Micron’s Customer Contracts Just Took the Memory Cycle Off the Table
Micron Technology (NASDAQ: MU) has been one of the best-performing stocks on Wall Street in 2026 — it was up 230% year to date as of Oct. 13. The concern among investors is that the memory market has long been highly cyclical. When demand for memory chips surges, prices and profit margins rise, and all the manufacturers start to build fabs to boost their production and take advantage.
Then, a few years later, as all of those new fabs come online, supply surges. Often, those surges have coincided with cyclical slumps in demand, and the resulting oversupply swiftly drives prices and profit margins back down.
Recently, analysts at Bernstein laid out a projection for the memory market to follow a similar scenario in this cycle. It forecasts prices for dynamic random access memory (DRAM) will rise by another 43% in 2027, but then drop by 53% in 2028.
Source: www.fool.com — article syndicated from the publisher’s feed; all rights remain with the original publisher.