Morningstar Warns Of 30% Crash In AI Stocks, Is It Time To Sell Micron? - 24/7 Wall St.

Morningstar has warned investors to prepare for a potential correction in AI stocks, with memory chip names facing the most downside after significant gains. In a Bloomberg TV segment, Lorraine Tan, M... Read original →

Morningstar’s AI stock correction warning reflects a necessary reset of overheated memory valuations. Technically, imminent HBM4 ramp-up by Samsung and SK Hynix will compress pricing, directly undermining Micron’s high-margin assumptions, while equipment makers like Lam Research face an order cliff post-2026 as AI Capex peaks. On compliance, Micron’s heavy reliance on U.S. CHIPS Act subsidies exposes supply chain fragility—geopolitical friction could disrupt its packaging operations in Taiwan, China and Japan. Strategically, Samsung is leveraging mature-node capacity to flood the HBM market, challenging Micron’s pricing power, while NVIDIA may lock in custom HBM deals to bypass spot-market volatility. Over the next 12–24 months, only firms achieving >85% HBM yield and securing long-term hyperscaler commitments will survive the shift from AI hype to demand validation. Current valuations have priced in an unrealistic 2028 growth trajectory—this correction isn’t risk, it’s recalibration.