Market Reaction
Micron Technology (NASDAQ:MU) experienced a 3% slump during pre-market trading post a double whammy of a downgrade and price target cuts, signaling stormy weather ahead. This dip followed a promising 4.4% uptick just a day prior, highlighting the notorious volatility of the stock market.
Analyst Assessments
Raymond James took a cautious stance by snipping Micron’s price target from $160 to $125, although maintaining an Outperform rating on the stock. The caution stemmed from concerns over a transient slowdown in the non-high-bandwidth memory markets, painting a hiccup rather than a full-blown crisis in this narrative.
Onwards and Upwards
Despite the temporary setbacks, Raymond James anticipates a revival in the DRAM upcycle echoing into the latter half of 2025. The firm seems reassured by the persistent robust demand in the Data Center sector propelled by High Bandwidth Memory (HBM) and the surge in on-device Artificial Intelligence that continues to fuel the content appetite in smartphones.
Contrasting Views
Conversely, BNP Paribas Exane took a more bearish view by downgrading Micron from Outperform to Underperform and nearly halving the price target to $67 from $140. Karl Ackerman of BNP Paribas painted a gloomy picture, predicting a continuation of Micron’s underperformance streak, catalyzed by a recent descent from a year-to-date peak of $153 in mid-June.
Market Sentiment
While some dark clouds loom on the horizon, a ray of optimism infiltrates the scene as many analysts hold a bullish outlook on Micron’s prospects. Citi Research goes as far as tagging Micron as a ‘top pick’, citing burgeoning DRAM pricing that is projected to surge by 66% year-over-year in 2024 and by 14% in 2025.
Analyst Consensus
Even though the road ahead may present twists and turns, Seeking Alpha and Wall Street analysts continue to root for Micron, granting it Buy and Strong Buy ratings respectively. Seeking Alpha’s Quant system, known for its market-forecasting prowess, echoes this sentiment by providing a Buy rating of its own, signaling optimism amidst the market tumult.