Wall Street Sees Plenty of Upside in Micron Despite the Recent Dip
24/7 Wall St. • • business
Key Points:
- Micron Technology's stock price has dropped about 15.5% in the past week due to fears sparked by Google's TurboQuant algorithm, which reduces memory usage in AI workloads and potentially lessens demand for memory chips.
- Despite the recent selloff, Wall Street analysts remain largely bullish, with 38 out of 43 rating Micron as Buy or Strong Buy and a consensus price target of $527.60, implying a 47% upside from the current price of $357.22.
- Micron's fundamentals remain strong, with record revenue growth, expanding gross margins, and sold-out supply for 2026, including mass production of HBM4 memory for Nvidia's AI platform.
- The main risk is that efficiency improvements from algorithms like TurboQuant could structurally reduce memory demand, potentially impacting Micron's capital-intensive business and future guidance.
- Overall, the recent stock decline appears to be an overreaction to sector-wide fear, presenting a compelling risk/reward opportunity given Micron's strong financial outlook and market position.
