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Micron Stock: From Meltdown to Megarally
12 Nov
Summary
- Micron shares fell 40% from their June 2026 high.
- Past tech sell-offs preceded Micron's massive rallies.
- Memory demand to exceed supply until at least 2030.
Micron Technology (NASDAQ:MU) shares have retreated 40% from their 52-week high reached on June 25, 2026, amid concerns over AI stock sustainability and rising interest rates. This downturn echoes a period last year when technology stocks, including Micron, experienced a significant pullback due to tariff uncertainties. During that time, Micron stock dropped 30%, but subsequently achieved an 830% rally fueled by strong revenue and earnings growth.
The memory market is expected to remain supply-constrained until 2030, with demand from AI data centers and new applications driving growth. Peers like SK Hynix and Samsung indicate they will be unable to meet demand until 2028 and 2030, respectively. Micron management also anticipates tightening supply in 2027 and 2028.
Micron's fiscal 2026, ending September 3, saw a 9x increase in adjusted EPS to $75.52. Analysts project continued bottom-line growth, with EPS potentially reaching $207.76 in fiscal 2028. At a price-to-earnings ratio similar to its current valuation, this could translate to a 172% increase in stock price from current levels, presenting an attractive buying opportunity.
