September 16, 2024

Micron Technology stock experienced a decline of 3.4% on Monday as Morgan Stanley cut the
price target for the stock from $140 to $100 but reiterated an equal weight rating. Earlier, the
stock had touched a low of $85.92 dollars and went on to close the ‘down’ session at $88.12
dollars as opposed to the previous session’s close of $91.22 dollars. Although these sales were
largely uninspired, about 7 million shares were swapped compared to an average of over 21
million.

Morgan Stanley has downgraded Micron Technology, reducing its price target from $140 to
$100 amid worries about the memory industry’s future. Analysts suggest that the memory market
is approaching its peak, with supply beginning to meet demand, which may result in diminished
returns down the line. They also predict a decline in Micron’s earnings over the next few
quarters, with the stock’s price-to-book value potentially falling by 30%. The memory sector is
grappling with rising costs, particularly in DRAM and high-bandwidth memory (HBM), driven
by advancements like EUV lithography. Analysts are leaning towards NAND technology over
DRAM, indicating a market shift. While there is a positive outlook for AI and HBM growth,
concerns regarding Micron’s cash flow and earnings projections played a role in the downgrade.
Additionally, Morgan Stanley has lowered its outlook on South Korea’s tech sector but remains
more optimistic about Samsung.

In other news, Executive VP April S. Arnzen sold 4,890 shares at $135.86 per share, bringing his
total sales to $664,355.40. Following this, Arnzen now holds 142321 shares of the company
worth more than nineteenth million dollars. Other Company insiders include CEO Sanjay
Mehrotra, who sold 34,284 shares worth 152.28 USD each for over 5.2 million USD and
presently owns 719,049 shares valued at 109 million USD giving total outstanding 719,049.
Such transactions are reported in SEC filings. The internal stock holders own around 0.32
percent of stocks in Micron currently.