Key Stats for Micron Stock
- Price change for Micron stock in the last 6 months: 218%
- $MU Stock Price as of Sep. 29: $1065
- 52-Week High: $1255
- $MU Stock Price Target: $1521
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What Happened?
Netlist, a computer memory company, said on Tuesday that it filed a new complaint against Micron Technology (NASDAQ: MU) at the U.S. International Trade Commission (ITC).
The ITC is a federal agency that can block imports of products found to infringe U.S. patents.
Netlist claims that Micron’s chips infringe two of its patents covering high-bandwidth memory, or HBM. HBM is a specialized type of memory used in AI computing.
The complaint goes beyond Micron.
Netlist wants the ITC to block imports of Micron’s DRAM chips, as well as graphics processors, servers, and other products from Google, Nvidia, and Broadcom that use Micron’s technology.
Micron declined to comment. Google, Nvidia, and Broadcom did not immediately respond.
This isn’t the first fight between the two companies.
Netlist won a $445 million patent verdict against Micron in a Texas federal court in 2024.
In August, it filed another ITC complaint over Micron chips used in products from Super Micro Computer, Hewlett Packard Enterprise, and Lenovo.
Netlist has also gone after other memory makers. It settled a patent dispute with Samsung in August after winning $421 million in verdicts against the company in the same Texas court.
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What the Market Is Telling Us About Micron Stock
For Micron stock, the complaint targets a key growth area.
HBM sits at the center of Micron’s AI business. On its fiscal Q3 earnings call, Micron said it has already shipped over $1 billion in HBM4 revenue.
CEO Sanjay Mehrotra also said the HBM4 ramp is moving twice as fast as the previous generation.
The complaint also names some of the biggest AI hardware buyers. That raises the stakes if the case moves forward.
Still, Micron is in a position of strength.
In fiscal Q3, revenue jumped 346% from a year ago to a record $41.5 billion. Gross margin hit a record 84.9%. Management expects fiscal Q4 revenue of about $50 billion, another record.
Demand remains strong too. Micron says memory supply will stay tight beyond 2027 because of AI demand.
The company has also signed 16 long-term supply agreements with customers. It ended the quarter with a net cash balance of $24.4 billion.
For Micron stock investors, the key question is how far this complaint goes.
ITC cases can take time, and it’s unclear whether the tribunal will act on Netlist’s request. The Samsung settlement shows that some of these disputes end with a deal rather than an import ban.
Anyone following Micron stock should watch for any ITC decision to open an investigation and for a response from Micron or its customers.
For now, the legal fight adds some uncertainty, but it doesn’t change the strong demand picture behind Micron stock.
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So what is Micron stock actually worth?
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Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!
