Micron (MU) Stock Retreats 4% as Apple CEO Signals Rising Memory Costs Ahead

Key Takeaways

Table of Contents

Micron shares declined approximately 4% during Thursday’s premarket session, reaching $861.43
Sector-wide weakness emerged after Western Digital issued underwhelming guidance and SanDisk delivered mixed results
Apple’s CEO Tim Cook indicated memory pricing will climb “even higher” this quarter, representing a bullish indicator for Micron
Street estimates point to Micron delivering $31.24 earnings per share in its upcoming September report, a significant jump from $3.03 last year
Wall Street maintains a Buy consensus with analysts setting an average target price of $1,548.86

Shares of Micron Technology (MU) experienced a nearly 4% decline in Thursday’s premarket session, settling at $861.43, as the memory semiconductor sector faced widespread selling pressure.

Micron Technology, Inc., MU

The downward movement followed Western Digital (WDC) plummeting 15% on disappointing forward guidance, while SanDisk (SNDK) retreated 9.4% despite posting solid quarterly results that were overshadowed by cautious commentary. These developments sparked worries about profit margin durability throughout the memory industry and triggered negative sentiment across the sector.

Seagate Technology (STX) joined the decline, falling 3.82% in early trading as the selloff rippled through AI-focused memory and storage companies.

However, the extended outlook for Micron appears more constructive. Shares remain elevated 61.5% above their 200-day simple moving average of $528.27, indicating the prevailing upward trajectory remains intact.

The Relative Strength Index registered 49.16, reflecting neutral momentum. This reading suggests the stock is balanced between buying and selling pressure, pointing toward consolidation rather than a trend reversal.

Critical resistance is positioned near $1,012, while preliminary support hovers around $804, a threshold where buyers have historically stepped in.

Apple CEO’s Remarks Strengthen Long-Term Thesis

During Apple’s most recent earnings conference call, CEO Tim Cook generated significant attention when he disclosed that Apple paid “significantly more” for memory components in the June quarter compared to March. He further projected that expenses will climb “even higher” in the ongoing quarter.

For Micron, which ranks among only three dominant suppliers of DRAM and high-bandwidth memory (HBM) globally, Cook’s statements represent an unambiguously positive development. Elevated costs for major customers like Apple correspond directly to improved average selling prices for manufacturers.

Cook’s observations indicate pricing momentum represents more than temporary fluctuation. With industry-wide supply constraints anticipated to extend through 2027 and Micron’s production capacity locked in under long-term supply contracts, the supply-demand equation continues tilting toward producers.

Micron shares had previously surged threefold during the first half of 2026 before reaching an all-time peak in late June. The stock subsequently retreated 26% from that summit. The recent correction, now partially reversed, appears more characteristic of profit-taking activity than fundamental deterioration.

Wall Street’s Earnings Projections

Micron’s next quarterly report is slated for September 22, 2026. Analysts project earnings of $31.24 per share on sales of $50.72 billion. These figures represent substantial growth from the prior-year period’s $3.03 per share and $11.31 billion in revenue.

At current levels, the stock trades at approximately 20.2 times forward earnings.

KeyBanc elevated its price objective to $1,750 on July 14, reaffirming an Overweight recommendation. Cantor Fitzgerald boosted its target to $2,000 on June 29, also maintaining an Overweight stance.

The analyst consensus price target currently sits at $1,548.86.

Additionally, Micron registers a Momentum score of 99.65 and a Quality score of 97.70 according to Benzinga Edge metrics.

MU shares traded down 3.56% at $861.43 during Thursday’s premarket activity.