Key Highlights
- Micron (MU) shares advanced 1.4% during premarket hours Monday, extending gains of over 200% year to date
- Apple conducted testing of memory components from Chinese manufacturer ChangXin Memory Technologies (CXMT) for China-market devices
- Citi retained its Buy rating while reducing the price target from $1,400 to $1,150 due to decelerating memory price momentum
- Trivariate Research’s CEO Adam Parker predicts Micron shares could potentially double before the memory cycle concludes
- Wall Street projects Micron will report earnings of $31.29 per share in its upcoming quarterly results, anticipated for September 22
Shares of Micron (MU) advanced 1.4% during premarket trading Monday, reaching $883.96, shaking off news that Apple has been evaluating memory components manufactured by China-based ChangXin Memory Technologies (CXMT).
According to a Wall Street Journal report published Sunday, Apple engaged in preliminary discussions with CXMT regarding the supply of memory chips for devices targeting the Chinese market, with Apple seeking clearance from the Trump administration to move forward.
CXMT, which recently went public in China, has made significant strides in traditional DRAM production. The company captured 7% of worldwide market share by revenue during the second quarter, based on data from Counterpoint Research.
Nevertheless, American manufacturers must obtain government authorization to purchase CXMT-manufactured memory chips. Additionally, the Chinese firm prioritizes its domestic client base, which reduces the immediate competitive pressure on Micron’s operations.
The more significant worry for Micron involves whether CXMT will eventually enter the high-bandwidth memory (HBM) segment, the chip variety essential for artificial intelligence servers. SemiAnalysis forecasts CXMT will expand its portion of worldwide HBM wafer production from 1% in 2025 to 12% by 2028.
South Korean competitor SK Hynix ADRs similarly rose 0.6% during early Monday trading.
Citi Reduces Price Outlook
On August 7, Citi’s Atif Malik maintained his Buy recommendation on Micron while decreasing his price objective to $1,150 from $1,400.
Citi adjusted its valuation multiple downward and lowered fiscal 2027 and 2028 profit projections. The investment bank anticipates DRAM and NAND prices will continue their ascent but at a more moderate rate, with memory pricing reaching its zenith around the second quarter of next year.
Citi identified expanding Chinese memory production capacity as the most substantial long-term challenge, suggesting that increased supply from China could undermine Micron’s pricing strength in markets beyond the United States.
Parker Forecasts Potential Doubling
Adam Parker, CEO of Trivariate Research, stated on CNBC Friday that Micron’s stock price could potentially double before the present memory cycle reaches its conclusion.
Parker contended that market participants may be factoring in excessive earnings decline following the inevitable peak. He suggested the market fixates excessively on Micron’s income statement while overlooking its strengthening balance sheet, elevated gross profit margins, and substantial free cash flow generation capability.
Parker acknowledged that investors should diversify their holdings across a wider range of AI semiconductor investments given ongoing volatility throughout the sector.
Micron currently trades at a price-to-earnings multiple of approximately 19.8.
Wall Street analysts forecast earnings of $31.29 per share for the September quarter, representing a significant increase from $3.03 reported one year earlier. Revenue projections stand at $50.82 billion, versus $11.31 billion during the comparable year-ago timeframe.
Micron’s upcoming quarterly earnings announcement is projected for September 22, 2026.
Get 3 Free Stock Ebooks
Discover top-performing stocks in AI, Crypto, and Technology with expert analysis.
- Top 10 AI Stocks - Leading AI companies
- Top 10 Crypto Stocks - Blockchain leaders
- Top 10 Tech Stocks - Tech giants
