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Micron Technology Inc. MU stock fell nearly 3% during Wednesday’s premarket session after soaring 12.17% in the previous trading session. The decline came as semiconductor stocks eased alongside weaker index futures, with Nasdaq futures down 0.53% and S&P 500 futures slipping 0.19%.
The modest pullback follows a sharp rally fueled by optimism around artificial intelligence-driven memory demand.
Morgan Stanley Says Memory Upcycle Has Further To Run
Morgan Stanley analyst Joseph Moore said the recent pullback in U.S. memory stocks presents an attractive buying opportunity.
Moore expects memory prices to increase at least 25% from the second quarter to the third quarter of 2026 as data center memory shortages persist. He said the current memory cycle remains overwhelmingly driven by AI infrastructure spending and cloud data center demand, even though weaker PC, smartphone and consumer electronics markets continue to weigh on broader investor sentiment.
Importantly, Morgan Stanley’s channel checks found no evidence that supply constraints in the data center market are easing. Moore added that shortages could become even more pronounced in 2027 and 2028 as AI deployments accelerate, prompting the firm to continue buying the sector on weakness.
AI Spending Remains The Key Driver For Micron
The latest commentary reinforces the investment case that AI remains the dominant force shaping the memory industry.
Micron, one of the world’s largest producers of DRAM and NAND flash memory, is widely viewed as one of the biggest beneficiaries of accelerating AI server deployments.
The company supplies memory products for data centers, enterprise servers, smartphones, PCs, automotive and industrial markets, but investors remain primarily focused on its exposure to AI infrastructure spending and high-bandwidth memory demand.
As a result, updates on memory pricing, supply constraints and hyperscale data center spending continue to have an outsized impact on Micron’s share price.
Analyst Outlook
The stock carries a Buy rating with an average price forecast of $1548.86. Recent analyst moves include:
- Keybanc: Overweight (Raises forecast to $1750.00) (July 14)
- Cantor Fitzgerald: Overweight (Raises forecast to $2000.00) (June 29)
- Cantor Fitzgerald: Overweight (Maintains forecast to $1500.00) (June 25)
Which Funds Hold The Most Micron Stock?
Micron is also a major holding in several semiconductor and momentum-focused exchange-traded funds, including:
- iShares Semiconductor ETF SOXX: 8.03%
- Invesco S&P 500 Momentum ETF SPMO: 8.39%
- Invesco PHLX Semiconductor ETF SOXQ: 9.78%
Because of those large weightings, significant ETF inflows or outflows can amplify buying or selling pressure in Micron shares beyond company-specific news.
MU Price Action: Micron Technology shares were down 2.83% at $943.35 during premarket trading on Wednesday, according to Benzinga Pro data.
Photo via Shutterstock
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This article What's Going on With Micron Technology Stock Wednesday? originally appeared on Benzinga.com.
