- Piper Sandler analyst Harsh Kumar downgraded Micron Technology, Inc (NASDAQ:MU) from 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.
