Since its early-August swoon, semiconductor giant Micron Technology Inc. (NASDAQ:$MU) has been slowly but surely recovering. Indeed, Micron stock has just hit its 2 year high since early 2015.

To say the least, Micron stock has seen its fair share of highs and lows in the past few years. Starting in late 2012, Micron stock jumped from $6 to $36+ in just over two years. Eighteen months later, MU stock plundered back below $10. This entire year, MU stock has been in the mid single digits. Naturally, investors are worried that another dip is coming at some point.

Where’s most of the uncertainty coming from? Well, the DRAM and NAND market pricing fluctuation is the undeniably the driving factor.

Another most obvious near-term fear is that Micron earrings are going to peak prior to the stock plunging. Micron’s Q317 earnings release was a blowout report. EPS of $1.62 reflected a shocking reversal from a modest loss the year before.

However, the peak in Micron earnings should realistically not happen until its fiscal Q1 report near the end of the year, if it happens at all. This is because pricing will continue to increase in the DRAM market, rendering supplies to be tight at least through the end of the year. Further, solid-state drive pricing is also rising, which benefits Micron.

Both the solid-state and DRAM markets appear relatively healthy, even if early-year shortages appear to have been resolved-somewhat. More capacity is coming, including from Micron, but won’t arrive until next year. While that cycle will turn against Micron at some point, it is not on the immediate horizon.

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