What's Going on With Micron Stock? | MU Stock Deep Dive Part 1

Parkev Tatevosian, CFA•Jun 28, 2026

Summary

Parkev explains that Micron Technology reported exceptional financial results, surpassing its own elevated guidance for revenue, gross profit margin, and earnings per share. This strong performance is primarily attributed to the explosive demand for artificial intelligence, particularly within the data center segment, where Micron sells memory and storage components. The company's management highlighted that DRAM and NAND industry demand is significantly outstripping supply, a trend they now anticipate will persist beyond calendar year 2027, an extension from their previous projection of 2026, due to AI-driven demand and structural supply constraints. Micron has strategically responded by signing 16 longer-term customer agreements to secure future supply, fundamentally transforming its business model from cyclical one-off purchases to multi-year commitments, a trend Parkev observes across the industry. Parkev mentions that Micron was able to achieve a 60% year-over-year increase in memory prices in the most recent quarter, leading to the stock being up almost 17% after the report.

**Micron (MU)**: Parkev highlights that Micron's phenomenal Q3 results, exceeding all expectations, are driven by robust AI demand. The company is experiencing a significant imbalance where demand for its DRAM and NAND components far exceeds supply, a condition now projected to last beyond 2027. This tight market has allowed Micron to implement substantial price increases, with memory prices up 60% year-over-year in the last quarter, fundamentally boosting its financial performance. The company is also signing long-term strategic agreements with customers to secure future supply, transforming its business model.

**Apple (AAPL)**: Parkev points out that Apple's recent price increases on consumer electronics are likely a direct consequence of higher memory and storage component prices, influenced by the market conditions Micron described. This situation is negatively impacting Apple's business and led to a more than 5% drop in its share price on the day of recording. While Apple has seen a moderate increase in unit sales after introducing "Apple Intelligence" in its latest iPhones, Parkev notes this growth is not yet explosive, suggesting the broader consumer electronics demand surge from AI integration has yet to fully materialize.

Mentioned Stocks

Sentiment: BUY

Reasoning: Parkev states that Micron delivered "absolutely phenomenal results," exceeding guidance for revenue, gross profit margin, and EPS. This is driven by soaring AI demand, causing DRAM and NAND industry demand to significantly exceed supply, a situation expected to persist beyond calendar year 2027. Micron has achieved 60% year-over-year increases in memory prices and signed 16 strategic, longer-term customer agreements to secure future supply, transforming its business model. The stock was up almost 17% following these positive results.

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AAPL

Sentiment: SELL

Reasoning: Parkev notes that Apple's business is being negatively impacted by the higher memory and storage component prices, which it has to pay due to the industry-wide supply shortages. This led to Apple implementing price increases on its consumer electronics and its share price dropping over 5% on the day of recording. Although Apple reported a moderate increase in unit sales after introducing "Apple Intelligence," this growth is not yet explosive.

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