What Happened?
Shares of memory chips maker Micron (NYSE: MU) fell 4.9% in the morning session after reports surfaced that competitor Samsung had its high-bandwidth memory (HBM3E) qualified by key customer NVIDIA, sparking concerns about increased competition and potential pricing pressure.
A research note from Wells Fargo highlighted the development, which was detailed in a Korean Electronic Daily report, calling it an "incremental negative for HBM pricing." High-Bandwidth Memory is a critical component for the powerful chips used in artificial intelligence (AI). The news hit a nerve as other reports suggested Micron may be struggling to meet NVIDIA's stricter standards for the next generation of memory, HBM4, a situation from which Samsung could benefit.
The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Is now the time to buy Micron? Access our full analysis report here, it’s free.
What Is The Market Telling Us
Micron’s shares are very volatile and have had 27 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was 1 day ago when the stock gained 5.4% on the news that a flurry of Wall Street analysts raised their price targets, citing immense demand for the company's high-performance memory chips used in artificial intelligence.
Multiple research firms showcased their confidence in Micron's trajectory. Wolfe Research boosted its price target to $180, while UBS and Mizuho set even higher targets of $185 and $182, respectively. Analysts from Rosenblatt, Susquehanna, and Deutsche Bank also echoed this bullish sentiment, raising their own targets and maintaining positive ratings.
The core reason for this optimism revolved around the surging demand for AI infrastructure. Micron stood as a key supplier of high-bandwidth memory (HBM) for top-tier platforms like Nvidia's Blackwell GB200. This high-performance memory is essential for running large-scale AI applications. Demand was so robust that Micron's HBM production for 2025 was already sold out, with a strong outlook extending into 2026.
Micron is up 85.7% since the beginning of the year, and at $162.19 per share, it is trading close to its 52-week high of $168.89 from September 2025. Investors who bought $1,000 worth of Micron’s shares 5 years ago would now be looking at an investment worth $3,300.
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