Micron (MU) stock price closed 0.77% (7.55 points) lower on Friday, August 21, 2026. The stock fell an additional 3.37% (32.55 points) in the pre-market hours. Micron’s stock price dip is rather perplexing, given that Wall Street continues to remain bullish on the memory chip manufacturer. Let’s discuss what’s going on.
Micron Stock Price Dip: Why Is MU Falling Despite Wall Street Being Bullish?
Micron (MU) is one of the big three in the memory chip manufacturing market, behind only SK Hynix and Samsung Electronics. The company is the only US-based company among the three, which makes it rather unique. Regardless of which AI chip manufacturer you prefer, Nvidia or AMD, Micron wins in both scenarios.
Micron’s (MU) latest price dip could be due to increased profit taking among investors. The stock has seen rapid growth over the last few years. The dip could also be fueled by increased competition from China. China’s ChangXin Memory Technologies (CXMT) recently went public in one of the largest IPOs (Initial Public Offering) in Chinese history. Investors may be pricing in CXMT filling the gaps that Micron (MU) has not been able to address.
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Despite the price dip, Wall Street continues to be bullish on Micron (MU). BMO Capital recently raised its stock price target for MU to $1300. UBS anticipates the stock to hit $1625, Bank Of America predicts it to hit $1550, and Mizuho Securities anticipates a price of $1375. Citi, however, decreased its price target for Micron (MU) from $1400 to $1150.
There are some analysts who say that the memory market may be nearing its peak. The memory market works in cycles and supply may equal demand very soon. Micron (MU) recently announced a $250 billion investment plan for the US to ramp up domestic production. The investment plan also gives weight to the argument that supply may meet demand very soon.
