02 billion, above the consensus of $1.92 billion, and raising its full-year revenue estimate to $8.05 billion from a previous estimate of $7.90 billion, stronger than the consensus of $7.99 billion.
GE Healthcare (GEHC) closed up more than +12% to lead gainers in the Nasdaq 100 after reporting Q2 adjusted EPS of $1.13, better than the consensus of $1.04.
Amphenol (APH) closed up more than +4% after reporting Q2 net sales of $8.76 billion, better than the consensus of $8.31 billion.
Ford Motor (F) closed up more than +2% after raising its full-year adjusted EBIT to $10 billion to $11 billion from a previous forecast of $8.5 billion to $10.5 billion.
Earnings Reports (7/30/2026)
A O Smith Corp (AOS), Air Products and Chemicals Inc (APD), Alliant Energy Corp (LNT), Altria Group Inc (MO), Amazon.com Inc (AMZN), American Electric Power Co Inc (AEP), Apple Inc (AAPL), Arthur J Gallagher & Co (AJG), Avery Dennison Corp (AVY), Baxter International Inc (BAX), Bristol-Myers Squibb Co (BMY), Builders FirstSource Inc (BLDR), Camden Property Trust (CPT), Cigna Group/The (CI), Coinbase Global Inc (COIN), Corteva Inc (CTVA), CRH PLC (CRH), Dexcom Inc (DXCM), Edison International (EIX), EMCOR Group Inc (EME), Erie Indemnity Co (ERIE), Eversource Energy (ES), Exelon Corp (EXC), First Solar Inc (FSLR), GoDaddy Inc (GDDY), Hershey Co/The (HSY), Huntington Ingalls Industries (HII), Ingersoll Rand Inc (IR), Intercontinental Exchange Inc (ICE), International Paper Co (IP), KKR & Co Inc (KKR), Labcorp Holdings Inc (LH), Live Nation Entertainment Inc (LYV), Martin Marietta Materials Inc (MLM), Mastercard Inc (MA), Mettler-Toledo International Inc (MTD), Monolithic Power Systems Inc (MPWR), Norwegian Cruise Line Holdings (NCLH), Quanta Services Inc (PWR), Regeneron Pharmaceuticals Inc (REGN), Southern Co/The (SO), Stryker Corp (SYK), Trane Technologies PLC (TT), Valero Energy Corp (VLO), Weyerhaeuser Co (WY), Willis Towers Watson PLC (WTW), Xcel Energy Inc (XEL), Yum! Brands Inc (YUM).
On the date of publication, Rich Asplund did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Stocks Plunge on a Rout in Chipmakers and a Hawkish Fed Hold

The Nasdaq 100 Index ETF (QQQ) just suffered its first correction (defined as a 10% drawdown from highs) since March and its second of 2026. Below are things to watch for to identify a potential bottom.
Price Action Versus News
“The stock market is never obvious. It is designed to fool most of the people, most of the time.” ~ Jesse Livermore
As the old Wall Street adage goes, “If the stock market were easy, everyone would be rich.” However, Wall Street is rarely what it seems on the surface. Although fundamentals drive markets, they are useless without the context of price action. Stanley Druckenmiller, who managed money for more than 30 years and never suffered a down year, explains this concept the best:
“So, the technical provides a discipline on the fundamental and the fundamental provides a discipline on the technical. We’re constantly following the news. We’re following the fundamentals and also the price action.” ~ Stanley Druckenmiller
What I have discovered throughout my investing career is that stocks and markets tend to top when news seems most bullish and bottom when the news seems the most bearish. Below are two examples from 2026:
Micron Tops on Blowout Earnings Report
In late June, AI leader Micron (MU) reported earnings that blew past Wall Street estimates. In fact, Micron management said that it expects to generate more EPS in 2026 than it has in the past decade. Revenue grew an eye-popping 346% YoY to a record $41.46 billion. Additionally, the company secured 16 strategic agreements worth a minimum of $100 billion.
Image Source: Zacks Investment Research
Although MU shares initially jumped, the blowout report marked the for the stock and it is down 34% since.
Image Source: TradingView
Equities Bottom Despite U.S Iran War
An example of a bottom on poor news was the market in late March. At the time, President Trump was threatening to target Iran’s oil hubs, generators, and key infrastructure. After weeks of falling, the Nasdaq 100 QQQ began to rise despite bad news and further escalations. It wasn’t until April 8th that investors would fully understand what the bullish, resilient price action was discounting – a ceasefire announcement between the U.S. and Iran.
Image Source: TradingView
Price Action Versus News Takeaway
Tracking the news or fundamentals in a vacuum is futile. Instead, investors should monitor the price action relative to news. For instance, investors should lean bullish if stocks are resilient in the face of bad news and vice versa. Currently, stocks are falling amid AI and renewed geopolitical concerns. If bad news continues to hit the tape and stocks begin to rally anyway, it may be an early signal to investors that the market is ready to bottom.
