Micron Technology (MU) stock was down 4% to $900.50 in premarket trading Wednesday, extending Tuesday’s 4.7% loss that pushed the stock into a technical bear market — defined as a drop of more than 20% from its recent closing high.
The sell-off follows President Donald Trump’s announcement early Wednesday that the U.S.-Iran cease-fire was “over,” which sent oil prices climbing and reignited concerns about inflation and potential interest rate hikes.
Those rate fears hit AI-linked stocks hard, as higher borrowing costs could slow spending on AI infrastructure — a key driver of demand for Micron’s memory chips.
Micron isn’t alone in feeling the pressure. South Korean chipmakers Samsung Electronics and SK Hynix both fell close to 6% Wednesday, reflecting the same macro headwinds across the memory chip sector.
Despite the drop, Wall Street isn’t panicking. The average analyst price target for MU sits at roughly $1,576, according to FactSet — nearly double where the stock is trading now.
Morgan Stanley analyst Shawn Kim addressed the sell-off directly in a research note this week, writing that the price reset “does not mean the cycle is over.” He pointed out there have been three similar resets since generative AI launched in the fall of 2022.
Micron’s underlying business remains strong. Revenue has gone from $23.9 billion two quarters ago to $41.5 billion last quarter, with the next quarter projected around $50 billion.
The company also told investors it expects market tightness in memory chips to continue beyond 2027 — meaning there are still multiple quarters of growth potentially ahead.
Wall Street analysts forecast earnings per share of $152.62 in fiscal year 2027 and $165.94 in fiscal year 2028. If MU trades at 25 times earnings in 2028, that puts the stock around $4,150 per share — a roughly 4x return from today’s levels.
That’s a solid outlook, even if it falls short of lottery-ticket territory. The stock is still up around 225% year-to-date in 2026, making it the second-best performer in the S&P 500 this year.
The real test, according to Morgan Stanley’s Kim, is the upcoming earnings season. The question is whether hyperscale tech companies hold or raise their capital expenditure guidance.
If they do, Kim wrote that current memory stock levels would represent a “good entry point.”
Adding some weight to the bull case: Amazon said Wednesday it plans to issue at least $25 billion in debt — a sign that Big Tech appetite for AI infrastructure spending hasn’t cooled.
Micron’s 52-week range sits between $103.38 and $1,255.00. The stock is currently trading at $933.10.
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