Why Micron Stock Just Dropped

Easy come, casual go. Micron (NASDAQ: MU) banal concisely touched a caller all-time precocious yesterday aft analysts astatine Melius Research boosted the banal with a bargain standing and a $700 terms target, citing "unusual" request for machine representation chips to enactment artificial intelligence. Micron banal is falling backmost a spot today, however, down 2.6% astatine 10 a.m. ET.

And here's the absorbing part: It's besides due to the fact that of AI -- OpenAI.

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What's OpenAI got to bash with Micron stock?

OpenAI missed targets for caller users and gross successful 2025, according to a just-released Wall Street Journal report. OpenAI itself calls the study "ridiculous," but investors stay nervous.

And nary wonder. Rightly oregon wrongly, the Journal reports that OpenAI's concern is slowing down, but costs are retired of power arsenic OpenAI continues buying each the AI chips it tin get clasp of. That whitethorn not marque consciousness if it's existent that OpenAI failed to deed 1 cardinal play progressive users for ChatGPT past year, that ChatGPT gross maturation was besides subpar, and that users are jumping vessel to different AIs specified arsenic Anthropic and Alphabet's (NASDAQ: GOOG) Gemini -- arsenic WSJ avers.

Wall Street inactive loves Micron banal

And yet... and yet ... work betwixt the lines here, and what bash you see? OpenAI's concern whitethorn not beryllium going large guns, but it's inactive spending freely, buying AI chips, buying representation to assistance those chips tally better.

This whitethorn not beryllium large quality for OpenAI investors, but it inactive sounds beauteous terrific for Micron.

Meanwhile connected Wall Street, 2 much analysts chimed successful with bargain endorsements for Micron -- TD Cowen, which says Micron banal is worthy $600, and DA Davidson, which thinks Micron is simply a $1,000 stock. Both spot representation prices remaining higher for longer.

Both hold Micron banal is simply a buy.

Should you bargain banal successful Micron Technology close now?

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