Micron Slips 16% From 52-Week High as AI-Driven DRAM Prices Seen Jumping 400%
Updated
Updated · Yahoo Finance · Aug 18
Micron Slips 16% From 52-Week High as AI-Driven DRAM Prices Seen Jumping 400%
3 articles · Updated · Yahoo Finance · Aug 18
Summary
Micron shares have fallen 16% from their 52-week high even as the company’s growth drivers remain intact, with investors still taking profits after a huge run.
AI data centers are pushing up demand for high-bandwidth memory, which uses about 3x the wafer capacity of conventional DRAM and has tightened overall memory supply.
JPMorgan expects DRAM prices to surge 400% from the start of 2024 through the end of 2026, a key tailwind for Micron, which gets more than three-fourths of revenue from DRAM.
TrendForce projects global DRAM revenue will rise to $903.3 billion in 2027 from $618.7 billion this year; with roughly 25% market share, Micron could capture nearly $226 billion in DRAM sales.
The pullback follows an earlier 23% slide despite record fiscal Q3 results, underscoring investor concern that the memory cycle may be peaking even as AI demand stays strong.