Micron Stock Tumbles on Double-Downgrade
- Micron Technology stock fell after BNP Paribas downgraded shares from Outperform to Underperform
- Karl Ackerman slashed the price target to $67, lowest on Wall Street
- Shares of Micron have declined 45% from its record high in June 2021
- Micron will underperform AI peers due to oversupply of HBMs
- Analyst Pierre Ferragu maintains Buy rating and $150 target price
Micron Technology’s stock took a hit after BNP Paribas downgraded the chipmaker from Outperform to Underperform, citing concerns over an oversupply of high bandwidth memory (HBM) that could lead to lower average selling prices for Micron’s memory chips. This comes amid broader selloffs in the tech sector and potential trade restrictions on China exports. Despite this, not all analysts are bearish; New Street Research’s Pierre Ferragu maintains a Buy rating.
Factuality Level: 8
Factuality Justification: The article provides accurate and objective information about Micron Technology’s stock performance, the downgrade by BNP Paribas, and the reasons behind it. It also includes contrasting opinions from other analysts. However, it could be improved by providing more context on the broader market trends affecting chip stocks and the specific factors contributing to the oversupply of HBMs.
Noise Level: 3
Noise Justification: The article provides relevant information about Micron Technology’s stock performance and analyst opinions, but it lacks in-depth analysis of long-term trends or possibilities. It also does not explore the consequences of decisions on those who bear the risks or provide actionable insights for readers.
Public Companies: Micron Technology (MU), iShares Semiconductor ETF (SOXX), S&P 500 (SPX)
Key People: Karl Ackerman (Analyst at BNP Paribas), Pierre Ferragu (Analyst at New Street Research), Angela Palumbo (Writer)
Financial Relevance: Yes
Financial Markets Impacted: Micron Technology stock, iShares Semiconductor ETF, S&P 500 index
Financial Rating Justification: The article discusses the downgrade of Micron Technology’s stock by BNP Paribas and its impact on the company’s share price, as well as broader concerns in the semiconductor sector due to political factors and market trends. It also mentions the performance of related financial instruments like iShares Semiconductor ETF and S&P 500 index.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Extreme Rating Justification: No extreme event mentioned in the text and not happened in the last 48 hours
Move Size: The market move size mentioned in this article is a 6.5% decline in Micron Technology stock price.
Sector: Technology
Direction: Down
Magnitude: Large
Affected Instruments: Stocks
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