Micron Stock Plunges After Company Cuts Outlook, Analysts Raise Concerns | Global News Avenue

Micron Technology (exist) On Thursday, the chipmaker warned of weakness in the consumer-oriented market, with some analysts downgrading their outlook for the company.

Micron said late Wednesday it expected to income About US$7.9 billion, far lower than expected. The company cited a weaker-than-expected PC replacement cycle and slowing demand for its products from the automotive and automotive industries. industrial sector.

The news, coupled with pessimism from a range of Wall Street analysts, sent the stock down 16% recently, falling below $88, near its lowest level since September, making the stock the biggest decliner on the S&P 500 in recent trading. One of the stocks.

BofA Securities downgraded the stock to “neutral” from “buy” and downgraded its rating price target It rose from $125 to $110, below the visible alpha average of around $129. Bank of America analysts said Micron“Weakness in the PC and mobile phone markets has put downward pressure on memory pricing,” especially NAND flash memory semiconductor. They added that they expected Gross profit margin “Remain weak in the second quarter and even the third quarter.”

Citigroup on Thursday maintained a “buy” rating and $150 price target but lowered its profit and sales forecasts for the next two years. Citi now expects fiscal 2025 Earnings per share (EPS) Expectations are for $6.75 on revenue of $34.6 billion, compared with previous forecasts of $8.27 and $37.7 billion, respectively.

Citi projects earnings per share of $13.31 in 2026 on revenue of $45 billion. It had forecast earnings of $15.49 per share and revenue of $45.5 billion.

Wedbush Securities wrote in a note to clients Thursday that they see “brighter days ahead for Micron Technology.” They believe the headwinds the company faces are only “temporary.” Wedbush maintained an “outperform” rating and $125 price target.