Sentiment Washout
Stocks tend to bottom when the crowd reaches peak bearishness. An excellent tool for monitoring the crowd’s sentiment is the AAII Sentiment Survey, which has polled individual investors on their market bias weekly since 1987. When stocks bottomed in late March, bearish sentiment was overwhelming. In fact, the number of bears outweighed the number of bulls for seven consecutive weeks – an extremely rare occurrence.
Image Source: Zacks Investment Research
Currently, the scale is beginning to oscillate back toward extreme bearishness. AAII bears currently hold a majority at 42.3%, while only 29.6% of respondents are bullish.
Image Source: Zacks Investment Research
Observe the Fed Liquidity
“Earnings don’t move the overall market; it’s the Federal Reserve Board…focus on the central banks and focus on the movement of liquidity. It’s liquidity that moves markets.” ~ Stanley Druckemiller
New Federal Reserve Chairman Kevin Warsh has a reputation on Wall Street as a monetary “hawk.” However, despite increased inflation concerns from the Iran War and soaring energy prices, Warsh decided to keep interest rates unchanged on Wednesday, signaling that he may be more dovish than Wall Street analysts initially thought.
Bottom Line
Navigating market pullbacks requires looking beyond alarming headlines and focusing on how the market discounts information. While timing a bottom is never easy, price action, sentiment, and Fed liquidity analysis increase the odds.
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This article originally published on Zacks Investment Research (zacks.com).
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

QQQ Correction Survival Guide: Spotting a Bottom

Key Points
The rapid jump in memory prices will continue in 2027 as demand outpaces supply.
Micron has benefited big time from a surge in memory prices over the past year, and it can replicate its impressive growth in 2027 as well.
Micron still has multibagger potential due to its attractive valuation and the phenomenal earnings jump it can deliver over the coming year.
The exponential growth in earnings registered by Micron Technology (NASDAQ: MU) over the past year has translated into solid gains on the stock market, with shares of the memory giant up by a whopping 637% during this period.
The incredible demand for memory and the accompanying shortage of dynamic random-access memory (DRAM) and NAND flash storage have fueled the company's remarkable surge. Micron stock has benefited from a parabolic jump in memory prices. You may now be wondering if this high-flying chipmaker can continue skyrocketing.
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »
The good news is that it can indeed sustain its red-hot rally well into 2027. To see why that's likely to be the case, we will need to take a closer look at the primary catalyst that has sent this semiconductor stock soaring over the past year.
Rising memory prices have fueled Micron's rally, and the trend is here to stay
Artificial intelligence (AI) data centers need faster compute memory and ample storage to run training, inference, and agentic AI workloads efficiently. As a result, the demand for DRAM and NAND flash memory has taken off. High-bandwidth memory (HBM), in particular, has created a huge supply shortage as it requires three times the wafer capacity needed to manufacture conventional DRAM, according to Bank of America.
HBM is critical in AI accelerators, enabling the rapid transport of large data sets with low power consumption. Chip designers have been packing in more HBM into custom processors, graphics cards, and even server processors to ensure these chips don't sit idle. Not surprisingly, the HBM market is anticipated to grow by a whopping 7x by 2030, generating $246 billion in revenue by the end of the decade.
However, the booming demand for HBM has created a ripple effect across the memory industry. The wafer-intensive nature of these chips has created a shortage of traditional DRAM and NAND flash, as memory makers have been prioritizing HBM production to increase profits. This is why NAND flash prices nearly doubled over the final six months of 2026, according to Taiwan-based Phison, which manufactures NAND flash controllers.
Meanwhile, DRAM prices reportedly surged 170% last year, according to a third-party estimate. This historical trend of higher memory prices has been the primary catalyst behind Micron's astronomical jump, and there is ample evidence that prices will strengthen further, leading to more upside in this semiconductor stock.
SK Hynix, for instance, expects the memory crunch to worsen next year, even after capacity additions. As demand continues to outpace supply, prices should ideally continue rising. Market research provider Gartner projects a 125% spike in DRAM prices this year, while NAND flash could see a stronger jump of 234%.
If the supply crunch indeed worsens, Micron investors can expect further growth in earnings and margins on account of stronger pricing following a strong jump over the past year.
A solid spike in earnings suggests more upside in 2027
Micron's earnings are expected to increase by nearly 9x in the current fiscal year to $73.44 per share, according to consensus estimates. The company's fiscal 2026 will end next month. For fiscal 2027, which ends in August next year, analysts expect its earnings to more than double.
While that represents a slower increase from fiscal 2026 levels, the projected earnings growth for next year is still quite impressive. Of course, Micron can clock stronger earnings growth for the reasons discussed above, but even the projected bottom-line jump points to significant upside.
Micron trades at 22 times trailing earnings right now. That's higher than the stock's three-year median price-to-earnings ratio of 14.5, as per YCharts. Assuming Micron trades at 14.5 times earnings after a year and clocks $153.74 in earnings per share, its stock price could jump to $2,229. That's a potential upside of 2.8x in just over a year.
