TLDR
- Micron stock fell nearly 4% in Thursday premarket trading, hitting $861.43
- The drop followed weak guidance from Western Digital and mixed results from SanDisk
- Apple CEO Tim Cook said memory costs will be “even higher” in the current quarter, a positive signal for Micron
- Wall Street expects Micron to earn $31.24 per share in its September earnings report, up from $3.03 a year ago
- Analysts maintain a consensus Buy rating with an average price target of $1,548.86
Micron Technology (MU) stock dropped close to 4% in Thursday premarket trading, hitting $861.43, as a broader selloff hit the memory chip sector.
The move lower came after Western Digital (WDC) fell 15% following disappointing guidance, and SanDisk (SNDK) dropped 9.4% after a mixed outlook overshadowed better-than-expected results. Those reports raised concerns about margin sustainability across the memory space and dragged sentiment down with them.
Seagate Technology (STX) also fell 3.82% in premarket action as the selloff spread across AI memory and storage names.
Despite the drop, the longer-term picture for Micron looks different. The stock sits 61.5% above its 200-day simple moving average of $528.27, suggesting the broader uptrend is still in place.
The RSI stood at 49.16, indicating neutral momentum. The stock is neither overbought nor oversold, pointing to consolidation rather than a trend break.
Key resistance sits near $1,012, while initial support is around $804, a level buyers have previously defended.
Tim Cook’s Comments Boost the Outlook
Apple CEO Tim Cook made headlines during Apple’s latest earnings call when he said Apple paid “significantly more” for memory in the June quarter than in March. He then added that costs will be “even higher” in the current quarter.
For Micron, one of only three major suppliers of DRAM and high-bandwidth memory (HBM), those comments are a direct positive. Higher costs for customers like Apple translate into higher average selling prices for producers.
Cook’s remarks suggest pricing pressure is not a short-term blip. With industry shortages expected to persist into 2027 and Micron’s capacity sold out under multiyear supply agreements, the supply-demand balance still favors the seller.
Micron stock had already tripled in the first half of 2026 before hitting an all-time high in late June. It then fell 26% from that peak. The current pullback, now partially recovered, looks more like profit-taking than a shift in fundamentals.
What Analysts Are Expecting
The next earnings report is scheduled for September 22, 2026. Wall Street expects earnings of $31.24 per share on revenue of $50.72 billion. That compares to $3.03 per share and $11.31 billion in revenue a year earlier.
The stock currently trades at about 20.2 times earnings.
KeyBanc raised its price target to $1,750 on July 14, maintaining an Overweight rating. Cantor Fitzgerald raised its target to $2,000 on June 29, also keeping an Overweight rating.
The consensus analyst price target stands at $1,548.86.
Micron also carries a Momentum score of 99.65 and a Quality score of 97.70 from Benzinga Edge rankings.
MU stock was down 3.56% at $861.43 in Thursday premarket trading.
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