TLDR
- Micron fell 1.7% to $840.69 in premarket trading Wednesday.
- Democratic wins in Texas and Ohio put the AI buildout under more scrutiny.
- AMD said higher memory prices are weighing on PC demand, echoing Intel and Apple.
- Insiders sold $78.5 million of stock over the past three months.
- Analystsâ average price target is $1,407.88.
Micron (MU) stock is slipping before the bell on Wednesday. It was down 1.7% at $840.69 in premarket trading.
The dip follows Democratic wins in the midterm elections. Investors are weighing what that means for the AI trade.
Republican governors lost in Texas and Ohio, two data-center hubs. That points to more scrutiny of the AI infrastructure buildout.
Micron was not alone in the pullback. Other AI-exposed hardware names moved in a similar way.
The stock is down 21% over the past month. It has still nearly tripled this year.
AMDâs strong earnings were not enough to lift the mood. Its AI chip growth drove results that beat expectations.
Memory Costs Hit PC Demand
AMD said on its Tuesday call that higher memory prices are weighing on PC demand. Intel and Apple have raised similar warnings this earnings season.
That matters less for Micron while AI memory demand holds up. If AI spending falters, PC and smartphone buyers may already have pulled back.
Micronâs last report came on September 30. It posted earnings of $33.42 per share against $31.77 expected.
Revenue came in at $54.23 billion, topping the $51.33 billion estimate. That was up 379% from a year earlier.
Guidance for next quarter calls for earnings of $37.15 to $39.15 per share. The stock trades at a P/E of 11.5 with a market value near $967 billion.
Insiders Sold Near $900 to $969
CEO Sanjay Mehrotra sold $38.76 million of stock on August 21. The average price was $968.90.
Insider Scott Deboer sold $25.69 million of stock on October 16 at $900. In all, insiders sold $78.5 million over three months.
Analysts remain upbeat. The consensus rating is Moderate Buy, with an average price target of $1,407.88.
Of the analysts tracked, 41 rate the stock Buy, one rates it Strong Buy and four say Hold. Mizuho raised its target to $1,400 from $1,300 on October 1, and CLSA set $1,700.
Risks are in the mix too. Investor Dan Niles warned that Chinaâs CXMT targets a 20% market share by 2028, and a cautious outlook from Kioxia weighed on memory names earlier this week.
Micron could step up buybacks in December after Chips Act restrictions expire. Its 50-day average sits at $974.91, above the current price, while its 200-day average is $749.61.
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