Why Micron Stock Just Dropped
Key Points
Melius Research helped Micron hit an all-time high on Monday.
On Tuesday, bad news from OpenAI is dragging Micron down.
- 10 stocks we like better than Micron Technology ›
Easy come, easy go. Micron (NASDAQ: MU) stock briefly touched a new all-time high yesterday after analysts at Melius Research boosted the stock with a buy rating and a $700 price target, citing "unusual" demand for computer memory chips to support artificial intelligence. Micron stock is falling back a bit today, however, down 2.6% at 10 a.m. ET.
And here's the interesting part: It's also because of AI -- OpenAI.
Will AI create the world's first trillionaire? Our team just released a report on the one little-known company, called an "Indispensable Monopoly" providing the critical technology Nvidia and Intel both need. Continue »
Image source: Getty Images.
What's OpenAI got to do with Micron stock?
OpenAI missed targets for new users and revenue in 2025, according to a just-released Wall Street Journal report. OpenAI itself calls the report "ridiculous," but investors remain nervous.
And no wonder. Rightly or wrongly, the Journal reports that OpenAI's business is slowing down, but costs are out of control as OpenAI continues buying all the AI chips it can get hold of. That may not make sense if it's true that OpenAI failed to hit one billion weekly active users for ChatGPT last year, that ChatGPT revenue growth was also subpar, and that users are jumping ship to other AIs such as Anthropic and Alphabet's (NASDAQ: GOOG) Gemini -- as WSJ avers.
Wall Street still loves Micron stock
And yet... and yet ... read between the lines here, and what do you see? OpenAI's business may not be going great guns, but it's still spending freely, buying AI chips, buying memory to help those chips run better.
This may not be great news for OpenAI investors, but it still sounds pretty terrific for Micron.
Meanwhile on Wall Street, two more analysts chimed in with buy endorsements for Micron -- TD Cowen, which says Micron stock is worth $600, and DA Davidson, which thinks Micron is a $1,000 stock. Both see memory prices remaining higher for longer.
Both agree Micron stock is a buy.
Should you buy stock in Micron Technology right now?
Before you buy stock in Micron Technology, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Micron Technology wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $492,752!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,327,935!*
Now, it’s worth noting Stock Advisor’s total average return is 991% — a market-crushing outperformance compared to 201% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
See the 10 stocks »
*Stock Advisor returns as of April 28, 2026.
Rich Smith has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet and Micron Technology. The Motley Fool has a disclosure policy.
Recommended Articles