So, this AI stock seems primed for another multibagger performance over the coming year, suggesting that savvy investors should consider buying it following its recent dip.
Should you buy stock in Micron Technology right now?
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The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Micron Technology wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $390,394!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,209,184!*
Now, it’s worth noting Stock Advisor’s total average return is 899% — a market-crushing outperformance compared to 206% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of July 29, 2026.
Bank of America is an advertising partner of Motley Fool Money. Harsh Chauhan has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Micron Technology. The Motley Fool recommends Gartner. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Micron Stock Has Surged 637% in a Year. History Has a Clear Answer Where It Will Be in 2027

Key Points
The Dow Jones Industrial Average fell 1.7%, the S&P 500 dropped 1.0%, and the Nasdaq Composite declined 1.3% in mid-day trading on Wednesday.
Oil prices jumped more than 6% on renewed tensions in the Middle East.
After the closing bell, Microsoft and Meta will report earnings in a financial test of massive AI infrastructure spending.
Well, so much for that brief moment of Middle East calm.
U.S. stocks fell sharply in midday trading Wednesday as geopolitical tensions reignited and investors positioned ahead of the Federal Reserve's 2:00 p.m. ET policy decision. The Dow Jones Industrial Average (DJINDICES: ^DJI) is down 1.7% at mid-day, led lower by Caterpillar (NYSE: CAT) dropping 7.3% and Goldman Sachs (NYSE: GS) falling 4.6% on macroeconomic concerns. The S&P 500 (SNPINDEX: ^GSPC) has shed 1%, while the Nasdaq Composite (NASDAQINDEX: ^IXIC) is down by 1.3%.
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All three indexes opened in the red, made a half-hearted attempt at stabilization around 11 a.m. ET, then gave up and slid lower again.
Geopolitical chaos meets central bank uncertainty
The immediate trigger for today's selling? Oil prices rocketing more than 6%.
President Donald Trump told Fox News the U.S. would give Iran "a beating" following an overnight missile attack on American forces. That was the end of last Friday's diplomatic progress. You know the ripple effects that follow when oil prices are on the move. Every company depends on energy in some way, so high oil prices quickly get expensive for retailers, tech giants, and manufacturers.
Then there's the Fed. At 2:00 p.m., Chairman Kevin Warsh will announce the latest policy decision, and futures markets are pricing in a nearly 70% chance that rates stay put in the current 3.5% to 3.75% range. But the real drama will come during Warsh's press conference, where traders will parse every word for hints on whether the Fed is sticking with "higher-for-longer" or if recent oil price swings and stubborn inflation readings are raising fresh concerns.
Semiconductor stocks bore the brunt of the technology sector sell-off. The iShares Semiconductor ETF (NASDAQ: SOXX) plunged 4.4%, extending a 10% weekly decline. Micron Technology (NASDAQ: MU) dropped 5.7%, and Advanced Micro Devices (NASDAQ: AMD) fell 5.8%. They didn't do anything wrong, other than being richly valued growth stocks on a de-risking kind of market day.
And it's earnings season. Sherwin-Williams (NYSE: SHW) beat analyst estimates and Boeing (NYSE: BA) posted a mixed report. Both stocks fell, erasing a combined 109 points from the Dow.
What's next?
The market drama won't stop here. Two Magnificent 7 companies are reporting earnings tonight, and another two tomorrow. Besides their financials, whatever they say about data center plans and AI investments will surely move the markets for the rest of this week.
Sometimes the market throws multiple curveballs at once. The daily drama may open some opportunities and close others, so there's nothing wrong with tracking the headlines. Still, the best strategy is to stay focused on the predictable value of long-term fundamentals.
Should you buy stock in NASDAQ Composite Index right now?
Before you buy stock in NASDAQ Composite Index, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and NASDAQ Composite Index wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $390,394!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,209,184!*
Now, it’s worth noting Stock Advisor’s total average return is 899% — a market-crushing outperformance compared to 206% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
Anders Bylund has positions in Micron Technology. The Motley Fool has positions in and recommends Advanced Micro Devices, Boeing, Caterpillar, Goldman Sachs Group, Meta Platforms, Micron Technology, Microsoft, and iShares Trust-iShares Semiconductor ETF. The Motley Fool recommends Sherwin-Williams. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Market Indexes Tumble on Geopolitical Tensions and Chip Stock Selloff

The S&P 500 Index ($SPX) (SPY) today is down -0.18%, the Dow Jones Industrial Average ($DOWI) (DIA) is down -0.85%, and the Nasdaq 100 Index ($IUXX) (QQQ) is down -0.23%. September E-mini S&P futures (ESU26) are down -0.25%, and September E-mini Nasdaq futures (NQU26) are down -0.30%.
