Micron (MU) Stock Rises Despite Apple’s Tests with Chinese Memory Chip Maker

Key Highlights

• Micron (MU) shares advanced 1.4% in Monday’s premarket session, extending year-to-date gains beyond 200%
• Reports emerged that Apple conducted trials of memory components from Chinese manufacturer ChangXin Memory Technologies (CXMT) for China-market devices
• Citi analyst retained Buy recommendation while reducing price objective from $1,400 to $1,150 due to moderating memory price trends
• Trivariate Research’s CEO Adam Parker projects Micron shares could potentially double before the memory cycle concludes
• Wall Street consensus projects Micron’s upcoming earnings at $31.29 per share, with results anticipated around September 22

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Shares of Micron (MU) climbed 1.4% during Monday’s premarket session, reaching $883.96, as the market largely dismissed news regarding Apple’s evaluation of memory chips manufactured by Chinese company ChangXin Memory Technologies (CXMT).

Micron Technology, Inc., MU

According to a Sunday Wall Street Journal report, Apple engaged in preliminary discussions with CXMT regarding potential memory component procurement for products distributed within China, with the tech giant seeking Trump administration clearance to move forward.

CXMT recently completed its Chinese listing and has demonstrated rapid advancement in traditional DRAM technology. The company captured 7% of worldwide market share based on revenue during Q2, per data from Counterpoint Research.

Nevertheless, American manufacturers must obtain government authorization before purchasing CXMT-manufactured memory. Additionally, the Chinese firm prioritizes domestic clients, which constrains any immediate competitive threat to Micron’s operations.

The more significant concern for Micron centers on whether CXMT will eventually enter the high-bandwidth memory (HBM) segment, the specialized chip type essential for AI server infrastructure. SemiAnalysis forecasts CXMT’s portion of worldwide HBM wafer production will expand from 1% in 2025 to 12% by 2028.

South Korean competitor SK Hynix ADRs similarly increased 0.6% during Monday’s early session.

Citi Reduces Price Objective

On August 7, Citi’s Atif Malik maintained his Buy stance on Micron while lowering his price objective to $1,150 from the previous $1,400.

Citi adjusted its valuation methodology and reduced fiscal 2027 and 2028 profit projections. The firm anticipates continued upward movement in DRAM and NAND pricing, though at a diminished rate, with memory prices expected to reach their zenith around the second quarter of next year.

Citi identified expanding Chinese memory production capacity as the most substantial long-term challenge, noting that increased Chinese supply could undermine Micron’s pricing strength in markets beyond the United States.

Parker Forecasts Doubling Potential

Adam Parker, CEO of Trivariate Research, shared with CNBC on Friday that Micron’s stock price could potentially double before the present memory cycle reaches its conclusion.

Parker contended that market participants may be overestimating earnings decline following the eventual cyclical peak. He emphasized that the market concentrates excessively on Micron’s profit and loss statement while undervaluing its strengthening balance sheet position, elevated gross profit margins, and free cash flow generation capacity.

Parker acknowledged that investors should diversify their holdings across a wider range of AI semiconductor investments considering ongoing sector volatility.

Micron currently commands a price-to-earnings multiple of approximately 19.8.

Wall Street analysts project earnings of $31.29 per share for the September quarter, representing a substantial increase from $3.03 in the corresponding prior-year period. Revenue projections stand at $50.82 billion, versus $11.31 billion during the year-earlier quarter.

Micron’s upcoming earnings announcement is scheduled for approximately September 22, 2026.

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