Micron falls more than 5% despite blockbuster earnings. Here's what market watchers are saying

In this article MU Follow your favorite stocks CREATE FREE ACCOUNT Sopa Images | Lightrocket | Getty Images Blockbuster earnings were not enough to prevent a sharp drop in Micron Technology shares in pre-market trading. The chipmaker tripled revenue in the latest quarter as results sailed past analysts' estimates, but shares look set to fall by around 5.3% at the open as of 07:02 a.m. E.T. Micron stock is up more than 350% in the past year, however, thanks to a memory supply shortage driven by surging demand for Nvidia's AI chips. Citi analysts put the pre-market move down to "some profit taking after a strong run" and maintained a buy rating on the stock. "We believe the big investor debate on the stock is if the stock will continue to rise with rising DRAM prices, like during the Windows PC DRAM cycle in the 1990s," they wrote. Goldman analysts expect the stock to be range-bound in the short-term, following a "very strong quarter with guidance that was far ahead of the Street, against elevated investor expectations". The bank is keeping its rating on the stock at neutral, flagging the "potential risk of slowing HBM price momentum in 2027 given the prospects of meaningful supply additions". Micron is not the only tech company to see its stellar earnings fail to translate into meaningful share price movement lately. Nvidia reported a blowout quarter on February 26, but its stock fell 5% on the day, reflecting investor caution over recent stellar gains as well as wider concerns about its leadership in the artificial intelligence race. Despite the muted market reaction, several banks raised their price targets for Micron stock Thursday morning. Wells Fargo updated their forecast to $550 per share from $470. Barclays raised its target to $670 from $450. — CNBC's Katie Tarasov and Jordan Novet also contributed to this report. Choose CNBC as your preferred source on Google and never miss a moment from the most trusted name in business news. Subscribe to CNBC PRO Subscrib...