Why Micron Stock Dropped Again Tuesday

Core Viewpoint - Micron Technology's stock has experienced a decline despite positive recommendations from analysts, indicating potential investor skepticism about the company's future performance [1][2]. Group 1: Analyst Recommendations - TD Cowen set a price target of $600 for Micron, predicting a 55% profit and earnings of up to $60 per share due to favorable market conditions in DRAM [2]. - Deutsche Bank analyst Melissa Weathers also recommended Micron, citing "unprecedented" tight supplies of DRAM and high demand for DRAM and HBM, which could lead to higher prices and profits for the company [5]. - Weathers forecasts Micron to earn $46.50 this year and values the stock at $500, suggesting a valuation of 11 times earnings [6]. Group 2: Market Risks - Despite the positive outlook, there are concerns about potential supply increases from competitors, particularly Samsung, which could negatively impact memory pricing and Micron's profitability [7]. - The semiconductor industry remains cyclical, and even with a valuation of 12 times earnings, Micron's stock carries inherent risks [7]. Group 3: Investment Considerations - The Motley Fool Stock Advisor has identified 10 stocks as better investment opportunities than Micron, suggesting that investors should consider alternatives [8].