Why Is Micron (MU) Stock Down 13% When Memory Chip Prices Are About to Surge?
TLDR
- Dell’s COO said AI server demand is being held back by DRAM and NAND memory shortages, naming memory constraints three times on an earnings call.
- DRAM contract prices are set to rise over 50% this quarter, with NAND flash prices expected to climb 60%, per Susquehanna analysis.
- MU stock is down over 13% in the past three months despite these supply signals, and was down around 1.4% in premarket trading Wednesday.
- A potential strike at Micron’s Taiwan plants could further tighten global memory supply, with around 80% of union members voting in support.
- Analysts hold a Buy consensus on MU with an average price target of $1,521.74, ahead of its September 30 earnings report.
Micron Technology (MU) stock barely moved in premarket trading Wednesday, slipping around 1.4% to $920.06, even as fresh evidence of a deepening memory chip shortage mounted.
Dell Technologies reported earnings late Tuesday and its COO Jeffrey Clarke gave analysts a blunt read on supply conditions. “The constraints remain the same. DRAM, DRAM, DRAM, followed by NAND, NAND, NAND,” Clarke said on the call. Dell said demand for its AI servers was outstripping supply, with memory the main bottleneck.
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