Micron (MU) Stock Plunges 17% in a Week as Analysts Raise Targets to $1,100

Key Takeaways

• Micron shares plummeted over 7% on Monday, marking a 17%+ decline across five trading sessions after reaching all-time highs just two weeks earlier.
• Melius Research boosted its price target by 57% to $1,100—the Street’s most optimistic call—while reiterating a Buy stance on robust AI memory chip demand.
• Citi analysts increased their MU target from $425 to $840, forecasting a 40% DRAM price increase from Micron during the second quarter.
• Potential Samsung labor action (May 21–June 7) threatens approximately 3% of worldwide memory chip output, intensifying supply chain worries.
• JP Morgan forecasts elevated memory chip pricing could persist through late 2027, signaling a fundamental market transformation.

Wall Street analysts are maintaining their optimistic stance on Micron (MU) despite the semiconductor stock experiencing a brutal week—plunging more than 7% in Monday’s session alone and shedding over 17% across five consecutive trading days.

Micron Technology, Inc., MU

The selloff follows a record peak achieved approximately two weeks prior. Despite the recent turbulence, MU shares remain up over 140% year-to-date in 2026 and have soared more than sevenfold over the trailing twelve months, driven by explosive growth in memory chip demand from AI infrastructure investments.

Monday’s sharp decline was partially attributed to escalating concerns surrounding a possible labor stoppage at Samsung Electronics.

Samsung employees are pushing for bonus payments equal to 15% of operating profits and have issued a general strike warning spanning May 21 through June 7. According to Jefferies estimates, a complete work stoppage could eliminate approximately 3% of worldwide memory chip manufacturing capacity.

South Korean Prime Minister Kim Min-seok cautioned that just one day of shuttered operations at Samsung’s semiconductor fabrication facilities could generate losses approaching 1 trillion won—equivalent to roughly $667.6 million. Negotiations between management and union representatives resumed Monday and are anticipated to extend through Tuesday.

Interestingly, Samsung shares climbed approximately 3.9% during Monday’s local market session despite the labor uncertainty.

Wall Street Firms Maintain Optimistic Projections

Melius Research analyst Ben Reitzes kept his Buy recommendation on MU intact while elevating his price objective from $700 to $1,100—a substantial 57% jump that represents the Street’s highest tracked target on TipRanks. His projection implies approximately 65% potential upside from present trading levels.

Reitzes indicated his research team feels “incrementally good” regarding the memory sector and AI semiconductor industry broadly. He simultaneously increased long-term valuations for AMD, Intel, Marvell, Qualcomm, and SanDisk, contending that chip manufacturers will continue capturing value at the expense of traditional software enterprises.

Citi analyst Atif Malik similarly reaffirmed his Buy rating while nearly doubling his MU price target from $425 to $840. He anticipates Micron will implement a 40% DRAM price increase during Q2, following Samsung’s more aggressive 100% price hike implemented in Q1.

Collectively across Wall Street, MU holds a Strong Buy consensus rating built on 27 Buy recommendations and 3 Hold ratings issued over the preceding three months. The average analyst price target stands at $638.52—which would actually translate to approximately 6% downside from current trading levels.

Long-Term Memory Market Dynamics

JP Morgan analyst Jay Kwon projected that elevated memory chip pricing could extend through at least late 2027, underpinned by long-term supply contracts that may bring stability to what has historically been an extremely cyclical industry.

Western Digital provided separate commentary, noting it is currently certifying new high-capacity Ultrastar UltraSMR hard drive technology. The company suggested that AI computing workloads may increasingly prioritize reliable, long-term data storage over raw performance speed—potentially establishing hard disk drives as more economically viable than SSDs for certain AI use cases.

Seagate CEO Dave Mosely reinforced the robust demand narrative but expressed caution regarding aggressive capacity expansion, highlighting oversupply risks if SSD investment accelerates beyond genuine market demand.

As of Monday’s close, MU was trading down more than 5%, with the Samsung strike deadline of May 21 emerging as a critical near-term catalyst for the entire memory chip industry.

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