Blockbuster revenues weren’t enough to prevent a steep decline micron technology Stocks in pre-market trading.
The chip maker tripled sales in its latest quarter as earnings beat analyst estimates, but the stock is expected to fall about 5.3% as of 7:02 a.m. ET.
But Micron’s stock price has risen more than 350% over the past year, thanks to memory shortages caused by surging demand for Nvidia’s AI chips.
Citi analysts maintained a buy rating on the stock, viewing the premarket move as “some profit taking after a strong rally.”
“We think the big investor debate for this stock is whether the stock price will continue to rise as DRAM prices rise, as it did during the Windows PC DRAM cycle of the 1990s,” they wrote.
Analysts at Goldman expect the stock to remain range-bound in the near term after “a very strong quarter with guidance well above market expectations despite heightened investor expectations.”
The bank maintained a neutral rating on the stock, warning of “potential risk of slowing HBM price momentum in 2027 given the outlook for significant supply additions.”
Micron isn’t the only tech company whose impressive earnings haven’t translated into meaningful stock price movement lately.
Nvidia reported a sharp quarterly decline on February 26, the day the company’s stock price fell 5%. This reflects investor wariness over recent impressive gains and broader concerns about the company’s leadership in the artificial intelligence race.
Despite the lackluster market reaction, several banks raised their price targets for Micron stock on Thursday morning. Wells Fargo updated its per-share forecast to $550 from $470. Barclays raised its target to $670 from $450.
— CNBC’s Katie Tarasov and Jordan Novelt also contributed to this report.
Micron’s stock price chart from the beginning of the year to the present.
