Micron Drops 18% in One Month, Yet Analysts Maintain Average Target Price with Over 80% Upside Potential

According to TipRanks, Micron Technology (MU-US) has dropped 18% over the past month, primarily due to profit-taking by investors following a significant year-to-date rally. Renewed tensions in the Middle East have also weighed on AI and broader tech stocks.

Despite the recent pullback, Wall Street analysts remain optimistic about Micron’s outlook, citing sustained tightness in memory supply and continued pricing momentum. With the stock’s correction, the current average analyst target price now implies over 80% upside potential.

Micron primarily produces NAND flash memory, used in SSDs and smartphones for long-term data storage, and DRAM memory chips, which serve as high-speed working memory in computers and data centers. The company has still gained nearly 200% year-to-date.

However, investors have recently turned cautious as competition in the memory market intensifies. SK Hynix (SKHY-US), listed in the U.S., has drawn increasing market attention, while both SK Hynix and Samsung Electronics are preparing to expand chip production capacity using ASML’s (ASML-US) next-generation EUV lithography machines. Increased chip supply could pressure memory prices and erode Micron’s profitability. Additionally, investors are closely watching AI capital expenditures by major tech firms. A slowdown in AI investment could cool demand for high-end memory, creating headwinds for Micron and peers.

Analysts remain overwhelmingly bullish.

John Vinh, an analyst at KeyBanc, raised Micron’s price target this week from $1,600 to $1,750, implying over 100% upside potential. Vinh forecasts that tight supply-demand conditions in the memory market will persist through 2027, supported by strong demand and constrained supply.

He predicts a 15% to 20% increase in DRAM prices and a 30% to 40% rise in NAND flash memory prices in the third quarter of this year.

Meanwhile, Ben Reitzes of Melius Research maintains a buy rating on Micron with the highest Wall Street target price of $2,200. Reitzes notes that Micron has secured long-term supply contracts that lock in minimum pricing for future orders, enhancing earnings stability. He also emphasizes that overall memory industry supply remains constrained.

According to TipRanks, in the past three months, 29 analysts have issued buy ratings on Micron, one has issued a hold rating, and the overall consensus is a strong buy. The current average target price stands at $1,569.29, representing approximately 84% upside from the current stock price.