Stock indexes turned lower today as crude prices surged, and bond yields jumped after President Trump said the US will “hit Iran hard” after a recent attack from Iran that targeted a US base in Jordan. The markets are awaiting the results of the 2-day FOMC meeting that ends early this afternoon, with policymakers expected to keep interest rates unchanged. Also, earnings results from Microsoft and Meta Platforms after today’s close will be looked at to see whether the vast spending behind the buildout of artificial intelligence can deliver adequate returns. The 10-year T-note yield is up +3 bp to 4.63%.
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Sep WTI crude oil prices (CLU26) jumped by more than +6% today as the recent lull in hostilities came to an abrupt end after the Islamic Revolutionary Guard Corps (IRGC) said it targeted a US airbase and command center in Jordan with ballistic missiles. The IRGC also claimed to have hit and halted three tankers attempting to transit through the Strait of Hormuz. Meanwhile, the US and Saudi Arabia launched a joint attack on "Iran-aligned terrorists" in Iraq after the IRGC directed them to target US forces and Saudi energy infrastructure.
Tensions remain high in the Middle East as the US maintains its blockade of Iranian oil shipments in the Persian Gulf. Also, diplomatic attempts to reopen the Strait of Hormuz appear to be at an impasse. Iranian Deputy Foreign Minister Gharibabadi said Oman's proposal for a route through the Strait of Hormuz, with 50% under Iran's control and 50% under Oman's, would not address Iran's concerns and that the inbound passage and part of the outbound channel must be entirely under Iran's control.
US MBA mortgage applications fell -6.4% in the week ended July 24, with the purchase mortgage sub-index down -3.6% and the refinancing mortgage sub-index down -9.9%. The average 30-year fixed rate mortgage rose +7 bp to an 11.5-month high of 6.76% from 6.69% the prior week.
The outlook for strong Q2 earnings, which continue this week, is a bullish factor for stocks. The markets are awaiting results from a raft of megacap technology companies this week, including Microsoft and Meta Platforms today, and Amazon.com and Apple on Thursday. Forecasts compiled by Bloomberg Intelligence suggest Q2 earnings may increase by +23%, close to Q1’s blowout earnings of +30%, which was more than double the +12% analysts had expected. AI spending is expected to account for most of earnings, with AI infrastructure stocks set to contribute nearly 60% of the S&P 500's earnings-per-share growth in Q2. So far, earnings results have been positive, with 86% of the 170 S&P 500 companies that have reported Q2 earnings beating estimates, according to Bloomberg data.
The markets are discounting a 36% chance of a +25 bp rate hike at the conclusion of today’s FOMC meeting.
Overseas stock markets are mixed today. The Euro Stoxx 50 is down -0.48%. China's Shanghai Composite rebounded from a 1-week low and closed up +0.40%. Japan's Nikkei-225 Stock Average fell to a 2.25-month low and closed down -1.49%.
Interest Rates
September 10-year T-notes (ZNU6) today are down -8 ticks. The 10-year T-note yield is up +2.6 bp to 4.633%. T-notes are under pressure today from a +6% surge in crude oil prices, which raises inflation expectations and is hawkish for Fed policy. Also, long liquidation and position evening are weighing on T-notes ahead of the FOMC’s interest rate decision later today.
European government bond yields are moving higher today. The 10-year German bund yield is up +3.2 bp to 3.136%. The 10-year UK gilt yield is up +5.3 bp to 4.997%.
The German Jun import price index eased to 6.1% y/y from 6.8% y/y in May.
The markets are discounting an 88% chance of a +25 bp ECB rate hike at its next policy meeting on September 10.
US Stock Movers
Chipmakers and AI-infrastructure stocks are moving lower today, weighing on the broader market. Nebius Group NV (NBIS) is down more than -8% to lead losers in the Nasdaq 100, and Sandisk (SNDK) is down more than -6%. Also, Applied Materials (AMAT) and KLA Corp (KLAC) are down by more than -4%, and NXP Semiconductors NV (NXPI) and ARM Holdings (ARM) are down by more than -3%. In addition, Advanced Micro Devices (AMD), ASML Holding NV (ASML), Micron Technology (MU), Lam Research (LRCX), and Microchip Technology (MCHP) are down more than -2%.
Trucking and freight companies are under pressure today from soaring crude oil prices. ArcBest (ARCB) is down more than -4%, and Old Dominion Freight Line (ODFL) and Saia Inc (SAIA) are down more than -2%. Also, FedEx Freight Holding (FDXF), Knight-Swift Transportation Holdings (KNX), JB Hunt Transport Services (JBHT), Marten Transport Ltd (MRTN), CH Robinson Worldwide (CHRW), and XPO Inc (XPO) are down more than -1%.
Airline stocks are sliding today with the surge in crude oil prices. Alaska Air Group (ALK) and Southwest Airlines (LUV) are down more than -2%, and American Airlines Group (AAL), United Airlines Holdings (UAL), and Delta Air Lines (DAL) are down more than -1%.
