Micron Technology Inc. (MU) Sued Over Skyrocketing DRAM Prices amid AI Boom

Micron Technology Inc. (NASDAQ:MU) is one of the top AI Stocks to buy according to billionaire Philippe Laffont. On June 29, Micron Technology Inc. (NASDAQ:MU) was hit with a class action lawsuit over claims that it is restricting DRAM supply to inflate prices.

Micron Technology Inc. (MU) Sued Over Skyrocketing DRAM Prices amid AI Boom

The private class-action lawsuit in the US also names Samsung and SK Hynix for allegedly contributing to memory prices reaching historical highs amid ongoing shortages, as demand continues to outpace supply. In the lawsuit, the fillers are demanding compensation from the three companies for allegedly gouging prices by creating artificial shortages of memory.

There is a global RAM shortage driven by AI data center demand that’s forcing the likes of Micron to raise prices. Apple has already had to raise device prices by as much as $200 due to the shortages. Micron has also had to lock 16 companies into five-year contracts, as building new fabs takes 5+ years and costs upward of $10 billion.

Micron Technology Inc. (NASDAQ:MU) manufactures the foundational memory and data storage hardware required to power artificial intelligence. Because AI models ingest and process colossal amounts of information, high-performance computing heavily relies on Micron’s specialized chips to prevent processing bottlenecks.

While we acknowledge the risk and potential of MU as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than MU and that has 10,000% upside potential, check out our report about this cheapest AI stock.

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