Key Takeaways
- Micron shares jumped 10% today, along with SK hynix, Sandisk, Nebius and Marvell, after CoreWeave raised its 2026 revenue outlook.
- CoreWeave’s $132.5 billion backlog cuts against fears that AI spending is slowing.
- Analysts expect Micron’s EPS to more than double in fiscal 2027, yet it trades at about 4x forward earnings.
- The selloff looks overdone, and Micron’s December report is the next test.
Micron Technology (MU) jumped 10% today, with SK hynix (SKHY) up 9% and Sandisk (SNDK) up 13%.
The spark was CoreWeave, which raised its 2026 revenue outlook after Tuesday’s close. AI cloud rival Nebius Group (NBIS) is up 15%, and AI chip supplier Marvell Technology (MRVL) is up 8%.
CEO Michael Intrator called it “a breakout quarter,” and backlog reached $132.5 billion.
Customers are still buying
Last week, chip stocks sank on fears that the Democrats’ midterm sweep would slow data-center construction.
CoreWeave’s numbers point the other way. It now expects 2026 revenue of $13 billion-$13.3 billion, up from $12.4 billion-$13.2 billion. It has long-term supply deals with both Micron and Sandisk. Micron says over 75% of its 2027 output is already committed.
SK hynix has a storage deal with CoreWeave through its Solidigm unit, and said in October that long-term agreements with 14 customers cover more than half its 2027 and 2028 capacity. Sandisk’s data center revenue rose 61% from the prior quarter to $4.8 billion. Kioxia’s warning that NAND price increases are slowing is the risk.
Nebius reports on Thursday, which will show whether this demand runs across the AI clouds. In October it lined up a $3.5 billion Citi facility to buy GPUs and build data centers. Marvell said on Nov. 2 that its quarter is tracking at the midpoint of guidance, and its Dec. 1 report will show whether its outlook goes up.
TIKR tracks 49 analysts on Micron. How many say “Buy”?
See the full breakdown of Buy, Hold, and Sell ratings on Micron, along with Wall Street’s revenue and earnings estimates, all in one place. More than 500,000 investors use TIKR to research stocks like this one. See Micron’s Analyst Ratings
Priced like the boom is over
Analysts expect Micron’s normalized EPS to climb from $75.52 in fiscal 2026 to $176.50 in fiscal 2027 and $207.76 in fiscal 2028:
Nothing in CoreWeave’s quarter gives analysts a reason to cut those numbers.
Even so, Micron traded at 4.1x forward earnings at Tuesday’s close. That’s below every quarter-end reading of the past five years. Today’s jump leaves it at about 4x.
I think the selloff went too far. The risk is new supply: consensus has Micron’s capital spending at $54.5 billion in fiscal 2027, up from $30.7 billion. Micron’s fiscal first-quarter report in December, guided to $61.5 billion of revenue, will show whether pricing holds.
So what is Micron stock actually worth?
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Disclaimer:
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