Micron Technology Inc. (NASDAQ:MU) shares are retreating Tuesday. The stock is cooling off after hitting an all-time high of $818.67. This pullback follows a massive 152.15% year-to-date rally fueled by AI memory demand.

Gerber’s Simple Math For $1,140

Investor Ross Gerber of Gerber Kawasaki in a Monday post on X, laid out a bullish valuation case. “The micron math is simple,” Gerber stated. He projects 2026 earnings per share (EPS) of $57. By applying a 20 times market multiple, Gerber sets a price target of $1,140.

AI Memory Boom Fuels Micron Growth

The company’s growth is staggering. Fiscal second-quarter revenue hit $23.86 billion, nearly triple the previous year. CEO Sanjay Mehrotra noted that AI inference requires faster, higher-capacity memory.

Gartner projects global memory revenue will triple to $633.3 billion by 2026.

Institutional Risk Management

Despite the long-term optimism, some professionals are locking in gains. Kevin Simpson, CIO of Capital Wealth Planning, told CNBC his firm scaled back risk. Simpson wrote covered calls on one-third of his holdings. He cited the need to manage position size after the stock nearly doubled in a month.

While Micron leads, peers like Western Digital Corp. (NASDAQ:WDC) and Seagate Technology Holdings Plc (NASDAQ:STX) also see increased activity.

Micron Stock Slips In Premarket Trading

MU Price Action: Micron Technology shares were down 3.18% at $770.02 during premarket trading on Tuesday, according to Benzinga Pro data.

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