Investing.com - Micron Technology surged over 15% on June 24 after reporting blowout Q3 results to hit the new record high of $1,255, yet the stock has since pulled back, closing down 6.7% on Friday on volume of 86.4 million shares, nearly double its three-month average of 52.1 million.

Despite the ongoing pullback in Micron shares, Mizuho TMT specialist Jordan Klein is urging investors not to flinch. Still, Klein warns bears will likely attempt to press the stock lower on two headlines circulating this week. His message: neither one changes the fundamental supply picture.

The first bear catalyst is a report that Apple is seeking U.S. government approval to source DRAM from Chinese chipmaker CXMT, which appears on the Commerce Department's Entity List. Apple's interest in Chinese memory is a symptom of industry-wide scarcity, not a Micron-specific problem.

"DRAM and NAND supply is way below true end demand," Klein wrote Monday, "and that is more important for MU and the stocks, in my view, than news like AAPL interested in China DRAM."

He argues that Micron has already pivoted its production mix away from consumer devices toward long-term supply agreements with hyperscalers for HBM and LPDDR DRAM, as well as automotive and industrial customers, meaning Apple's potential defection primarily pressures Samsung and, to a lesser degree, SK Hynix.

Whether Washington would even grant the licence is an open question, Klein notes, adding that China's domestic demand for CXMT output is itself enormous and the Chinese government may have little appetite to redirect that supply to a foreign buyer.

The second pressure point is Monday's formal announcement by SK Hynix, Samsung, and the South Korean government of a multi-decade semiconductor capacity expansion covering approximately four new memory fabs.

Klein characterises the announcement as largely political signalling, noting there are no locked-in capital commitments expected this year or next. Micron itself has already outlined plans for four new memory fabs of its own, he points out, making the Korean announcement less disruptive than the market reaction implies.

The broader demand picture supports Klein's contrarian stance. Apple CEO Tim Cook told the Wall Street Journal that the memory shortage was a "once in a century flood" and that he had never seen anything similar in any field over his 40-year career.

Elon Musk, as reported by Business Insider, reposted Cook's remarks on X and added that production needs to rise sharply because the capacity gap relative to demand is "insane."

A Digitimes report published Monday adds a concrete pricing dimension: the market expects memory makers to raise prices for the full HBM lineup, including HBM4, to as much as 2.5 times the 2026 level in the next round of supply negotiations for 2027.

That pricing round, which takes place once annually each autumn, is the catalyst Klein flags most prominently. Any headlines in September or October signalling strong HBM contract pricing could materially lift Street EPS estimates for 2027 across the sector.

For Micron specifically, the Street is already leaning bullish into the next report. Consensus EPS for fiscal Q4 2026 sits at $25.72 on revenue of approximately $43.58 billion, and all 25 analyst revisions over the past 90 days have been upward.

Micron's next earnings release is scheduled for September 29, 2026, arriving at roughly the same moment HBM contract negotiations are expected to heat up, compressing two major potential catalysts into a narrow window.