Quick Read – Lorraine Tan warns that Micron, which has surged 305% year to date, faces a 20 to 30% correction as Samsung and SK Hynix supply floods the memory market. – SanDisk’s 858% YTD surge and Lam Research’s forward P/E of 55 make both prime candidates for the correction…
n expects. – Micron’s forward P/E of 7 signals market skepticism about sustaining peak earnings, with HBM4 pricing and hyperscaler capex the key variables to watch. – Act now: the analyst who called NVIDIA in 2010 just named his top 10 AI stocks — and Micron Technology didn’t make the cut. Grab the names FREE today
Morningstar is warning investors to brace for a reckoning in AI stocks, with memory-chip names sitting on the biggest gains facing the most downside. In a Bloomberg TV segment, Morningstar director of research Lorraine Tan warned that a large slice of AI names could give back 20% to 30% before they become buyable again. For holders of Micron Technology (NASDAQ:MU), the poster child of the rally, that raises an obvious question: is it time to lighten up?
The rally that scared Morningstar Memory has been the runaway trade of 2026. Micron is up 304.62% year to date and 838.82% over the past year, while SanDisk (NASDAQ:SNDK) has surged 857.84% YTD and Western Digital (NASDAQ:WDC) 271.05%. Semiconductor equipment maker Lam Research (Nasdaq: LRCX) has doubled, up 153.61%.