MU went up so much this year and last year. That was because DRAM and SSD prices went up massively from AI demand combined with restricted supply.
However in the latest earnings report, Micron have said that their largest contracts now have a ceiling price set at the 2026Q2 market price. That means less potential upside for earnings and share price growth in the next few years.
The downsides are still there. MU went up 5x to hit $88 during the dot com bubble, a few years later it was beow $10 and hitting a low of around $3 in 2008.
MU has locked in good profits for the next few years but if demand falters or supply from competitors increases, the future beyond that will be forecast as far less profitable and share prices can fall drastically.