Why Micron Stock Bounced on Monday
Key PointsInvestors sold off Micron on competition fears last week.
Micron stock experienced a bounce on Monday, up 4% as of 10:35 a.m. ET, after a dismal week where the company's shares dropped nearly 15%. The cause for the bounce can be attributed to two key factors: Michael Dell's prediction about the memory shortage worsening in 2027, which would lead to higher memory prices and consequently higher profit margins for Micron, and supportive statements from Wall Street banks Mizuho and KeyBanc.
Mizuho predicted that demand for agentic AI would keep NAND supply tight and drive prices higher throughout 2027, while KeyBanc also forecasted price increases in NAND. Although Micron's revenue comes from DRAM, not NAND flash, a slight increase in NAND prices, coupled with the current price hikes, is beneficial for the company.
With Micron's stock currently trading under 25 times trailing earnings and just 7 times forward earnings, it remains a buy according to the author.
Written by urgent.news from Motley Fool's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
This story
This is one outlet's version. Read the fullest account.
- Why Micron Stock Bounced on Monday fool.com
