2 months ago
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David Jagielski, CPA, The Motley Fool
Tue, July 21, 2026 astatine 8:20 AM CDT 5 min read
The banal marketplace is having a merchantability close present connected representation and retention stocks. Many of the biggest, high-flying names that person been ascendant connected the marketplace this twelvemonth are each down big. Micron Technology (NASDAQ: MU), Western Digital (NASDAQ: WDC), and Sandisk (NASDAQ: SNDK) person each declined by much than 20%, with the largest declines connected this database astatine implicit 36%.
Is this a large reckoning taking spot successful the industry, oregon is this conscionable a little intermission earlier the adjacent signifier of the rally for these growth stocks? Here's a look astatine however overmuch these stocks are down close now, however their valuations look, and if they could beryllium bully buys connected the dip.
Missed Nvidia successful 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" awesome flashed for a little-known chipmaker called Nvidia. For the archetypal clip successful years, that aforesaid "Total Conviction" awesome is flashing for a institution 1/100th the size of Nvidia. Continue »
Micron Technology
Micron has been iconic of the run-up successful representation stocks this year, with its valuation astatine 1 constituent reaching astir $1.4 trillion, making it among the astir invaluable companies successful the world. That's astir what electrical conveyance shaper Tesla is worthy close now.
It's been a tremendous tally for Micron, whose shares person soared much than 1,000% successful 5 years. But successful the past month, they're down astir 24%. The large question is whether this is profit-taking oregon a motion of a greater bearish inclination ahead.
Micron's fundamentals person been awesome arsenic the institution has generated an unthinkable $90 cardinal successful gross implicit conscionable its past 4 quarters, and its nett during that agelong has totaled much than $50 billion. It was lone a fewer years agone that the institution was struggling to enactment retired of the red.
The roar successful artificial quality (AI) has driven important maturation for the business. Trading astatine a lowly 5 times its estimated aboriginal profits (based connected expert expectations), the banal is an incredibly cheap-looking buy. But determination is simply a risk: if the shortage successful representation and retention products comes to an extremity and prices extremity up coming down, the enactment could beryllium over. For investors who judge AI has unlocked a caller mean successful request for representation and retention products, Micron's banal could inactive soar and beryllium a bully buy.
Western Digital
One banal that's down adjacent much than Micron is Western Digital, whose products are known for their outer hard drives and the fantabulous stableness they supply consumers with. In the past month, the banal has fallen by 35%, but its five-year gains stay awesome astatine astir 900%.
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