Micron stock was showing signs of life Tuesday but we've been here before.
The shares were up in premarket trading Monday, too, before ultimately tumbling 6% to their lowest closing level in three months. The memory-chip maker has now fallen at least 5% for three consecutive days.
Maybe today's attempted revival will be different.
Either way, the slump will likely be mystifying for many on Wall Street. Analysts covering the stock have an average price target of $1,631, or a 96% upside from Monday's closing price.
D.A. Davidson's Gil Luria is perhaps the most bullish of the lot, with a price target of $3,000 -- a 260% jump from here. So what does he think the market is missing?
"We believe that as investors internalize Micron's technology leadership and subsequent wide moat, they will become more willing to pay a market multiple for MU," he said in a note last month.
The company will be free to launch huge buybacks from Dec. 9, which could give the stock a much-needed boost.
But that's quite far off and right now the market is internalizing one thing and one thing only -- AI fears.
Comments