NEW YORK — Micron Technology has emerged as one of the defining stock stories of the artificial intelligence era, but a growing contingent of Wall Street bears is quietly wagering that the semiconductor giant’s historic run may be approaching its limits.
Short interest in the Boise, Idaho-based chipmaker has climbed to roughly 37.3 million shares, representing 3.32 percent of the public float and hovering near its highest levels in years. Bearish positions rose an additional 2.6 percent in late April, following a 15.9 percent jump earlier in the month — a notable escalation even as the stock continues setting new highs.
The skepticism stands in stark contrast to Micron’s recent financial performance. The company posted fiscal second-quarter revenue of $23.9 billion, a nearly 200 percent increase from the same period a year earlier, driven by surging demand for high-bandwidth memory chips used in AI data centers. Adjusted earnings per share came in at $12.20, up more than 680 percent year over year. Management guided for third-quarter revenue of approximately $33.5 billion, well above prior expectations.
Shares have reflected that momentum. Micron stock hit a 52-week high of $818.67 on May 11 and has gained more than 168 percent year to date, vastly outpacing most large-cap technology peers.
Yet short sellers appear unconvinced the pace is sustainable. Bears have centered their concerns on stretched valuations following the stock’s extraordinary climb, the historically cyclical nature of memory chip pricing, and the risk that today’s AI-driven supply shortages eventually give way to oversupply. Micron’s rapidly expanding capital expenditure plans have added to those concerns for some investors.
Most Wall Street analysts remain firmly in the bull camp. Of 41 analysts covering the stock, 31 carry a strong buy rating, with BofA Securities recently raising its price target to $950 and Mizuho lifting its target to $800, both citing continued AI infrastructure spending and tight industry supply conditions. The highest price target on the Street stands at $1,100.
The result is a widening divide between momentum investors who believe the AI memory cycle is still in its early stages and short sellers who argue the enthusiasm has simply moved too far, too fast.
By: Big Sky Broadcasting Newswire