TLDR
- Micron (MU) stock rose 1.4% in premarket Monday, up more than 200% year to date
- Apple has tested memory chips from China’s ChangXin Memory Technologies (CXMT) for devices sold in China
- Citi maintained a Buy rating but cut its price target from $1,400 to $1,150, citing slowing memory pricing momentum
- Trivariate Research CEO Adam Parker says Micron could double by end of the memory cycle
- Analysts expect Micron earnings of $31.29 per share for the next report, estimated September 22
Micron (MU) stock was up 1.4% in premarket trading on Monday at $883.96, brushing off a report that Apple has been testing memory chips from Chinese manufacturer ChangXin Memory Technologies (CXMT).
The Wall Street Journal reported Sunday that Apple held early talks with CXMT about supplying memory components for devices sold in China, with Apple hoping to secure approval from the Trump administration to proceed.
CXMT recently listed in China and has moved fast in conventional DRAM. It grabbed 7% of global market share by revenue in Q2, according to Counterpoint Research.
However, U.S. manufacturers still need government approval to buy CXMT-produced memory. The Chinese company also gives priority to domestic customers, which limits the immediate threat to Micron’s business.
The bigger concern for Micron is whether CXMT eventually pushes into high-bandwidth memory (HBM), the type of chip critical for AI servers. SemiAnalysis projects CXMT will grow its share of global HBM wafer supply from 1% in 2025 to 12% by 2028.
South Korean peer SK Hynix ADRs were also up 0.6% in early trading Monday.
Citi Trims Price Target
On August 7, Citi analyst Atif Malik kept his Buy rating on Micron but lowered his price target to $1,150 from $1,400.
Citi cut its valuation multiple and trimmed fiscal 2027 and 2028 earnings estimates. The firm expects DRAM and NAND prices to keep rising but at a slower pace, with memory prices peaking around Q2 next year.
Citi pointed to rising Chinese memory capacity as the biggest long-term risk, saying additional supply from China could pressure Micron’s pricing power outside the U.S. market.
Parker Says Micron Could Double
Trivariate Research CEO Adam Parker told CNBC on Friday that Micron could double by the end of the current memory cycle.
Parker argued that investors may be pricing in too much earnings deterioration after the eventual peak. He said the market is too focused on Micron’s income statement and not enough on its improving balance sheet, high gross margins, and free cash flow potential.
He did note that investors should spread their exposure across broader AI semiconductor positions given continued volatility in the space.
Micron trades at a price-to-earnings ratio of around 19.8.
Analysts expect earnings of $31.29 per share for the September quarter, up from $3.03 a year ago. Revenue is forecast at $50.82 billion, compared with $11.31 billion in the year-ago period.
Micron’s next earnings report is estimated for September 22, 2026.
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