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Micron Technology, Inc. (MU), with a market cap of $106.7 billion, is a leading player in the semiconductor industry. The Boise, Idaho-based company specializes in high-performance memory and storage solutions across various sectors.
Companies valued at $10 billion or more are generally considered “large-cap” stocks and Micron Technology fits this criterion perfectly. Micron Technology is renowned for its cutting-edge DRAM and NAND flash products, integral to a wide range of advanced computing, mobile, and automotive technologies.
However, the semiconductor device maker pulled back 38.9% from its 52-week high of $157.54, achieved in June. Over the past three months, shares of Micron Technology have seen a decline of 23.8%, underperforming the broader S&P 500 Technology Sector SPDR’s (XLK) 5% returns during the same timeframe.
Longer term, MU stock is up 12.8% on a YTD basis, compared to XLK’s 14.5% gains. Nonetheless, shares of Micron Technology have surged 44.3% over the past 52 weeks, outpacing XLK’s nearly 27% gains over the same time frame.
Despite this, MU has been trading below its 50-day moving average since mid-July and has remained below its 200-day moving average since late August.
Micron Technology has outperformed over the past year due to rising DRAM prices and increased demand for High Bandwidth Memory driven by AI applications. Reduced investment in memory capacity and a market rebound have also contributed to its strong performance.
However, the stock tumbled 3.8% on Aug. 26 following Needham analyst Quinn Bolton's reduction of the price target to $140, citing concerns over flat shipment expectations in Q1 FY2025 and a cautious approach to aggressive pricing deals. The adjustment was influenced by MU’s indication of slower-than-expected growth and moderated client demand due to earlier inventory builds.
Micron Technology has surged ahead of its rival, Texas Instruments Incorporated (TXN), which gained 25.6% over the past 52 weeks. But MU has lagged behind TXN’s 25.7% YTD rise.
Despite the stock’s price fluctuations, analysts are bullish about its prospects. MU has a consensus rating of “Strong Buy” from the 28 analysts in coverage, and the mean price target of $160.74 suggests a premium of 67% to current levels.
On the date of publication, Sohini Mondal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
