TLDR
- Micron (MU) closed Friday at $778.31, down 2.52%.
- The stock is down more than 18% in a month and about 40% since late June.
- Revenue rose about 4.8 times to $54.2 billion, and the stock trades at 4.2 times forward earnings.
- Bernstein and Citi both hold Buy ratings with $1,300 price targets.
- The average Wall Street target is $1,624, implying about 109% upside.
Micron (MU) stock closed Friday at $778.31, down $20.13 or 2.52%. The day’s range ran from $750.25 to $796.18.
That puts the market value near $880.6 billion. Trading volume came in at 27.9 million, close to the 27.7 million average.
The stock has dropped more than 18% over the past month. It is also down about 40% since late June.
The stock is still up more than 150% this year, not bad for a slump. Its 52-week range runs from $192.59 to $1,255.
What Is Weighing on the Stock
Worries about the AI trade have driven much of the selling. Competition from international memory chip makers is part of the concern too.
Some investors fear a slower AI infrastructure buildout after the Democratic Party’s midterm election win. Others are watching Nvidia (NVDA), where Jensen Huang has left the CEO role.
Nvidia fell 2.01% on Friday as well.
The Numbers Behind the Stock
Revenue rose about 4.8 times from a year ago to $54.2 billion in the quarter ending Sept. 3. GAAP earnings grew 11.8 times over the same stretch.
The stock now trades at 4.2 times forward earnings. Gross margin stands at 80.71%.
COO Manish Bhatia said on the fiscal fourth-quarter call that demand drivers are stronger than any seen before. He added that more than 75% of fiscal 2027 shipments are already committed.
CEO Sanjay Mehrotra expects memory supply and demand to be “much tighter” in fiscal 2027 and 2028 than in 2026. He has also pointed to humanoid robots as a possible multi-decade demand cycle later this decade.
Bernstein’s Mark Li reiterated a Buy rating with a $1,300 price target. He said October DRAM contract prices rose from September and point to an 8.3% jump for the fourth quarter.
Li said NAND wafer prices were flat in October. He expects enterprise SSD prices to rise about 20%, lifting NAND prices 15% for the quarter.
For 2027, Li expects shortages to continue but with smaller price increases. Long-term agreements put caps on how high prices can go.
Citi’s Atif Malik also holds a Buy rating and a $1,300 target. He expects HBM and advanced memory supply to stay tight through 2027 and 2028.
Wall Street’s consensus rating is Strong Buy, with 28 Buys and one Hold, according to TipRanks. The average price target of $1,624 implies about 109% upside from here.
