Despite record-breaking revenue and long-term supply agreements, Micron Technology’s shares remain undervalued amid mixed industry signals and geopolitical tensions, highlighting a fracture between strong fundamentals and investor sentiment.
Micron Technology is facing an unusual market divide: its latest results point to a business firing on multiple cylinders, but investors are still pricing in a cooler future. The memory-chip maker reported fiscal third-quarter revenue up 345.8% year on year and earnings per share of $25.11, comfortably ahead of the $20.28 analysts had expected. Even so, the shares remain 31.07% below their 52-week high, leaving a stark gap between operating performance and market sentiment.
A key reason for the optimism is visibility. Micron has signed 16 long-term supply agreements with data-centre operators and automakers, with around $22 billion in financing commitments attached. Tom’s Hardware reported that 14 of those contracts represent roughly $100 billion in guaranteed revenue from 2026 to 2030, with most agreements running for five years and some automotive deals lasting three. The company has framed these contracts as a structural shift in how memory is sold, reducing reliance on spot pricing and giving customers tighter supply assurance.
That does not mean the cycle risk has disappeared. Citi lowered its target price on the stock from $1,400 to $1,150, while still keeping a buy rating, after speaking with memory supply-chain participants at an industry conference. The bank now expects DRAM and NAND pricing momentum to flatten, with sequential declines over the next four quarters and margin pressure later in 2027. Other firms remain more bullish: Stifel, RBC Capital, Wedbush and Rosenblatt have all lifted targets to between $1,400 and $1,500, while UBS sees DRAM contract prices rising sharply in the second half of the year and demand for high-bandwidth memory climbing fast through 2027.
The wider industry backdrop helps explain both views. SK Hynix has approved additional spending worth 54.3 trillion won on chip manufacturing in South Korea, part of a larger investment wave that suggests producers expect the memory boom to last. At the same time, Micron is said to be pressing the US government to stop Apple using DRAM and NAND from Chinese suppliers in devices sold outside the US, a reminder that geopolitics is becoming part of the supply story. Investors are also watching insider sales, including a July 24 disposal by chief executive Sanjay Mehrotra of about 40,000 shares for roughly $37.3 million, even as Korean retail investors bought a net $151 million of Micron stock between August 3 and 6. The next earnings report is due on September 29.
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