Micron Stock Plunges After Company Cuts Outlook, Analysts Raise Concerns

Micron Technology (MU) shares sank Thursday after the chipmaker warned about softness in consumer-oriented markets and a few analysts lowered their outlook for the corporate.

Micron stated late Wednesday that it sees current-quarter income of about $7.9 billion, nicely beneath estimates. The firm pointed to a weaker-than-expected PC substitute cycle, and slowing demand for its merchandise within the auto and industrial sector.

The information, together with bearish takes by a spread of Wall Street analysts, pulled the inventory down 16% just lately to beneath $88—round their lowest degree since September—making the inventory one of many prime decliners within the S&P 500 in current buying and selling.

Bank of America Securities downgraded the inventory to “impartial” from “purchase,” and lowered its value goal from to $110 from $125, beneath the Visible Alpha common round $129. The BofA analysts stated that Micron’s “weak point in PC and telephone markets are placing downward strain on reminiscence pricing,” particularly for its NAND flash-memory semiconductor. They added they anticipate gross margin to “keep weak in Q2 and even Q3.”

Citi maintained its “purchase” ranking and value goal of $150 on Thursday, however lowered its personal estimates for revenue and gross sales over the subsequent two years. Citi now sees fiscal-year 2025 earnings per share (EPS) of $6.75 and income of $34.6 billion, in contrast with a earlier forecast of $8.27 and $37.7 billion, respectively.

For 2026, Citi anticipates EPS of $13.31 and income at $45.0 billion. Its prior forecast was for an EPS of $15.49 and income of $45.5 billion.

Wedbush Securities wrote in a observe to shoppers Thursday that they see “brighter days forward for Micron.” They argued that the headwinds dealing with the corporate are solely “temporal.” Wedbush held its “outperform” ranking and $125 value goal.