Shares of memory and digital storage specialist Micron Technology (NASDAQ:MU) fell sharply on Tuesday. As of 2:45 p.m. EDT today, the stock was down almost 5%.
The stock's pullback comes as one research firm expressed concern over the outlook for dynamic random access memory (DRAM) pricing.
The tech stock fell on news that Edgewater Research analysts predicted softer demand and improved inventory leading to lower DRAM prices in the second half of the year.
Rosenblatt analyst Hans Mosesmann responded to the forecast by noting that Rosenblatt's checks indicate strong price momentum for DRAM. Indeed, Mosesmann predicts pricing growth throughout the year. The analyst even reiterated a $165 12-month price target for the stock, which represents more than 100% upside from where it is trading today.
Investors will get more insight into Micron's recent business performance and management's view for the rest of the year when the company reports earnings later this month. It is slated to announce its fiscal third-quarter results on Wednesday, June 30.