Micron stock falls despite multiple price target boosts

Shares of Micron (MU) are falling on Thursday afternoon despite receiving multiple price target increases from JPMorgan, Needham & Company, and TD Cowen. JPMorgan is especially bullish on Micron, calling the company one of its top picks for the semiconductor space.

Yahoo Finance Anchors Josh Lipton and Alexandra Canal discuss Micron’s latest developments and what they could mean for the stock moving forward.

For more expert insight and the latest market action, click here to watch this full episode of Market Domination.

This post was written by Nicholas Jacobino

Video Transcript

Let’s get to some calls of the day here, Jp Morgan raising its price target on my ground from $130 a share to 180.

The chip maker also getting a price target increase from need them along with T DC.

And now it’s interesting to see these price target raises after my post results sell off and how that points to a lot of risk within some of these major A I chip makers.

But JP Morgan still believe that my as well position.

It’s one of its top picks in the semiconductor space J PM thinks the stock should continue to outperform through 2024 and into 2025.

And that police markets will continue to discount, improving revenue margin and earnings power there.

And basically the argument here is that we’re very early in this cycle typically in the memory industry, the up cycles 6 to 8 quarters of positive eps revision trends.

And we are only two quarters.

And so a lot of the messaging from these analysts, even if we talk about a huge name like NVIDIA is that there’s still potential room to run here.

And there’s a lot more growth that could be had.

Yeah, I mean, you can see my ground there really taking it on the, on the chin in today’s trade but I mean, a couple of points, one is th this stock, the expectations were just so sky high.

It had, it had roared into that print because so many folks had piled in and thought this is a smart way to play that A I trend.

Um So you see some selling thing to your point worth noting.

I mean, uh the street love my, I mean, more than 90% of analysts think you should buy it at these levels.

Jp Morgan was one name I saw um, Chris Sanker over TD Cowan and he told his clients was the selling today.

He did realize listen in part it was that revenue outlook.

He also said it was the Capex guidance for 2025 suggesting he says, you know, near all time high spending levels.

But again, like JP Morgan sticks with it, sticks with his buy.

You have to be and you have to raise pretty significantly with these names.