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Anusuya Lahiri

Micron Shares Drop Following This Analyst Downgrade - Read Why

  • Piper Sandler analyst Harsh Kumar downgraded Micron Technology, Inc (NASDAQ:MUfrom Neutral to Underweight and lowered the price target from $90 to $70.
  • Kumar expressed concerns about Micron's over 50% exposure to consumer-like markets such as PCs, mobile, and others when the global economy will likely face headwinds.
  • Kumar expects the company's chip business catering to the auto industry to suffer due to rising rates, a slowing economy, and the possibility of an excess inventory build.
  • Kumar highlighted that the Dynamic Random Access Memory (DRAM) market, representing over 70% of the company's total revenue, had already started to see price declines for most configurations.
  • Kumar continues to view memory as essentially a commodity market compared to the rest of his universe.
  • Kumar expressed confidence in the company's data center business, which represents less than 30% of revenue.
  • Price Action: MU shares traded lower by 6.53% at $70.45 on the last check Friday.
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