Micron Shares Drop Following This Analyst Downgrade - Read Why - Micron Technology (NASDAQ:MU)

Piper Sandler analyst Harsh Kumar downgraded Micron Technology, Inc MU from Neutral to Underweight and lowered the price target from $90 to $70.
Kumar expressed concerns about Micron's over 50% exposure to consumer-like markets such as PCs, mobile, and others when the global economy will likely face headwinds.
Kumar expects the company's chip business catering to the auto industry to suffer due to rising rates, a slowing economy, and the possibility of an excess inventory build.
Kumar highlighted that the Dynamic Random Access Memory (DRAM) market, representing over 70% of the company's total revenue, had already started to see price declines for most configurations.
Kumar continues to view memory as essentially a commodity market compared to the rest of his universe.
Kumar expressed confidence in the company's data center business, which represents less than 30% of revenue.
Price Action: MU shares traded lower by 6.53% at $70.45 on the last check Friday.

Micron Shares Drop Following This Analyst Downgrade - Read Why