Why Micron Stock Keeps Falling?

Micron Technology has dropped 28% from its 52-week high, pressured by competition from Chinese memory manufacturer CXMT, concerns over AI infrastructure spending, and broader market volatility. Despite the decline, the stock trades at 19.5x current earnings and 5.4x forward earnings.

Analyst sentiment remains bullish on structural supply dynamics. SK Hynix projects memory supply will fall 20% short of demand through 2030, underpinning the bull case for Micron as memory demand significantly outpaces available supply. The valuation disconnect presents a potential entry point as the fundamental supply-demand imbalance persists.

The 28% pullback brings Micron's multiples to levels that historically precede rallies in memory cycles, particularly when paired with projected shortages of this magnitude. The Chinese competition concern centers on CXMT's capacity expansion, though the company remains well behind Micron and SK Hynix in advanced node production.