We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Micron Gets Musk Boost: Buy the Stock on a Dip With ETFs?
Read MoreHide Full Article
Elon Musk has added to the bullish conversation surrounding Micron Technology (MU - Free Report) , praising the chipmaker for keeping future memory prices reasonable while some competitors allegedly charge excessive rates.
In a recent post on X, Musk said Micron's approach could help strengthen long-term relationships with customers. The endorsement comes as demand for memory chips continues to rise, fueled in part by the expansion of artificial intelligence infrastructure, as reported by Yahoo Finance.
The comments offer a high-profile vote of confidence in Micron's pricing strategy. However, the company's recent financial performance suggests that its growth story extends well beyond social media attention.
Chaos in the Chip Space
Note that Musk’s comment hit the market at a time when global chip stocks tumbled on news that China's CXMT targets server memory, the highest-margin segment driving AI chip profits.CXMT said its first 4F2 product, a DDR5 RDIMM server module, should launch by year-end, about two years ahead of Samsung’s reported timeline, per a source.
This new DRAM architecture as CXMT claims could boost memory density by 30-50%. On the news, in the United States, MU along with SandiskCorporation (SNDK - Free Report) , SeagateTechnology Holdings (STX - Free Report) and Western Digital Corporation (WDC - Free Report) came under pressure. Plus, rising rate worries acted as added concerns.
MU shares are down about 14% over the past five days (as of Oct. 14, 2026), though shares are up 97% over the past six months and 191% so far this year.
Micron Delivers a Blowout Quarter
Micron recently reported exceptionally strong quarterly results, beating expectations across key financial metrics and providing upbeat guidance. Its latest performance highlights rising demand and favorable pricing conditions in the memory market.
The company added approximately $43 billion in sales compared with the year-ago quarter and generated more than $13 billion in additional revenue from the preceding quarter.
DRAM revenues reached a record $39.77 billion in Q4, representing 73% of total revenues.NAND revenues were a record $14.10 billion, accounting for 26% of revenues.
Profitability has also strengthened considerably, with operating margins exceeding 80% in some business segments.
Micron’s SCAs Extend Revenue Visibility
Micron has signed 26 strategic customer agreements, or SCAs, representing an estimated more than 35% of revenues through 2030. Three-quarters of those expected revenues have a defined pricing framework, while customer financial commitments under signed agreements and extensions reached $32 billion.
Remaining performance obligations tied to SCAs with determined pricing were about $150 billion. Management also said more than 75% of 2027 output is already committed across SCA and non-SCA customers.
Tight Supply Could Support Pricing Through 2028
Micron's outlook is drawing attention as executives signal that capacity constraints and higher product prices could persist through 2028. Musk's comments may reinforce the company's customer-friendly pricing.
Limited supply alongside robust demand could support revenue and profitability, particularly as AI data centers require increasingly sophisticated memory solutions.
Expanded Buyback Authorization Adds to Investor Focus
Micron has also increased its stock repurchase authorization to $35.16 billion. The company is expected to resume share repurchases on Dec. 9, when restrictions tied to the CHIPS Act lift, according to the report.
MU’s Value Scorecard
Micron shares have been trading at a forward price/earnings (P/E) ratio of 5.36X, which is quite cheap compared with chipmakers like Advanced Micro Devices Inc. (AMD - Free Report) . AMD trades at a P/E of 80.64X. WDC and STX trade at a forward P/E of 19.0X and 20.7X, respectively.
SK Hynix, Inc. - Sponsored ADR (SKHY - Free Report) and SNDK, however, look cheap with P/E ratios of 6.11X and 6.95X, respectively. Meanwhile, Qualcomm (QCOM - Free Report) , which is managing the AI memory bottleneck through its High Bandwidth Compute (HBC) architecture, trades at a P/E of 17.65X.
Time for Micron-Heavy ETFs?
With strong quarterly results, a favorable memory-pricing environment and potential capital returns, Micron has several factors supporting its investment case. But higher rates may pose a threat.
Against this backdrop, investors can play Micron-heavy ETFs to avoid company-specific concentration risks.
iShares MSCI USA Value Factor ETF (VLUE - Free Report) – MU weight 23.85%
XFUNDS Memory Income ETF (DRMY - Free Report) – MU weight 17.21%
Yorkville America Next Generation Memory Index ETF (NRAM - Free Report) – MU weight 15.67%
FINQ FIRST U.S. Large Cap AI-Managed Equity ETF (AIUP - Free Report) – MU weight 15.01%
View the Zacks #1 Rank List
Image: Bigstock
Micron Gets Musk Boost: Buy the Stock on a Dip With ETFs?