Energy producers and service providers are climbing today, with crude oil prices up by more than +6%. ConocoPhillips (COP), Diamondback Energy (FANG), and Valero Energy (VLO) are up more than +3%, and APA Corp (APA), Chevron (CVX), Devon Energy (DVN), ExxonMobil Holdings (XOM), Marathon Petroleum (MPC), Occidental Petroleum (OXY), and Phillips 66 (PSX) are up more than +2%. Also, SLB Ltd (SLB), Baker Hughes (BKR), and Haliburton (HAL) are up more than +1%.
Lennox International (LII) is down more than -13% to lead losers in the S&P 500 after reporting Q2 net sales of $1.55 billion, weaker than the consensus of $1.56 billion.
Vertiv Holdings (VRT) is down more than -8% after reporting Q2 net sales of $3.27 billion, below the consensus of $3.39 billion.
CoStar Group (CSGP) is down more than -8% after reporting Q2 revenue of $925 million, weaker than the consensus of $929.4 million.
Skyworks Solutions (SWKS) is down more than -7% after forecasting Q4 adjusted EPS of $1.27, below the consensus of $1.29.
Avis Budget Group (CAR) is down more than -6% after reporting Q2 EPS of 98 cents, well below the consensus of $1.91.
Caterpillar (CAT) is down more than -2% after Baird downgraded the stock to neutral from outperform, citing a growing trend of state and local government actions targeting data centers, a key growth driver for the company.
Teradyne (TER) is up more than +13% to lead gainers in the S&P 500 and Nasdaq 100 after reporting Q2 net revenue of $1.33 billion, stronger than the consensus of $1.22 billion.
GE Healthcare (GEHC) is up more than +10% after reporting Q2 adjusted EPS of $1.13, better than the consensus of $1.04.
Garmin Ltd (GRMN) is up more than +7% after reporting Q2 revenue of $2.02 billion, above the consensus of $1.92 billion, and raising its full-year revenue estimate to $8.05 billion from a previous estimate of $7.90 billion, stronger than the consensus of $7.99 billion.
Bloom Energy (BE) is up more than +7% after reporting Q2 revenue of $1.07 billion, stronger than the consensus of $838.7 million, and raising its full-year revenue forecast to $3.9 billion to $4.2 billion from a previous forecast of $3.4 billion to $3.8 billion, above the consensus of $3.74 billion.
Generac Holdings (GNRC) is up more than +5% after raising its full-year adjusted Ebitda margin to 20% to 21% from a previous estimate of 18.5% to 19.5%, better than the consensus of 19.2%.
Ford Motor (F) is up more than +4% after raising its full-year adjusted EBIT to $10 billion to $11 billion from a previous forecast of $8.5 billion to $10.5 billion.
Earnings Reports (7/29/2026)
Align Technology Inc (ALGN), American Water Works Co Inc (AWK), Amphenol Corp (APH), Aon PLC (AON), Automatic Data Processing Inc (ADP), Biogen Inc (BIIB), Boston Scientific Corp (BSX), Bunge Global SA (BG), Carvana Co (CVNA), CBRE Group Inc (CBRE), CH Robinson Worldwide Inc (CHRW), Chipotle Mexican Grill Inc (CMG), Cognizant Technology Solutions (CTSH), Electronic Arts Inc (EA), Entergy Corp (ETR), Equinix Inc (EQIX), Essex Property Trust Inc (ESS), Everest Group Ltd (EG), Fair Isaac Corp (FICO), Flex Ltd (FLEX), Fortinet Inc (FTNT), Fortive Corp (FTV), Garmin Ltd (GRMN), GE HealthCare Technologies Inc (GEHC), Generac Holdings Inc (GNRC), General Dynamics Corp (GD), Humana Inc (HUM), IDEX Corp (IEX), Invitation Homes Inc (INVH), Johnson Controls International (JCI), L3Harris Technologies Inc (LHX), Lam Research Corp (LRCX), Lennox International Inc (LII), Masco Corp (MAS), Meta Platforms Inc (META), MGM Resorts International (MGM), Microsoft Corp (MSFT), Mid-America Apartment Communities (MAA), Old Dominion Freight Line Inc (ODFL), O'Reilly Automotive Inc (ORLY), Procter & Gamble Co/The (PG), PTC Inc (PTC), Public Storage (PSA), QUALCOMM Inc (QCOM), Regency Centers Corp (REG), Robinhood Markets Inc (HOOD), Smurfit Westrock PLC (SW), Stanley Black & Decker Inc (SWK), Starbucks Corp (SBUX), Tyler Technologies Inc (TYL), Ventas Inc (VTR), Verisk Analytics Inc (VRSK), Vertiv Holdings Co (VRT), VICI Properties Inc (VICI), Vulcan Materials Co (VMC), Waste Management Inc (WM), WEC Energy Group Inc (WEC).
On the date of publication, Rich Asplund did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Stocks Pressured by Renewed US-Iran Hostilities

Key Points
Both of these AI memory stocks look incredibly cheap for investors today.
