Is Micron Technology (MU) Stock a Buy After an 18% Drop From Its Record High?

TLDR

Micron Technology (MU) stock trades near$ 1,029 on Monday, down about 1%on the day.

That leaves it 18%listed below the record close of$1,255 set on June 25.

Micron Technology, Inc., MU

The day’s variety ranged from$1,017 to $1,054. Volume was 19.9 million, well under the average of 32.5 million.
Market cap sits near $1.2 trillion. The 52-week variety ranges from $186 to $1,255.
Why Investors Are Watching Memory Cycles
Memory stocks have a record of sharp drops. Micron fell 73% from 2014 to 2016, 55% in 2018, 43% in 2020, 51% in 2021 and 36% in 2024.
Lacks tend to develop into excess when makers construct a lot of chips. Some financiers fear the present dip is just the start of a much deeper pullback.
Near-term pressure has actually originated from the choices market. Put volume in the SMH ETF far went beyond call volume, which indicates hedging or bearish bets throughout chip stocks.

Weaker-than-expected OpenAI income information and slower earnings development at Samsung likewise struck AI and memory names. A Taiwan union has actually licensed strike action over a reward conflict.
Experts have actually been sellers. CEO Sanjay Mehrotra offered about $38.8 countless stock on August 21 at a typical cost of $968.90, cutting his holdings by 13%.
Experts offered $90.9 million in overall over the previous 3 months. They own 0.24% of the business.
The Bull Case Leans on AI Demand
Micron’s September 30 report beat quotes. Profits increased 379% to $54.23 billion, versus a projection of $51.33 billion.
EPS can be found in at $33.42, above the $31.77 agreement. Net margin was 63.8%.
Assistance for financial very first quarter 2027 requires EPS of $37.15 to $39.15. More than 75% of financial 2027 deliveries are apparently devoted.
HBM chips require 3 times the wafer capability of basic DRAM. That has actually tightened up DRAM supply for PC, phone and server chips and pressed costs up.
Experts anticipate earnings and EPS to grow at 55% and 67% yearly rates from financial 2026 to 2028. At the existing rate, the stock trades at about 6 times anticipated revenues for this year.
Wall Street has one Strong Buy, 41 Buy and 4 Hold scores. Zacks likewise updated the stock to Strong Buy.
The 50-day moving average is $980.05 and the 200-day is $841.86. The stock trades above both.
Chart Analysis
The everyday chart reveals MU stuck in a variety considering that its June peak. Rate rebounded from near $740 in late July and climbed up along an increasing trendline, reaching about $1,100 in late September. It has actually because slipped back to the $1,035 crucial level, which now functions as resistance after cost closed listed below it. The trendline sits simply under the present rate, near $1,016, and the next significant assistance is $900.

That is a bearish crossover and indicate fading momentum.

What to enjoy: A close listed below the trendline and $1,016 might unlock to $900. A recover of$1,035 would keep the uptrend structure undamaged and put $1,100 back in view.