Micron Shares Drop 15.81% Amid Broader Semiconductor Market Rout
Micron Falls Following Chip Selloff
Micron Technology dropped 15.81% in a single trading session on Thursday, falling to $669.51 amid a broader semiconductor market rout, 247wallst.com reported.
The decline extends a multi-month correction for the Boise, Idaho-based memory chip manufacturer.
Thursday’s drop also hit industry peers including NVIDIA, Intel, and Sandisk. Bloomberg reported that Micron paused work on a plant in Taiwan after a labor dispute.
Corporate Fundamentals Remain Strong Despite Share Price Pullbacks
Despite the sharp pullbacks in share price, underlying corporate fundamentals have remained strong through recent quarters. Micron reported fiscal fourth-quarter revenue of $54.23 billion, topping analyst estimates of $50.97 billion and marking the company’s eighth consecutive quarterly earnings beat.
DaveFinances.com reported that the recent selloff left Micron trading at roughly 4.8 times estimated forward earnings, with Sandisk trading at approximately 4.9 times forward earnings. Those multiples compare to roughly 18.5 times for the broader market index, implying an earnings yield exceeding 20% for memory stocks.
Gross margins grew much more last year. GAAP gross margin reached 86.8%, up from 44.7% in the same period a year earlier, driven by insatiable global demand for high-bandwidth memory and advanced DRAM solutions used in artificial intelligence infrastructure.
Management Projects Revenue Growth for Fiscal First Quarter 2027
Management guided to fiscal first quarter of 2027, projecting revenue of $61.5 billion and non-GAAP diluted earnings per share of $38.15. More than 75% of fiscal 2027 shipments are already committed under existing supply agreements.
Barchart.com noted that among 42 analysts covering the stock, the consensus rating remains a strong buy. Bernstein analyst Mark Li maintained a buy rating with a price target of $1,300, while the mean price target across the broader analyst community sits even higher at $1,563.22.
At the same time, technical analysts point to potential near-term downside risks. Analysts at TradingShot estimate the stock could fall to $650 by November 20, 2026, if it drops below major moving average support. That projection assumes continued market swings and doubts about whether current high-cycle earnings will hold.