- Micron posted record quarterly revenue of $41.4 billion, but its stock is down 23% from its peak amid a sector-wide cooldown and rising bond yields.
- CEO Sanjay Mehrotra stated the company has no line of sight for memory supply to catch up with demand, even as industry supply improves gradually in 2028.
- Wall Street’s 1-year price target for Micron sits at $1,513.11, yet the 2028 supply ramp from competitors could eventually end the shortage and trigger a downturn.
Micron shares slid 23% from their record high last week, even after the company reported a record quarter with revenue of $41.4 billion. The pullback stemmed from a broader chip sector cooldown as bond yields climbed, along with worries about a possible worker strike at Micron’s Taiwan factories and a trimmed stake by Norges Bank.
CEO Sanjay Mehrotra addressed the supply picture on the company’s fiscal third‑quarter earnings call, saying via LinkedIn: “Even as we expect industry supply to improve gradually in 2028, we currently do not have line of sight as to when memory supply will be able to catch up with increasing demand.” NVIDIA CFO Colette Kress echoed that timeline, stating supply will remain a bottleneck at least through the end of fiscal year 2028.
Micron closed at $956.08 on the day it reported, up 2.43%, per Yahoo Finance, giving it a $1.08 trillion market cap. Wall Street’s 1‑year price target of $1,513.11 suggests further upside, with some analysts floating $200 billion in operating income for next year. However, once new fabs from Micron, SK Hynix, and Samsung ramp into volume production around 2028, the shortage that props up prices could ease. Micron’s gross margin was negative 11% as recently as fiscal 2023, underscoring the cyclical risk. Consequently, the current MU stock price target is effectively a bet on how long the shortage lasts before oversupply potentially triggers a crash.
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