WDC, SNDK, and STX Stocks Drive Down Memory Chip Prices Amid Rising Costs: Is the AI Surge Losing Momentum?
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 8h ago
0mins
Source: stocktwits
Memory Chip Market Trends: Over the past year, memory chip stocks have seen unprecedented gains due to supply shortages, leading to higher prices, although recent declines have been noted among major companies like SanDisk and Western Digital.
Stock Performance: Major memory chip producers have experienced significant stock declines recently, with shares of Western Digital dropping 8.2% and Seagate 6.8%, indicating a bearish sentiment in the market.
Continued Price Surge: Despite recent stock declines, memory chip prices are expected to continue surging due to ongoing high demand, particularly driven by the expansion of AI data centers.
Industry Outlook: Analysts predict that supply shortages will persist beyond one or two quarters, affecting various sectors including phones, PCs, and automotive, as companies face pressure on pricing and earnings.
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Analyst Views on MU
Wall Street analysts forecast MU stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for MU is 336.12 USD with a low forecast of 235.00 USD and a high forecast of 500.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
26 Analyst Rating
24 Buy
2 Hold
0 Sell
Strong Buy
Current: 383.500
Low
235.00
Averages
336.12
High
500.00
Current: 383.500
Low
235.00
Averages
336.12
High
500.00
About MU
Micron Technology, Inc. provides memory and storage solutions. The Company delivers a portfolio of high-performance dynamic random-access memory (DRAM), NAND, and NOR memory and storage products through its Micron and Crucial brands. The Company's products enable advancing in artificial intelligence (AI) and compute-intensive applications. Its segments include Compute and Networking Business Unit (CNBU), Mobile Business Unit (MBU), Embedded Business Unit (EBU), and Storage Business Unit (SBU). CNBU segment includes memory products and solutions sold into the data center, PC, graphics, and networking markets. MBU segment includes memory and storage products sold into the smartphone and other mobile-device markets. EBU segment includes memory and storage products and solutions sold into the intelligent edge through the automotive, industrial, and consumer embedded markets. SBU segment includes SSDs and component-level storage solutions sold into the data center, PC, and consumer markets.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Micron Technology's Stock Quadruples: Key Factors Behind Growth
- Demand-Driven Growth: Micron Technology's stock has quadrupled over the past year, primarily fueled by strong demand for memory chips from AI hyperscalers, which not only enhances the company's market position but also lays the groundwork for sustained future growth.
- Changing Market Dynamics: The CEO believes this market cycle is different, as memory has become a strategic asset for AI functionalities, strengthening the company's competitive edge, particularly in real-time data processing capabilities.
- Diverse Market Opportunities: Accelerating data center builds, an upgrade cycle in PC hardware, and increasing memory demand in smartphones are benefiting Micron across multiple markets, with expectations for continued performance growth in the coming years.
- Capital Expenditure Plans: Micron plans to increase capital expenditures to $20 billion to meet growth demands by 2026; despite potential risks of supply gluts, the company is committed to expanding production capacity to maintain market competitiveness.
See More
Long-Term Growth Potential of Western Digital and Micron Technology
- Surging Market Demand: Western Digital's stock has skyrocketed 465% over the past year, including a 60% increase this year, while Micron Technology has seen a 313% rise, with a 35% gain year-to-date, indicating significant benefits from AI infrastructure investments and strong long-term growth potential.
- Industry Leadership: Both companies dominate their respective sectors, with Western Digital leading in hard disk storage and Micron in high-bandwidth memory chips, as demand for their products is expected to grow 24% and 15-fold by 2035, respectively, further solidifying their market positions.
- Valuation Advantage: Despite substantial stock price increases, Western Digital trades at a P/E ratio of just 25, below the S&P 500 average, with a five-year PEG ratio of about 0.9, highlighting its value investment appeal; Micron's forward P/E is only 11, reinforcing its relative affordability.
- Future Growth Outlook: Both companies have secured sales agreements for their production capabilities through 2026, and with their dominant market positions and the enormous growth potential in their addressable markets, they are well-positioned for continued strong growth in the future.
See More
Investment Opportunities in AI ETFs
- AI Sector Growth Potential: Artificial intelligence is recognized as the fastest-growing trend today, particularly with Nvidia's GPUs being regarded as the 'gold standard' for training AI models, solidifying its market position and attracting significant investor interest.
- Surge in Memory Chip Demand: Micron Technologies has seen its stock soar amid the AI revolution's insatiable demand for memory chips, creating a supply crunch that underscores the company's critical role and potential profitability within the AI ecosystem.
- ETF Investment Advantages: Investors may prefer ETFs over individual stocks, as evidenced by the VanEck Semiconductor ETF's impressive 62.6% return over the past year, nearly quadrupling the S&P 500's performance, highlighting its strong position in AI infrastructure development.
- Long-Term Growth Outlook: With major tech companies planning to further increase AI spending in 2026, investment opportunities in the semiconductor sector are expected to continue growing, indicating that investing in the VanEck Semiconductor ETF is an effective strategy to capitalize on the AI revolution.