Sandisk is expected to grow faster than Micron during the next fiscal year.
The month of July hasn't been kind to some of 2026's biggest winners. It seems there was a widespread notion that investors should take some gains off the table after an incredible first half of the year.
Sandisk (NASDAQ: SNDK) and Micron Technology (NASDAQ: MU) were two of the best-performing S&P 500 stocks to start the year. Through June 30, Micron's stock rose 304%, while Sandisk's increased a jaw-dropping 858%. That's a lot of money made in a very short amount of time, so taking profits is likely a logical choice.
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However, the sell-off has been incredibly harsh to these two. Since the calendar flipped to July, Micron has fallen 20%, and Sandisk is down over 35%. That's a significant sell-off, but the question is: Is this the start of an even bigger sell-off, or are these two smart stocks to buy on the dip?
Both companies are seeing a major boost in their business
Both Micron and Sandisk are memory chip fabricators. The memory chip industry has been overwhelmed by demand from the artificial intelligence data center build-out, and doesn't have the production capacity to fulfill every order. As a result, prices for memory chips have skyrocketed.
Micron and Sandisk are beneficiaries of this, as their products' prices rose dramatically without needing to change input costs. That's a huge catalyst for both, but which one is better positioned to take advantage of it?
Two primary types of memory used in data centers are DRAM and NAND. DRAM is high-speed memory used in computing units like GPUs. NAND memory is better for long-term information storage and is usually used in a solid-state drive (SSD) to create massive data storage banks for these data centers.
Micron makes both NAND and DRAM, while Sandisk only produces NAND. Furthermore, with most AI hyperscalers focusing on computing capacity rather than storage (though they still need a lot of it), exposure to the computing unit side of the business makes Micron a more attractive investment.
Winner: Micron
Sandisk is expected to grow faster
Sandisk's fiscal 2027 year began in July, and Wall Street analysts expect 151% revenue growth for the coming year. That comes after an already impressive 2026, when Wall Street expects 170% growth. Micron's fiscal 2026 concludes in August, and Wall Street projects 247% growth during fiscal 2026. However, that figure falls to 84% growth for fiscal 2027.
Both companies are rapidly growing and will likely continue to grow for some time. Wall Street analysts are far more bullish on Sandisk's 2027 prospects than Micron's, so I'm giving it the edge here.
Winner: Sandisk
Both companies are cheap
We'll also use fiscal 2027 earnings projections to value each company since Sandisk is already in it, and Micron is rapidly approaching the start of a new fiscal year. Sandisk's valuation topped out at over 30 times forward earnings at the end of its fiscal year, but when 2027's projections are used, it's now back to less than 7 times forward earnings.
Micron is also valued in the same range, trading for less than six times forward earnings.
The reason why these two are so cheap is that the market doesn't know the future. The memory chip market is known to be cyclical, with boom-and-bust cycles. We're clearly in a boom cycle right now, but the question is, for how much longer?
Micron's management team offered some insight into this question during its last earnings report, stating that tightness in the memory chip market will last beyond 2027. That bodes well for both companies, and I think the growth case will last for several years, leading to huge upside for both of these stocks.
Because it is the cheaper stock when next year's growth is factored in, I think Micron is the better stock to buy overall, although there's still nothing wrong with Sandisk, either.
Winner: Micron
Should you buy stock in Micron Technology right now?
Before you buy stock in Micron Technology, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Micron Technology wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $390,394!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,209,184!*
Now, it’s worth noting Stock Advisor’s total average return is 899% — a market-crushing outperformance compared to 206% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of July 29, 2026.
Keithen Drury has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Micron Technology. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Better Artificial Intelligence (AI) Memory Buy: Micron Technology vs. Sandisk After the July 2026 Sell-off

Key Points
A global memory shortage has led Micron Technology to sharply raise prices.
Elon Musk thanked Micron twice for working with Tesla on allocation and pricing.
This suggests Micron is working behind the scenes to build long-term business stability.
On pretty much every Tesla (NASDAQ: TSLA)earnings call CEO Elon Musk thanks Tesla employees for their hard work. He often expresses gratitude to Tesla's customers for their support as well. What he doesn't usually do is thank other companies.
But on Tesla's Q2earnings calllast week, Musk went out of his way to thank Micron Technology (NASDAQ: MU) not once but twice!
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Here's why Musk is expressing gratitude to the memory chipmaker and why it's great news both for Tesla and Micron shareholders.
Doubly expensive, or more
We're in the middle of a global memory chip shortage.
Random-access memory (RAM) is necessary to keep data actively available to a processor for computation. In most computers, this is handled by a type of memory chip called dynamic random access memory (DRAM). DRAM is cheap to produce and can hold a lot of data.
But artificial intelligence (AI) compute is so complex that it requires more than a single DRAM wafer. Luckily, high-bandwidth memory (HBM), which consists of several DRAM chips stacked on top of each other, delivers incredible similar data retrieval speed and a much higher capacity. Micron Technology is one of only three major global providers of DRAM and HBM. The other two are South Korean: tech giant Samsung and SK Hynix (NASDAQ: SKHY), which recently debuted on the Nasdaq.
