Micron Technology shares rose about 4% Monday morning after dropping nearly 15% the previous week. Investors had been concerned that Chinese DRAM maker ChangXin Memory Technologies could use denser “4F square” technology to compete for market share.
The recovery followed comments from Dell founder and CEO Michael Dell that the computer-memory shortage could worsen in 2027. A tighter market can lift memory prices, which may support Micron’s margins if demand continues to outpace supply.
Mizuho analysts said demand for agentic artificial intelligence could keep NAND supplies constrained and prices higher through 2027. KeyBanc analysts also projected NAND price increases, adding support to memory stocks.
The NAND outlook is more directly relevant to Sandisk than Micron because about 73% of Micron’s business is DRAM and roughly 26% comes from NAND flash.
Micron’s latest results show how strongly pricing has affected the business. Management also said memory and storage supply-demand conditions were expected to be much tighter in fiscal 2027 and 2028 than in 2026.
The immediate market reaction reflects competing forces: a potential new Chinese supply threat on one side and expectations of prolonged shortages and higher prices on the other.