Micron Falls on Western Digital's Weak Guidance and Apple's Rising Memory Costs

Shares of Micron (MU) fell by nearly 4% in Thursday's premarket session, reaching $861.43. The decline came as Western Digital plummeted 15% on disappointing forward guidance and SanDisk retreated 9.4%, despite posting solid quarterly results. Apple CEO Tim Cook indicated that memory pricing will climb 'even higher' this quarter.

This news is a bullish indicator for Micron, which ranks among the three dominant suppliers of DRAM and high-bandwidth memory globally. Elevated costs for major customers like Apple correspond directly to improved average selling prices for manufacturers.

The supply-demand equation continues to tilt toward producers, with industry-wide supply constraints anticipated to extend through 2027 and Micron's production capacity locked in under long-term supply contracts.