These companies have devoted almost all of their memory chip fabrication capacity to churning out DRAM and HBM for AI operations, and demand is still outstripping supply, so they've raised their prices across the board. According to Counterpoint Research, memory and storage prices have quadrupled over the past nine months. That's caused prices to go up for anything that uses memory chips, including smartphones, laptops, and cars.
Doubly thankful
Musk went out of his way to sing Micron's praises in response to a question about supply chains for the company's Optimus humanoid robots. Andrew Percoco of Morgan Stanley asked Musk about "some of the dialogue you've had with potentially some external suppliers."
In response, Musk name-checked Samsung, Taiwan Semiconductor Manufacturing, and Panasonic for increasing production of semiconductors and battery cells, but after Tesla's VP of Supply Chain Karn Budhiraj talked about Samsung's commitment to future projects, Musk jumped back in with his first note of thanks to Micron:
I'd actually also like to thank Micron for giving us memory allocation. They've got to make some very tough decisions on memory allocation. We really appreciate Micron making room for Tesla in the years to come and giving us actually a very significant allocation on reasonable terms given the pretty insane pricing of memory these days.
Over 20 minutes later, near the end of the call, William Stein of Truist Securities asked Musk about hardware upgrades. In response, Musk talked about the AI chip upgrade cycle, finishing with:
I think things are going really well on the chip front. Yeah. Again, I'd like to thank TSMC and Samsung, and Micron for their support.
Doubly surprising
What's doubly surprising about Musk's double thanks is that a lot of people have been blasting Micron instead of thanking them. Notably, Apple CEO Tim Cook blamed "the memory guys ... passing along huge price increases" for a sweeping 20% price increase on Apple's products.
Micron Chief Business Officer Sumit Sadana has defended his company's pricing. When memory prices collapsed in 2023, he noted in a recent interview, big customers showed no mercy, negotiating ultra-low prices that pushed Micron's gross margin into negative territory. This prevented memory suppliers from investing in capacity increases that would have come online by now. Current investments in memory fabrication facilities aren't expected to come online for at least another year.
However, the fact that Micron has been collaboratively working with Tesla on pricing, to the point that Elon Musk is going out of his way to thank the memory supplier twice in oneearnings callfor its "reasonable terms," suggests that Micron is prioritizing long-term business stability over short-term windfall profits.
In any high-tech industry, product reliability and quality are just as important as price. By building relationships with Musk and others now, instead of just squeezing them dry, Micron improves its odds of avoiding a catastrophe down the line when memory capacity inevitably increases and prices fall. That's great news for Tesla and Micron investors everywhere.
Should you buy stock in Micron Technology right now?
Before you buy stock in Micron Technology, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Micron Technology wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $379,662!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,206,116!*
Now, it’s worth noting Stock Advisor’s total average return is 886% — a market-crushing outperformance compared to 206% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of July 29, 2026.
John Bromels has positions in Apple, Micron Technology, Taiwan Semiconductor Manufacturing, and Tesla. The Motley Fool has positions in and recommends Apple, Micron Technology, Taiwan Semiconductor Manufacturing, and Tesla. The Motley Fool recommends Nasdaq. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Elon Musk Thanked Micron Twice on Tesla's Earnings Call -- Here's Why That's Great News

Key Points
Micron’s stock has nearly tripled this year.
It still looks cheap relative to its growth potential.
But any hint of a slowdown for the AI market could crush its stock.
Micron's (NASDAQ: MU) stock has rallied nearly 190% this year. The artificial intelligence (AI) market's rapid expansion, which drove more data centers to upgrade their infrastructure to handle the latest AI applications, fueled those massive gains.
However, Micron's historical stock performance suggests investors shouldn't be surprised if it pulls back by more than 30% later this year. Let's see why it could be headed for a steep drawdown -- and if that decline would be a red flag or a buying opportunity.
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »
Is Micron's stock still cyclical?
As one of the world's leading producers of DRAM and NAND memory chips, Micron's growth is usually tightly tethered to the memory market's boom-and-bust cycles. When demand outstrips supply, prices surge as Micron and its peers scramble to produce more chips. But that increased production often leads to supply gluts, and memory chip prices pull back again.
Micron went through two and a half of those cycles over the past decade. Slowing sales of smartphones and PCs caused memory chip prices to plummet in 2015 and 2016, but the rapid expansion of cloud data centers and new smartphones lifted the market in 2017 and 2018.
In 2019, the trade war between the U.S. and China chilled the memory market again. Still, its growth accelerated in 2020 and 2021 as the pandemic sparked fresh demand for remote-work electronics (such as tablets and laptops) and cloud-based services.
