Micron (MU) Stock Rises 4% as Memory Supply Seen Tight Through 2027

TLDR

• Micron stock rose 4.2% in premarket trading to $884.30, looking to snap a three-day losing streak
• The stock has dropped over 25% in recent weeks, pushing its market cap below $1 trillion
• SK Hynix chairman warned current memory prices are “abnormal” and unsustainable long-term
• Memory demand is expected to rise nearly 60% next year, with supply remaining tight through 2027
• KeyBanc analyst John Vinh holds an Overweight rating with a $1,750 price target on MU

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Micron stock was up 4.2% in premarket trading Monday, hitting $884.30, as investors looked to reverse a slide that dragged the stock down more than 25% over the past month.

Micron Technology, Inc., MU

That selloff pushed Micron’s market cap below $1 trillion for the first time since June 5, according to Dow Jones Market Data. Before the recent drop, MU had gained over 600% in the past 12 months, fueled by AI-driven demand for memory components.

The bounce came even as SK Hynix chairman Chey Tae-won made headlines last week by calling current memory prices “abnormal.” Speaking at a press briefing, he said prices need to normalize or the market risks shrinking and attracting new competition.

“Prices have to normalize…Otherwise, the market shrinks and competitors flood in,” Chey said, according to The Korea Herald.

Despite the warning, Chey wasn’t entirely bearish. He also said he expects overall memory demand to jump nearly 60% next year, with demand continuing to outpace supply through 2027.

Supply Tightness Expected to Last

Micron itself told investors on its latest earnings call that it expects “tightness” in the memory chip market to last beyond 2027. That’s a key piece of comfort for investors rattled by the recent selloff.

KeyBanc analyst John Vinh backed that view in a research note. He wrote that he does not expect memory industry conditions to loosen until at least 2028, as new clean room expansions won’t contribute meaningful capacity until likely the second half of 2027 — and even then will likely trail demand growth.

Vinh carries an Overweight rating and a $1,750 price target on Micron stock.

Valuation Looks Cheap — For Now

Wall Street currently expects 81% revenue growth from Micron in its next fiscal year. At current prices, the stock trades at around 11.6 times expected fiscal 2026 earnings and just 5.7 times fiscal 2027 earnings.

Those multiples look cheap on paper. The catch, as always with memory stocks, is the cyclical nature of the business.

Micron makes NAND and DRAM chips, products that don’t differ much between manufacturers. That makes the market commoditized and highly sensitive to supply and demand swings. The current AI data center buildout has caused a historic spike in demand that producers simply can’t meet fast enough.

All major memory makers are building new foundries. Once that capacity comes online, the supply shortage could ease — or tip into oversupply, which would pressure prices and earnings.

For now, though, the outlook remains firm. Micron’s own guidance, SK Hynix’s demand projections, and analyst forecasts all point to a tight market well into 2027.

KeyBanc’s Vinh reiterated his $1,750 price target, maintaining his Overweight rating even after the recent selloff.