Micron falls 5.5% after blockbuster earnings. Here’s what analysts say

Blockbuster earnings weren’t enough to stave off a sharp decline Micron Technology Stocks in pre-market trading.

The chipmaker tripled revenue in the most recent quarter, with the results matching previous analyst estimates, but shares looked set to fall about 5.3% when they opened at 07:02 a.m. ET.

Micron stock is up more than 350% in the past year, however, thanks to a shortage of memory supply due to increasing demand for Nvidia’s AI chips.

Citi analysts put the pre-market move down to “some profit taking after a strong run” and maintained a buy rating on the stock.

“Like the Windows PC DRAM cycle in the 1990s, we believe the biggest investor debate in the stock is if the stock continues to rise with rising DRAM prices,” he wrote.

Goldman analysts expect the stock to remain range-bound in the short term, after “a very strong quarter with guidance well ahead of the Street, contrary to most investors’ expectations.”

The bank is keeping its rating on the stock neutral, flagging a “potential risk of slowing HBM price momentum given expectations of meaningful supply additions in 2027.”

Micron isn’t the only tech company that has seen its stellar earnings fail to translate into meaningful stock price movement recently.

Nvidia reported a blowout quarter on Feb. 26, but its stock fell 5% on the day, reflecting investor wariness about recent stellar gains and broader concerns about its leadership in the artificial intelligence race.

Despite the muted market reaction, several banks raised their price targets for Micron stock on Thursday morning. Wells Fargo updated their forecast to $550 per share from $470. Barclays raised its target to $670 from $450.

— CNBC’s Katie Tarasov and Jordan Novett also contributed to this report.