Wall Street Sees 44% and 60% Downside for Micron and Intel as AI Boom Lifts Valuations
Updated
Updated · The Motley Fool · Jun 12
Wall Street Sees 44% and 60% Downside for Micron and Intel as AI Boom Lifts Valuations
3 articles · Updated · The Motley Fool · Jun 12
Summary
Morningstar and J.P. Morgan targets imply Micron could fall 44% to $500 and Intel 60% to $45, even after the stocks have surged 228% and 192% this year.
Micron's bearish case centers on a memory-chip shortage rather than a durable edge: quarterly revenue jumped 196% to $23.8 billion, but it still lost DRAM and NAND share to Samsung and SK Hynix.
Intel faces a different problem—weak execution and expensive valuation. First-quarter revenue rose 7%, while its foundry unit lost $2.3 billion on $4.6 billion in sales amid doubts about customer wins and dividend sustainability.
Those concerns leave both stocks looking stretched: Micron trades at about 40 times earnings despite 13% annual earnings growth expected through 2029, while Intel trades near 200 times earnings even with 77% growth projected through 2027.