Micron Technology (NASDAQ: MU) stock could fall towards $650 by November 20, 2026, according to an analysis by TradingShot.
The projection forms part of a descending channel that has guided the semiconductor manufacturer’s correction since its June 25 all-time high.
Notably, Micron shares have struggled to recover following a sharp sell-off that pushed them below $800. Although the stock rebounded 5.12% on November 6 to close at $690, it remained under pressure after plunging 17.46% in the previous session.
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TradingShot identified the current decline as the second bearish leg within the descending channel. The first found support just above the 100-day moving average (MA), while the ongoing correction is approaching the 200-day moving average.
Micron’s bearish technical warning
The analyst warned that a break below the MA200 could extend the decline towards the channel’s lower boundary, potentially completing a correction of at least 41.27%. TradingShot consequently set $650 as its medium-term downside target.
Micron’s recent weakness reflects broader volatility across semiconductor stocks. Shares closed at $855 on November 3 before falling 7% to $795 on November 4. Selling intensified on November 5, when the stock plunged 17.46% to $656.39 on trading volume of approximately 77.9 million shares.
The sell-off coincided with concerns about the sustainability of AI infrastructure spending after Democrats won the U.S. midterm elections. Investors grew concerned that increased scrutiny of data-center construction and potential regulatory restrictions could affect future investment.
Concerns about construction delays and restrictions on new data centers also weighed on other AI-related semiconductor stocks.
However, the sector rebounded as investors reassessed the outlook for AI infrastructure spending. Micron gained alongside other semiconductor companies, supported by renewed buying interest.
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Despite the bearish technical outlook, demand for AI memory supports Micron’s fundamentals. The company supplies DRAM, NAND, and high-bandwidth memory (HBM), which are essential for data centers and AI accelerators.
MU stock fundamentals
Supply constraints have also supported memory prices, with reports highlighting strong HBM demand and resilient pricing for enterprise server DRAM and high-density NAND, supporting expectations of further earnings growth.
Micron has also advanced its HBM and server memory products, with customer qualifications and strategic agreements providing greater visibility into future demand. Management expects fiscal 2027 to deliver stronger results than the previous year.
For fiscal Q4 2026, Micron reported revenue of $54.23 billion, up from $41.46 billion in the previous quarter. GAAP net income reached $37.70 billion, while diluted EPS stood at $32.87.
Full-year revenue surged to $133.19 billion from $37.38 billion in fiscal 2025, while GAAP net income reached $84.97 billion.
For fiscal Q1 2027, Micron forecast revenue of approximately $61.5 billion and non-GAAP diluted EPS of $38.15, indicating continued earnings momentum despite recent share-price volatility.
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However, rising manufacturing capacity across the industry could eventually ease supply constraints, weaken memory prices, and pressure profit margins.
Featured image via Shutterstock
