Key Takeaways

Micron Technology ( MU ) shares sank Thursday after the chipmaker warned about softness in consumer-oriented markets and some analysts lowered their outlook for the company.

Micron said late Wednesday that it sees current-quarter revenue of about $7.9 billion, well below estimates. The company pointed to a weaker-than-expected PC replacement cycle, and slowing demand for its products in the auto and industrial sector .

The news, along with bearish takes by a range of Wall Street analysts, pulled the stock down 16% recently to below $88—around their lowest level since September—making the stock one of the top decliners in the S&P 500 in recent trading.

Bank of America Securities downgraded the stock to “neutral” from “buy,” and lowered its price target from to $110 from $125, below the Visible Alpha average around $129. The BofA analysts said that Micron 's “weakness in PC and phone markets are putting downward pressure on memory pricing,” especially for its NAND flash-memory semiconductor . They added they expect gross margin to “stay weak in Q2 and even Q3.”

Citi maintained its “buy” rating and price target of $150 on Thursday, but lowered its own estimates for profit and sales over the next two years. Citi now sees fiscal-year 2025 earnings per share (EPS) of $6.75 and revenue of $34.6 billion, compared with a previous forecast of $8.27 and $37.7 billion, respectively.

For 2026, Citi anticipates EPS of $13.31 and revenue at $45.0 billion. Its prior forecast was for an EPS of $15.49 and revenue of $45.5 billion.

Wedbush Securities wrote in a note to clients Thursday that they see "brighter days ahead for Micron.” They argued that the headwinds facing the company are only “temporal.” Wedbush held its “outperform” rating and $125 price target.

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