Micron Shares Face Sell-Off Despite Upgraded Price Targets

Micron US5951121038

A notable divergence emerged in the market for Micron Technology shares last Friday, as a significant price decline coincided with bullish analyst upgrades. The stock closed the session down 6.7% at $241.14, a move that stood in stark contrast to fresh analyst calls projecting a rise to $300.

The sell-off, which brought shares near the day's low after opening at $255.82, appears driven by investor caution ahead of the company's quarterly report. This nervousness overshadowed simultaneous positive commentary from research firms. Stifel reaffirmed its "Strong Buy" rating and dramatically increased its price target from $195 to $300. The firm cited Micron's strong positioning, pointing to robust demand for AI infrastructure and the company's pricing power in advanced memory products. This followed a similar "Strong Buy" rating and $300 target issued by Citigroup on December 10.

The market's technical reaction triggered further downward momentum. The drop below the 20-day moving average is believed to have activated algorithmic selling programs. Observers suggest investors may have used the optimistic analyst sentiment as an opportunity to realize profits. Micron's equity has been a major beneficiary of the AI boom over the past three years, fueled by demand for its High Bandwidth Memory (HBM) used in accelerators, leading some to believe the market is now pricing in a period of consolidation.

All Eyes on Wednesday's Guidance

The focal point for investors is Micron's upcoming earnings release, scheduled for after the market closes on December 17. The report will cover the first quarter of the company's 2026 fiscal year. Market experts anticipate the results will confirm the sustained strength in demand for next-generation HBM3E products.

From a chart perspective, the stock faces immediate pressure. To invalidate Friday's bearish candle, the share price would need to recover swiftly above the $250 level. The post-earnings trajectory is likely to hinge on management's forecast. Should Micron meet expectations and raise its guidance, the path toward the $300 analyst targets could reopen. Conversely, any disappointment in the company's outlook could precipitate a test of key support around $225.