Micron Technology (NASDAQ: MU) shares have plunged approximately 12% over the past five trading sessions, shedding some of the massive gains from an AI-driven rally that saw the stock surge more than 700% over the past year. The decline, which has some reports pegging the slide closer to 13%, comes ahead of the company's fiscal third-quarter earnings report due on June 24.
This pullback is largely attributed to profit-taking by investors sitting on substantial gains, alongside a broader cooling in chip stocks as the market reassesses valuations, interest-rate expectations, and the speed at which AI spending converts into tangible profits. Despite the drop, Micron remains a central player in the AI supply chain, with its high-bandwidth memory chips critical for advanced data centers.
Options-market data suggests traders are bracing for a significant move around the earnings event, with some measures pointing to a potential swing of roughly 20% in either direction. Analyst commentary remains overwhelmingly positive. UBS analyst Timothy Arcuri reiterated a Buy rating and a $1,625 price target, expecting fiscal Q3 results to beat guidance due to stronger memory pricing and arguing it is “only a matter of time” before the market assigns a more normal valuation multiple as AI structurally changes the memory industry.
Goldman Sachs analyst James Schneider more than doubled his price target to $900 from $400 while maintaining a Neutral rating, citing tight supply-demand conditions that could last through at least 2027 but noting that investor positioning already appears very bullish. Cantor Fitzgerald’s C.J. Muse stayed constructive with a $1,500 price target, stating “the memory trade is alive and well” and that DRAM and NAND supply could remain tight through the end of 2028.
The broader Wall Street consensus on MU is a Strong Buy, based on 26 Buys, 3 Holds, and zero Sells over the past three months, with an average price target of about $939. Technical indicators also point to continued bullish momentum, with the stock trading well above its 50-day EMA and showing upward rate of change. The general sentiment among analysts is that the current dip represents a pause rather than a breakdown, with the high-end targets from UBS and Cantor anchoring expectations into earnings.
