Micron Stock Gets Hammered Over China Fears — Jim Cramer Calls the Selloff 'Nonsense'
Micron stock drops amid chip selloff, but Cramer and analysts dismiss China risks, citing strong AI demand and long-term supply deals.
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Elon Musk says Micron has been reasonable on future memory pricing, while he criticized other suppliers for overcharging.
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Micron stock drops amid chip selloff, but Cramer and analysts dismiss China risks, citing strong AI demand and long-term supply deals.
Market sentiment slipped but stayed neutral at 45 as U.S. stocks fell Tuesday, led by chip losses; investors awaited major bank earnings.
Micron Technology raised its stock buyback authorization to $35.16 billion, over four times the $7.84 billion spent on buybacks over the past eight fiscal years. The company's exceptional free cash flow generation ($33.2 billion in Q4 fiscal 2026) enables this aggressive repurchase program, though CHIPS Act restrictions limit buybacks until December 2026. However, at current stock prices near $985, the buyback will have minimal impact on share count, retiring only about 3% of outstanding shares, as employee stock awards add roughly 11 million shares annually.
Applied Materials stock fell 7% on investor day, its sixth straight loss. Cantor Fitzgerald kept an $850 target, implying 85% upside.
Sandisk is expected to report blockbuster Q1 fiscal 2027 earnings on Oct. 29, with Wall Street forecasting $10.7B in revenue and $46 EPS. The company benefits from AI infrastructure demand and tight memory supply conditions, as evidenced by Micron's recent 379% YoY revenue growth. Trading at a 7x forward P/E ratio, Sandisk appears undervalued, though the author recommends dollar-cost averaging rather than timing the earnings announcement.
Western Digital stock falls as UBS cuts its target price ahead of earnings, while rising memory supply and broader chip weakness pressure storage makers.