TLDR
- Micron (MU) stock dropped ~8% Wednesday and fell a further 4.4% in premarket Thursday, trading around $865
- ASML said its EUV machines can produce memory chips more efficiently, boosting rivals SK Hynix and Samsung
- Reports that CoreWeave explored hedging against a drop in memory prices rattled investor sentiment
- Leveraged ETFs are amplifying Micron’s downward moves, with memory-stock leveraged ETF assets shrinking 34% since June
- Despite the pullback, analysts maintain a consensus Buy rating with an average price target of $1,548.86
Micron Technology (MU) stock was trading around $865–$886 in premarket Thursday after an 8% loss the previous session. The stock has now fallen around 20% over the past month, though it remains up nearly 700% over the past 12 months.
Three separate forces are hitting Micron at once, and they’re feeding off each other.
The first blow came from ASML. The Dutch chip equipment maker said Wednesday that its extreme ultraviolet lithography machines can produce memory chips more efficiently. SK Hynix and Samsung are both planning to use the next generation of these machines. Any improvement in memory chip supply capacity is enough to spook investors in a stock trading at these levels.
The second hit came from a Reuters report. The report said CoreWeave was exploring financial tools to protect itself against a future drop in memory and storage prices. CoreWeave declined to comment, and most analysts still expect memory prices to rise through at least 2027. But even the suggestion that industry insiders are thinking about a price reversal was enough to trigger selling.
Leveraged ETFs Making the Drop Worse
The third factor is structural. Leveraged ETFs — which use derivatives to amplify daily stock moves — have become a major force in memory-chip stocks. When the stock falls, these funds amplify the drop. They also must rebalance their holdings daily to maintain their leverage ratio, creating a compounding drag.
J.P. Morgan analyst Nikolaos Panigirtzoglou noted Wednesday that assets under management in leveraged memory ETFs have shrunk 34% since June, compared with 13% across all leveraged equity ETFs. He added that leveraged memory ETF assets represent three times the proportion of market cap compared to the broader equity ETF universe.
On the technical side, Micron is trading 14.9% below its 20-day moving average and 4% below its 50-day average. A key support level sits near $854.50.
One Fund Manager Is Still Buying
Not everyone is heading for the exits. Alger Executive Vice President Ankur Crawford said Wednesday that if she were buying one stock right now, it would be Micron. Speaking on CNBC, she said the company could generate cash flow equal to roughly 30% of its current market cap over the next 18 months.
Crawford argued that investors are too early in calling a cycle peak and that supply constraints could keep earnings growing into 2027 or 2028.
Wall Street still expects Micron to report earnings of $31.24 per share when it reports around September 22 — up from $3.03 a year earlier. Revenue is projected at $50.72 billion, versus $11.31 billion in the year-ago quarter.
KeyBanc raised its price target to $1,750 on July 14, maintaining an Overweight rating. Cantor Fitzgerald holds a $2,000 target, also Overweight.
The consensus Buy rating and $1,548.86 average price target remain in place as of Thursday morning.
Stop guessing and start investing with confidence. KnockoutStocks gives you the AI insights, market intelligence, and stock research you need to spot opportunities, cut through the noise, and make smarter investment decisions — all in one powerful platform.
Sign up today and get 50% OFF full access to our premium stock picks.
Simply use coupon code SPECIAL50 at checkout to claim your exclusive discount.
Get 3 Free Stock Ebooks
Discover top-performing stocks in AI, Crypto, and Technology with expert analysis.
- Top 10 AI Stocks - Leading AI companies
- Top 10 Crypto Stocks - Blockchain leaders
- Top 10 Tech Stocks - Tech giants
