Micron Stock Pressured After Nvidia HBM4 Setback Despite $450 Price Targets
Needham raised its price target on Micron to $450 from $380, implying about 11% upside, while Morgan Stanley also set a $450 target citing robust AI memory demand. Shares fell after reports that Nvidia will source HBM4 chips from SK Hynix and Samsung, excluding Micron.
1. Analyst Price Target Increases
Needham raised its price target on Micron to $450 from $380, while Morgan Stanley reaffirmed a $450 target, both citing strong demand for high-bandwidth and AI server memory. Mizuho also lifted its target to $480 earlier this year, reflecting continued bullish sentiment among analysts.
2. Nvidia HBM4 Supplier Exclusion
Recent reports indicated Nvidia will source HBM4 chips for its forthcoming accelerators from SK Hynix and Samsung, excluding Micron from the initial supplier lineup due to higher performance requirements that narrowed the vendor field.
3. Technical Indicators and Earnings Outlook
Shares are trading 9.8% below their 20-day SMA and 4.1% below their 100-day SMA, reflecting short-term weakness despite a 281.61% year-over-12-month gain. Analysts forecast March 19 earnings will show EPS of $8.41 on $18.87 billion revenue.