BOISE, Idaho, August 17, 2026, 08:58 EDT — U.S. cash markets are set to open at 09:30 EDT, with premarket trading already in progress.
- Micron gained 3.5% before the bell, trading at $1,005.65.
- Washington objects to Apple procuring memory chips from China.
- Micron’s mobile and client division reports a gross margin of 87%.
Shares of Micron Technology, Inc. NASDAQ:MU rose 3.5% ahead of the opening bell on Monday. Moves by Washington against the use of Chinese memory in Apple products eased concerns over potential price pressure. The increase pushed Micron above $1,000 during early trade.
The policy is significant since consumer memory is no longer Micron’s vulnerability. The mobile and client segment accounted for 27.8% of sales in the fiscal third quarter. Gross margin for the unit hit 87%, equal to Micron’s main data-center division.
Commerce Secretary Howard Lutnick stated the administration “doesn’t want Apple to buy memory chips from China.” Apple Inc. NASDAQ:AAPL has considered Chinese memory chip suppliers as worldwide capacity faces pressure from AI demand. No order for Micron has been disclosed. The Wall Street Journal
| Monday memory-stock move | Premarket change | Immediate driver |
|---|---|---|
| Sandisk Corporation NASDAQ:SNDK | +4.9% | Boost from China memory policy and overall sector strength |
| SK hynix Inc. NASDAQ:SKHY | +4.2% | China’s memory policy and rising sector momentum |
| Micron Technology NASDAQ:MU | +3.5% | Apple supply policy and AI-fueled demand |
The surge added to a wider memory recovery. Nasdaq futures advanced 0.52% and Micron climbed roughly 3%. AJ Bell’s Danni Hewson noted that worries of an AI boom turning into a bust were fading.
| Micron business unit | Fiscal Q3 revenue | Share of total | Gross margin |
|---|---|---|---|
| Cloud Memory | $13.77 billion | 33.2% | 83% |
| Core Data Center | $11.52 billion | 27.8% | 87% |
| Mobile and Client | $11.52 billion | 27.8% | 87% |
| Automotive and Embedded | $4.63 billion | 11.2% | 79% |
Mobile and client revenue climbed 49.4% quarter-on-quarter. This increase turned a potential Apple sourcing change into a significant margin issue. Preventing access to a less expensive supplier could help maintain prices regardless of unit volume.
China’s rival is gaining ground. ChangXin Memory Technologies accounted for roughly 7% of worldwide DRAM revenue in the second quarter. Recent reports said Apple considered using CXMT components in devices offered in China.
| Micron earnings bridge | Fiscal Q2 | Fiscal Q3 | Fiscal Q4 guidance |
|---|---|---|---|
| Revenue | $23.86 billion | $41.46 billion | $50.0 billion ± $1.0 billion |
| Non-GAAP gross margin | — | 84.9% | Approximately 86% |
| Non-GAAP diluted EPS | $12.20 | $25.11 | $31.00 ± $1.00 |
| Operating cash flow | $11.90 billion | $25.39 billion | No forecast provided |
Micron maintains a solid operating position. Revenue for its fiscal third quarter climbed 73.8% from the previous quarter. The firm forecasts an additional 20.6% rise in the August quarter, with adjusted earnings anticipated to hit approximately $31 per share.
Chief Executive Sanjay Mehrotra said the figures highlight memory’s “strategic value” during the AI era. Micron additionally secured long-term customer contracts that enhance visibility for demand. Company release
| Analyst | Recommendation | Target | Upside from $1,005.65 | Date |
|---|---|---|---|---|
| Vivek Arya, Bank of America | Buy | $1,550 | 54.1% | Aug. 14 |
| Timothy Arcuri, UBS | Buy | $1,625 | 61.6% | Aug. 10 |
| Vijay Rakesh, Mizuho | Buy | $1,375 | 36.7% | Aug. 10 |
| Atif Malik, Citi | Buy | $1,150 | 14.4% | Aug. 10 |
| 30-analyst consensus | 29 Buy, 1 Hold | $1,568.39 | 56.0% | Latest available |
Analysts are largely positive, with the consensus target suggesting a 56% gain from Monday’s premarket price. However, the lowest target of $1,100 indicates just a 9.4% increase, reflecting how much optimism is already built in.
The stock finished Friday at $971.66, marking a gain of nearly 700% in 12 months, though it remains under its record high of $1,255. Such a performance sets a high bar for further catalysts.
Risks: Apple has yet to place orders with Micron. There is no assurance that U.S. authorities will restrict sourcing from China, and Beijing could respond with countermeasures. Memory prices still fluctuate with cycles, and Micron’s sharp share price surge increases exposure to a potential shortfall in demand.
Apple’s approach is defensive, aiming to safeguard its high-margin business, while Micron’s AI deals fuel the main earnings narrative.
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