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Blockbuster earnings weren’t enough to prevent steep decline micron technology Shares in premarket trading.
The chipmaker’s revenue tripled in the latest quarter as results beat analysts’ estimates, but shares were down about 5.3% as of 07:02 a.m. ET.
However, Micron stock has surged more than 350% in the past year as demand for Nvidia’s AI chips outpaces memory supply shortages.
Citi analysts chalked up pre-market moves to “some profit-booking following strong rally” and maintained a buy rating on the stock.
“We believe the big debate among investors on the stock is whether the stock will continue to rise with rising DRAM prices, as it did during the Windows PC DRAM cycle in the 1990s,” he wrote.
Goldman analysts expect the stock to remain range-bound in the short term, “contrary to investors’ lofty expectations, a very strong quarter with guidance that was well ahead of the Street”.
The bank is keeping its rating on the stock neutral, noting “potential risks to HBM price momentum slowing into 2027 given the prospects for meaningful supply growth.”
Micron isn’t the only tech company whose stellar earnings recently have failed to translate into meaningful share price movement.
NVIDIA It reported a disappointing quarter on February 26, but its stock fell 5% that day, reflecting investor caution over recent stellar gains as well as broader concerns about its lead in the artificial intelligence race.
Despite the sluggish market reaction, several banks raised their price targets for Micron stock Thursday morning. Wells Fargo raised its forecast to $550 per share from $470. Barclays raised its price target to $670 from $450.
— CNBC’s Katie Tarasov and Jordan Novet also contributed to this report.
