The Micron stock plunges after the company cuts its outlook, analysts raise concerns

The Key Takeaways

• Micron Technology’s shares plunged on Thursday, after it warned of near-term supply issues.
• Bank of America analysts lowered their rating on Micron's stock and cut their price target, while Citi lowered its estimates for Micron's fiscal 2025 and 2026 earnings and revenue.
• Recently, the share price has been at its lowest since September.

Micron Technology’s (MU), shares fell sharply on Thursday as the chipmaker warned of softness in markets geared towards consumers and analysts lowered the outlook for the firm.

Micron announced late on Wednesday it expects revenue for the current quarter to be around $7.9 Billion, which is well below expectations. Micron blamed a lower than expected PC replacement cycle as well as a slowdown in demand for the company’s products from both automakers and industries.

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

Bank of America Securities has downgraded this stock. “neutral” The following is a list of the most recent and relevant articles. “buy,” Visible Alpha’s average price is around $129, so the analysts at lowered their target to $110 instead of $125. BofA analysts claimed that Micron’s “weakness in PC and phone markets are putting downward pressure on memory pricing,” They expect to see a significant increase in gross margins, especially with its NAND flash memory semiconductor. The company also said they expected gross margins to be around “stay weak in Q2 and even Q3.”

Citi Maintains Its “buy” On Thursday, Citi lowered the price target and rating to $150 but also lowered their own forecasts for sales and profit over the next 2 years. Citi sees earnings per share of $6.75 in fiscal year 2025, and revenues of $34.6 Billion, down from previous estimates of $8.27 EPS and $37.7 Billion.

Citi predicts that revenue will be $45.0 Billion in 2026 and earnings per share of $13.31. Prior to this forecast, it had predicted a EPS of $15.59 and revenue of 45.5 billion.

Wedbush Securities wrote in a note to clients Thursday that they see "brighter days ahead for Micron.” They argued that the headwinds facing the company are only “temporal.” Wedbush held its “Outperform rating with $125 target price

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