What Happened?
Shares of memory chips maker Micron (NYSE: MU) fell 2.7% in the afternoon session after the semiconductor sector pulled back, triggered by a disappointing forecast from peer Marvell Technology.
Marvell, a supplier of custom AI semiconductors, saw its stock plunge after forecasting its next-quarter revenue below estimates due to a slowdown in its custom AI chip business. The news created worry across the industry, leading to a broad sell-off that saw the PHLX Semiconductor Index (SOX) drop more than 3%.
The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Is now the time to buy Micron? Access our full analysis report here, it’s free.
What Is The Market Telling Us
Micron’s shares are very volatile and have had 25 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was 1 day ago when the stock gained 3.2% on the news that UBS reiterated its Buy rating on the stock, maintaining a price target of $155. The move from the investment bank signals continued confidence in the memory-chip maker's performance. According to the report, UBS analyst Timothy Arcuri kept the positive rating on Micron following the company's decision to raise its financial guidance for the fourth quarter of fiscal year 2025. This reaffirmation by a major financial institution suggests a bullish outlook on the company's prospects, likely driven by the improved financial forecast provided by Micron itself.
Micron is up 35.7% since the beginning of the year, and at $118.55 per share, it is trading close to its 52-week high of $127.91 from June 2025. Investors who bought $1,000 worth of Micron’s shares 5 years ago would now be looking at an investment worth $2,605.
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