Micron Stock Falls Amid Broader Market Weakness
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jul 25 2024
0mins
Should l Buy MU?
Source: Yahoo Finance
Micron Technology Inc (MU) saw a significant decline of 5.01% as it crossed below its 5-day SMA, reflecting a challenging trading environment.
The stock's drop comes amid broader market weakness, with the Nasdaq-100 down 1.84% and the S&P 500 down 1.06%. Despite positive sentiment surrounding the semiconductor sector, Micron's performance was negatively impacted by the overall market trend. Analysts have noted that while there is optimism regarding future demand for DRAM products, the current market conditions have led to a sell-off in tech stocks.
This decline raises concerns about Micron's short-term performance, especially as it navigates through a volatile market. Investors will be closely monitoring upcoming earnings reports and market developments to gauge the company's resilience in the face of external pressures.
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Analyst Views on MU
Wall Street analysts forecast MU stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for MU is 336.12 USD with a low forecast of 235.00 USD and a high forecast of 500.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
26 Analyst Rating
24 Buy
2 Hold
0 Sell
Strong Buy
Current: 382.890
Low
235.00
Averages
336.12
High
500.00
Current: 382.890
Low
235.00
Averages
336.12
High
500.00
About MU
Micron Technology, Inc. provides memory and storage solutions. The Company delivers a portfolio of high-performance dynamic random-access memory (DRAM), NAND, and NOR memory and storage products through its Micron and Crucial brands. The Company's products enable advancing in artificial intelligence (AI) and compute-intensive applications. Its segments include Compute and Networking Business Unit (CNBU), Mobile Business Unit (MBU), Embedded Business Unit (EBU), and Storage Business Unit (SBU). CNBU segment includes memory products and solutions sold into the data center, PC, graphics, and networking markets. MBU segment includes memory and storage products sold into the smartphone and other mobile-device markets. EBU segment includes memory and storage products and solutions sold into the intelligent edge through the automotive, industrial, and consumer embedded markets. SBU segment includes SSDs and component-level storage solutions sold into the data center, PC, and consumer markets.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Strong Market Demand: Driven by applications such as data centers, smartphones, and personal computers, demand for memory chips is outpacing supply, leading to significant price increases; Gartner predicts a 47% rise in DRAM prices, which will directly boost Micron's revenue growth.
- Earnings Expectations Raised: Micron reported earnings of $8.29 per share in fiscal 2025, with projections indicating a more than 5-fold increase in earnings over the next two years, reflecting analysts' heightened confidence in its future growth.
- Valuation Advantage: Currently trading at a price-to-earnings ratio of 13, significantly lower than the Nasdaq-100 index, indicating that Micron's growth potential is not fully priced into its stock, suggesting further upside.
- Significant Price Potential: If Micron achieves earnings of $43.54 per share by the end of fiscal 2027, trading at a 20 times earnings multiple could see its stock price reach $871, nearly double its current price, highlighting strong growth prospects.
See More
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- Surging Memory Demand: Micron dominates in high-bandwidth memory (HBM), dynamic random access memory (DRAM), and NAND chips, with forecasts indicating the memory market could grow to $100 billion by 2028, highlighting the accelerating demand for memory chips.
- Capital Expenditure Driving Price Increases: With big tech expected to spend over $500 billion on AI infrastructure, shortages in HBM solutions are anticipated, with TrendForce research suggesting DRAM and NAND prices could soar by 60% and 38%, respectively, in Q1 alone.
- Attractive Valuation: Micron currently trades at a forward P/E ratio of 12, significantly lower than other leaders in the AI chip market, and combined with the multi-year supercycle for HBM chips, this indicates strong investment potential for Micron stock.
See More
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- Massive Market Potential: According to Bloomberg Intelligence, the total addressable market for AI accelerators is expected to grow at a 16% CAGR through 2033, reaching $604 billion, providing strong market support for Micron Technology.
- Surging Memory Demand: Micron's management forecasts the memory market will grow from $35 billion in 2025 to $100 billion by 2028, indicating that demand for memory chips is accelerating at a pace far exceeding that of the GPU market.
- Rising Prices Driven by Capex: With hyperscalers' capital expenditure budgets increasing, big tech is expected to spend over $500 billion on AI infrastructure this year, leading to shortages in HBM solutions, with DRAM and NAND prices potentially soaring by 60% and 38% respectively in Q1.
