Micron Technology was being hit early on Wednesday by a flight away from risky assets amid renewed conflict between the U.S. and Iran. But Wall Street is still backing the memory-chip company.

Micron shares were down 5.2% at $889.18 in premarket trading. That was adding to a 4.7% loss the previous day that took the stock into a technical bear market -- defined as a more than 20% fall from its recent closing high.

The move mirrored that of Micron's South Korean rivals Samsung Electronics and SK Hynix, which both fell close to 6% on Wednesday.

Investors were fleeing stocks that have benefited from artificial-intelligence spending. President Donald Trump's declaration the U.S.-Iran cease-fire was "over" early Wednesday causing a rise in oil prices, reigniting inflationary concerns and worries about rising interest rates, which could hit spending on AI infrastructure.

However, Barron's has argued Micron stock could double from its current levels as booming memory demand from AI companies moves it beyond its normal boom-and-bust cycle. The average price target across Wall Street analysts is around $1,576, according to FactSet.

"This reset on price does not mean the cycle is over. Instead, it is more likely that this is a necessary reset for the cycle to eventually extend. Bear in mind that we have had three such resets since Generative AI was launched in the fall of 2022," wrote Morgan Stanley analyst Shawn Kim in a research note this week.

While rising oil costs will fuel preoccupation about rate hikes, so far the signs are that Big Tech wants to keep spending on AI hardware. On Wednesday, Amazon.com said it would look to issue at least $25 billion worth of debt.

The "real tell" will be the coming earnings season and whether hyperscale companies keep or raise their capital expenditure guidance, wrote Morgan Stanley's Kim. If so, then current levels for memory stocks will be a "good entry point".