Apple Says It Will Keep Paying More for Memory Chips After December. That's Good News for Micron Stock.

Apple CEO John Ternus stated that memory chip prices will continue rising into next year, signaling strong demand despite the company's gross margin compression. While Japanese flash memory maker Kioxia expects only 1% sequential revenue growth in the December quarter, Micron Technology—which primarily sells DRAM—stands to benefit from sustained price increases. Micron's stock, trading near $860 after a 6% drop, appears undervalued at under 6 times forward earnings, suggesting the market has priced in a sharp decline in memory profits.