Micron stock falls as weakness hits global memory sector
Share:
- Micron: shares down ~2% to $389.12 amid South Korean memory weakness; 12‑month gain +344.77%, trading 4% below 20‑day SMA ($406.13) and 29.8% above 100‑day SMA ($300.60); RSI 50.31. Earnings due Mar 18 — Street EPS $8.56 (vs $1.56 YoY) and revenue $19.10B (vs $8.05B YoY); consensus PT $377; brokers raised targets to $475/$550/$450; PE 37.7x — near‑term risk ahead of results.
Micron Technology shares fell on Friday as weakness in South Korean memory names weighed on sentiment and US investors awaited February jobs data.
The moves come as US stocks remained in the red amid the Iran conflict, while South Korean memory giants Samsung Electronics and SK Hynix also declined on the Korea Exchange.
Micron edges lower with global memory sentiment
Micron, a major producer of DRAM and NAND chips, traded 2% lower at $389.12.
In Seoul, Samsung Electronics fell 1.77% to 188,200 won and SK Hynix dropped 1.81% to 924,000 won.
CNBC’s Jim Cramer warned earlier this week about “South Korean spillover into our markets,” naming Micron among stocks he called “all still vulnerable.”.
Technical setup and near-term catalyst
Despite a 12-month gain of 344.77%, Micron is trading 4% below its 20-day simple moving average of $406.13, while remaining 29.8% above its 100-day SMA of $300.60.
Its RSI reads 50.31, indicating neutral momentum.
The company reports earnings on March 18. Street estimates call for EPS of $8.56, up from $1.56 year over year, and revenue of $19.10 billion, up from $8.05 billion year over year.
Analyst views and valuation
Micron carries a Buy rating with an average price target of $377.
Recent moves include UBS raising its target to $475 on March 2, Stifel lifting to $550 on March 2, and Needham increasing to $450 on February 17.
A price-to-earnings multiple of 37.7x reflects a premium valuation ahead of earnings.
Western Digital’s rebound and risks
Western Digital, a provider of HDDs, SSDs, and flash memory, has seen business conditions improve as the storage cycle turns up and revenue growth returns to positive.
The stock is up about 60% year-to-date, and a recent earnings analysis cited by Seeking Alpha argues the rally could extend, with potential upside of 40% over the next 12 months.
The company has navigated supply challenges tied to the semiconductor shortage by diversifying its supply chain and expanding capacity, while benefiting from demand tied to AI and cloud computing.
Momentum, multiples, and concentration
The cloud-driven revenues now dominate Western Digital’s mix and margins have surged post-downturn.
Valuation is elevated at 27x EV/EBITDA (TTM) and 7.2x EV/Sales, reflecting expectations for durable AI and hyperscale demand.
Customer concentration is a key risk, with three clients accounting for 46% of H1 FY26 revenue, exposing results to hyperscaler deployment cycles.
The analysis initiates the stock at Hold, arguing that current multiples price in near-perfect execution that may be difficult to sustain in a historically cyclical industry.
The takeaway
Micron’s dip underscores how South Korean memory moves can ripple into US trading, just as a closely watched earnings report approaches with sharply higher estimates.
Western Digital’s rebound illustrates the sector’s improving cycle and AI-driven demand, but elevated valuations and customer concentration leave little room for disappointment.
The post Micron stock falls as weakness hits global memory sector appeared first on Invezz
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Micron stock falls as weakness hits global memory sector
Share:
- Micron: shares down ~2% to $389.12 amid South Korean memory weakness; 12‑month gain +344.77%, trading 4% below 20‑day SMA ($406.13) and 29.8% above 100‑day SMA ($300.60); RSI 50.31. Earnings due Mar 18 — Street EPS $8.56 (vs $1.56 YoY) and revenue $19.10B (vs $8.05B YoY); consensus PT $377; brokers raised targets to $475/$550/$450; PE 37.7x — near‑term risk ahead of results.
Micron Technology shares fell on Friday as weakness in South Korean memory names weighed on sentiment and US investors awaited February jobs data.
The moves come as US stocks remained in the red amid the Iran conflict, while South Korean memory giants Samsung Electronics and SK Hynix also declined on the Korea Exchange.
Micron edges lower with global memory sentiment
Micron, a major producer of DRAM and NAND chips, traded 2% lower at $389.12.
In Seoul, Samsung Electronics fell 1.77% to 188,200 won and SK Hynix dropped 1.81% to 924,000 won.
CNBC’s Jim Cramer warned earlier this week about “South Korean spillover into our markets,” naming Micron among stocks he called “all still vulnerable.”.
Technical setup and near-term catalyst
Despite a 12-month gain of 344.77%, Micron is trading 4% below its 20-day simple moving average of $406.13, while remaining 29.8% above its 100-day SMA of $300.60.
Its RSI reads 50.31, indicating neutral momentum.
The company reports earnings on March 18. Street estimates call for EPS of $8.56, up from $1.56 year over year, and revenue of $19.10 billion, up from $8.05 billion year over year.
Analyst views and valuation
Micron carries a Buy rating with an average price target of $377.
Recent moves include UBS raising its target to $475 on March 2, Stifel lifting to $550 on March 2, and Needham increasing to $450 on February 17.
A price-to-earnings multiple of 37.7x reflects a premium valuation ahead of earnings.
Western Digital’s rebound and risks
Western Digital, a provider of HDDs, SSDs, and flash memory, has seen business conditions improve as the storage cycle turns up and revenue growth returns to positive.
The stock is up about 60% year-to-date, and a recent earnings analysis cited by Seeking Alpha argues the rally could extend, with potential upside of 40% over the next 12 months.
The company has navigated supply challenges tied to the semiconductor shortage by diversifying its supply chain and expanding capacity, while benefiting from demand tied to AI and cloud computing.
Momentum, multiples, and concentration
The cloud-driven revenues now dominate Western Digital’s mix and margins have surged post-downturn.
Valuation is elevated at 27x EV/EBITDA (TTM) and 7.2x EV/Sales, reflecting expectations for durable AI and hyperscale demand.
Customer concentration is a key risk, with three clients accounting for 46% of H1 FY26 revenue, exposing results to hyperscaler deployment cycles.
The analysis initiates the stock at Hold, arguing that current multiples price in near-perfect execution that may be difficult to sustain in a historically cyclical industry.
The takeaway
Micron’s dip underscores how South Korean memory moves can ripple into US trading, just as a closely watched earnings report approaches with sharply higher estimates.
Western Digital’s rebound illustrates the sector’s improving cycle and AI-driven demand, but elevated valuations and customer concentration leave little room for disappointment.
The post Micron stock falls as weakness hits global memory sector appeared first on Invezz
Read More
Morning brief: Asia stocks rise, Trump unveils US refinery