Micron’s Stock Dips Amid Capital Spending Concerns

Micron ( (MU) ) has fallen by -14.29%. Read on to learn why.

Micron’s stock has experienced a significant decline of 14.29% over the past week, despite a strong performance earlier this year. The recent drop is attributed to investor concerns following comments from company executives about potential increases in capital expenditure. At a recent Global Technology Conference, Micron’s CFO Mark Murphy indicated that the company’s current spending pace might face pressure due to market tightness expected to persist beyond 2026. This news has created some uncertainty among investors, leading to the stock’s pullback.

Despite the recent dip, analysts remain optimistic about Micron’s future prospects. UBS analyst Timothy Arcuri maintains a positive outlook, highlighting the company’s strong position in the DRAM market and its ability to capitalize on the growing demand for AI and server applications. Arcuri believes that Micron’s profitability in core DRAM will continue to strengthen, with DDR gross margins expected to surpass HBM for the first time in early 2026. Furthermore, Morgan Stanley has raised its price target for Micron to $325, driven by a surge in memory pricing and strong demand for DDR5 and HBM products.

The consensus among analysts is that Micron is a strong buy, with many expecting the company to benefit from the ongoing AI-driven demand for memory chips. While the average price target suggests a slight downside from current levels, analysts like Joseph Moore from Morgan Stanley see significant upside potential, projecting earnings to exceed $25 per share by 2026. As Micron continues to expand its market share and capitalize on tight supply conditions, it remains an attractive option for investors looking to tap into the growing AI and data center markets.