Is Micron’s Incredible Run About to End?

Micron (NASDAQ: MU) has been on an extraordinary run for the past year. The memory chipmaker has benefited from surging demand amid the AI revolution, combined with limited competition. Micron’s stock has skyrocketed nearly 220% in 2026, even after a recent pullback. The company, along with a handful of others, owns the vast majority of the memory market share. That could all change, however, if China has anything to say about it.

The threat to Micron’s dominance comes from two state-backed Chinese companies. Yangtze Memory Technologies is aiming to overtake its competitors in the NAND market in the near future. It is currently ranked fifth by revenue, behind major players including Micron, Samsung (OTC: SSNLF), and SK Hynix (NASDAQ: SKHY).

Missed AI’s “Act 1”? Act 2 Could Be 14x Bigger. Most investors think they missed the AI boat because they didn’t buy Nvidia in 2005. But according to our analysts, we’re only at the end of “Act 1″—the R&D phase. “Act 2” is the global rollout. Continue »

DRAM is where Micron is exposed

The bigger threat is in the DRAM market, which accounts for 73% of Micron’s revenue as of last quarter. ChangXin Memory Technologies is about to launch a new, denser chip by the end of the year. This is an issue for Micron, as it will not only erode the company’s market dominance but also undermine its pricing power.

Micron's logo on a dark blue backdrop.
Image source: The Motley Fool.

In the short term, Micron still has an incredible competitive moat. The company’s high-bandwidth memory business is generally safe for now. However, DRAM and NAND businesses could suffer more as China creates cheaper models.

Micron’s demand still exceeds supply and likely will for the next few years, but China’s competitive threat is real and could erode Micron’s margins over time. Micron’s run isn’t over, but I do expect growth to slow. It’s still a worthwhile investment for long-term investors, though.

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 $380,363!* Or when Nvidia made this list on April 15, 2005… if you invested $1,000 at the time of our recommendation, you’d have $1,315,732!*

Now, it’s worth noting Stock Advisor’s total average return is 919% — a market-crushing outperformance compared to 211% 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.

Source link

Visited 1 times, 1 visit(s) today

Related Article

IBM (IBM) Stock May Be 15% Undervalued As Quantum Progress Draws Focus

International Business Machines has seen its share price move around in recent months, yet the key issue for anyone looking at IBM today is whether the current US$232.14 level is supported by the cash the business can generate over time. Over the past 5 years, International Business Machines has delivered a total return of 130.1%,

Earnings Revisions Could Reshape The Plug Power Stock Story

Plug Power reaffirmed that it remains on track with its 2026 revenue guidance, supported by margin improvement efforts, reduced net cash usage, and progress on large electrolyzer agreements and hydrogen projects that underpin its role in the global hydrogen economy. Analysts have recently raised earnings estimates for Plug Power, with consensus EPS moving higher and

Infleqtion (INFQ) Stock Fair Value Edges Lower As Analysts Weigh Quantum Progress And Risks

Infleqtion’s updated analyst work trims the fair value estimate from $21.83 to $20.43, which signals a modest reset in how the stock is being valued today. This shift sits alongside research that highlights progress on logical qubits and early paying customers, while also flagging execution risk in quantum hardware and uncertainty around long term market

Is JOST Werke (XTRA:JST) Expensive, Or Can Earnings Catch Up?

JOST Werke has delivered strong multi year gains for shareholders, so the obvious question now is whether the current share price is still aligned with what its earnings can justify. Over the past 3 years the stock has returned 45.3%, which puts real pressure on the current earnings to support that kind of re-rating. The

If a Stock Market Crash Is Coming, These 5 Stocks Have a History of Holding Up

Is a market crash coming? That’s the question investors are asking as the S&P 500 (SNPINDEX: ^GSPC) gets closer to ending its fourth year in a row with double-digit gains. Understandably, a market crash is a scary thought. However, it’s part of investing. When you set up your portfolio, keep that in mind and create

