TLDR
Micron closed Tuesday at $725.11, down 1.1%, and is off 36% since Oct. 1.
KeyBanc’s target is $1,750 and Goldman’s is $1,250, a wide split on the same stock.
Micron trades at four times fiscal 2027 earnings, versus a three-year median of nine.
Micron is putting $1 billion into Anthropic’s $26 billion private placement.
The stock edged up 1.5% to $736 in Wednesday pre-market trading.
Micron (MU) stock closed Tuesday at $725.11, down 1.1%. At one point in the session, it was down 3.8% at $705.20.
Micron Technology, Inc., MU
The chip maker is down 36% since Oct. 1. It has lost more than 15% in the last five days alone.
That is a long way from its 52-week high of $1,255. Two Wall Street firms looked at the same stock this week and came away with very different numbers.
KeyBanc analyst John Vinh reiterated a $1,750 price target on Monday. That implies about 148% upside.
KeyBanc and Goldman Split on the Math
Goldman Sachs analyst James Schneider reiterated a $1,250 target on Tuesday. That implies roughly 70% upside, and he kept a Neutral rating.
Vinh’s target applies a price-to-earnings multiple of six times his fiscal 2028 estimate. Micron now trades at four times consensus fiscal 2027 earnings.
The three-year median for that measure is nine times. By that yardstick, the stock is priced well below its own history.
Skeptics are not buying the PE argument. They say memory makers always look cheap at peak earnings, so the ratio can fool you.
Vinh and other bulls say AI demand should keep profits strong for at least 18 more months. Cloud data gave them some backup, with October growth of 2% from September and 12% from a year earlier.
Vinh called that a “return to strong traditional server growth.” Last month, he named Micron one of his favorite chip ideas.
He also pointed to expected DRAM price gains of 15% to 20% in the fourth quarter. Google was looking at extending long-term memory supply deals through 2035.
Election Worries and an Anthropic Check
The slide traces back to the midterms. Investors fear Democratic wins could slow AI data center builds and cut demand for memory chips.
Micron also showed up in Anthropic’s updated IPO prospectus on Tuesday. It is one of seven tech firms buying a combined $26 billion of Anthropic stock in a private placement after the IPO.
Micron’s check is $1 billion, matching Broadcom and Microsoft. Nvidia and Alphabet are each in for $10 billion, AMD for $2.5 billion and TSMC Partners for $500 million.
Anthropic is expected to debut on Nov. 19. It plans to sell 825 million pieces of stock at $70 to $78 each, which could raise up to $64.35 billion.
Micron’s market value is about $820.41 billion, and its Relative Strength Index reads 35.82. The stock is still up 186% over 12 months.
On Wednesday, Micron edged up 1.5% to $736 in pre-market trading.
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