Seeking Alpha downgraded Micron Technology to a Hold rating on May 29, 2026. The analysis suggests the company’s trillion-dollar valuation incorrectly prices in a perpetual AI supercycle.
The report identifies significant risks to profit margins expected in 2027. Potential HBM4E logic-die commoditization threatens the company's future value capture.
A projected depreciation cliff from new fabrication plants poses additional risks to profitability. These rising expenses could cause rapid compression of GAAP earnings per share if market supply levels normalize.