See More
Nvidia Reaches $5 Trillion Market Cap Amid AI Boom
- Nvidia's Strong Performance: Nvidia has become the first publicly traded company to surpass a $5 trillion market cap, reporting $57 billion in revenue for fiscal 2023, a 62% year-over-year increase, which underscores the robust demand for its semiconductors and solidifies its leadership in the AI market.
- Google Cloud Growth: Alphabet achieved an 18% revenue growth in Q4 2025, with its cloud computing segment soaring by 48% year-over-year, indicating a surge in demand for AI applications, and cloud revenue now constitutes over 10% of Alphabet's business, showcasing its competitive strength in the AI sector.
- Waymo's Significant Potential: Alphabet's self-driving vehicle fleet, Waymo, is operational in several U.S. cities, and while limited details were provided in the earnings report, its potential compared to Uber's $150 billion market cap suggests it could become a major revenue contributor for Google, further driving company growth.
- Micron's Promising Outlook: Micron reported a 57% revenue growth in its fiscal Q1 2026, with net income nearly tripling, and as the company pivots towards AI infrastructure, it anticipates continued revenue and margin growth, positioning itself to potentially outperform Nvidia in the coming years.
See More
Nvidia Becomes Most Valuable Company Amid AI Boom
- Nvidia's Market Milestone: Nvidia has become the first publicly traded company to reach a $5 trillion market cap, reporting $57 billion in revenue for Q4 2025, a 62% year-over-year increase, which underscores its dominant position in the AI chip market.
- Google Cloud Growth: Alphabet achieved an 18% revenue growth in Q4 2025, with its cloud computing segment soaring by 48% year-over-year, indicating that the company is leveraging AI to enhance both search engine and cloud service revenues, thereby strengthening its competitive edge.
- Micron's Successful Pivot: Micron reported a 57% revenue growth in its fiscal Q1 2026, with net income nearly tripling, and its stock has quadrupled over the past year as it shifts focus from consumer products to AI infrastructure, showcasing significant growth potential.
- Future Growth Outlook: Micron anticipates continued acceleration in growth over the coming quarters, with a focus on AI infrastructure expected to yield higher profit margins and free cash flow, positioning it to potentially outperform Nvidia in returns in the future.
See More
Investment Outlook for Micron and Microsoft in AI
- Micron's Market Demand: Micron announced in its fiscal Q1 update that its entire supply of high-bandwidth memory (HBM) for 2026 has sold out, with expectations for the HBM market to grow at a compound annual growth rate of around 40%, expanding from $35 billion in 2025 to $100 billion by 2028, indicating strong market demand and profit potential.
- Microsoft's Valuation Advantage: Despite Microsoft's stock price declining over 20% since late October 2025, its earnings multiple is near its lowest level in the past decade, suggesting long-term growth potential in the cloud computing sector, particularly with the widespread adoption of AI technologies that could yield significant returns for investors.
- Competition and Opportunities: While Microsoft's revenue growth for its Azure cloud unit was slightly below expectations and increased competition raises concerns, CEO Satya Nadella highlighted that the proliferation of AI agents will create new growth opportunities, especially as over 80% of Fortune 500 companies are utilizing its Copilot Studio and Agentbuilder tools.
- Investor Strategy: Although Micron may offer higher returns in the short term, Microsoft's strong market dynamics suggest it could be the bigger winner in the long run, as historically, investors who bought Microsoft shares during significant declines have reaped substantial rewards, advising investors to choose wisely amid current market fluctuations.
See More
Micron Technology's Stock Quadruples: Key Factors Behind Growth
- Demand-Driven Growth: Micron Technology's stock has quadrupled over the past year, primarily fueled by strong demand for memory chips from AI hyperscalers, which not only enhances the company's market position but also lays the groundwork for sustained future growth.
- Changing Market Dynamics: The CEO believes this market cycle is different, as memory has become a strategic asset for AI functionalities, strengthening the company's competitive edge, particularly in real-time data processing capabilities.
- Diverse Market Opportunities: Accelerating data center builds, an upgrade cycle in PC hardware, and increasing memory demand in smartphones are benefiting Micron across multiple markets, with expectations for continued performance growth in the coming years.
- Capital Expenditure Plans: Micron plans to increase capital expenditures to $20 billion to meet growth demands by 2026; despite potential risks of supply gluts, the company is committed to expanding production capacity to maintain market competitiveness.
See More
Long-Term Growth Potential of Western Digital and Micron Technology
- Surging Market Demand: Western Digital's stock has skyrocketed 465% over the past year, including a 60% increase this year, while Micron Technology has seen a 313% rise, with a 35% gain year-to-date, indicating significant benefits from AI infrastructure investments and strong long-term growth potential.
- Industry Leadership: Both companies dominate their respective sectors, with Western Digital leading in hard disk storage and Micron in high-bandwidth memory chips, as demand for their products is expected to grow 24% and 15-fold by 2035, respectively, further solidifying their market positions.
