Micron shares fell 2.5% by 2:25 p.m. ET Monday after OpenAI said over the weekend it would pause training on some AI models while investigating reports of AI agents going “rogue.” Investors are questioning how long AI-driven memory demand can sustain profits.
Rising demand for memory used in AI training, inference and agents has pushed up prices for Micron’s DRAM and NAND chips, boosting sales and margins. Separately, higher US interest rates and warnings that persistent inflation could prompt further increases are pressuring tech stocks broadly.
Ahead of Wednesday’s earnings release, RW Baird raised its Micron price target to $1,520, while DA Davidson and JPMorgan reiterated buy ratings. JPMorgan analyst Harlan Sur predicted a “beat-and-raise” quarter on tight DRAM and NAND supply. Davidson’s Gil Luria said a $2,000-a-share target was not unreasonable; Baird’s Tristan Gerra expects DRAM demand to continue, supply growth to moderate and prices to rise in 2027, citing agentic-AI demand.
