Micron stock has surged more than 700% over the past year, but its rally may not be over.

Micron just shed a quarter of its value and now flashes a valuation number that sounds almost too cheap to ignore, but seasoned investors know that cyclical chip stocks can punish bargain hunters just as brutally as they reward them.

Micron faces a longer-term competitive challenge after CXMT’s Shanghai debut gave the Chinese memory-chip maker access to billions that could fund a rapid expansion in conventional DRAM. MU closed at $920.95 on Friday, down 6.9%, before CXMT started trading on Monday.

There is a huge demand for both NAND and DRAM memory thanks to the AI data-center build-out, and memory chips have quickly become the No. 1 bottleneck. This has caused prices to skyrocket during the past year, leading to huge revenue and profit growth for Sandisk and Micron.

China's CXMT just pulled off one of the most explosive stock market debuts in history, and memory giants with triple-digit gains on the books are now facing a sector-wide reckoning that could upend the entire bull case for DRAM and NAND.

Micron Technology has surged, outperforming the S&P 500 with record earnings and an optimistic forecast, tempting investors.

Any time Micron trades under $1,000 per share, it could be a buying opportunity for investors with the right expectations.

Micron Technology, Inc. (NASDAQ: MU ) stock gained by more than 3% during Monday’s premarket session as risk appetite improves alongside a firm overnight tape. Nasdaq futures are up 1.57% while S&P 500 futures have gained 0.

A Chinese national champion at the forefront of a fierce technology rivalry with the U.S., CXMT is now the country’s largest onshore-listed firm.

Elon Musk thanked Micron for a 'significant' memory-chip allocation on Tesla's earnings call, even as he builds Terafab, a $55bn Tesla-SpaceX chip factory.

This memory chip stock has soared in recent years.

The famed investor is growing his bearish position as the semiconductor company rides strong demand amid the AI boom.