Micron Shares Fall 2.6% as Samsung Earnings Miss Forecasts Despite Record Chip Profits

Bank of America named Micron Technology (MU) its top stock pick, maintaining a buy rating with a $1,550 price target, up from its current trading price of $877.55. The firm cited Micron's strategic positioning in the memory market, long-term value, and plans for increased capital returns to shareholders. Micron's management highlighted tighter market conditions expected in 2027 and 2028, and the company's technology leadership in AI-related memory products.

SK Hynix (SKHY) announced a $22B stock buyback, following Nvidia (NVDA) with a $150B buyback and Micron (MU) with a $35.16B authorization. All companies' shares had declined before the announcements. Buybacks may signal management confidence but require scrutiny of execution and cash flow.

Micron (MU), SanDisk, and SK Hynix shares fell in premarket trading after Samsung Electronics reported record earnings that missed market expectations. Samsung's net profit was 75.14 trillion won, below the 86.13 trillion won forecast, leading to a 4% drop in its shares. Despite strong operating profit and revenue growth, investors focused on the earnings shortfall and lack of shareholder payout details.

Sandisk (SNDK) reports strong data center revenue growth, driven by AI demand. Q4 2026 data center revenues rose 103% sequentially to $2.98B, and fiscal 2026 revenues increased 437% YoY to $5.15B. The company is expanding its product portfolio and securing long-term customer agreements. Management expects continued growth in data center demand. Competitors Micron (MU) and SK hynix (SKHY) also report strong AI-related demand. SNDK shares have surged 491.8% YTD, with a forward P/S of 3.88X.

Micron Technology (MU) stock fell 2.7% in pre-market trading after Samsung Electronics reported Q3 2026 earnings below expectations, with semiconductor division profit missing estimates. Samsung's net profit of 75.1 trillion won also fell short of consensus. The broader market decline and a technical death cross added to the selloff. Despite the pullback, Citi maintains a Buy rating with a $1,300 price target, citing supply shortages. MU trades at $957.16, still above its 52-week low of $192.59.

Micron Technology shares dropped 2.6% after Samsung Electronics reported weaker-than-expected earnings, despite record profits. Samsung's net profit of 75.136 trillion won missed estimates, but revenue more than doubled to 195.253 trillion won. Samsung's chip division saw record profits, and the company expects strong AI-driven demand to continue. SanDisk and SK Hynix also fell in premarket trading.