Stock Split Watch: Is Micron Next?
2026-10-23 12:02
•Adria Cimino •The Motley Fool
••••••• • Axe Cap view
Micron’s AI Surge: Should SA Investors Pay Attention?
Micron’s blockbuster AI-driven growth raises questions about South Africa’s appetite and timing for exposure via USD/ZAR or local tech proxies.
Micron’s recent rally—fuelled by explosive AI demand—has made it a US trillion-dollar giant, tripling in price this year alone. While a stock split could widen access, the pullback from its $1,200 peak suggests management isn’t rushing that move. For South Africans, the direct play is through the USD/ZAR rate, which remains sensitive to global tech sentiment and US interest rates. Locally, Naspers and Prosus offer a tech proxy, though they have other risks like regulatory challenges and currency swings. If AI deployments continue accelerating, expect Micron’s demand for memory chips to stay strong, supporting its price. However, if AI hype fades or supply shortages ease, there could be a knee-jerk correction. Given these factors, a cautious 'watch' stance on Naspers and Prosus fits, with a bias to buy USD/ZAR around any dip to capture potential rand weakness. this is just our opinion and not financial advice
Watch Naspers and Prosus for better entry points rather than chasing recent highs. Consider tactical USD/ZAR positions on dips to benefit from global tech cycles impacting the rand.
- Naspers
- Prosus
- USD/ZAR
- AI hype fades impacting memory demand
- US interest rate moves strengthen dollar, weakening rand
6/10
Micron Technology has emerged as a major AI success story with revenue surging 379% and stock price tripling this year, reaching a $1 trillion market cap. With the stock trading near $900, speculation arises about a potential stock split to make shares more accessible to retail investors. However, the author suggests a split is unlikely in the near term given the stock's recent pullback from its $1,200 peak, despite the company's strong AI-driven growth prospects.
Our take is based on reporting first published by The Motley Fool.