Micron Shares Drop Following This Analyst Downgrade - Read Why

  • Piper Sandler analyst Harsh Kumar downgraded Micron Technology, Inc MU from Neutral to Underweight and lowered the price target from $90 to $70.
  • Kumar expressed concerns about Micron's over 50% exposure to consumer-like markets such as PCs, mobile, and others when the global economy will likely face headwinds.
  • Kumar expects the company's chip business catering to the auto industry to suffer due to rising rates, a slowing economy, and the possibility of an excess inventory build.
  • Kumar highlighted that the Dynamic Random Access Memory (DRAM) market, representing over 70% of the company's total revenue, had already started to see price declines for most configurations.
  • Kumar continues to view memory as essentially a commodity market compared to the rest of his universe.
  • Kumar expressed confidence in the company's data center business, which represents less than 30% of revenue.
  • Price Action: MU shares traded lower by 6.53% at $70.45 on the last check Friday.

Posted In: Briefswhy it's movingAnalyst ColorNewsDowngradesPrice TargetAnalyst RatingsMoversTechTrading Ideas

Ad Disclosure: The rate information is obtained by Bankrate from the listed institutions. Bankrate cannot guaranty the accuracy or availability of any rates shown above. Institutions may have different rates on their own websites than those posted on Bankrate.com. The listings that appear on this page are from companies from which this website receives compensation, which may impact how, where, and in what order products appear. This table does not include all companies or all available products.

All rates are subject to change without notice and may vary depending on location. These quotes are from banks, thrifts, and credit unions, some of whom have paid for a link to their own Web site where you can find additional information. Those with a paid link are our Advertisers. Those without a paid link are listings we obtain to improve the consumer shopping experience and are not Advertisers. To receive the Bankrate.com rate from an Advertiser, please identify yourself as a Bankrate customer. Bank and thrift deposits are insured by the Federal Deposit Insurance Corp. Credit union deposits are insured by the National Credit Union Administration.

Consumer Satisfaction: Bankrate attempts to verify the accuracy and availability of its Advertisers' terms through its quality assurance process and requires Advertisers to agree to our Terms and Conditions and to adhere to our Quality Control Program. If you believe that you have received an inaccurate quote or are otherwise not satisfied with the services provided to you by the institution you choose, please click here.

Rate collection and criteria: Click here for more information on rate collection and criteria.