TLDR
- Micron stock is down 12% over the past month, trading around $861-$863, well below its June peak of over $1,200.
- Mizuho reiterated an Outperform rating with a $1,375 price target, citing a tight memory market through 2027.
- Micron’s last quarter crushed estimates: EPS of $25.11 vs. $21.39 expected, with revenue up 345.8% year over year.
- 35 analysts rate MU a Strong Buy or Buy, with a consensus price target of $1,260.31.
- Insiders sold around $167.8 million worth of stock over the past 90 days.
Micron (MU) stock opened at $861.00 on Tuesday, down about 12% over the past month and well off its 52-week high of $1,255.00.
The drop has raised eyebrows, but Wall Street analysts largely aren’t flinching.
The stock hit a peak of over $1,200 in late June, right after the company posted one of the strongest quarters in its history. EPS came in at $25.11, blowing past the $21.39 consensus. Revenue hit $41.46 billion, up 345.8% year over year.
The company also set Q4 2026 guidance at $30.00-$32.00 EPS, signaling more growth ahead.
Despite that, the stock has drifted lower. The concern? Whether those sky-high margins can hold in a business known for boom-bust cycles.
Mizuho analyst Vijay Rakesh isn’t buying the pessimism. He reiterated an Outperform rating this week with a $1,375 price target after meeting with Micron executives.
Rakesh wrote that Micron sees the DRAM and NAND market staying tight well through 2027, with meaningful new supply not arriving until 2028.
He also argues that investors could grow more confident if Micron can hold gross margins above 80%, which he believes is possible given its new long-term supply agreements.
Analyst Targets and Ratings
The broader analyst community is largely on board. Raymond James raised its price target from $1,100 to $1,500. Wells Fargo bumped its target from $1,220 to $1,525. Needham went even higher, lifting its target from $1,550 to $1,650 with a Buy rating.
The consensus price target across 39 analysts sits at $1,260.31. Four have a Strong Buy rating, 31 have a Buy, and only three have a Hold.
At a forward P/E of under six times, some analysts see the current price as a discount.
Rakesh values the stock at 5.3 times his 2027 book value forecast. It currently trades at a forward price-to-book ratio of 3.4 times.
China Supply Concerns and Insider Sales
One cloud hanging over the stock is Chinese competition. Apple has reportedly lobbied to buy memory chips from China’s CXMT as it looks for supply alternatives.
Rakesh called the China concerns “overblown,” arguing CXMT will stay focused on domestic supply and lacks the capacity to move into high-bandwidth memory in any meaningful way.
On the institutional side, E. Ohman J or Asset Management increased its Micron position by 3.7% in Q2. Institutional investors overall hold 80.84% of the stock.
That said, insiders have been selling. Over the past 90 days, insiders sold 162,179 shares worth about $167.8 million. CEO Sanjay Mehrotra sold shares worth roughly $36 million in May at an average price of $960.38.
Micron’s 50-day moving average sits at $971.54, well above the current price, while its 200-day moving average is $664.13.
The company pays a quarterly dividend of $0.15 per share, representing a 0.1% yield.
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