Micron Technology Shares Drop Amid Competitive Pressure
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 2h ago
0mins
Source: seekingalpha
- Increased Competitive Pressure: Micron Technology shares fell 1.99% to $391.70 on Monday afternoon as reports indicated Samsung is nearing Nvidia certification for its HBM4 AI memory chips, intensifying competition in the high-bandwidth memory market.
- Price Hike Expectations: Despite Samsung denying an 80% price increase across its memory products, reports suggest that Samsung and SK Hynix are planning to raise server memory prices by up to 70% due to surging AI demand straining global supply.
- Analyst Ratings Remain Positive: According to Seeking Alpha's QuantRating system, Micron is rated Strong Buy with a score of 4.99 out of 5, achieving A+ grades in growth, profitability, and momentum, indicating strong market performance.
- Positive Future Outlook: Analysts noted that Micron is well-positioned in a “super-upcycle driven by AI demand,” with plans to increase fiscal 2026 CapEx to about $20 billion to expand HBM and DRAM supply, suggesting the stock remains undervalued.
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: 399.650
Low
235.00
Averages
336.12
High
500.00
Current: 399.650
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.
