Semiconductor company Micron Technology (MU) has just been added to Hedgeye’s active short list, with the firm now advising investors to lock in gains after a strong run. Indeed, Hedgeye analyst Felix Wang explained that the firm is flipping its view from long to short because Micron was one of the top-performing large-cap semiconductor stocks following the recent “Liberation Day” rally. As a result of the stock’s surge, Hedgeye believes now is a good time to take profits.
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A major reason for the downgrade is the rising competition from Samsung (SSNLF), particularly when it comes to high-bandwidth memory (HBM) chips. Wang believes that Samsung is catching up fast with its new HBM4 technology and could soon challenge Micron in supplying these chips to Nvidia (NVDA). If Samsung re-establishes itself as a serious HBM contender, Micron could lose market share in a very profitable area of its business. Adding to the concern, Wang noted that Samsung’s latest 1c DRAM chips are seeing better production results, with yields now over 50%, according to several sources.
Because of this, Hedgeye has lowered its estimate for Micron’s HBM revenue in 2026 from $10.5 billion to $10 billion, which is 7% below what most analysts expect. Wang also said that Micron’s overall revenue forecast of $48 billion for 2026 may currently be too optimistic. Interestingly, this view is the opposite of Mizuho analyst Vijay Rakesh‘s recommendation, who said that the stock’s recent pullback is a buying opportunity. As a result, the five-star analyst reiterated his Buy rating with a $150 price target.
Is MU a Good Stock to Buy?
Overall, analysts have a Strong Buy consensus rating on MU stock based on 22 Buys, three Holds, and zero Sells assigned in the past three months, as indicated by the graphic below. Furthermore, the average MU price target of $155.17 per share implies 36.1% upside potential.