- Attractive Valuation: Micron currently trades at a forward P/E ratio of 12, significantly lower than other leaders in the AI chip market, and combined with the multi-year supercycle for HBM chips, this suggests strong investment value, positioning Micron as a potential
See More
Micron Technology Emerges as a Contender in AI Chip Market
- Massive Market Potential: According to Bloomberg Intelligence, the total addressable market for AI accelerators is expected to grow at a 16% CAGR through 2033, reaching $604 billion, providing strong market support for Micron Technology.
- Surging Memory Demand: Micron's management forecasts that the memory market will grow from $35 billion in 2025 to $100 billion by 2028, indicating a much faster acceleration in demand for memory chips compared to the GPU market.
- Capex Driving Price Increases: Big tech is expected to spend over $500 billion on AI infrastructure this year, leading to shortages in high-bandwidth memory (HBM) solutions, with TrendForce research suggesting DRAM and NAND chip prices could soar by 60% and 38%, respectively, in Q1 alone.
- Significant Valuation Appeal: Micron currently trades at a forward P/E ratio of 12, significantly lower than other AI chip leaders, and combined with strong market trends, this gives investors confidence in its future performance.
See More
Micron Technology's Journey to AI Leadership
- Foundational Origins: Micron Technology was founded in 1978, initially operating from a basement in a dental office in Boise, Idaho, with its first contract to design a 64-kilobit memory chip, establishing a solid foundation for its semiconductor design business.
- Technological Advancements: By 1981, Micron built a new semiconductor fabrication plant, and its 64K dynamic random access memory (DRAM) quickly became a popular product in early personal computers, driving growth in the PC industry.
- AI Evolution: The introduction of double-data-rate and quad-data-rate architectures in 1999 and 2000 significantly increased memory bandwidth, solidifying Micron's leadership position in AI by addressing the needs of data-intensive operations.
- Global Expansion: With 60,000 patents to its name, Micron's expansion of global manufacturing facilities allows it to meet the demands of AI hyperscalers, and despite navigating market fluctuations, its success in the memory chip industry remains significant.
See More
Micron Technology's Growth Journey and AI Opportunities
- Foundational Origins: Micron Technology was founded in 1978, initially operating out of a dental office in Boise, Idaho, with the goal of designing a 64-kilobit memory chip, successfully establishing a semiconductor fabrication plant by 1981, which laid the groundwork for its dominance in the memory chip industry.
- Technological Advancements: In 1999 and 2000, Micron introduced double-data-rate and quad-data-rate architectures, significantly enhancing memory bandwidth, which bolstered the application of its products in data-intensive operations and further solidified its industry leadership.
- Patent Portfolio: With 60,000 patents to its name, Micron's intellectual property serves as a robust asset in meeting the demands of AI hyperscalers, showcasing its competitive edge in the global market.
- Market Challenges: Despite the seemingly smooth success story, Micron's ability to navigate the fluctuations in memory chip demand and its resilience have been crucial for long-term success, as the company continues to face both challenges and opportunities in the market.
See More
Micron Technology Stock Surges 239% with Continued Growth Potential
- Strong Market Demand: Driven by applications such as data centers, smartphones, and personal computers, demand for memory chips is outpacing supply, leading to significant price increases; Gartner predicts a 47% rise in DRAM prices, which will directly boost Micron's revenue growth.
- Earnings Expectations Raised: Micron reported earnings of $8.29 per share in fiscal 2025, with projections indicating a more than 5-fold increase in earnings over the next two years, reflecting analysts' heightened confidence in its future growth.
- Valuation Advantage: Currently trading at a price-to-earnings ratio of 13, significantly lower than the Nasdaq-100 index, indicating that Micron's growth potential is not fully priced into its stock, suggesting further upside.
- Significant Price Potential: If Micron achieves earnings of $43.54 per share by the end of fiscal 2027, trading at a 20 times earnings multiple could see its stock price reach $871, nearly double its current price, highlighting strong growth prospects.
See More
Micron Technology Emerges as Wall Street's New AI Chip Favorite
- Massive Market Potential: According to Bloomberg Intelligence, the total addressable market for AI accelerators is expected to grow at a 16% CAGR, reaching $604 billion by 2033, providing strong market support for Micron Technology.
- Surging Memory Demand: Micron dominates in high-bandwidth memory (HBM), dynamic random access memory (DRAM), and NAND chips, with forecasts indicating the memory market could grow to $100 billion by 2028, highlighting the accelerating demand for memory chips.
