Tim Cook's Comments Spark Hope for Micron Technology Amidst Memory Price Surge

Apple CEO Tim Cook recently stated that his company is paying significantly more for memory chips in the current quarter than it did just three months prior. This trend is expected to continue, according to Cook.

Micron Technology (MU) is one of the major suppliers of DRAM and high-bandwidth memory. The company's stock has soared this year due to unprecedented demand for memory chips, particularly from hyperscalers racing to secure scarce supply.

While some investors may view Micron's recent 26% decline as a sign that its rally is over, others believe it presents an opportunity to buy the dip. With persistent rise in memory prices and a valuation that already reflects cyclical skepticism, Micron's current price looks attractive rather than alarming.

Pricing power remains intact for Micron, with gross margins climbing into the mid-80% range. Supply constraints are expected to persist into 2027, driven by expanding AI workloads from hyperscalers.