Micron Stock Faces Demand Concerns
Micron Technology (NASDAQ: MU) saw its stock slip 2% by 12:35 p.m. ET on Monday as worries grew regarding the sustainability of demand for its DRAM and NAND memory products. This decline follows news that Apple (NASDAQ: AAPL) is seeking U.S. government approval to source memory chips from Chinese supplier CXMT, instead of relying on Micron.
Analysts note that while CXMT primarily produces DRAM, its potential entry into the market poses a threat to Micron’s profitability, especially for its high-bandwidth memory (HBM) segment. Mizuho’s Jordan Klein remains optimistic, stating that current DRAM and NAND supplies are significantly below true demand levels. Reports suggest that buyers may need to pay 2.5 times the expected 2026 prices to secure DRAM in 2027, indicating ongoing opportunity for Micron despite immediate challenges.
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