Morgan Stanley cuts Micron price target 6% to $80 over DRAM oversupply concerns
Morgan Stanley cut Micron’s 12-month price target by 6% to $80, citing a mounting DRAM inventory overhang and intensifying pricing pressure. The firm also trimmed its fiscal 2026 EPS forecast by 8% to $2.60 per share on expected industry oversupply.
1. Analyst Price Target Reduction
Morgan Stanley reduced its 12-month price target on Micron from $85 to $80, reflecting growing concern about profit margins amid weak demand. This 6% cut marks the third downward revision by the firm in six months.
2. DRAM Supply Overhang
The bank highlighted an accelerating DRAM inventory overhang as end-market orders slow, pressuring chip pricing across cloud service providers and consumer electronics segments. Elevated stockpiles in Asia-Pacific distribution channels are weighing on spot DRAM rates.
3. Earnings Forecast Revision
Alongside its price-target adjustment, Morgan Stanley lowered its fiscal 2026 EPS estimate for Micron by 8% to $2.60, projecting a prolonged recovery period for memory pricing. The firm now expects revenue growth to stall at mid-single digits for the year.