This article was first published on GuruFocus.
Micron Technology (MU, Financials) shares fell 2.6%, ending a six-day winning streak, after reports that Samsung’s HBM4 AI memory chip is close to receiving certification from Nvidia. The news raises concerns that competition in the high-bandwidth memory industry will become more intense.
The decline follows a sharp rally during which Micron Technology shares rose about 19% last week, far outpacing the broader market’s gains. Investors view Samsung’s claimed progress as a sign that rivals will try to unseat Micron’s lead in making next-generation artificial intelligence memory chips.
Still, analysts remain optimistic about Micron Technology’s future. Many are calling this a “super upgrade cycle” of AI-related demand in data centers, mobile devices and industrial markets. This is good for the company. Micron’s sales in the first quarter of this fiscal year increased 57% compared with the same period last year. Its supply of high-bandwidth memory for 2026 has already been sold out.
Wall Street remains bullish on the stock; 37 of 43 analysts have a Buy or higher rating. Micron hopes to increase capital expenditures by approximately $20 billion in fiscal 2026 to increase HBM and DRAM production. A forward PEG ratio of 0.24 suggests that even with the stock’s recent gains, growth opportunities still exist.