- Valuation Advantage: Despite substantial stock price increases, Western Digital trades at a P/E ratio of just 25, below the S&P 500 average, with a five-year PEG ratio of about 0.9, highlighting its value investment appeal; Micron's forward P/E is only 11, reinforcing its relative affordability.
- Future Growth Outlook: Both companies have secured sales agreements for their production capabilities through 2026, and with their dominant market positions and the enormous growth potential in their addressable markets, they are well-positioned for continued strong growth in the future.
See More
Investment Opportunities in AI ETFs
- AI Sector Growth Potential: Artificial intelligence is recognized as the fastest-growing trend today, particularly with Nvidia's GPUs being regarded as the 'gold standard' for training AI models, solidifying its market position and attracting significant investor interest.
- Surge in Memory Chip Demand: Micron Technologies has seen its stock soar amid the AI revolution's insatiable demand for memory chips, creating a supply crunch that underscores the company's critical role and potential profitability within the AI ecosystem.
- ETF Investment Advantages: Investors may prefer ETFs over individual stocks, as evidenced by the VanEck Semiconductor ETF's impressive 62.6% return over the past year, nearly quadrupling the S&P 500's performance, highlighting its strong position in AI infrastructure development.
- Long-Term Growth Outlook: With major tech companies planning to further increase AI spending in 2026, investment opportunities in the semiconductor sector are expected to continue growing, indicating that investing in the VanEck Semiconductor ETF is an effective strategy to capitalize on the AI revolution.
See More
Nvidia Reaches $5 Trillion Market Cap Amid AI Boom
- Nvidia's Strong Performance: Nvidia has become the first publicly traded company to surpass a $5 trillion market cap, reporting $57 billion in revenue for fiscal 2023, a 62% year-over-year increase, which underscores the robust demand for its semiconductors and solidifies its leadership in the AI market.
- Google Cloud Growth: Alphabet achieved an 18% revenue growth in Q4 2025, with its cloud computing segment soaring by 48% year-over-year, indicating a surge in demand for AI applications, and cloud revenue now constitutes over 10% of Alphabet's business, showcasing its competitive strength in the AI sector.
- Waymo's Significant Potential: Alphabet's self-driving vehicle fleet, Waymo, is operational in several U.S. cities, and while limited details were provided in the earnings report, its potential compared to Uber's $150 billion market cap suggests it could become a major revenue contributor for Google, further driving company growth.
- Micron's Promising Outlook: Micron reported a 57% revenue growth in its fiscal Q1 2026, with net income nearly tripling, and as the company pivots towards AI infrastructure, it anticipates continued revenue and margin growth, positioning itself to potentially outperform Nvidia in the coming years.
See More
Nvidia Becomes Most Valuable Company Amid AI Boom
- Nvidia's Market Milestone: Nvidia has become the first publicly traded company to reach a $5 trillion market cap, reporting $57 billion in revenue for Q4 2025, a 62% year-over-year increase, which underscores its dominant position in the AI chip market.
- Google Cloud Growth: Alphabet achieved an 18% revenue growth in Q4 2025, with its cloud computing segment soaring by 48% year-over-year, indicating that the company is leveraging AI to enhance both search engine and cloud service revenues, thereby strengthening its competitive edge.
- Micron's Successful Pivot: Micron reported a 57% revenue growth in its fiscal Q1 2026, with net income nearly tripling, and its stock has quadrupled over the past year as it shifts focus from consumer products to AI infrastructure, showcasing significant growth potential.
- Future Growth Outlook: Micron anticipates continued acceleration in growth over the coming quarters, with a focus on AI infrastructure expected to yield higher profit margins and free cash flow, positioning it to potentially outperform Nvidia in returns in the future.
See More
Investment Outlook for Micron and Microsoft in AI
- Micron's Market Demand: Micron announced in its fiscal Q1 update that its entire supply of high-bandwidth memory (HBM) for 2026 has sold out, with expectations for the HBM market to grow at a compound annual growth rate of around 40%, expanding from $35 billion in 2025 to $100 billion by 2028, indicating strong market demand and profit potential.
- Microsoft's Valuation Advantage: Despite Microsoft's stock price declining over 20% since late October 2025, its earnings multiple is near its lowest level in the past decade, suggesting long-term growth potential in the cloud computing sector, particularly with the widespread adoption of AI technologies that could yield significant returns for investors.
- Competition and Opportunities: While Microsoft's revenue growth for its Azure cloud unit was slightly below expectations and increased competition raises concerns, CEO Satya Nadella highlighted that the proliferation of AI agents will create new growth opportunities, especially as over 80% of Fortune 500 companies are utilizing its Copilot Studio and Agentbuilder tools.
- Investor Strategy: Although Micron may offer higher returns in the short term, Microsoft's strong market dynamics suggest it could be the bigger winner in the long run, as historically, investors who bought Microsoft shares during significant declines have reaped substantial rewards, advising investors to choose wisely amid current market fluctuations.
See More
