Why Micron Stock Is Sinking Today

Core Viewpoint - Micron Technology's stock is experiencing a significant decline, attributed to two major price-target cuts from analysts, with shares down approximately 43% from earlier highs this year [1][2][3] Analyst Ratings and Price Targets - Raymond James maintained an outperform rating but reduced its one-year price target from $160 to $125, citing lower sales volume growth in non-HBM DRAM and NAND markets as a reason for the cut [2] - Exane BNP Paribas downgraded its rating from outperform to underperform and slashed its price target from $140 to $67, expressing concerns that HBM supply will diminish pricing power for DRAM solutions [3] Market Outlook and Investor Sentiment - The stock had previously surged in early 2024 due to expectations of sustained growth from artificial intelligence trends, but investor confidence is wavering regarding the strength of these tailwinds [4] - Raymond James analysts believe the long-term growth outlook for HBM solutions justifies a higher valuation for Micron, while BNP Paribas forecasts earnings targets for 2025 and 2026 that are 34% and 45% below average analyst estimates, respectively [5] Industry Challenges - The contrasting views from Raymond James and BNP Paribas highlight the challenges in forecasting the memory chip market, with bullish investors hoping for strong growth driven by AI technologies, while concerns about product cannibalization and performance expectations persist [6]