Micron Just Dropped 13%. Why One Analyst Says This Selloff Changes Nothing - 24/7 Wall St.

Micron Technology's stock dropped by approximately 13%, sparking market concern ahead of its fiscal Q3 2026 earnings report. However, analyst Kevin Cassidy from Rosenblatt Securities argues that the d... Read original →

Micron’s 13% stock drop reflects sentiment-driven overreaction, not fundamentals. With AI fueling insatiable HBM demand and DRAM capacity constrained by equipment lead times and fab ramp cycles, supply remains tight. Technologically, HBM3E/4’s reliance on TSV and CoWoS packaging strengthens TSMC and Taiwan, China’s OSAT dominance, raising integration costs for non-Samsung players. Compliance-wise, U.S. CHIPS Act ‘guardrails’ delay Micron’s Xi’an fab upgrades, yet its high-margin focus avoids destructive price wars. As SK Hynix accelerates HBM4 and Samsung scales LPDDR5X for automotive, Micron’s disciplined capex—targeting 84% gross margin—signals a strategic shift from cyclical gambler to structural player. Over the next 18 months, sustained >20% annual AI server growth makes this dip a tactical entry point: memory markets are now dictated by compute density, not consumer gadgets.