Will Micron (MU) Fall to $600? Wall Street Bets on Rebound Potential

▲ Micron (MU) Logo/Source: X ©

Micron Technology (MU) stock has plummeted to the $800 level, but Wall Street is weighing the possibility of a rebound more heavily than a collapse to $600.

According to cryptocurrency media outlet Watcher.Guru on July 29 (local time), Micron closed at just over $800 on July 28, plunging $79.67, or 8.85%, in regular trading. Selling pressure continued in after-hours trading, with an additional drop of $11.41, or 1.39%.

This sharp decline was analyzed to be influenced by a widespread sell-off across the global semiconductor industry. Amid a recent large-scale sell-off in the South Korean, European, and US semiconductor markets, South Korea's KOSPI index also fell by an additional 8% on that day. As AI memory semiconductor companies like SK Hynix and Samsung Electronics account for a large portion of the KOSPI, Micron's stock price is believed to have followed the global industry downturn.

The rise of Chinese memory semiconductor company Changxin Memory Technologies (CXMT) also pressured investor sentiment. After CXMT successfully debuted on the stock market earlier this week, concerns grew that Micron's market share could shrink due to increased competition with Chinese companies, leading some investors to sell their holdings.

However, the media outlet evaluated that despite the recent crash, the stock price is likely to rebound soon. Micron, along with SK Hynix and Samsung Electronics, forms the "Big 3" in the global memory semiconductor market and is considered a major beneficiary of the demand for memory semiconductors needed to power AI models. Bernstein recently raised its price target to $1,300, and the average price target of Wall Street analysts was compiled at $1,569.

Micron's announced $250 billion investment plan to expand production in the US was also presented as a long-term rebound factor. While the possibility of a further sharp drop below $600 cannot be ruled out, the media outlet assessed that Wall Street's high price targets and large-scale domestic production investment could support the stock's recovery.

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