Micron stock has fallen more than 30% from its late-June peak as competitors forge high-profile alliances, prompting questions about the company’s place in the artificial intelligence supply chain. SK Hynix and Nvidia are working together on interoperable chips, and Samsung Electronics has teamed up with Broadcom on similar efforts. Despite that backdrop, Micron maintains that memory supply will stay tight beyond 2027, and it still has avenues for growth, according to the company and industry commentary.
Micron’s remaining book of business
Micron continues to work with Nvidia, even after it did not meet data transfer speed specifications for the chipmaker’s Vera Rubin architecture, according to industry sources. As a result, Micron does not support that platform. Still, Nvidia CEO Jensen Huang has said the three leading memory suppliers, including Micron, are essential to Nvidia’s AI hardware, indicating the relationship remains intact.
Micron’s comparatively lower dependence on Nvidia has broadened its customer mix. The company has secured business with cloud providers and custom AI chip developers, with firms such as Meta Platforms, Advanced Micro Devices, and Tesla among its clients.
The company has also signed multiple five-year agreements with customers. Those longer-term contracts could help Micron better navigate any future downturns that historically have followed memory upcycles.
The rapid growth continues, but watch the stock
Recent results underscore Micron’s momentum. In the third quarter of its fiscal 2026, which ended May 28, the company reported $41 billion in revenue, a 346% year-over-year increase. Net income reached $28 billion, up sharply from $1.9 billion a year earlier.
That growth outpaced the 247% revenue increase projected for the current fiscal year and the 84% rise expected for fiscal 2027. The trajectory suggests Micron remains a major player in the memory market despite competitors’ new partnerships.
Shares have retreated in recent weeks as investors weigh the durability of heavy capital spending and financing across the AI ecosystem. For those initiating positions, some analysts favor a dollar-cost averaging approach. Micron trades at a price-to-earnings ratio of 19, while its forward P/E of 11 points to continued expansion, a sign the company could perform well even without specific new alliances.
Micron stock moving forward
Industry growth and Micron’s current roster of customers position the company to advance even after missing out on the latest agreements tied to Nvidia and Broadcom. Its ongoing role within Nvidia’s supplier base, along with ties to major cloud platforms and custom AI chip developers, has supported substantial gains in revenue and profit.
With a P/E ratio of 19, the semiconductor stock may still have room to run. However, recent volatility suggests a measured stance on Micron in the near term, similar to how traders have approached positioning ahead of major earnings events such as Amazon earnings.