Should I Sell MU Stock as NAND Prices Slow Despite Record Revenue?

Is it time to liquidate your MU shares? For the majority of long-term investors, the recommendation is to hold on, at least for the moment. Micron reported a record-breaking $54.23 billion in revenue for the fourth quarter of fiscal 2026, alongside projections for constrained memory supply stretching through 2028. However, concerns persist regarding Micron NAND pricing following Kioxia’s caution about decelerating price increases, coupled with renewed uncertainty surrounding artificial intelligence expenditures. Currently trading at $884.74, the Micron stock forecast from analysts generally remains bullish, albeit accompanied by a few cautionary signals.

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Micron Stock Outlook: NAND Prices, AI Spending And Earnings

MU shares currently hover roughly 27% under their 52-week peak of $1,213.56, while maintaining a substantial gain of approximately 339% from their trough of $201.37. This dramatic volatility is the primary catalyst prompting shareholders to wonder whether they ought to offload MU stock to lock in profits. The trajectory of this wild ride is detailed below.

Record Micron Earnings And An Even Stronger Outlook

For the entirety of fiscal 2026, Micron generated $133.19 billion in revenue, and management has issued first-quarter fiscal 2027 revenue guidance of about $61.5 billion, plus or minus $1.5 billion. Furthermore, long-term supply agreements account for over 35% of projected revenue through the year 2030.

Sanjay Mehrotra, Chairman and CEO of Micron Technology, stated:

“Micron delivered record fiscal 2026 results, and we expect an even stronger fiscal 2027. AI is becoming Super Intelligence (SI), and memory enhances this intelligence and the competitiveness of our customers’ platforms. We are increasing our investments in technology, products and manufacturing to help drive SI forward with our customers, and our Strategic Customer Agreements provide added confidence in the durability of Micron’s financial performance.”

These binding agreements serve as the most robust rebuttal to concerns about whether to exit MU positions ahead of a potential cyclical downturn.

Micron NAND Prices Slow As AI Spending Gets Tested

Market pressure is currently stemming from industry competitors. While SK Hynix has expressed optimism regarding tight memory conditions, Kioxia has issued warnings regarding decelerating NAND price gains, and Intel has pointed to elevated memory expenses. This conflicting set of indicators explains why inquiries regarding selling MU stock have surged recently.

Any softening in Micron NAND prices would arrive at a delicate juncture, given the company’s substantial capital expenditure commitments. A contraction in artificial intelligence outlays, or more aggressive price reductions initiated by peers like SK Hynix, Samsung, or Kioxia, would directly impact that same contracted revenue stream. To date, these market murmurs have failed to materially alter Micron’s internal demand projections. Nevertheless, should NAND prices continue to cool as 2027 approaches, the rationale for holding MU stock could shift rapidly.

Should I Sell MU Stock? What The Micron Stock Forecast Says

The consensus Micron stock forecast monitored by Simply Wall St projects revenues reaching $320.4 billion alongside earnings of $217.9 billion by the year 2029. Based on this perspective, intrinsic value stands roughly 76% above current market valuations. Conversely, more conservative analysts anticipate roughly $236.3 billion in revenue and $207.2 billion in earnings, yielding a price-to-earnings ratio near 6x. Another sample of 28 distinct fair value projections even points toward a potential 38% downside. For anyone debating whether to sell MU stock, this divergence in estimates is a crucial metric to monitor.

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Ultimately, should you divest your MU shares? If your thesis relies on artificial intelligence demand sustaining tight memory inventories, corporate guidance and existing contracts provide a solid foundation for maintaining your position. Conversely, if you purchased near the $1,213 high-water mark and find yourself unable to stomach another severe market correction, scaling back your exposure represents a prudent compromise. With MU trading significantly below its record levels, forthcoming corporate earnings reports and fresh data regarding NAND pricing will likely determine which investment strategy proves correct.