Why Micron Stock Plummeted This Week

Core Viewpoint - Micron's stock experienced a significant decline of 16% this week, despite a major investment firm becoming increasingly bullish on the stock, raising its price target substantially [1][2][7]. Market Performance - The pullback in Micron's stock occurred alongside a 2% drop in the S&P 500 and a 2.7% drop in the Nasdaq Composite [2]. - The decline was influenced by a broader market sentiment regarding AI stocks and shifting expectations about the Federal Reserve's interest rate decisions [3]. Company-Specific Developments - Nvidia's third-quarter results initially boosted Micron and other AI stocks, but investor sentiment turned bearish later in the session [4]. - UBS maintained a buy rating on Micron and raised its price target from $245 to $275, citing favorable demand trends for Micron's high-bandwidth-memory (HBM) solutions driven by the rise of AI data centers [7].