The article argues that the risk of a 30% fall in Micron (MU) stock depends largely on how long its operating margin holds. Micron's operating margin was 74.6% over the twelve months to September 3, 2026, compared with 26.1% a year earlier, and management ties this to rising memory prices while expecting those increases to moderate in the rest of fiscal 2027. Fiscal Q4 2026 sales reached $54.2 billion, up 379.3% from a year earlier, while the stock has dropped 30% or more from a high to a later low within the same year in 7 of the 10 calendar years from 2016 to 2025. The stock trades at 11.7 times trailing earnings versus 22.9 for the S&P 500, and fell 18.8% over the month to October 23, 2026. Management expects tight memory market conditions through 2028, and the article points to fiscal Q1 2027 results, expected in December 2026, as the next report to watch for the margin.
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