Why Micron Stock Dropped Again Tuesday

A second analyst just warned: Competitor overproduction could blow up the Micron buy thesis.For the second day in a row, Micron (MU 2.28%) stock fell on Tuesday, down 3% through 11:45 a.m. ET. And for the second day in a row, Micron stock fell on Tuesday... despite being recommended as a "buy" on Wall Street. Yesterday, if you recall, analysts at TD Cowen set a $600 price target on Micron stock, predicting a 55% profit as the company rode a rising tide of DRAM riches to earn as much as $60 a share. Today, it's Deutsche Bank's turn to recommend Micron -- and have its recommendation rejected by investors. Image source: Getty Images.

Why Deutsche Bank loves Micron stock "Unprecedented" tight supplies of DRAM memory chips combined with high demand for DRAM and HBM (high bandwidth memory), says Deutsche Bank analyst Melissa Weathers, are "favorable for MU," and imply both higher prices for the company's chips -- and fatter profits for Micron. Weathers is somewhat less optimistic than TD Cowen's analyst was yesterday. However, she's still forecasting Micron to earn $46.50 this year, and she values the stock similarly to Cowen, arguing that a valuation of 11 times earnings is appropriate for the semiconductor stock: $500 a share. ExpandNASDAQ: MUMicron TechnologyToday's Change(-2.28%) $-8.75Current Price$374.75Key Data PointsMarket Cap$432BDay's Range$366.10 - $382.7852wk Range$61.54 - $455.50Volume1MAvg Vol32MGross Margin45.53%Dividend Yield0.12% Is Micron stock a buy? And yet, at the same time as Weathers recommends buying Micron and raises her price target on the stock, she also gives the same warning that Barron's highlighted yesterday: There's a risk that "additional supply being brought on by competitors" could cause "a deterioration in memory pricing" -- derailing Micron's hopes for higher prices, sales, and profits. With Samsung reportedly ramping up HBM production, this is a risk investors need to bear in mind. Just because Micron's doing well today doesn't mean the semiconductor industry has become any less cyclical! And even at just 12x earnings, Micron stock is not without risk.Read NextFeb 10, 2026 •By Dan CaplingerCan Micron Technology Stock Avoid a Future Collapse?Feb 10, 2026 •By Chris NeigerPrediction: This Overlooked AI Chip Stock Could Be the Surprise Winner of 2026Feb 9, 2026 •By Rich SmithWhy Did Micron Stock Drop on Monday?Feb 9, 2026 •By Dan CaplingerThe Biggest Gains for This AI Stock's Business May Be Yet to ComeFeb 9, 2026 •By Rick Munarriz3 No-Brainer Dividend Stocks to Buy Right NowFeb 9, 2026 •By Chris NeigerShould You Forget Tesla and Buy These 2 Artificial Intelligence (AI) Stocks Right Now?About the AuthorRich Smith is a contributing Motley Fool defense and stock market analyst covering publicly traded and emerging companies in defense, space, aerospace, and other sectors. Prior to The Motley Fool, Rich practiced international corporate law for Clifford Chance in Russia, and for the Russian-Ukrainian Legal Group in Moscow, Kyiv, and Washington, D.C. He holds a bachelor’s degree in international relations from the College of William & Mary, a law degree from the University of Baltimore, and a language certification from the International Institute of Russian Language & Culture in Tver, Russian Federation. The Globe and Mail once featured him as “one of the best stock pickers since 2009.”TMFDittyX@RichSmithFoolStocks MentionedMicron TechnologyNASDAQ: MU$374.75 (2.28%) $8.75*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.