What's Going On With Micron Shares Wednesday?

Micron Technology, Inc. (NASDAQ:MU) shares are trading lower Wednesday ahead of first-quarter earnings amid reports that China is working to rival the west in AI chips.

• Micron Technology shares are sliding. What’s weighing on MU shares?

What To Know: According to Reuters, Chinese scientists have developed a prototype machine capable of producing advanced semiconductor chips used in artificial intelligence, marking potential progress toward semiconductor self-sufficiency. The prototype generates extreme ultraviolet light, a critical technology currently dominated by Western suppliers.

The machine was built by former ASML engineers who reverse-engineered extreme ultraviolet lithography systems. While the prototype has not yet produced working chips, its existence suggests China may be closer to developing advanced chipmaking capabilities than previously expected.

Additionally, it was reported that Blue Owl Capital will not provide funding for a $10 billion deal to build Oracle’s next data center, which is sparking investor caution across the AI sector on Wednesday.

Micron is scheduled to report earnings after the market close on Wednesday. Analysts estimate earnings per share of $3.95 and revenue of $12.83 billion.

For the prior quarter, the company reported earnings per share of $3.03, beating the consensus estimate of $2.86. In addition, Micron reported revenue of $11.31 billion, beating the consensus estimate of $11.22 billion.

“In fiscal 2025, we achieved all-time highs across our data center business and are entering fiscal 2026 with strong momentum and our most competitive portfolio to date. As the only U.S.-based memory manufacturer, Micron is uniquely positioned to capitalize on the AI opportunity ahead,” Micron CEO Sanjay Mehrotra said last quarter.

Micron will look to continue its recent streak of beating both earnings per share and revenue estimates, having exceeded expectations in seven consecutive quarters, per Benzinga Pro. Micron stock is up over 40% over the past three months.

Analyst Changes: Ahead of the earnings report, multiple analysts issued price target adjustments.

• Needham analyst N. Quinn Bolton maintained a Buy rating on Micron and raised the price target from $200 to $300.
• Wedbush analyst Matt Bryson maintained an Outperform rating on Micron and raised the price target from $220 to $300.
• Stifel analyst Brian Chin maintained a Buy rating on Micron and raised the price target from $195 to $300.
• Citigroup analyst Christopher Danely maintained a Buy rating on Micron and raised the price target from $275 to $300.

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MU Price Action: At the time of writing, Micron shares are trading 2.65% lower at $226.27, according to data from Benzinga Pro.

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