Micron Stock (MU) Keeps Sliding: Goldman Sachs Sees Little Room to Run

Micron (NASDAQ:MU) stock has hit a rough patch, dropping nearly 5% on Friday and shedding another 4.5% in Monday’s session, as investors digested strong fiscal Q2 2026 earnings while growing uneasy about what comes next.

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Micron reported results and guidance that came in well ahead of expectations, yet investor attention turned to the company’s spending plans and the broader cycle. Management outlined a big increase in capital expenditures, with fiscal 2026 spending expected to exceed $25 billion and rise further beyond that, a move that raised concerns about future supply growth and the risk of another downcycle forming over time.

The market’s response also reflects how far expectations had already stretched ahead of the release. After a powerful run over the past year, the stock entered earnings with little room for error, so even strong results were not enough to support shares when paired with signs of heavier spending and a more balanced supply-demand outlook taking shape.

Against that backdrop, Goldman Sachs’ James Schneider is taking a measured view of where Micron goes from here, expecting the stock to “be range bound following a very strong quarter.”

Schneider also pointed to a meaningful strategic development, noting that Micron has signed its first five-year customer agreement, which includes purchase commitments and other measures designed to support more stable market dynamics over time.

At the same time, Schneider’s outlook reflects both optimism and caution. The analyst sees DRAM and NAND markets remaining healthy, with continued tailwinds supporting Micron’s business, while also highlighting that pricing trends across memory products continue to move higher thanks to disciplined supply and strong AI-driven demand.

Looking further ahead, Schneider raises the possibility that pricing momentum in high-bandwidth memory could slow in 2027 if additional supply enters the market, which could moderate the current strength. However, he also suggests that a more constructive stance could emerge if the industry maintains supply discipline through 2027 and beyond, leaving the longer-term trajectory closely tied to how well producers manage capacity through the cycle.

All in all, Schneider assigns MU shares a Neutral rating, describing the setup as a “balanced risk/reward” at current levels, while his $400 price target reinforces his view that the stock is indeed likely to remain range bound for now. (To watch Schneider’s track record, click here)

While Schneider is taking a measured approach, the broader Street remains largely optimistic on Micron’s long-term trajectory. The stock carries a Strong Buy consensus rating, with the vast majority of analysts recommending the shares. The average price target sits at $537.57, implying ~33% upside from current levels. (See MU stock forecast)

Disclaimer: The opinions expressed in this article are solely those of the featured analyst. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.

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