Intel Continues to Get Pummeled: Why One Analyst Maintains His Conviction That 130% Gains Will Come

Micron Technology (NASDAQ:MU) presently trades astatine $820.53, good beneath the Wall Street mean terms people of $1,507.38. That spread implies astir 84% upside if the statement is right.

Micron is the lone US-based representation shaper and an emerging person successful high-bandwidth representation (HBM) for AI accelerators. Revenue jumped 345.7% twelvemonth implicit twelvemonth successful the astir caller quarter, and non-GAAP gross borderline expanded to 84.6% from 37.7%. The disconnect betwixt beardown fundamentals and a anemic illustration is worthy unpacking.

A Chinese IPO Blew Up the Memory Trade

ChangXin Memory Technologies' Shanghai debut triggered the selloff. The Chinese DRAM shaper soared 466% and reached a $487 cardinal marketplace cap, surpassing Intel. MU fell 8.85% successful a azygous session, has dropped 15.48% connected the week, and is down 27.53% implicit the past month.

The symptom was sector-wide. SanDisk mislaid 9%, Western Digital fell 7% to 8%, and the Roundhill Memory ETF slid astir 12%. Morgan Stanley's Mike Wilson called the correction crossed semi and retention names "pretty good advanced" and severe. News-sentiment scoring connected Micron landed astatine -0.410618, bearish.

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Why Melius Won't Move Off Its $2,200 Target

Melius Research expert Ben Reitzes kept his Street-high $2,200 terms people connected Micron, astir 168% supra existent levels. His thesis rests connected HBM. Reitzes models choky capableness for HBM3E and HBM4 combined with multi-billion-dollar non-cancelable contracts to proviso AI accelerator architectures similar NVIDIA and AMD, arguing this has structurally shifted Micron distant from commodity DRAM cycles. He projects sustained gross margins scaling toward 80%-plus with premium pricing powerfulness sticky successful aboriginal currency flow.

Bulls besides enactment that CXMT is targeting DDR5 for Intel and AMD server sockets, wherever Micron holds a existent lead. Multi-year Strategic Customer Agreements signed successful Q3 FY2026 people cyclicality concerns. CEO Sanjay Mehrotra said the agreements volition "significantly heighten the durability and predictability" of the fiscal performance.