TLDR
- Micron stock fell around 7% in premarket trading Thursday, hitting ~$999–$1,005 per stock.
- The drop was triggered partly by investor disappointment with Broadcom’s earnings, which weighed on the broader semiconductor sector.
- Raymond James analyst Karl Ackerman warns DRAM and NAND average selling prices could peak in mid-2026.
- Long-term pricing agreements are expected to cushion the blow of any price peak.
- Analysts remain broadly bullish — Morgan Stanley, Raymond James, and Susquehanna all raised price targets recently.
Micron Technology (MU) stock fell roughly 7% in premarket trading on Thursday, hitting around $999–$1,005, as weakness spread across the semiconductor sector following a muted reaction to Broadcom’s quarterly results.
Broadcom posted strong numbers, but investors were disappointed that the company didn’t raise its long-term AI revenue forecast above the existing $100 billion target for fiscal 2027. That was enough to spark profit-taking across the chip space, and Micron got caught in the crossfire.
It’s worth keeping some perspective here. Even after Thursday’s drop, Micron is still up around 916% over the past year. This is a stock that has been on a remarkable run.
Memory Price Peak on the Horizon
The more structural concern, though, comes from Raymond James analyst Karl Ackerman, who issued a note on Wednesday warning that DRAM and NAND average selling prices are likely to peak in mid-2026.
That’s earlier than much of Wall Street anticipated. Most analysts had pointed to mid-2027 as the earliest point where rising supply might cool demand driven by AI infrastructure spending.
A price peak in the memory-chip industry typically signals the beginning of a cyclical downturn — the kind that has historically hammered companies like Micron, SK Hynix, and Samsung Electronics.
Ackerman kept an Outperform rating on the stock, however, noting that long-term pricing agreements should help soften the impact this time around.
Micron’s forward price-to-earnings ratio has expanded sharply, moving from 4.4 times as recently as April to 11.7 times now, according to FactSet.
Ackerman wrote that this multiple “implies moderating contract ASP growth, margin degradation, and oversupply conditions looming in the next 1-2 years.”
That’s a fairly direct warning — but one that he thinks the market is already beginning to price in.
Earnings and Analyst Targets
Micron’s next major event is its earnings report, due June 24, 2026.
Wall Street is expecting earnings of $19.29 per stock, up from $1.91 a year ago. Revenue is projected at $33.88 billion, compared with $9.30 billion in the same period last year.
The stock currently trades at a P/E of 50.9 — a premium versus many semiconductor peers.
Despite Thursday’s selloff, the analyst community hasn’t blinked.
Morgan Stanley maintained an Overweight rating and raised its price target to $1,050 on June 3. Raymond James raised its target to $1,100 on June 1. Susquehanna went further, raising its target to $1,750 on May 29, with a Positive rating.
The consensus among analysts remains Buy, with an average price target of $827.61.
In premarket trading Thursday, Micron was down 7.38% at $999.86.
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