MU Stock Gets Mixed Takes From Wall Street On Memory Tightness, DRAM Pricing Strength

According to Wells Fargo, Micron’s next phase of growth will depend on confidence in the duration of memory tightness.

• Wells Fargo lowered its target to $1,400 from $1,525 and kept an ‘Overweight’ rating on MU stock.
• Citi raised its target to $1,300 from $1,150 alongside a ‘Buy’ rating. 
• The moves come after Michael Burry added to his MU shorts “in some size” on Tuesday, citing the potential for rising Chinese memory production to ease supply constraints.

Micron Technology (MU) shares edged lower in early-morning trade on Wednesday after mixed signals from Wall Street, with Wells Fargo lowering its price target while Citi raised its forecast, though both firms remain bullish on the memory-chip maker.

In a note to investors cited by TheFly, Wells Fargo analyst Aaron Rakers cut the firm’s price target to $1,400 from $1,525 while maintaining an ‘Overweight’ rating. Citi analyst Atif Malik, meanwhile, raised his target to $1,300 from $1,150 and kept a ‘Buy’ rating on the stock.

MU stock fell around 1% in pre-market trading and was among the top-trending tickers on Stocktwits at the time of writing. Retail sentiment around the memory chip maker on the platform rose to ‘bullish’ from ‘neutral’ territory over the past day.

Wells Fargo Sees More Room For Micron

Wells Fargo said it remains bullish on Micron heading into the fourth quarter, citing continued upside to near-term results.

According to the firm, the next phase of MU’s performance will depend on investors gaining greater confidence in the duration of the current memory shortage, as well as on expanding Strategic Customer Agreement (SCA) engagements and on Micron’s execution.

Citi Raises Target On DRAM Strength

Citi raised its price target after increasing its estimates for Micron’s August and November quarters. Malik cited stronger-than-expected DRAM pricing and continued undersupply across both DRAM and NAND markets.

Citi also expects MU stock to rally into SEMICON West, scheduled for October 13, where semiconductor equipment makers are expected to discuss the ongoing DRAM shortage.

The firm expects Micron to report upside to its fiscal fourth-quarter estimates, helped by tight supply conditions across its memory businesses.

Burry Adds To Micron Short

Wall Street’s moves come on the footsteps of the ‘The Big Short’ investor Michael Burry adding to his MU shorts in “in some size” on Tuesday. He cited Acer CEO Jason Chen’s commentary that Chinese memory chip production could eventually ease supply constraints and put pressure on prices. 

“Interpreting this news, which is from a few days ago, before the big run up yesterday, is fraught,” Burry wrote. “Nevertheless, it aligns with what I believe to be true.”

His bearish view extends beyond Micron, with additional shorts in iShares Semiconductor (SOXX), Palantir (PLTR), Nebius (NBIS), Nvidia (NVDA) and other AI-related names.

Retail Traders Look Ahead To Micron Earnings

Retail traders were looking ahead to Micron’s earnings next week, with some anticipating that Wall Street would likely revise its price targets higher after the September 30 disclosure.

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MU has gained over 270% year-to-date and over 560% in the last 12 months. 

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