Micron Technology (MU) stock was trading around $865–$886 in premarket Thursday after an 8% loss the previous session. The stock has now fallen around 20% over the past month, though it remains up nearly 700% over the past 12 months.
Three separate forces are hitting Micron at once, and they’re feeding off each other.
The first blow came from ASML. The Dutch chip equipment maker said Wednesday that its extreme ultraviolet lithography machines can produce memory chips more efficiently. SK Hynix and Samsung are both planning to use the next generation of these machines. Any improvement in memory chip supply capacity is enough to spook investors in a stock trading at these levels.
The second hit came from a Reuters report. The report said CoreWeave was exploring financial tools to protect itself against a future drop in memory and storage prices. CoreWeave declined to comment, and most analysts still expect memory prices to rise through at least 2027. But even the suggestion that industry insiders are thinking about a price reversal was enough to trigger selling.
The third factor is structural. Leveraged ETFs — which use derivatives to amplify daily stock moves — have become a major force in memory-chip stocks. When the stock falls, these funds amplify the drop. They also must rebalance their holdings daily to maintain their leverage ratio, creating a compounding drag.
J.P. Morgan analyst Nikolaos Panigirtzoglou noted Wednesday that assets under management in leveraged memory ETFs have shrunk 34% since June, compared with 13% across all leveraged equity ETFs. He added that leveraged memory ETF assets represent three times the proportion of market cap compared to the broader equity ETF universe.
On the technical side, Micron is trading 14.9% below its 20-day moving average and 4% below its 50-day average. A key support level sits near $854.50.
Not everyone is heading for the exits. Alger Executive Vice President Ankur Crawford said Wednesday that if she were buying one stock right now, it would be Micron. Speaking on CNBC, she said the company could generate cash flow equal to roughly 30% of its current market cap over the next 18 months.
Crawford argued that investors are too early in calling a cycle peak and that supply constraints could keep earnings growing into 2027 or 2028.
Wall Street still expects Micron to report earnings of $31.24 per share when it reports around September 22 — up from $3.03 a year earlier. Revenue is projected at $50.72 billion, versus $11.31 billion in the year-ago quarter.
KeyBanc raised its price target to $1,750 on July 14, maintaining an Overweight rating. Cantor Fitzgerald holds a $2,000 target, also Overweight.
The consensus Buy rating and $1,548.86 average price target remain in place as of Thursday morning.
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