Micron Stock: CEO Sells $32 Million as Analysts Warn of Valuation Fatigue Amid HBM4 Boom
Published on 07/01/2026 at 15:21 | Redaktion boerse-global.de
Sanjay Mehrotra offloaded 26,736 shares on June 26, pocketing roughly $32.7 million at prices between $1,128 and $1,170. The sale, conducted under a 10b5-1 trading plan established in January 2026, was scheduled well before the company’s latest blowout results. Board member Lynn A. Dugle also filed plans on June 30 to sell a further 1,300 shares. Such pre-arranged programs are designed to prevent accusations of trading on non-public information, but the timing still raises eyebrows on a day when the stock slipped nearly 4.4% to €969.
That retreat from the June 25 all-time high of €1,103.80 underscores a growing disconnect. Micron’s fiscal third-quarter revenue hit $41.46 billion — more than four times the year-ago figure — and adjusted earnings per share landed at $25.11, comfortably ahead of estimates. Management guided for roughly $50 billion in fourth-quarter revenue and a historic gross margin of 86%. Yet the stock has given back about 11% from its peak, trading around €986.60, and the year-to-date advance stands at roughly 260% according to one calculation, or 267% by another.
The sell-off gained fresh fuel from 24/7 Wall St., which downgraded Micron to Sell on June 30 with a price target of $1,013.82 and a bear-case scenario as low as $738. The analyst team cited “valuation exhaustion,” arguing that the market has already priced in several years of AI-driven growth and that further positive surprises will be harder to deliver. The relative strength index sits at 58.2, well below overbought territory, suggesting the selling is more about profit-taking than panic. Still, the warning signals a shift in tone: strong quarterly results no longer automatically translate into upward momentum after a 260% run.
Should investors sell immediately? Or is it worth buying Micron?
Behind the caution lies a structural argument that many bulls find compelling. Micron’s entire High-Bandwidth Memory (HBM) production for 2026 is already sold out under multi-year, non-cancellable contracts with 16 strategic customers. The next-generation HBM4 chips are fully committed through the end of 2026, and capacity for 2027 is largely spoken for. HBM products consume far more wafer capacity than conventional DRAM, tightening the global supply of memory chips. Management and analysts expect a memory shortage to persist at least until 2027 or 2028 — a break from the brutal cycles that once defined the industry.
That scarcity thesis is the bedrock of the bull case. The stock’s 52-week low of €90.64 stands in almost surreal contrast to its current level, a gap of roughly 969%. The market capitalization has swelled to about €1.121 trillion, a more than tenfold increase from the lows. History warns that such parabolic moves often invite sharp corrections, and the annualized volatility of 109.44% leaves little room for complacency. Some worry about a “RAMmageddon” scenario in which consumers outside the AI segment pull back on purchases, aggravating pricing pressure if demand beyond hyperscalers falters.
The average analyst price target of €1,237.01 still implies nearly 28% upside from current levels, but the downgrade from 24/7 Wall St. and the insider sales inject a note of realism. For investors, the question is no longer whether Micron has turned a corner — the numbers confirm that — but whether the structural transformation can sustain a valuation that already reflects years of super-cycle profits. The next test comes with fourth-quarter earnings, when the company must prove it can deliver on its own optimistic guidance. Until then, the stock remains caught between a records sheet that reads like fiction and a market that wants to see the next act before paying full price.
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Micron Stock: New Analysis - 1 July
Fresh Micron information released. What's the impact for investors? Our latest independent report examines recent figures and market trends.
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