Micron Stock Drops 7% as Analyst Warns Memory Price Peak Nears Sooner Than Expected
MU has more than doubled off its 52-week low of $96.96.
Summary
Micron Technology shares fell 7% in premarket trading after a Raymond James analyst projected that DRAM and NAND average selling prices (ASPs) will peak in mid-2026, significantly earlier than the prior consensus of mid-2027. This outlook suggests a potential slowdown in the memory-chip cycle, which is crucial for Micron's profitability, and contrasts with recent strong performance and positive market sentiment. The analyst noted that long-term pricing agreements should soften the impact, but the revised peak timing could lead to moderating ASP growth and margin degradation in the coming 1-2 years.
At the time of this announcement, MU was trading at $1,005.20 on NASDAQ in the Technology sector, with a market capitalization of approximately $1.2T. The 52-week trading range was $96.96 to $1,089.29. This news item was assessed with negative market sentiment and an importance score of 8 out of 10. Source: Dow Jones Newswires.