Micron falls 5.5% after blockbuster earnings. Here’s what analysts say
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Blockbuster earnings weren’t enough to prevent a sharp decline Micron Technology shares in pre-market trading.
The chipmaker tripled its revenue in the latest quarter as results beat analysts’ estimates, but shares were expected to fall around 5.3% at the open at 7:02 a.m. ET.
Micron shares have soared more than 350% in the past year as memory shortages stem from rising demand for Nvidia’s AI chips.
Citi analysts chalked up the premarket move to “some profit-taking following a strong rally” and maintained a buy rating on the stock.
“We believe the big investor debate on the stock is whether the stock will continue to rise with rising DRAM prices, as it did during the Windows PC DRAM cycle in the 1990s,” they wrote.
Goldman analysts expect the stock to remain range-bound in the near term after “a very strong quarter with guidance that was well ahead of the Street, despite rising investor expectations.”
The bank maintains its rating on the stock at neutral, citing “the potential for HBM price momentum to slow in 2027, given expectations of meaningful supply additions.”
Micron isn’t the only tech company that’s seen recent stellar earnings fail to translate into meaningful share price movement.
Nvidia It reported a breakout quarter on Feb. 26, but its shares fell 5% on the day; This reflects investors’ wariness about recent big gains, as well as broader concerns about its lead in the AI race.
Despite the muted market reaction, several banks raised their price targets for Micron shares on Thursday morning. Wells Fargo updated its forecast to $550 per share from $470. Barclays raised its target to $670 from $450.
— CNBC’s Katie Tarasov and Jordan Novet also contributed to this report.
