Business

Micron Stock Plunges After Company Cuts Outlook, Analysts Raise Concerns

12/20/2024

David Paul Morris / Bloomberg by way of Getty Images

David Paul Morris / Bloomberg via Getty Images — David Paul Morris / Bloomberg by way of Getty Images

Micron Technology shares tanked Thursday after the chipmaker warned about near-term demand points.
Bank of America analysts lowered their score on Micron’s inventory and minimize their value goal, whereas Citi lowered its estimates for Micron’s fiscal 2025 and 2026 earnings and income.
The shares just lately traded round their lowest ranges since September.

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, effectively under estimates. The firm pointed to a weaker-than-expected PC alternative 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 under $88—round their lowest degree since September—making the inventory one of many prime decliners within the S&P 500 in latest buying and selling.

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

Citi maintained its “purchase” score and value goal of $150 on Thursday, however lowered its personal estimates for revenue and gross sales over the following 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 notice to purchasers 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” score and $125 value goal.