Micron Surges as Apple Considers Chinese Chip Supplier

Micron Technology's stock rose by 1.4% in premarket trading on Monday, reaching $883.96. This increase comes despite a report that Apple has been testing memory chips from Chinese manufacturer ChangXin Memory Technologies (CXMT) for devices sold in China.

The Wall Street Journal reported Sunday that Apple had early talks with CXMT about supplying memory components for devices sold in China, aiming to secure approval from the Trump administration. However, U.S. manufacturers still need government approval to buy CXMT-produced memory, and the Chinese company prioritizes domestic customers.

Citi analyst Atif Malik maintained a Buy rating on Micron but lowered his price target to $1,150 from $1,400, citing slowing memory pricing momentum and rising Chinese memory capacity as the biggest long-term risk. Trivariate Research CEO Adam Parker predicted that Micron could double by the end of the current memory cycle.

Analysts expect Micron earnings of $31.29 per share for the next report on September 22, with revenue forecast at $50.82 billion compared to $11.31 billion in the previous year.