- Capital Expenditure Driving Price Increases: With big tech expected to spend over $500 billion on AI infrastructure, shortages in HBM solutions are anticipated, with TrendForce research suggesting DRAM and NAND prices could soar by 60% and 38%, respectively, in Q1 alone.
- Attractive Valuation: Micron currently trades at a forward P/E ratio of 12, significantly lower than other leaders in the AI chip market, and combined with the multi-year supercycle for HBM chips, this indicates strong investment potential for Micron stock.
See More
Micron Technology: The New Favorite AI Chip Stock
- Massive Market Potential: According to Bloomberg Intelligence, the total addressable market for AI accelerators is expected to grow at a 16% CAGR through 2033, reaching $604 billion, providing strong market support for Micron Technology.
- Surging Memory Demand: Micron's management forecasts the memory market will grow from $35 billion in 2025 to $100 billion by 2028, indicating that demand for memory chips is accelerating at a pace far exceeding that of the GPU market.
- Rising Prices Driven by Capex: With hyperscalers' capital expenditure budgets increasing, big tech is expected to spend over $500 billion on AI infrastructure this year, leading to shortages in HBM solutions, with DRAM and NAND prices potentially soaring by 60% and 38% respectively in Q1.
- Attractive Valuation: Micron currently trades at a forward P/E ratio of 12, significantly lower than other leaders in the AI chip market, and combined with the multi-year supercycle for HBM chips, this suggests strong investment value, positioning Micron as a potential
See More
Micron Technology Emerges as a Contender in AI Chip Market
- Massive Market Potential: According to Bloomberg Intelligence, the total addressable market for AI accelerators is expected to grow at a 16% CAGR through 2033, reaching $604 billion, providing strong market support for Micron Technology.
- Surging Memory Demand: Micron's management forecasts that the memory market will grow from $35 billion in 2025 to $100 billion by 2028, indicating a much faster acceleration in demand for memory chips compared to the GPU market.
- Capex Driving Price Increases: Big tech is expected to spend over $500 billion on AI infrastructure this year, leading to shortages in high-bandwidth memory (HBM) solutions, with TrendForce research suggesting DRAM and NAND chip prices could soar by 60% and 38%, respectively, in Q1 alone.
- Significant Valuation Appeal: Micron currently trades at a forward P/E ratio of 12, significantly lower than other AI chip leaders, and combined with strong market trends, this gives investors confidence in its future performance.
See More
Micron Technology's Journey to AI Leadership
- Foundational Origins: Micron Technology was founded in 1978, initially operating from a basement in a dental office in Boise, Idaho, with its first contract to design a 64-kilobit memory chip, establishing a solid foundation for its semiconductor design business.
- Technological Advancements: By 1981, Micron built a new semiconductor fabrication plant, and its 64K dynamic random access memory (DRAM) quickly became a popular product in early personal computers, driving growth in the PC industry.
- AI Evolution: The introduction of double-data-rate and quad-data-rate architectures in 1999 and 2000 significantly increased memory bandwidth, solidifying Micron's leadership position in AI by addressing the needs of data-intensive operations.
- Global Expansion: With 60,000 patents to its name, Micron's expansion of global manufacturing facilities allows it to meet the demands of AI hyperscalers, and despite navigating market fluctuations, its success in the memory chip industry remains significant.
See More
Micron Technology's Growth Journey and AI Opportunities
- Foundational Origins: Micron Technology was founded in 1978, initially operating out of a dental office in Boise, Idaho, with the goal of designing a 64-kilobit memory chip, successfully establishing a semiconductor fabrication plant by 1981, which laid the groundwork for its dominance in the memory chip industry.
- Technological Advancements: In 1999 and 2000, Micron introduced double-data-rate and quad-data-rate architectures, significantly enhancing memory bandwidth, which bolstered the application of its products in data-intensive operations and further solidified its industry leadership.
- Patent Portfolio: With 60,000 patents to its name, Micron's intellectual property serves as a robust asset in meeting the demands of AI hyperscalers, showcasing its competitive edge in the global market.
- Market Challenges: Despite the seemingly smooth success story, Micron's ability to navigate the fluctuations in memory chip demand and its resilience have been crucial for long-term success, as the company continues to face both challenges and opportunities in the market.
See More
