Micron (MU) Stock Plunges 20%: Why Analysts See a Golden Buying Opportunity

Key Takeaways Micron (MU) shares tumbled approximately 20% across five consecutive trading days following stellar Q2 financial results The decline came after Google introduced TurboQuant, a compression technology potentially reducing AI memory requirements by up to 6x Fellow memory manufacturer SanDisk (SNDK) experienced an 11% decline following the identical announcement Morgan Stanley’s Joseph Moore maintained his Buy recommendation, characterizing the pullback as an attractive entry point Analyst consensus remains at Strong Buy with a mean price target of $536.55, suggesting approximately 51% potential appreciation Micron Technology delivered an outstanding fiscal second quarter performance, posting revenue growth exceeding 190% compared to the prior year, reaching $23 billion. The semiconductor giant simultaneously achieved all-time highs across key metrics including gross margin, earnings per share, and operating cash flow. Everything appeared flawless. Micron Technology, Inc., MU Then the tech giant Alphabet intervened. Google introduced TurboQuant, an innovative compression technology the company claims can slash memory requirements for operating large language models by as much as six times. This revelation triggered an immediate and substantial decline across memory-focused semiconductor stocks. SanDisk (SNDK) experienced an 11% decline following the disclosure. Micron’s shares plummeted roughly 20% across merely five trading days. Additional downward pressure emerged from investor anxiety regarding the company’s substantial capital expenditure plans slated for fiscal 2027. Notwithstanding impressive quarterly performance, the market’s negative response illustrated apprehension that memory demand — representing the foundation of Micron’s operations — might face structural headwinds if artificial intelligence systems require diminished memory capacity. Morgan Stanley Challenges the Narrative Not all market observers agree the selloff is justified. Morgan ...