Micron Technology (MU) stock was one of the biggest decliners in the 澳洲幸运5官方开奖结果体彩网:S&P 500 Monday after Morgan Stanley slashed its price target to $100 from $140 a🌳nd gave a downbeat assessment of the memory chip sector.

The bank warned that although it's difficult to predict cyclical peaks, "both 澳洲幸运5官方开奖结果体彩网:NAND and DRAM are losing steam, and our inflection signposts suggest chillier conditions from here."

The analysts wrote in a report to clients that while memory chip demand is still moving up, "the rate of change is approaching a peak as supply catches up to demand."

Morgan Stanley Sees Sector's Earnings Growth Reversing

They added that they see the sector's earnings growth reaching the top and then reversing in the coming quarters, with a nearly 30% 澳洲幸运5官方开奖结果体彩网:price-to-book (P/B) ratio contraction, "an💟d a higher chance of investors resetting p🉐ositions."

The analysts argued that even if valuations look good as stock prices fall, it doesn't make sense to 澳洲幸运5官方开奖结果体彩网:buy the dips because they anticipate "better ♛entry points in the future."

Shares of Micron Technology fell 4.5% Monday afternoon to $87.10. They are up about 2% in 2024.