‘Wait for a Pullback’: Investor Says Micron Stock Isn’t Worth Chasing Here

Expectations are running hot as Micron (NASDAQ:MU) heads into its fiscal Q2 2026 earnings report after today’s close. The Street is calling for $19.5 billion in revenue and earnings per share of $8.85 – numbers that would mark a massive jump from a year ago. For context, Micron generated just $8.05 billion in revenue and $1.41 in EPS in Q2 2025.

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Those lofty projections are driven by Micron’s role as a key enabler of the AI buildout, a position that has translated into strong operating momentum. As one of only a handful of companies capable of supplying the high-end memory and storage needed for advanced AI workloads, the company has seen demand surge.

That momentum has translated into the stock’s performance, with MU shares up 63% year-to-date and 360% over the past 12 months.

With that backdrop in mind, the key question is whether another strong print can extend the rally, or whether expectations have already run ahead of reality and leave little room for upside.

One investor, known by the pseudonym The Techie, is less convinced.

“Micron Technology remains a long-term winner, but the current risk-reward is unfavorable,” states the 5-star investor.

The investor will be keenly watching the company’s gross margin guidance, which has grown from 38.4% a year ago to an expected 68% in fiscal Q2. The investor calls this a “staggering expansion,” one that has been at the heart of the current bull run.

However, increasing competition from Samsung, which is aiming to rapidly increase its high-bandwidth memory sales, could cut into these stellar margins. For Techie, the conclusion is that the “easy gains” are now in the rearview mirror, and future increases will rely on successful shifts to next-gen memory products or meaningful cost reductions.

The investor doesn’t think a greedy market will be satisfied with just an earnings beat. If Micron’s Q3 guidance comes in at or below consensus – currently pegged at $23.8 billion in revenue – the stock could retreat by 8% to 10%.

Such a dip could convince Techie that the time is right. Until then, however, the investor is content to stay on the sidelines.

“Wait for a pullback,” urges Techie, who is assigning MU shares a Hold (i.e., Neutral) rating. (To watch Techie’s track record, click here)

Wall Street, however, isn’t showing that kind of patience. Micron stock carries a Strong Buy consensus backed by 25 Buy ratings against just a single Hold. Yet, the average 12-month price target of $461.35 suggests the upside may already be largely priced in, supporting Techie’s more cautious stance. (See MU stock forecast)

Disclaimer: The opinions expressed in this article are solely those of the featured investor. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.

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