Will Micron inventory drop as Korean rivals proceed to lock up a bigger share of the AI reminiscence market? That’s what a whole lot of buyers are asking proper now, and the priority shouldn’t be with out advantage. On the time of writing, MU sits at $981.61, down round 1.43% on the day, after briefly touching $1,012 earlier within the session. SK Hynix holds an estimated 60 to 70% of HBM4 quantity for Nvidia’s Vera Rubin platform, with Samsung anticipated to take roughly 25 to 30%, and Micron left supplying the rest. For a inventory buying and selling at a P/E of 46, Micron inventory rivals are placing strain on MU that buyers can not actually ignore.
Will Micron Inventory Drop As SK Hynix And Samsung Dominate HBM Chips
Will Micron Inventory Drop As SK Hynix And Samsung Dominate HBM Chips
Micron Inventory Drop Dangers Are Rising As Korean Rivals Pull Forward
Will Micron inventory drop? This query retains coming again to 2 core issues: valuation and market share. SK Hynix HBM management has been assessed by a few of the largest names on Wall Avenue, and the decision shouldn’t be completely comforting for MU bulls.
Goldman Sachs assessed:
“SK Hynix will keep its dominant place in HBM3 and HBM3E till at the very least 2026, sustaining a complete HBM market share of over 50%.”
That’s a whole lot of runway for the Korean chief. On the bear aspect for Micron, analysts at Trefis flagged that Samsung, SK Hynix, and Micron itself are in an enormous capital expenditure race, with Micron alone spending over $25 billion in FY26. Synchronized capability enlargement like that would result in an oversupply state of affairs when new fabs come on-line in 2027 and 2028, inflicting a pointy drop in common promoting costs and margins from present peaks. That’s the state of affairs the place micron inventory drop dangers turn out to be very actual, very quick.
BNP Paribas fairness derivatives strategist Greg Boutle additionally flagged {that a} sharp selloff in Micron shares might be an early warning signal of market influence from the upcoming SpaceX IPO, which is one other strain level not many are speaking about proper now.
Micron Inventory Drop Fears Are Countered By Robust Income Visibility
Pretty stable numbers additionally again the bull case for Micron. William Blair analyst Sebastien Naji, who initiated protection with an Outperform score, famous a key reality about Micron’s present place:
“Micron has already bought its complete 2026 manufacturing capability.”
Naji additionally tasks Micron will maintain market share within the low-20% vary by way of 2027, and will seize roughly $20 billion in HBM income by then, pushed by the upper revenue margins HBM chips generate in comparison with commonplace reminiscence merchandise. Morgan Stanley, in the meantime, raised its value goal from $520 all the best way to $1,050, citing persistent DRAM provide constraints anticipated to final two to a few years. Bernstein additionally simply initiated protection with a Purchase score.
Samsung HBM chips and SK Hynix HBM management are usually not going away, however analysts forecast the HBM scarcity to persist by way of 2028. In April 2026, Goldman Sachs raised its 2026 DRAM supply-demand hole forecast from 3.3% to 4.9%, describing it as probably the most extreme scarcity in 15 years. That rising tide is, for now, additionally lifting Micron’s numbers together with these of its Korean rivals.
Will Micron Inventory Drop Additional Earlier than June 24 Earnings?
Whether or not Micron inventory will drop extra from right here is probably going going to be answered, at the very least within the brief time period, on June 24. That’s when Micron experiences earnings, and ahead steerage on HBM demand and capability allocation will set the tone for the place MU heads by way of the summer time. Some analysts have already flagged stretched valuation metrics going into that report, and up to date protection has described the inventory as priced for perfection, which means any slight miss in steerage may set off a quick selloff.
Nvidia CEO Jensen Huang confirmed throughout his South Korea go to that Micron, alongside Samsung and SK Hynix, obtained HBM4 certification for the Vera Rubin platform, a optimistic growth that the market already appeared to have priced in. SK Hynix HBM management stays intact heading into the second half of 2026, and Samsung HBM chips are ramping quick, however Micron inventory rivals haven’t shut Micron out of the image. They’ve simply taken the larger slices of a pie that, to this point, retains rising.
