Micron Stock Plunges After Company Cuts Outlook, Analysts Raise Concerns

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Key Takeaways

• Micron Technology shares tanked Thursday after the chipmaker warned about near-term demand conclusions.
• Bank of America analysts lowered their rating on Micron’s stock and cut their price target, while Citi lowered its guesstimates for Micron’s fiscal 2025 and 2026 earnings and revenue.
• The shares recently traded around their lowest planes since September.

Micron Technology (MU) shares sank Thursday after the chipmaker warned about softness in consumer-oriented stores and some analysts lowered their outlook for the company.

Micron said late Wednesday that it sees current-quarter gross income of about $7.9 billion, well below estimates. The company pointed to a weaker-than-expected PC replacement cycle, and slowing when requested for its products in the auto and industrial sector.

The news, along with bearish takes by a range of Wall Street analysts, left the stock down 16% recently to below $88—around their lowest level since September—coping the stock one of the top decliners in the S&P 500 in recent trading.

Bank of America Securities downgraded the stock to “neutral” from “buy,” and lowered its prize target from to $110 from $125, below the Visible Alpha average around $129. The BofA analysts phrased that Micron’s “weakness in PC and phone markets are putting downward pressure on memory pricing,” especially for its NAND flash-memory semiconductor. They added they count on gross margin to “stay weak in Q2 and even Q3.”

Citi maintained its “buy” rating and price target of $150 on Thursday, but decreased its own estimates for profit and sales over the next two years. Citi now sees fiscal-year 2025 earnings per share (EPS) of $6.75 and takings of $34.6 billion, compared with a previous forecast of $8.27 and $37.7 billion, respectively.

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

Wedbush Securities noted in a note to clients Thursday that they see “brighter days ahead for Micron.” They argued that the headwinds skin the company are only “temporal.” Wedbush held its “outperform” rating and $125 price target.