Micron (MU) Stock Falls as Memory Chipmaker Exits Consumer Business to Focus on AI Race

TLDR

• Micron Technology will shut down its Crucial-branded consumer memory products by February 2026 to focus entirely on AI chips
• The company is racing against SK Hynix and Samsung Electronics to supply high-bandwidth memory chips for AI processors from companies like Nvidia
• Conventional DRAM prices are expected to jump 18% to 23% in the fourth quarter due to surging AI demand
• Micron stock has more than doubled in 2025 as the company shifts focus to higher-margin AI components
• 29 analysts rate Micron as a Strong Buy with an average price target of $233.32

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Micron Technology announced Wednesday it will shut down its Crucial consumer memory brand by the end of February 2026. The decision marks a complete exit from the consumer market as the company redirects resources toward AI chip production.

Micron Technology, Inc., MU

The stock fell 1.6% in Thursday premarket trading following the announcement. Despite the dip, shares have more than doubled throughout 2025.

Micron will stop selling all Crucial-branded memory products to consumers within three months. The company plans to honor existing warranties and provide ongoing support for products already purchased.

The move comes as Micron races to increase production of high-bandwidth memory chips. These specialized components are essential for powering the latest AI processors from Nvidia and other semiconductor companies.

The AI Chip Battle Heats Up

Micron now competes directly with South Korean rivals SK Hynix and Samsung Electronics for HBM chip contracts. High-bandwidth memory serves as a critical component in cutting-edge AI hardware.

The demand surge is reshaping the entire memory chip industry. Samsung temporarily stopped announcing contract prices for certain memory products last month. Spot prices for these chips tripled during that period, according to Taiwanese publication DigiTimes.

The shift to AI is driving prices up across all memory categories. TrendForce projects conventional DRAM prices will rise between 18% and 23% in the fourth quarter alone.

Dynamic random access memory remains a core product line for memory chip manufacturers. The price increases reflect tight supply conditions as companies prioritize AI chip production.

Wall Street Backs the Strategy

Analyst sentiment toward Micron remains strongly positive despite the consumer business exit. Twenty-six analysts rate the stock as a Buy based on ratings from the past three months.

Three analysts recommend holding the stock. Zero analysts suggest selling.

The consensus price target stands at $233.32 per share. This target represents a minimal 0.36% downside from current levels.

Micron’s decision to abandon consumer products signals confidence in AI market growth. The company views high-bandwidth memory as offering better profit margins than consumer sales.

The memory chip maker will continue competing for supply contracts with AI hardware manufacturers. TrendForce expects DRAM price increases to extend through the fourth quarter as demand remains strong.

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