New York, Jan 24, 2026, 10:36 EST — Market closed
Micron Technology (MU.O) closed Friday just off flat, slipping 0.1% to $399.30. The stock hovered near $399.65 in after-hours trading, holding close to the $400 level ahead of Monday. (StockAnalysis)
The close was quiet, but the bigger picture isn’t. Micron now offers a clear signal on how tight the memory market really is—and just how far prices can rise before demand falters.
The key question for the next session: is it still “tight supply, strong pricing,” or is the narrative shifting to “tight supply, weaker volumes”? The market can flip quickly once the squeeze extends beyond data centers to laptops and phones.
Taiwan’s Compal, a leading notebook and PC contract manufacturer, warned this week that soaring memory prices will continue pressuring the industry through 2027. The company also forecast a drop in global notebook and PC shipments by a low-single-digit percentage in 2026. CEO Anthony Peter Bonadero described the surge as a “true super cycle,” noting Samsung Electronics, SK Hynix, and Micron are struggling to meet demand. He pointed out that memory usually accounts for 15% to 18% of a PC’s material costs, but that figure could jump to 35% to 40% as suppliers shift focus to high-bandwidth memory (HBM) used in AI servers. (Reuters)
HBM is a type of stacked DRAM — working memory — designed to shuttle data quickly within AI systems. It has drawn manufacturing capacity and investment into the data center space, forcing consumer electronics to compete over the leftovers.
Broader markets wrapped up a volatile week with the Dow falling 0.58% on Friday, even as the Nasdaq managed to post a slight gain. Intel’s plunge after a disappointing outlook rattled chip stocks late in the week, keeping investors cautious. (Reuters)
Micron remains a top momentum player in early 2026, climbing almost 40% since January as investors bet on the memory shortage story. Intel’s struggles have boosted suppliers like Micron and certain storage companies, with rising component costs tipping the bargaining power further up the chain. (Investopedia)
The core of the debate boils down to simple math. If Micron and its competitors maintain tight supply and continue raising contract prices, margins hold up. But if OEMs begin slashing build plans, the resulting drop in volume could hit harder and later on.
There’s a catch, though. Rising memory costs might steer buyers to cheaper gear, hold off on upgrades, or push makers to cut specs. Any of that could dull demand for some memory products, even if AI-server orders hold steady.
Traders tracking Micron will zero in on new clues around pricing and allocation, alongside comments from PC and handset makers on inventories and production plans. The stock’s moves have closely followed these storylines, not just Micron’s own news.
The next major test lies with buyers. Reuters reported Thursday that demand for smartphones, PCs, and consoles is set to dip in 2026 as companies hike prices to offset soaring memory costs. IDC forecasts the PC market to shrink by at least 4.9% this year, while Counterpoint anticipates memory prices jumping 40% to 50% in Q1. Emarketer analyst Jacob Bourne noted the shortage “is certainly going to show up as higher prices for consumers.” Apple’s earnings come Jan. 29, Dell’s on Feb. 26 — key dates for investors to see if pricing power is crushing demand. (Reuters)
