Micron shares slide over 4% despite $35 billion buyback and Strong Buy calls
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The gist
Micron Technology stock fell over 4% to $988.77 on Monday, extending a multi-session slide.
The memory-chip maker is still up over 200% this year.
Background
Micron Technology Inc. (MU) is a Nasdaq-listed semiconductor memory and storage company, described in the material as one of the best-performing stocks in the S&P 500. It has been one of the biggest winners of the AI era, helped by a memory-chip shortage that pushed prices up and sent sector stocks soaring. The recent slide comes as Chinese competition intensifies in high-margin server memory and investors take profits amid cooling AI sentiment, with added pressure from Middle East tensions, a sharp drop in Asian chip stocks and hotter-than-expected U.S. inflation that raised concerns about further Federal Reserve rate hikes.
How it unfolded
- Sep 3, 2026Micron's fiscal fourth quarter revenue was $54.23 billion, up from $11.32 billion a year earlier, with net income of $37.7 billion versus $3.2 billion.
- Oct 8, 2026Micron's board approved a $35.16 billion share repurchase program, expanding an existing plan that had about $2.16 billion remaining; buybacks can begin Dec. 9.
- Oct 9, 2026GuruFocus data released after Micron's 10-K filing reportedly showed a 33.8 per cent valuation gap in the stock.
- Oct 12, 2026MU fell over 4%, or more than 40 points, to $988.77 on Nasdaq.
- Oct 14, 2026Simply Wall St put the share price at $989.04 and said the stock could be 16% overvalued on buyback plans.
- Oct 15, 2026Micron traded almost 4% lower on Thursday, extending a multi-session slide; SK hynix, Western Digital, Seagate and Sandisk also joined the selloff.
- Oct 17, 2026Micron shares tumbled despite analyst calls that the semiconductor selloff is overblown; ChartMill said MU screens as a decent value stock backed by strong profitability.
Who’s saying what
- Analysts
- Bernstein analyst Mark Newman said the memory-stock weakness creates a more attractive setup, arguing demand across DRAM, NAND and hard drives is extremely strong and those categories are effectively sold out in some areas.
- Analysts
- Barchart reported 42 surveyed analysts carry a consensus Strong Buy on MU with a mean price target of $1,563.22, implying 69% upside.
- Caution
- Simply Wall St said the $989.04 share price already reflects a substantial portion of projected future cash generation.
- Caution
- Newman also noted memory stocks pulled back partly because investors no longer see memory price increases accelerating.
Still unverified
GuruFocus data reported a 33.8 per cent valuation gap in Micron stock after the 10-K filing, and Simply Wall St said MU could be 16% overvalued on buyback plans; both are single-source valuation claims.