Micron is recovering from last week’s losses, and analysts say the recent dip was just a temporary setback. Shares rose 4.3% in premarket trading on Tuesday, building on a 9.9% jump the day before, as investors returned to memory chip stocks after a sharp AI-related selloff. Here’s what caused the initial drop, why analysts think the rebound makes sense, and what demand could look like going forward.
The selloff that pushed Micron lower started last Thursday, after Broadcom gave disappointing revenue guidance. This led investors to pull back from semiconductor stocks in general. Even with Tuesday’s premarket gains, Micron is still about 8% below where it closed last Wednesday, before the Broadcom news. Still, the stock is up 233% in 2026.
UBS described the selloff in memory chip makers as an opportunity in a research note published Monday. The firm maintained a Buy rating and a $1,625 price target on Micron, with the analyst writing that demand checks continue to point to upside rather than deterioration, driven by agentic AI workloads that require increasing memory capacity as models grow more complex and autonomous.
UBS picked Samsung Electronics as its top choice in the memory sector and also highlighted SK Hynix, Kioxia, and Nanya Technology as favorites. Samsung’s shares rose nearly 9%, and SK Hynix jumped almost 16% in local trading, as the recovery spread across the major memory companies.
The demand outlook for memory chips remains strong. High-bandwidth memory is still taking up available supply as AI server construction speeds up. Long-term supply deals are helping to lock in prices and reduce the usual ups and downs that have kept memory stock values low in the past.
