Micron’s stock (MU) is finally getting some action. Shares fell about 4% to roughly $161.70 after closing at a record $168.89 on Thursday. The slide puts a likely end to a 12-session rally that added 43% and marked Micron’s best 12-day stretch since March 2009. Pullbacks after a sprint like that are normal, even when the story is still improving.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
There was no single catalyst behind the two-week surge. Momentum, better pricing for memory, and rising AI infrastructure demand have been the backdrop. Today’s dip does not change that picture by itself. It does, however, reset expectations before a closely watched earnings report on Tuesday.
Wall Street Raises Targets Before Earnings
Wedbush kept its Outperform rating and raised its price target to $200 from $165. The team cited a clear pickup in orders from cloud-service providers in recent weeks. In their words, “this change should shift expectations moving forward substantially.” This is a strong signal that demand is broadening beyond the usual AI leaders and into the storage layer where Micron lives.
Barclays’ (BCS) Thomas O’Malley also reiterated Outperform and lifted its target to $175 from $140. The firm expects results modestly ahead of guidance and a meaningfully stronger outlook for the quarters ahead. The combination of higher targets and steady ratings tells you the Street sees room for earnings power to step up, even after the stock’s run.
Cloud Buyers Drive the Bull Case
Wedbush flagged an “unexpected uptick” in memory demand from cloud players over the past few weeks. This includes DRAM and NAND tied to AI training, inference, and data-heavy workloads. When hyperscalers scramble for capacity, pricing and utilization usually follow. This is where Micron can gain operating leverage fast.
Barclays suggested part of the NAND spike may be tied to “large procurement efforts last week” in Silicon Valley. Even if some of it is timing, concentrated buying can still tighten supply and firm up pricing. Micron benefits in either case. If the demand is sticky, estimates move higher. If it is a one-off, it still improves near-term mix and margins.
Traders Weigh Heat vs. Support for Micron Stock
A 43% two-week climb leaves any stock hot. Short-term traders will now focus on how Micron trades around the mid-$160s after today’s drop. The prior record close at $168.89 is a clear reference point. Holding most of the recent gains into earnings would signal buyers remain in control.
Fundamentals now take the wheel. The Street expects a cleaner revenue path as AI servers roll out and as memory pricing continues to heal. If guidance confirms stronger demand and firmer pricing, the recent rally can reset rather than unravel. If the outlook is mixed, the stock has room to consolidate after such a sharp move.
Micron Faces a Familiar Test
Micron lives in a cyclical lane. This means the key test is always the same. Is demand improving faster than supply, and is pricing firming faster than costs? Wedbush and Barclays both leaned yes this morning. They lifted targets because the order book looks better and because AI build-outs keep expanding the total addressable market for high-bandwidth memory and NAND.
Today’s pullback does not erase the setup. It just puts more weight on Tuesday’s print. If management confirms stronger cloud orders and sticks to a confident pricing message, bulls will argue the run has more fuel. If not, the stock has a cushion after twelve straight green days.
Is Micron Stock a Good Buy?
Micron stock has a consensus Strong Buy rating among 29 Wall Street analysts. This rating is based on 25 Buy and four Hold recommendations assigned in the last three months. The average MU price target of $157.33 implies 2% upside from current levels.