Elon Musk has added to the bullish conversation surrounding Micron Technology (MU - Free Report) , praising the chipmaker for keeping future memory prices reasonable while some competitors allegedly charge excessive rates.
In a recent post on X, Musk said Micron's approach could help strengthen long-term relationships with customers. The endorsement comes as demand for memory chips continues to rise, fueled in part by the expansion of artificial intelligence infrastructure, as reported by Yahoo Finance.
The comments offer a high-profile vote of confidence in Micron's pricing strategy. However, the company's recent financial performance suggests that its growth story extends well beyond social media attention.
Chaos in the Chip Space
Note that Musk’s comment hit the market at a time when global chip stocks tumbled on news that China's CXMT targets server memory, the highest-margin segment driving AI chip profits.CXMT said its first 4F2 product, a DDR5 RDIMM server module, should launch by year-end, about two years ahead of Samsung’s reported timeline, per a source.
This new DRAM architecture as CXMT claims could boost memory density by 30-50%. On the news, in the United States, MU along with Sandisk Corporation (SNDK - Free Report) , Seagate Technology Holdings (STX - Free Report) and Western Digital Corporation (WDC - Free Report) came under pressure. Plus, rising rate worries acted as added concerns.
MU shares are down about 14% over the past five days (as of Oct. 14, 2026), though shares are up 97% over the past six months and 191% so far this year.
Micron Delivers a Blowout Quarter
Micron recently reported exceptionally strong quarterly results, beating expectations across key financial metrics and providing upbeat guidance. Its latest performance highlights rising demand and favorable pricing conditions in the memory market.
The company added approximately $43 billion in sales compared with the year-ago quarter and generated more than $13 billion in additional revenue from the preceding quarter.
DRAM revenues reached a record $39.77 billion in Q4, representing 73% of total revenues.NAND revenues were a record $14.10 billion, accounting for 26% of revenues.
Profitability has also strengthened considerably, with operating margins exceeding 80% in some business segments.
Micron’s SCAs Extend Revenue Visibility
Micron has signed 26 strategic customer agreements, or SCAs, representing an estimated more than 35% of revenues through 2030. Three-quarters of those expected revenues have a defined pricing framework, while customer financial commitments under signed agreements and extensions reached $32 billion.
Remaining performance obligations tied to SCAs with determined pricing were about $150 billion. Management also said more than 75% of 2027 output is already committed across SCA and non-SCA customers.
Tight Supply Could Support Pricing Through 2028
Micron's outlook is drawing attention as executives signal that capacity constraints and higher product prices could persist through 2028. Musk's comments may reinforce the company's customer-friendly pricing.
Limited supply alongside robust demand could support revenue and profitability, particularly as AI data centers require increasingly sophisticated memory solutions.
Expanded Buyback Authorization Adds to Investor Focus
Micron has also increased its stock repurchase authorization to $35.16 billion. The company is expected to resume share repurchases on Dec. 9, when restrictions tied to the CHIPS Act lift, according to the report.
MU’s Value Scorecard
Micron shares have been trading at a forward price/earnings (P/E) ratio of 5.36X, which is quite cheap compared with chipmakers like Advanced Micro Devices Inc. (AMD - Free Report) . AMD trades at a P/E of 80.64X. WDC and STX trade at a forward P/E of 19.0X and 20.7X, respectively.
SK Hynix, Inc. - Sponsored ADR (SKHY - Free Report) and SNDK, however, look cheap with P/E ratios of 6.11X and 6.95X, respectively. Meanwhile, Qualcomm (QCOM - Free Report) , which is managing the AI memory bottleneck through its High Bandwidth Compute (HBC) architecture, trades at a P/E of 17.65X.
Time for Micron-Heavy ETFs?
With strong quarterly results, a favorable memory-pricing environment and potential capital returns, Micron has several factors supporting its investment case. But higher rates may pose a threat.
Against this backdrop, investors can play Micron-heavy ETFs to avoid company-specific concentration risks.
iShares MSCI USA Value Factor ETF (VLUE - Free Report) – MU weight 23.85%
XFUNDS Memory Income ETF (DRMY - Free Report) – MU weight 17.21%
Yorkville America Next Generation Memory Index ETF (NRAM - Free Report) – MU weight 15.67%
FINQ FIRST U.S. Large Cap AI-Managed Equity ETF (AIUP - Free Report) – MU weight 15.01%