Shares of Micron Technology edged higher as a surge in memory-chip prices driven by artificial intelligence demand highlights a structural supply squeeze across the semiconductor industry, raising questions about valuation and future growth prospects.
Micron Technology shares edged higher on August 11 as investors reacted to a tightening memory-chip market that is pushing prices sharply upwards. GuruFocus said the stock closed at $868.52, its first daily gain since the previous Wednesday, but it also noted that the shares have fallen 11% over the past month and remain well below a June peak above $1,200.
The move comes as shortages in memory semiconductors have become more visible across the technology sector. Axios reported that artificial intelligence demand is driving what it described as chipflation, with memory costs rising after years of steady declines. The publication said the pressure is already flowing through to consumer products such as smartphones, laptops and cloud storage, while producers secure long-term supply to avoid being left short.
Research and industry commentary suggest the squeeze is not limited to one segment. Tom’s Hardware cited analysis showing that RAM pricing has effectively returned to 2007-era levels, while an industry briefing said high-bandwidth memory, conventional DRAM and NAND flash are all in tight supply. That report said major manufacturers have sold out capacity for the year and, in some cases, into 2027.
Against that backdrop, analysts remain divided between valuation caution and longer-term optimism. GuruFocus said Micron’s GF Value estimate is far below the current share price, implying the stock is almost twice its assessed intrinsic value, even though its GF Score points to strong financial strength and growth. At the same time, Mizuho’s Vijay Rakesh has argued that the pullback may offer an entry point, with artificial intelligence spending expected to support profit growth.
Investor positioning also shows a split view. GuruFocus said 21 gurus hold Micron, with more adding than trimming stakes in recent quarters, but insider activity has been negative, with no buying over the past three months and $169.4 million in sales. KPMG’s latest semiconductor outlook adds to the picture of a structurally strong industry, with 93% of leaders expecting revenue growth in 2026, though tariffs, trade policy and power supply remain key risks.
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