Why Micron Stock Just Dropped
Micron stock briefly hit an all-time high after Melius Research issued a buy rating, but fell 2.6% after a Wall Street Journal report that OpenAI missed user and revenue targets. Despite OpenAI's denial, investors remain nervous, yet Micron remains a buy according to multiple analysts.
Micron stock reached an all-time high after Melius Research issued a buy rating with a $700 price target, citing unusual demand for computer memory chips to support artificial intelligence. However, the stock fell 2.6% after a Wall Street Journal report stated OpenAI missed user and revenue targets. OpenAI denied the report, calling it 'ridiculous', but investors remain nervous. The report also stated OpenAI's costs are out of control as it continues to buy AI chips. Despite this, multiple analysts, including TD Cowen and DA Davidson, maintain Micron is a buy, with price targets of $600 and $1,000 respectively. Micron benefits from OpenAI's continued spending on AI chips and memory.
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