Micron Technology shares rose early Monday as the stock tried to end a three-day losing streak that had dropped its market value below $1 trillion. Investors are still debating how much higher memory-chip prices can go.
Shares were up about 4.2% in premarket trading. If this gain holds, it would break a slide that has cut the stock by 30% over the past month. Micron closed below the $1 trillion market cap on Thursday for the first time since June 5, according to Dow Jones Market Data.
Despite recent losses, the stock is still up more than 600% over the past year as booming AI development has increased demand for memory chips. However, an executive at South Korean competitor SK Hynix recently warned that current prices may not last in the long run.
The chairman of SK Group, which owns SK Hynix, said last week that memory prices are unusually high and will need to return to normal levels. He warned that if prices stay this high, the market could shrink as more competitors enter, according to local media reports.
Still, not much is expected to change soon. The chairman also said he expects overall memory demand to grow by nearly 60% next year and that demand will keep outpacing supply through 2027. Many on Wall Street share this outlook.
KeyBanc said in a research note that industry conditions probably will not ease before 2028. Clean-room capacity expansions are not expected to make a big difference until the second half of 2027 and will likely keep trailing demand growth.
