Micron Falls 5.65% This Week as Investors Worry Memory Chip Prices May Peak; Analysts Say Stock Remains Undervalued

According to Trivariate Research, Micron fell 5.65% this week, with shares down approximately 30% from their June 22 high, amid concerns that memory chip prices may be topping out. However, the research firm argues the stock remains undervalued, calling Micron "the most important stock in the market" and the key indicator for observing AI investment cycles and market risk appetite, as it is the only U.S. producer of critical memory chips for AI supply chains.

Evecore ISI analyst Amit Daryanani noted that DRAM and NAND supply shortages are expected to intensify through year-end and persist through most of next year, supporting the bullish case. Trivariate modeled 10,000 scenarios and found that even in pessimistic cases, Micron's normalized earnings per share could reach $156, above the market consensus of $178.