Micron's stock has risen nearly 220% in 2026, but two state-backed Chinese chipmakers threaten its position in memory chips. Motley Fool contributor Catie Hogan expects growth to slow, though she still sees the stock as worthwhile for long-term investors.
Micron's stock has skyrocketed nearly 220% in 2026, even after a recent pullback, but competition from China could change that. The memory chipmaker has benefited from surging demand amid the AI revolution, combined with limited competition.
Micron, Samsung and SK Hynix control the vast majority of the memory chip market. Hogan argues that two state-backed Chinese companies now threaten that position.
Chinese rivals target NAND and DRAM
Yangtze Memory Technologies is aiming to overtake its competitors in the NAND market in the near future. It currently ranks fifth by revenue, behind major players including Micron, Samsung and SK Hynix.
However, Hogan sees the bigger threat in DRAM, which accounts for 73% of Micron's revenue as of last quarter. ChangXin Memory Technologies is about to launch a new, denser chip by the end of the year. Hogan says that would erode Micron's market dominance and undermine its pricing power.
Micron's moat holds for now
In the short term, Hogan says Micron still has an incredible competitive moat. Its high-bandwidth memory business is generally safe for now, while the DRAM and NAND businesses could suffer more as China creates cheaper models.
Demand for Micron's chips still exceeds supply and likely will for the next few years. Even so, Hogan writes that China's competitive threat is real and could erode Micron's profit margins over time.
Hogan does not expect the run to end, but she expects growth to slow.
Source: The Motley Fool
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