Micron (MU) Shares Rebound on AI Demand; Analysts Warn of Cloud Spending Risk

Micron Technology (MU) shares recovered strongly on June 17 and June 18, 2026, after a brief pullback, driven by continued optimism for AI-fueled memory chip demand. However, Wall Street analysts warn of persistent risks tied to cloud providers' capital expenditure. Micron's stock closed up 8.70% at $1,133.99 on June 18, 2026, following a more than 6% drop on June 16, 2026. The stock has surged 259.52% year-to-date and 830.87% over the past 12 months, significantly outperforming the S&P 500. Deutsche Bank analyst Melissa Weathers raised Micron's price target to $1,500 from $1,000, citing potential for further upward revisions to earnings forecasts. Despite analyst upgrades, Sevens Report founder Tom Essaye highlights Micron's low forward P/E of 10.2x, suggesting investor skepticism about the sustainability of AI-driven capital expenditure from tech giants. Micron is set to release its Q3 FY2026 earnings next week.