Micron Stock Drops 7.99% as Morgan Stanley Raises Target to $450
Micron stock plunged 7.99% in the latest session, trailing the S&P 500’s 0.94% decline and widening its month-to-date drop to 5.74% versus the sector’s 4.34% loss. Morgan Stanley raised its Micron price target to $450 from $350, citing sustained DRAM shortages and 30% year-to-date DDR5 spot gains.
1. Stock Performance Dips Sharply
Micron stock closed down 7.99% at $379.68 in the latest session, underperforming the S&P 500’s 0.94% drop while the Dow lost 0.83% and the Nasdaq fell 1.02%. The share price has dropped 5.74% over the past month, lagging the sector’s 4.34% decline.
2. Morgan Stanley Raises Price Target
Morgan Stanley increased its Micron price target to $450 from $350 and maintained an Overweight rating, citing persistent DRAM supply constraints. The firm noted that contract prices remain below rising spot levels, supporting further upside.
3. DRAM Market Remains Tight
DDR5 spot pricing has climbed 30% year-to-date and stands 130% above January contract rates, while contract prices are 86% higher than in December. Supply growth in 2026 is expected to fall short of demand, sustaining pricing pressure throughout the year.
4. Earnings Estimates Project Strong Growth
Micron is scheduled to report fiscal quarter results on March 18, with analysts forecasting $8.50 EPS (up 445% year-over-year) on $18.87 billion in revenue (up 134%). Annual consensus estimates call for $33.79 EPS and $75.45 billion in revenue for the full fiscal year.