Micron Stock Cools Off — Is MU Now Too Cheap to Ignore?

After a powerful rally over the past year, Micron (MU) stock has recently lost some momentum, declining 32% from its 52-week high of $471.34. The pullback reflects profit-taking by investors following the strong run-up, as well as emerging concerns about potential shifts in demand in the memory market.

The recent uncertainty stems from developments in the artificial intelligence (AI) ecosystem. Alphabet (GOOGL) recently introduced TurboQuant, which lowers the memory requirements of AI models. Since memory and storage capacity are critical building blocks of AI infrastructure, innovations that improve efficiency can raise questions about whether demand for memory hardware might eventually grow more slowly than previously expected. For companies like Micron, which supply memory components used in data centers and AI systems, such developments naturally put pressure on the stock price.

Nonetheless, the broader outlook for MU stock remains constructive. Micron remains a critical supplier of memory and storage technologies for data-intensive applications, particularly those related to AI and high-performance computing. As AI models grow more sophisticated and computational workloads expand, demand for advanced memory solutions is still expected to remain strong over the long term.

Looking ahead, Micron appears well-positioned to benefit from these trends in 2026 and beyond. At the same time, the recent decline in Micron’s share price has significantly reduced its valuation. With MU stock trading well below its recent peak, the pullback in Micron has made its valuation too cheap to ignore.

Rising demand for AI infrastructure and ongoing supply constraints across the memory industry are expected to continue supporting Micron’s earnings growth in the coming quarters. The company delivered exceptionally strong results in the fiscal second quarter, reflecting both improving pricing dynamics and robust demand across its core memory segments.

Micron reported total fiscal Q2 revenue of $23.9 billion, a 75% sequential increase and a 196% year-over-year (YOY) rise. The biggest contributor was Micron’s DRAM segment, which delivered a record $18.8 billion in revenue and accounted for roughly 79% of the company’s total sales. Revenue in the segment rose 74% compared with the previous quarter and 207% YOY. While shipment volumes increased at a modest pace, pricing provided the primary lift. Average selling prices climbed in the mid-60% range, reflecting ongoing supply constraints and a shift toward higher-value memory products used in advanced computing systems.