Analysts warn on chips
Wall Street analysts cautioned that major chip stocks like Micron and Intel could see significant downside from cyclical risks, even as pockets of AI demand remain strong — a sign of growing investor concern over sector volatility. Distributors should expect inventory and pricing swings as manufacturers recalibrate. (indexbox.io)
Morgan Stanley’s Joseph Moore put a bear-case price target of $240 on Micron, implying roughly 43% downside, while Rosenblatt’s Kevin Cassidy set a $30 target for Intel, implying roughly 32% downside. (fool.com) Micron reported fiscal Q2 revenue of $23.86 billion and non‑GAAP net income of $14.02 billion (EPS $12.20) for the quarter ended Feb. 26, 2026. (barchart.com) Micron guided Q3 revenue to about $33.5 billion ± $750 million and said full fiscal‑2026 capital expenditures will exceed $25 billion, with Q3 capex around $7 billion. (fool.com) Analysts warned that Micron’s aggressive capex plan and historic margin levels have raised “oversupply” concerns for 2027–28, and at least one market note flagged a >30% downside if AI spending moderates. (financialcontent.com) (ainvest.com) Market trackers report memory contract and spot prices have jumped sharply—Counterpoint’s tracker showed DRAM, NAND and HBM up about 80%–90% in Q1 2026 versus Q4 2025—and industry analysts say capacity has been reallocated toward HBM for AI accelerators, tightening conventional DRAM/NAND supply. (counterpointresearch.com) (nand-research.com) Micron told investors it has effectively sold out HBM3E and next‑generation HBM4 capacity through the end of calendar 2026 and disclosed its first five‑year strategic customer agreement to lock volumes for key buyers. (financialcontent.com) (fool.com) Intel beat Q4 expectations but issued soft near‑term guidance (Q1 revenue $11.7–$12.7 billion and breakeven adjusted EPS), prompting intraday share weakness, and Rosenblatt has retained a Sell stance while keeping a $30 target on INTC. (newsroom.intel.com) (cnbc.com) (marketbeat.com)
