Morningstar Warns Of 30% Crash In AI Stocks, Is It Time To Sell Micron?

4 hours ago 2

Danielle Liverance

Thu, July 2, 2026 astatine 8:45 AM CDT 5 min read

Quick Read

Lorraine Tan warns that Micron, which has surged 305% twelvemonth to date, faces a 20 to 30% correction arsenic Samsung and SK Hynix proviso floods the representation market.
SanDisk's 858% YTD surge and Lam Research's guardant P/E of 55 marque some premier candidates for the correction Tan expects.
Micron's guardant P/E of 7 signals marketplace skepticism astir sustaining highest earnings, with HBM4 pricing and hyperscaler capex the cardinal variables to watch.
Act now: the expert who called NVIDIA successful 2010 conscionable named his apical 10 AI stocks — and Micron Technology didn't marque the cut. Grab the names FREE today.

Morningstar is informing investors to brace for a reckoning successful AI stocks, with memory-chip names sitting connected the biggest gains facing the astir downside. In a Bloomberg TV segment, Morningstar manager of probe Lorraine Tan warned that a ample portion of AI names could springiness backmost 20% to 30% earlier they go buyable again. For holders of Micron Technology (NASDAQ:MU), the poster kid of the rally, that raises an evident question: is it clip to lighten up?

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The rally that frightened Morningstar

Memory has been the runaway commercialized of 2026. Micron is up 304.62% twelvemonth to day and 838.82% implicit the past year, portion SanDisk (NASDAQ:SNDK) has surged 857.84% YTD and Western Digital (NASDAQ:WDC) 271.05%. Semiconductor instrumentality shaper Lam Research (Nasdaq: LRCX) has doubled, up 153.61%. Even AI bellwether NVIDIA (NASDAQ:NVDA), tame by examination astatine 7.42% YTD, has ridden a 26.81% summation implicit the past year.

Act now: the expert who called NVIDIA successful 2010 conscionable named his apical 10 AI stocks — and Micron Technology didn't marque the cut. Grab the names FREE today.

Tan told Bloomberg that "stocks are priced for perfection. Although valuations look stretched, radical are buying into the optimism." Her sharper interest was the gait of the move: "The explosiveness of the returns you saw successful the 2nd 4th it is simply a spot scary successful that consciousness due to the fact that the marketplace is extrapolating for the beardown maturation to proceed done 2028. We person our doubts there. We expect spending to taper off." Asian equities had reversed aboriginal Q3 gains, with the MSCI Asia scale down somewhat aft posting its strongest 4th successful 17 years.

The representation reckoning

Tan's lawsuit rests connected capacity. "The announcements from Samsung and SK Hynix, that volition pb to what we deliberation volition beryllium softer pricing. Essentially, the proviso volition drawback up with demand. You volition not spot the aforesaid loftiness successful maturation complaint connected the pricing of representation chips, for example," AI capex maturation is expected to highest successful 2026, with spending increases slowing materially done 2029.

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