I have been looking at possible good buys to fund my Roth IRA for 2026. Yesterday I came across a LOT of articles about Micron. All of them stated it was a “buy”. I read as many articles as I could find including one on here from about 2 weeks ago. I watched the stock price climb up to 1000 and figured it was the right time to buy since it would likely keep going back up. I set a buy limit of $995. The order filled around the end of the day. Within half an hour it was down to $984. I can live with that. Then I look today and it is down to $920 and I am reading nothing but bad news about all the memory stocks. I can’t wrap my head around this. The articles say the earnings reports for Micron, Samsung, Hynix etc are all good. I was looking forward to the possibility of Micron stock skyrocketing over the next few years. They have contracts with Nvidia and Ford. I am hopeful Micron stock will head the other direction at some point. Anybody have thoughts on this? By the way, I invested my entire $8600 contribution into Micron.
AI is resulting in very high demand for memory semiconductors. They are notoriously cyclical but right now prices are high making them very profitable for producers. Of course they will expand production. Will they overbuild?
The AI worries extend to these stocks too. It might be a bubble.
Best advice I think is buy the dips and keep a close eye on it. If AI succeeds the boom could continue for quite a while.
Not a good place for the rent money but make hay when the sun shines.
I believe it’s just some profit taking by some of the institutional investors which may accomplish two things for them. The first is that they can lock in some profits and the second is that they can let the share price drop down during the quiet period before the next earnings come out. So they sell some high and buy some more low to catch the next wave up. Of course this is my opinion and I do own some shares. I would never suggest that this is investment advice by the way…doc