Key Takeaways
- Micron shares declined approximately 4% during premarket hours Thursday, trading at $861.43
- Weakness stemmed from Western Digital’s disappointing outlook and SanDisk’s mixed performance
- Apple’s CEO Tim Cook indicated memory expenses will climb “even higher” this quarter, signaling strength for Micron
- Street consensus projects Micron earnings of $31.24 per share for September, a massive jump from $3.03 last year
- Analyst community holds a Buy consensus rating with an average target price of $1,548.86
Shares of Micron Technology (MU) experienced a decline approaching 4% during Thursday’s premarket session, reaching $861.43, as weakness swept through the memory semiconductor industry.
The downward movement followed Western Digital (WDC)‘s 15% plunge after issuing underwhelming forward guidance, while SanDisk (SNDK) slid 9.4% despite beating estimates on a weak outlook. These developments sparked worries about profit margin durability throughout the memory industry, weighing on overall sector sentiment.
Seagate Technology (STX) wasn’t spared either, declining 3.82% in premarket trading as the selloff rippled through AI memory and storage stocks.
However, zooming out reveals a more encouraging technical picture for Micron. The stock remains 61.5% above its 200-day simple moving average of $528.27, indicating the overarching upward trajectory remains intact.
The Relative Strength Index registered 49.16, reflecting neutral momentum conditions. The stock shows neither overbought nor oversold characteristics, suggesting a consolidation phase rather than a trend reversal.
Critical resistance emerges near the $1,012 level, while preliminary support hovers around $804, a price point where buyers have historically stepped in.
Apple CEO’s Remarks Paint Positive Picture
During Apple’s recent earnings call, CEO Tim Cook caught attention when he revealed Apple spent “significantly more” on memory during the June quarter compared to March. He went further, stating costs would climb “even higher” in the ongoing quarter.
For Micron, positioned as one of just three major DRAM and high-bandwidth memory (HBM) suppliers globally, Cook’s statements carry significant weight. When customers like Apple face higher costs, it means producers command better average selling prices.
Cook’s observations indicate pricing strength isn’t merely temporary. With industry supply constraints anticipated to extend through 2027 and Micron’s production capacity locked into long-term contracts, the supply-demand equation continues tilting toward producers.
Micron shares had surged threefold during the first six months of 2026 before reaching a record high in late June. The stock subsequently retreated 26% from that summit. The present pullback, now showing partial recovery, appears more characteristic of profit-taking rather than fundamental deterioration.
Wall Street’s Earnings Outlook
Micron’s upcoming quarterly report is slated for September 22, 2026. Analyst consensus anticipates earnings of $31.24 per share with revenue reaching $50.72 billion. This compares dramatically to the prior year’s figures of $3.03 per share on $11.31 billion in sales.
At current levels, the stock changes hands at roughly 20.2 times forward earnings.
KeyBanc elevated its price objective to $1,750 on July 14 while reaffirming its Overweight stance. Cantor Fitzgerald boosted its target to $2,000 on June 29, also maintaining an Overweight recommendation.
The average analyst price target across coverage sits at $1,548.86.
Additionally, Micron demonstrates strong fundamentals with a Momentum score of 99.65 and a Quality score of 97.70 according to Benzinga Edge metrics.
MU shares traded down 3.56% to $861.43 during Thursday’s premarket session.
Get 3 Free Stock Ebooks
Discover top-performing stocks in AI, Crypto, and Technology with expert analysis.
- Top 10 AI Stocks - Leading AI companies
- Top 10 Crypto Stocks - Blockchain leaders
- Top 10 Tech Stocks - Tech giants
