Micron Shares Plunge 30% Despite Record Revenue Growth
Micron Technology shares fell 30% this week due to regulatory fears and labor disputes despite reporting record annual revenue of $133.19 billion.
Shares of Micron Technology, Inc. plunged 30% this week to $688.09, driven by investor fears of regulatory headwinds from a Democratic Congress and a broader sell-off of AI-related memory stocks. The decline occurred despite the company reporting a record fiscal year with $133.19 billion in revenue and a 379% year-over-year increase for the fourth quarter, where revenue reached $54.23 billion and gross margins hit 87%.
Operational challenges have added to the volatility, including a labor dispute that paused operations at a plant in Taiwan. However, the company maintains a strong forward outlook, having already committed over 75% of its 2027 output through 26 Strategic Customer Agreements that extend to 2030 and cover more than 35% of its revenue.
Micron is currently co-designing HBM4E with Nvidia and has raised pricing for high bandwidth memory for 2027 to boost margins. While the stock faces near-term execution risks, analysts remain generally bullish. Consensus price targets range from $913.86 to $1,561.91, with some suggesting the recent sell-off presents a buying opportunity based on the company's fundamental growth prospects.
