Micron Technology (MU) shares edged lower on Friday as investors weighed valuation concerns and rising expectations ahead of the memory-chip maker’s upcoming earnings report.
However, demand for artificial intelligence-related memory products continued to support the company’s long-term growth outlook.
Micron stock fell 1.43% on Friday after Goldman Sachs raised its price target on the company but maintained a Neutral rating, highlighting the increasingly bullish sentiment surrounding the stock ahead of its June 24 earnings release.
The memory-chip manufacturer has been one of the key beneficiaries of the AI infrastructure boom, particularly through demand for high-bandwidth memory (HBM) products used in advanced AI systems.
Despite Friday’s decline, Micron shares have gained roughly 15% over the past five trading sessions, recovering from recent volatility across the semiconductor sector.
Goldman Sachs raises target but stays cautious
Goldman Sachs analyst James Schneider increased his price target on Micron to $900 from $400 while maintaining a Neutral rating on the stock.
The analyst cited elevated investor expectations as a reason for caution heading into the company’s earnings report later this month.
“We believe investor positioning remains very bullish given the dramatic share price run-up and optimism around the potential impact of long-term customer agreements,” Schneider wrote.
Micron continues to trade at a relatively low valuation compared with broader technology stocks.
According to FactSet data cited in the report, Micron traded at approximately 10.2 times forward earnings as of Thursday’s close, compared with 24.8 times for the Nasdaq Composite.
Goldman Sachs based its new price target on an earnings multiple of 18 times Schneider’s normalized earnings-per-share estimate of $50.
The analyst expects Micron’s earnings, which have been boosted by strong HBM demand, to peak in fiscal 2027 at $138.86 per share.
“We expect the stock debate to continue to center primarily on long-term customer agreements and the sustainability of DRAM pricing strength; any future commentary regarding HBM progress and share targets will be in focus,” Schneider wrote.
Earnings expectations remain high
Investor attention is now firmly focused on Micron’s June 24 earnings report, which is expected to provide further insight into demand trends across the AI memory market.
Analysts currently forecast earnings of $19.46 per share, a significant increase from $1.91 per share reported during the same period a year ago.
Revenue is projected to reach $34.07 billion, compared with $9.30 billion in the prior-year quarter.
The expected growth reflects continued strength in demand for memory chips used in AI servers and data-center infrastructure, where Micron has become an increasingly important supplier.
At the same time, investors are closely monitoring pricing trends in the DRAM market, which has historically experienced significant cyclical swings.
Technical trend remains positive
Despite Friday’s pullback, Micron’s longer-term technical picture remains constructive.
The stock continues to trade well above key moving averages, sitting approximately 12.2% above its 20-day simple moving average and 162.5% above its 200-day moving average.
The broader moving-average structure also remains bullish, with the 20-day average above the 50-day average and the 50-day average above the 200-day average.
However, some momentum indicators suggest the recent rally may be cooling.
The MACD indicator remains below its signal line, indicating that upside momentum has weakened and that the stock could continue consolidating following its strong gains.
The next major resistance level is near $1,089.50, close to Micron’s 52-week high, as investors await the company’s earnings results and updates on AI-related memory demand.
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