Micron (MU) Stock Price Prediction July 2026: Anthropic Deal and 22% Pullback - Buy the Dip?

Micron is a primary supplier of memory and storage to the company Anthropic for the next generation of the company’s AI models under the partnership agreement. The two companies will work together to design HBM and storage for AI models, and Micron will invest in Anthropic’s Series H financing round.

The new partnership is now Micron’s 16th long-term agreement signed with major customers. The 16 contracts are currently backed by around $22 billion in upfront commitments. Some include take-or-pay conditions, which help the company to know in advance the levels of revenue it can expect over time, even as some of its customers decide to reduce the volume of shipments that they receive. Micron had already sold out all of its available HBM volume through 2026. 

As it happens, Micron has received purchase orders for HBM that extend all the way through to 2027 and 2028. UBS is sticking with a positive outlook on Micron, noting that the fundamentals look solid. Wall Street is seeing average price targets for Micron at $1,486, which would equate to roughly 51% upside from the recent price of Micron stock.

Michael Burry’s new short position as well as the highly anticipated initial public offering (IPO) of SK Hynix, with an expected valuation of $28 billion, highlight how competitive the situation has become in that industry. If the rumors are true about memory prices beginning to peak, that fits with expectations about the cyclical nature of the sector. For all but a handful of companies, the high returns have spurred Samsung, Micron, and SK Hynix to build capacity; and, of course, this eventually results in the demand-side meeting up with the supply-side and putting a brake on pricing.

Micron is more insulated due to its longer-term agreements with higher price visibility, and therefore more certainty. For Q3 FY2026, its adjusted gross margin came in at 84.6% which is a very high number and one which could not be sustained if and when supply eventually reaches demand.

With SK Hynix starting trading as SKHY stock on the Nasdaq on July 10 in an offering expected to raise up to $28 billion which, in turn, gives US-based investors a direct HBM competitor to Micron which is currently benefiting from the NVIDIA qualification, we could see some money rotation out of the Micron position into SKHY this week.

On the 2H chart, MU is touching the ascending trend line at $984.75, well above EMA 200 at $849.31, with the RSI at 38.25 oversold and forming positive divergence (price making lower lows, RSI making higher lows). Volume is tapering off which is typical for a healthy pause and a resumption.

Micron (MU) Stock Price Chart - Source: Tradingview

The ascending channel would project an extension to $1,090 to $1,169. A close above $1,014 would project to $1,090. Take stop below $949.

• Entry: Long above $1,014, trendline and support cluster cleared
• Target: $1,090, channel extension
• Stop Loss: Close below $949.00
• Anthropic deal: Supplier of choice, joint HBM development, Claude adoption, Series H equity stake
• SCA: 16 non-cancelable contracts valued at $22 billion or more of committed HBM revenue. Sold out through 2026.
• Main risk: SK Hynix SKHY Nasdaq listing July 10th, a direct HBM competitor to go public

Micron is the main supplier of memory and storage to Anthropic for new AI systems and will co-develop HBM and memory solutions to match Anthropic’s workload needs. Micron uses Claude for its own AI work, and has participated in Anthropic’s latest financing round; this gives Micron a stake in the potential expansion of AI model offerings beyond its core business.

SK Hynix will do a roughly $28 billion listing on the Nasdaq on July 10 under the name “SKHY.” Because SK Hynix is currently the first company to qualify for NVIDA HBM, this listing provides investors in the U.S. with exposure to HBM through SKHY rather than Micron; this is the most immediate external factor to watch for MU in the coming weeks.

Micron at $984.75 is down 22% from post-earnings highs and the relative strength index (RSI) reading of 38.25 is oversold, as is the positive divergence on the uptrend line. The main bullish arguments are that Micron is Anthropic’s primary supplier, has a Series H equity stake, and that there are 16, multi-year, non-cancelable supply agreements worth $22 billion. The biggest near-term negative arguments are that Michael Burry opened a short position, and on July 10, there will be a roughly $28 billion Nasdaq listing for SKHY. Forty-five analysts rated it a strong buy with an average price target of $1,486, which implies 50.9% upside. A break above $1,014 would target $1,090. Stop $949.