Micron (MU) is winding down sales of Crucial-branded SSDs and DRAM modules at retailers and distributors worldwide, marking a major shift in its consumer memory business. The chipmaker said it will continue to ship products until February 2026. Following the news, MU stock declined 3% on Wednesday.
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The company said it will honor all existing warranties and provide support for Crucial products already sold. Also, MU will continue global distribution of its Micron-branded enterprise products for commercial customers.
The decision reflects Micron’s focus on high‑bandwidth memory (HBM) and enterprise products, which are in soaring demand as AI data centers expand globally.
Moreover, the company said that reallocating resources away from consumer products will allow it to better serve strategic customers in faster-growing, higher-margin markets.
Key Reasons Behind This Move
- AI-driven demand: The surge in generative AI and multimodal workloads has led to strong demand for advanced memory solutions.
- Global supply strain: Global memory supply chains remain tight, with shortages affecting both consumer flash chips and HBM used in AI servers.
- Competitive landscape: Micron is competing directly with Samsung (SSNLF) and SK Hynix in the HBM market, where margins are far stronger than in consumer memory.
Micron Bets on AI Memory and Global Expansion
Micron’s move reflects how AI is influencing the semiconductor industry. The company is positioning itself for growth through a move toward AI memory solutions, massive global expansion, and navigating competition.
The company is reallocating resources to serve hyperscale data centers, cloud providers, and enterprise customers where margins are stronger and growth is accelerating.
At the same time, Micron is expanding its global footprint with new fabrication plants in the U.S. and Japan, supported by government subsidies and CHIPS Act funding. These investments aim to diversify supply chains, reduce reliance on China, and scale production to meet surging AI workloads.
Is MU a Good Stock to Buy Right Now?
Currently, Wall Street has a Strong Buy consensus rating on Micron stock based on 25 Buys and four Holds assigned in the past three months. The average MU stock price target of $231 indicates a 0.77% downside risk.
