TLDR
- Micron closed Tuesday at $725.11, down 1.1%, and is off 36% since Oct. 1.
- KeyBanc’s John Vinh reiterated a $1,750 target, about 148% above Tuesday’s trading level.
- Goldman Sachs kept a $1,250 target and a Neutral rating.
- Micron is among seven firms buying $26 billion of Anthropic stock after its IPO.
- The stock edged 1.5% higher to $736 in Wednesday pre-market trading.
Micron (MU) stock closed Tuesday at $725.11, down 1.1%. At one point in the session, it was down 3.8% at $705.20.
That leaves the stock down 36% since Oct. 1. It has also lost more than 15% over the last five days.
KeyBanc analyst John Vinh is not backing away. He reiterated a $1,750 price target in a note on Monday.
That target implies about 148% upside from Tuesday’s trading level. Goldman Sachs sees a smaller gap.
Two Targets, One Big Gap
Goldman analyst James Schneider reiterated a $1,250 target on Tuesday and kept a Neutral rating. That implies roughly 70% upside.
Vinh builds his number by applying a price-to-earnings multiple of six times his fiscal 2028 earnings estimate. Micron now trades at just four times consensus fiscal 2027 earnings.
The three-year median for that measure is nine times. On that yardstick, the stock sits far below its own history.
Not everyone likes the PE argument. Skeptics say memory makers always look cheap at peak earnings, so the ratio can mislead.
Vinh and other bulls say the AI boom should keep earnings strong for at least another 18 months. Recent cloud data backs part of that case, with October growth of 2% from September and 12% from a year earlier.
Vinh called the numbers a “return to strong traditional server growth.” Last month, he named Micron one of his favorite chip ideas.
He also noted that fourth-quarter DRAM prices were expected to rise 15% to 20% from the prior quarter. Google was looking at extending long-term memory supply deals through 2035.
What Is Weighing on the Stock
The slide traces back to election fears. Investors worry that Democratic midterm wins could slow AI data center construction and cut demand for memory chips.
Micron also showed up in Anthropic’s updated IPO prospectus on Tuesday. It is one of seven tech firms that agreed to buy a combined $26 billion of Anthropic stock in a private placement right after the IPO.
Micron’s piece is $1 billion, the same as Broadcom and Microsoft. Nvidia and Alphabet are each in for $10 billion, AMD for $2.5 billion and TSMC Partners for $500 million.
Anthropic is expected to debut on Nov. 19. It is offering 825 million pieces of stock at $70 to $78 each, which could raise up to $64.35 billion at the high end.
Micron carries a market value of about $820.41 billion. Its 52-week range runs from $192.59 to $1,255, and the stock is up 186% over 12 months.
Its Relative Strength Index reads 35.82. On Wednesday, the stock edged 1.5% higher to $736 in pre-market trading.
