Micron stock usually rises during the final months of the year.
Micron stock usually rises during the final months of the year.
Insatiable demand for artificial intelligence (AI) infrastructure has been a generational catalyst for memory specialist Micron Technology (MU +0.76%). After an extraordinary rally earlier this year, investors may be wondering where the stock is headed next.
Between 2020 and 2025, Micron stock generated an average gain of 28% during the calendar fourth quarter. So far this year, the story has looked different. After closing September at $1,065, Micron stock has fallen roughly 17% through Oct. 16.
Nevertheless, I see two upcoming catalysts that could help reverse sentiment and send Micron shares soaring before 2027 arrives.
Earnings season could ignite enthusiasm for memory stocks
Over the next several weeks, investors will hear from some of the world's largest AI companies. Space Exploration Technologies reports third-quarter earnings on Oct. 20, followed by Tesla and Meta Platforms on Oct. 21. Microsoft, Alphabet, Amazon, Apple, and Nvidia are also scheduled to report earnings throughout the remainder of October and November.
These earnings reports could be especially important for Micron because each of these companies is spending hundreds of billions of dollars building AI data centers, and they are increasingly discussing the same bottleneck: memory supply.
During SpaceX's second-quarter earnings call, Elon Musk said memory was the limiting factor for AI development. He implied that memory production was growing 20% annually while demand was increasing much faster, around 200%. His outlook was straightforward: "Economics 101 would suggest that the price increases."
Musk has also publicly praised Micron for being reasonable about memory prices, suggesting that the company's approach will strengthen customer relationships.
Meanwhile, Apple's former CEO Tim Cook touched on memory costs during the company's July earnings call. Cook characterized the situation as a "hundred-year flood," explaining why Apple decided to raise prices on certain products.
Averytin News Financial update.