TLDR
- Micron shares dropped about 2% in premarket trading Monday, falling to roughly $1,056.
- The decline tracked a broader chip sector pullback tied to rising bond yields and OpenAI’s weekend pause on training its newest AI models.
- Micron reports fiscal fourth-quarter earnings Wednesday, with revenue expected to jump nearly fivefold to $51.14 billion.
- Analysts at Baird, Wells Fargo, and Stifel remain bullish, citing tight DRAM and HBM supply heading into 2027.
- Micron stock has climbed nearly 590% over the past year, according to InvestingPro data.
Micron Technology stock slipped Monday morning, down about 2% to trade near $1,056. The drop came as the wider chip sector took a hit from rising bond yields.
A weekend statement from OpenAI added to the pressure. The ChatGPT maker said it would pause training of its latest AI models over safety concerns, spooking investors already nervous about an AI spending slowdown.
Micron has been a wild ride for shareholders lately. The stock has gained more than sixfold over the past 12 months, so any hint of an AI pullback tends to trigger quick profit-taking.
What’s Next for Micron
The company reports fiscal fourth-quarter results on Wednesday. Wall Street expects revenue to rise nearly fivefold to $51.14 billion.
Earnings per share are forecast to jump more than tenfold from a year ago. That would mark one of Micron’s strongest quarters on record.
Despite the recent gains, Micron trades at a forward price-to-earnings ratio of just 6.7 times, according to FactSet. That’s before factoring in stock buybacks, which could start as soon as December.
Daniel Morgan, a senior portfolio manager at Synovus Trust, says the memory market still has room to run. He noted that DRAM and NAND supply should stay tight into fiscal 2027, with real supply relief not expected until fiscal 2028.
Morgan pointed out that Micron is still only fulfilling less than half of the volume its data center customers are requesting. That’s a sign demand is far outpacing what the company can currently produce.
Analysts Weigh In
Baird raised its price target on Micron to $1,520 from $1,280, though it kept an Underperform rating on the stock. The firm cited a surge in agentic AI demand, slowing DRAM bit growth industry-wide for 2027, and better margins expected for high-bandwidth memory next year.
Baird expects industry-wide AI CPU unit growth of about 40% in 2027. The firm also raised its DRAM pricing assumptions for the second half of 2026.
Total DRAM bit growth is now expected to top 30% in 2026 before slowing to 20% in 2027, including HBM. HBM itself is projected to grow around 60% year-over-year, with shortages likely to continue into 2027.
Server unit growth is expected to speed up too, moving from 18-19% this year to 20-22% next year. Meanwhile, Chinese memory maker CXMT’s bit growth of 45% this year is expected to cool sharply in 2027.
Other banks are also sticking with their bullish calls. JPMorgan expects Micron’s revenue, gross margin, and earnings per share to beat consensus estimates of $51.4 billion, 86.2%, and $31.73 per share.
UBS reiterated a Buy rating, pointing to a widening gap between DRAM supply and demand. The bank sees server and storage SSD bit demand potentially growing more than 100% year-over-year by 2027.
Wells Fargo kept its Overweight rating while raising its price target to $1,400. The bank also lifted its revenue and earnings forecasts for fiscal 2027 and 2028.
Stifel reiterated its Buy rating too, expecting Micron’s results and guidance to beat estimates. The firm noted that supply constraints could keep the upside more measured than some investors hope.
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