Socionext (TSE:6526) Stock Looks Expensive Following Its 33% Slide

Socionext has seen its share price fall sharply over the past year. That naturally raises a question for anyone watching the stock: Is the current valuation properly reflecting what the business is earning today and what those earnings may support over time? The stock has declined 32.7% over the past year, so the key issue

CarMax (KMX) Stock Looks Expensive Even After Stronger Earnings

CarMax has delivered a mix of strong and weak stretches for shareholders over the past few years, which puts fresh attention on a simple question for today’s buyers. Is the current US$53.33 share price properly supported by the earnings power of the used car retailer. The stock has fallen 62.8% over the past 5 years,

If I Had to Pick 1 Tech Stock to Hold Through the Next Recession, It Would Be This One

Oil prices, rising interest rates, and 24-year highs for 10-year Treasuries can certainly make investors get defensive. However, that doesn’t mean you should exit stocks as quickly as possible. In fact, buying growth stocks when investors are fleeing in droves can lead to elevated long-term returns, if you buy the right stocks. Although Micron Technology

Berkshire rally to highest since Buffett announcement

(This is the Warren Buffett Watch newsletter, news and analysis on all things Warren Buffett and Berkshire Hathaway. You can sign up here to receive it every Friday evening in your inbox.) Berkshire Hathaway shares closed Friday at their highest level since Warren Buffett told shareholders at the May 2025 annual meeting he planned to

Sandisk Stock Is Still Up 488% This Year Despite a 40% Drop. Is It a Buy Now?

Sandisk (NASDAQ:SNDK) closed at around $1,395 on Oct. 15, its sixth straight daily decline. Over those six sessions, the flash memory maker’s stock shed around 18% of its value. Yet shares are still up about 488% this year, measured from their $237 close at the end of 2025. But they’re also around 40% below the

Prediction: Here’s Where The Trade Desk Stock Will Be in 2029

Shares of ad tech company The Trade Desk (NASDAQ:TTD) trade near $12 as I write, down about 91% from their December 2024 record closing price of $139.51. And shares have kept sliding this year, down about 68% since the end of 2025. The company’s now worth about $5.8 billion, and the stock costs about 14

President Donald Trump Claims Gasoline Prices Will “Drop Like a Rock” When the Iran War Ends, but He’s Completely Missed the Bigger Picture

The stock market has endured some of its wildest volatility under President Donald Trump, including the five-week COVID-19 crash in February-March 2020 and the week-long tariff tantrum in April 2025. But more importantly, the timeless Dow Jones Industrial Average (DJINDICES:^DJI), benchmark S&P 500 (SNPINDEX:^GSPC), and tech-powered Nasdaq Composite (NASDAQINDEX:^IXIC) have soared with Trump in the

Should You Sell Your NuScale Power Stock Now?

Image from Pixabay Investors holding NuScale Power (SMR) stock have faced a punishing year. While the broader S&P 500 returned 17.9%, the shares lost 86.6%. That decline is firmly embedded in the current valuation, regardless of whether you choose to sell or hold. Anyone maintaining a position now owns an enterprise with minimal revenue, waiting

Yellow Cake (AIM:YCA) Stock May Look Reasonable Given Its Earnings Exposure

Yellow Cake has delivered a 34.1% gain over the past 5 years, yet the recent softer share price leaves a clear question for you as an investor. Is the current valuation supported by the company’s earnings power or has the market moved ahead of what its profit stream can justify? A 34.1% return over 5

Stocktwits Defense Watch: RTX Continues Deal Momentum, Ondas-Palantir Launch AI Firm As AeroVironment Strike Four International Deals

RTX received $729 million in counter-drone orders from the U.S., Qatar and Jordan. AeroVironment expanded its international drone partnerships in Australia, Taiwan, Spain and Israel Ondas and Palantir to launch an AI defense firm called Regna AI. Even as bank earnings and a tech selloff dominated market headlines this week, defense stocks were in the

0
Would love your thoughts, please comment.x
()
x