Micron's 29% drop is not fundamental, Kimi AI demand validates memory chip thesis

Price Action
โดย Motley Fool·Read original
Summary · why it matters

Micron Technology stock has fallen nearly 29% over the past month, but the decline is unrelated to fundamentals. The memory cycle tailwinds remain intact, and AI demand continues to rise, with Moonshot AI's Kimi chatbot recently announcing it can no longer accept new customers because it has exhausted available compute capacity. Kimi's parabolic demand underscores the need for more memory chips, as GPUs require Micron's products to function efficiently. Micron now trades at a forward price-to-earnings ratio of only 5.5, down from about 15 near the end of 2025, while revenue more than quadrupled year over year and profit margins approached 70% in the most recent quarter. Broader AI fears and a margin unwind are likely behind the correction, but once fundamentals prevail, Micron stock should rally again.

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Moonshot AI (北京月之暗面科技有限公司)Private± Mixed
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