For a lot of the artificial-intelligence (AI)-driven semiconductor rally, Micron Know-how (MU) has been one in every of Wall Avenue’s hottest trades, fueled by explosive demand for high-bandwidth reminiscence chips and tightening DRAM provide. However whereas bullish traders proceed to chase the AI narrative, quick sellers are quietly constructing a large wager that the rally could also be nearing exhaustion.
Quick curiosity in Micron has climbed to roughly 37.3 million shares, close to the very best ranges seen in years, after rising steadily by way of 2026. This represents 3.32% of the general public float. The most recent information reveals bearish positions elevated one other 2.6% in late April following a 15.9% soar earlier within the month.
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The rising wave of bearish positioning comes regardless of Micron’s huge good points from the AI increase. Some traders may be betting towards the inventory with the assumption that expectations have change into too aggressive after Micron’s meteoric surge, with considerations centered on valuation, cyclical reminiscence pricing dangers, and the likelihood that as we speak’s AI-driven provide shortages finally flip into oversupply. Plus, Micron’s quickly increasing capital spending plans are checked out as a possible warning signal.
That has created a rising tug-of-war between momentum traders betting the AI cycle continues to be in its early levels and quick sellers wagering that semiconductor enthusiasm has merely gone too far, too quick. What needs to be your subsequent transfer?
About Micron Know-how Inventory
Micron Know-how is a semiconductor firm that designs, develops, manufactures and sells reminiscence and storage merchandise globally, together with DRAM, NAND flash reminiscence, HBM, solid-state drives (SSDs) and different reminiscence modules. Headquartered in Boise, Idaho, Micron operates a number of enterprise items serving cloud and information heart, cellular and consumer, automotive and embedded, and enterprise segments worldwide. Micron’s market cap stands at $859.4 billion, placing it among the many largest and Most worthy gamers within the international semiconductor business.
Micron has been one of many best-performing semiconductor shares of the AI period, delivering monumental good points as traders rushed into corporations tied to high-bandwidth reminiscence and AI information heart demand. The inventory not too long ago climbed to a brand new 52-week excessive of $818.67 on Could 11 and stays up 168.3% year-to-date (YTD), dramatically outperforming most large-cap know-how friends.
Over the previous 12 months, shares have surged 707.4% as tightening DRAM and NAND provide, booming AI infrastructure spending, and aggressive pricing good points remodeled Micron into one of many market’s strongest momentum trades. The rally has accelerated additional in latest weeks, with Micron gaining 57.1% over the previous month alone.
But regardless of the extraordinary momentum, bearish traders proceed growing their bets towards the corporate.
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Nonetheless, the inventory nonetheless appears to be buying and selling at a reduction in comparison with business friends at 12.66 instances ahead earnings.
Higher-than-Anticipated Q2 Efficiency
Micron reported its fiscal second quarter 2026 (ended Feb. 26, 2026) outcomes on March 18, delivering one of many strongest quarters in its historical past, pushed by unprecedented demand for AI-related reminiscence merchandise.
The corporate posted income of $23.9 billion, representing an enormous year-over-year (YOY) enhance of 196.4%. This surge displays a pointy restoration in DRAM and NAND pricing alongside explosive demand for HBM utilized in AI information facilities.
Profitability expanded much more dramatically. Micron reported adjusted earnings-per-share of $12.20, up roughly 682.1% YOY from about $1.56 in fiscal Q2 2025 and exceeding expectations.
On the phase stage, the Cloud Reminiscence Enterprise Unit generated $7.8 billion in income, representing a rise of roughly 163% YOY, whereas gross margins improved to 74% from 55%.
The Core Information Middle Enterprise Unit delivered one of many strongest development trajectories, with income rising to $5.7 billion from $1.8 billion, with margins additionally increasing meaningfully as gross margin improved to 74% from 47%.
Within the Cell and Consumer Enterprise Unit, income reached $7.7 billion, marking a pointy 244.9% YOY enhance. This phase’s gross margin rose dramatically to 79% from simply 15%.
The Automotive and Embedded Enterprise Unit additionally posted robust development, with income climbing to $2.7 billion from $1 billion.
Administration additional issued exceptionally robust steerage for fiscal Q3 2026, signaling continued momentum. The corporate expects income of round $33.5 billion (plus or minus $750 million) and EPS of $19.15 (plus or minus $0.40).
Additionally, the consensus EPS estimate of $57.82 for fiscal 2026 displays a rise of 652.9%, whereas the EPS estimate of $99.23 for fiscal 2027 signifies a 71.6% rise YOY.
What Do Analysts Anticipate for Micron Inventory?
Most not too long ago, Mizuho raised its value goal on Micron Know-how to $800 from $740 whereas sustaining an “Outperform” score, citing robust DRAM and NAND pricing expectations by way of 2026 and 2027.
Additionally, BofA Securities raised its value goal on Micron Know-how to $950 from $500 whereas sustaining a “Purchase” score, citing continued AI-driven reminiscence demand and tight business provide circumstances.
Total, MU has a consensus “Sturdy Purchase” score. Of the 41 analysts masking the inventory, 31 advise a “Sturdy Purchase,” 5 counsel a “Average Purchase,” and 5 analysts are on the sidelines, giving it a “Maintain” score.
Whereas the inventory has surged previous the common analyst value goal of $628.20, the Avenue-high goal value of $1,100 means that the inventory may rally as a lot as 42.76%.
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On the date of publication, Subhasree Kar didn’t have (both straight or not directly) positions in any of the securities talked about on this article. All data and information on this article is solely for informational functions. This text was initially printed on Barchart.com
