Will Micron Split Its Stock This Year?
2026-07-21 16:23
•Harsh Chauhan •The Motley Fool
•••••• ••• Axe Capital view
Micron's Stock Split: Boost or Blip?
Micron’s recent pullback sets a stage where a stock split might attract new buyers amid strong earnings and AI-driven demand.
Micron has dropped nearly 30% from its highs despite delivering earnings growth that many tech stocks dream of—13 times year over year. The chipmaker’s valuation now looks reasonable, trading at about 19 times earnings and even cheaper forward-looking. What makes this interesting for South African investors is how memory shortages driven by AI and other tech trends aren’t a short-term hiccup; they’re expected to last past 2030. While Micron itself isn’t JSE-listed, South Africans should watch the USD/ZAR closely since stronger dollar moves often drag emerging market currencies lower and can influence local tech investment appetite. A stock split at around $900 would make shares more accessible to retail investors, potentially lifting demand. I’m cautiously optimistic about Micron’s fundamentals but wary of broader market rotations and chip sector volatility which could undo gains. this is just my opinion and not financial advice
Watch the USD/ZAR for rand strength before adding exposure; if the rand weakens materially, avoid heavy tech longs like Micron in USD. If you’re comfortable with FX swings, consider buying Micron on dips as AI demand sustains its growth.
- MU
- USD/ZAR
- Broader tech sell-offs hitting memory stocks
- Rand weakening sharply against USD making US-dollar assets more expensive locally
6/10
Micron Technology's stock has pulled back 29% from its 52-week high despite strong financial performance, driven by investor rotation out of memory stocks. The article suggests a potential stock split could boost demand for shares currently trading around $900. Despite the recent decline, Micron remains an attractive investment given its stellar earnings growth (13x year-over-year), attractive valuation multiples (19x P/E, 5.5x forward P/E), and strong long-term demand from AI-driven memory shortages expected to persist beyond 2030.
This article was originally published by The Motley Fool and has been adapted here for Axe Capital Trading News.
Publisher: The Motley Fool
Author: Harsh Chauhan
Categories: Equities, Earnings, Technology, AI, Semiconductors, Financials
Tickers: MU, QCOM, SKHY
Sentiment: Positive - Despite recent 29% pullback, the article presents a bullish case citing exceptional earnings growth (13x YoY), attractive valuation multiples, strong long-term demand from AI-driven memory shortage expected beyond 2030, and recent long-term customer agreements. The author recommends buying at current levels. Mentioned only as a customer that signed a long-term supply agreement with Micron for memory chips in automotive applications. No independent analysis or sentiment provided.
Keywords: stock split, memory chips, semiconductor, AI demand, valuation, earnings growth, long-term supply agreements
Insights:
- MU: Positive: Despite recent 29% pullback, the article presents a bullish case citing exceptional earnings growth (13x YoY), attractive valuation multiples, strong long-term demand from AI-driven memory shortage expected beyond 2030, and recent long-term customer agreements. The author recommends buying at current levels.
- QCOM: Neutral: Mentioned only as a customer that signed a long-term supply agreement with Micron for memory chips in automotive applications. No independent analysis or sentiment provided.
- SKHY: Neutral: Referenced as an industry bellwether providing outlook that memory chip demand could outpace supply beyond 2030. Mentioned for context only without independent sentiment assessment.