In 2022 and 2023, inflation, rising interest rates, and a post-pandemic collapse in consumer electronics crushed the market again. But starting in 2024, the AI boom created an insatiable demand for high-bandwidth memory (HBM) chips and enterprise solid-state drives (SSDs) to feed AI accelerator clusters. Since HBM chips require triple the wafer capacity of a standard DRAM chip, their production choked the supply of traditional PC and server memory chips.
The bulls believe this AI-driven supercycle will last longer than Micron's previous growth cycles. From fiscal 2025 (which ended last September) to fiscal 2028, analysts expect its revenue to surge from $37.3 billion to $295.2 billion, while its net income soars from $8.5 billion to $176.8 billion. That's a jaw-dropping growth rate for a stock that trades at 11 times this year's earnings.
However, analysts tend to overestimate Micron's growth potential when the memory market is hot and underestimate it when it cools. Its stock also experiences massive peak-to-trough drawdowns (73% from 2014 to 2016, 55% in 2018, 43% in 2020, 51% in 2021, and 36% in 2024) whenever investors get too optimistic about its long-term growth potential. Therefore, history suggests that a decline of 30% or more could really happen at any time -- even if Micron is well-poised to profit from the AI market's soaring demand for more DRAM and NAND chips.
Should you buy stock in Micron Technology right now?
Before you buy stock in Micron Technology, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Micron Technology wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $379,662!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,206,116!*
Now, it’s worth noting Stock Advisor’s total average return is 886% — a market-crushing outperformance compared to 206% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of July 29, 2026.
Leo Sun has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Micron Technology. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Micron Stock Has Gained Roughly 190% in 2026. History Says Its Next 30%+ Drawdown Could Come at Any Time.

Key Points
Broadcom's custom AI chip business is taking off.
Micron is riding a huge demand wave.
Meta's core business could be valued at $2 trillion today.
A while ago, Space Exploration Technologies (NASDAQ: SPCX), better known as SpaceX, was a member of the $2 trillion club. However, it has sold off and fallen out of that group, and I don't think it has what it takes to get back above the $2 trillion threshold for a while.
Instead, I'm focusing on other stocks with fairly defined growth rates and profit levels that look like genius buys right now. The three that I think can get above $2 trillion by 2027 at the latest are Broadcom (NASDAQ: AVGO), Micron (NASDAQ: MU), and Meta Platforms (NASDAQ: META). All three are fantastic investments and will be there before investors know it.
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1. Broadcom
Broadcom is only a stone's throw away from the $2 trillion club, with a market cap of more than $1.8 trillion. However, I think it could cross the $2 trillion threshold before 2026 is over. That would be a solid gain in just about five months, but investors also need to be ready for what is coming in 2027.
While Broadcom does a lot as a company, its biggest growth area is custom artificial intelligence (AI) chips, which are becoming increasingly popular among AI hyperscalers. These specialized computing units excel in one area, and when used with a specific workload, they provide superior cost performance versus training using graphics processing units (GPUs). As a result, AI hyperscalers are deploying large numbers of these units.
Orders are ramping up, and management expects more than $100 billion in AI semiconductor revenue in 2027. For reference, AI semiconductor revenue was $10.8 billion in Q2 (or about $43.2 billion annualized). That's a huge jump, and will easily help Broadcom reach the $2 trillion mark if it can live up to that expectation.
2. Micron
Micron (NASDAQ: MU) is the furthest from $2 trillion, with a $940 billion valuation. If it more than doubles during the next year and a half, it'll be an excellent investment, and I think Micron could achieve it. It's a memory chip fabricator, and memory chips are in short supply right now, causing prices to skyrocket. This has led to soaring Micron revenue and profit.
However, Micron's growth is far from done. During fiscal 2027 (ending August 2027), Wall Street analysts estimate Micron's revenue growth at 84% and that its earnings per share (EPS) will more than double from $73.44 to $153.74. With the stock trading at just 5.8 times 2027's earnings estimates, I think Micron stock could easily double during the next year and a half, leading to strong gains for investors.
3. Meta Platforms
Last up is Meta Platforms, which is currently viewed negatively by the AI investment community. Investors are worried about how much money Meta is dumping into AI without much to show for it. Still, they are ignoring a strong advertising business that's benefiting from some of Meta's AI tools.
Furthermore, Meta may launch a cloud computing business unit. If Meta can turn the corner on its AI technology and offer something that rivals one of the other hyperscalers' products, then Meta could easily become a beloved stock on Wall Street and surge from its current $1.5 trillion valuation, easily crossing the $2 trillion mark along the way.
The company has a ways to go before this happens, but with Meta stock trading at an attractive 19 times forward earnings right now, it has plenty of room for its valuation to expand to pass the $2 trillion level in its current state, not to mention what it could be by the end of next year.
Should you buy stock in Broadcom right now?
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Keithen Drury has positions in Broadcom and Meta Platforms. The Motley Fool has positions in and recommends Broadcom, Meta Platforms, and Micron Technology. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Micron Technology, Inc.

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