Wall Street analysts say this slide in Micron is a buying opportunity for AI play

Investors should consider using the pullback in Micron Technology to snatch up shares, according to several Wall Street analysts. The decline in the memory chipmaker's stock comes on the heels of its fiscal third-quarter print. Shares dropped 4% despite a top-and-bottom line beat. Instead, investors focused on Micron's in-line revenue forecast for the current quarter. In March, the company offered rosy guidance driven by AI demand that boosted shares. "We believe MU stock is selling off due to conservative guidance and higher capex and we would buy MU on weakness as the [dynamic random access memory] upturn thesis remains intact and we expect sequentially higher revenue, EPS, and gross margins through C25," wrote Citi's Christopher Danely. His $175 price target implies upside of more than 22% from Wednesday's close. Goldman Sachs analyst Toshiya Hari also viewed the drop as a buying opportunity, citing expectations for growth in AI compute and high-bandwidth memory market share gains. He also anticipates positive earnings per share estimate revisions this year and next year as Micron exhibits "supply-side discipline." Hari has a price target of $158, signaling 11% upside over the next 12 months. "We believe the team is well-positioned to capture memory content on the strong AI/accelerated compute server deployments with [high-bandwidth memory] 3e capacity already sold out through CY25 and we believe the team is beginning to have visibility into CY26 demand," wrote JPMorgan Harlan Sur. The analyst has a December 2025 price target of $180 on shares, citing expectations for $16.50 of earnings power exiting the 2025 calendar year. The price target implies 26% upside from Wednesday's close. Despite the disappointing guide, Bernstein analyst Mark Li said the mid-term outlook "remains solid. UBS analyst Timothy Arcuri also encouraged investors to "cut through the noise" as gross margins continue trudging higher. "Barring further investigation, we chalk this up to the yield challenges in ramping HBM and MU wanting to leave itself some room for error," he said, trimming his price target to $153 from $155 a share. The shift reflects more than 7% upside from Wednesday's close. MU 1D mountain Micron shares fall on in-line guidance Wells Fargo's Aaron Rakers reiterated his overweight rating and $190 price target, implying more than 33% upside. He expects the ramp of the company's latest high-bandwidth memory iteration to fuel upside for the stock, and boosted estimates for 2025 and 2026. Along with heightened memory demand for AI needs, Micron looks poised to benefit from several ongoing trends including cloud computing and data centers, said Bank of American analyst Vivek Arya. AI demand and pricing also support the stock valuation, currently near the top-end of its historical book value range. "We believe we are beginning to pass the trough of the memory cycle as memory pricing improves, and see room for possible share gains in high-bandwidth memory (likely CY25E)," he wrote.