U.S. Stocks Plunge as Tech Sector Faces Pressure
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jun 23 2026
0mins
Source: stocktwits
- Market Decline: The S&P 500 fell by 1.4%, the Nasdaq 100 dropped 3.3%, and the Dow Jones slipped 0.1%, indicating a waning investor confidence in tech stocks as doubts about the sustainability of the AI boom emerge.
- Semiconductor ETF Plunge: The VanEck Semiconductor ETF (SMH) plummeted 7%, primarily driven by declines in shares of Micron, Broadcom, and Nvidia, reflecting market concerns over the semiconductor sector's outlook and prompting investors to reassess their strategies.
- Investor Sentiment Shift: While retail sentiment for SPY was bearish, QQQ and DIA showed bullish sentiment, indicating a divergence in market perceptions that could influence future capital flows across different sectors.
- Foreign Selling Intensifies: The drop in South Korean equities, coupled with foreign institutional investors offloading approximately $2.5 billion in Kospi shares, exacerbates concerns that the recent boom in tech and AI stocks may be overblown, potentially leading to a decline in global investor confidence in these assets.
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Analyst Views on MU
Wall Street analysts forecast MU stock price to fall
26 Analyst Rating
24 Buy
2 Hold
0 Sell
Strong Buy
Current: 1032.280
Low
235.00
Averages
336.12
High
500.00
Current: 1032.280
Low
235.00
Averages
336.12
High
500.00
About MU
Micron Technology, Inc. provides memory and storage solutions. The Company delivers a portfolio of high-performance dynamic random-access memory (DRAM), NAND, and NOR memory and storage products through its Micron and Crucial brands. The Company's products enable advancing in artificial intelligence (AI) and compute-intensive applications. Its segments include Cloud Memory Business Unit (CMBU), Core Data Center Business Unit (CDBU), Mobile and Client Business Unit (MCBU) and Automotive and Embedded Business Unit (AEBU). CMBU is focused on memory solutions for large hyperscale cloud customers, and high bandwidth memory (HBM) for all data center customers. CDBU is focused on memory solutions for mid-tier cloud, enterprise, and OEM data center customers and storage solutions for all data center customers. MCBU is focused on memory and storage solutions for mobile and client segments. AEBU is focused on memory and storage solutions for the automotive, industrial, and consumer segments.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Record Earnings: Micron Technology reported a remarkable earnings per share of $24.67 for Q3 2026, with revenue soaring 346% year-over-year to $41.46 billion and net income reaching $28.24 billion, driven by robust demand for high-bandwidth memory used in AI accelerators.
- Strong Cash Flow: The company generated $25.4 billion in operating cash flow and $18.3 billion in adjusted free cash flow during the quarter, ending with approximately $30.2 billion in cash and investments, underscoring its strategic value in the AI era.
- Optimistic Outlook: Management guided for Q4 revenue of about $50 billion, representing a further 20% increase, reflecting strong demand for high-bandwidth memory and confidence in market conditions.
- Capital Allocation Strategy: Micron plans to return 100% of its excess cash to shareholders, with potential increases in dividends and stock buybacks, as management adopts a cautious approach to avoid over-investing during the peak of the memory cycle.
See More
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- Government Support: Japan's Ministry of Economy, Trade, and Industry will provide up to $3.3 billion in subsidies, enhancing Micron's investment appeal in Japan and ensuring its competitive edge in the rapidly growing AI market.
- Construction Timeline: The expansion will proceed in phases, with semiconductor manufacturing equipment installation expected to begin in the second half of 2028, providing Micron with flexibility to adapt to future technological innovations and market demands.
- Strategic Implications: This expansion will not only enable Micron to produce next-generation high-bandwidth memory chips required for AI processors but also promote the localization of Japan's semiconductor industry, ensuring a stable supply chain that aligns with the government's strategic goal of semiconductor self-sufficiency.
See More
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- Market Pullback Opportunity: Despite the recent pullback in AI stocks, hyperscalers are still planning significant investments in AI data centers, indicating strong ongoing demand for AI infrastructure and potential buying opportunities for investors.
- Nvidia's Market Leadership: As the world's largest company by market cap, Nvidia dominates AI model training with its GPUs and has expanded into inference chips through the acquisition of Groq, positioning itself for continued strong growth and reinforcing its market advantage.
- AMD's Growth Potential: Although trailing Nvidia in AI model training, AMD's focus on inference and agentic AI provides substantial market potential, with expectations to benefit from a $120 billion market over the coming years, enhancing its market share.
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See More
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- Nasdaq Decline: The Nasdaq Composite closed 0.8% lower on Thursday, primarily dragged down by declines in chipmakers like Nvidia (NVDA) and Sandisk (SNDK), reflecting heightened investor concerns over the tech sector's stability.
- Meta's Cloud Business Plan: Meta Platforms (META) saw its shares rise nearly 9% on Wednesday following reports that it is building a cloud business to monetize excess AI computing power, indicating a strategic pivot towards AI revenue generation.
- Analyst Rating Changes: DA Davidson upgraded Palantir (PLTR) from Neutral to Buy, raising the price target from $165 to $175, highlighting its competitive advantages in the AI era, which signals strong market confidence in its growth prospects.
- Microsoft Layoff Plans: Microsoft (MSFT) is reportedly preparing a fresh round of layoffs that could affect 2.5% of its global workforce, while also investing $2.5 billion to establish a new business to assist clients in implementing AI solutions, demonstrating a strategic balance between cost management and technological investment.
See More
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- Gross Margin Improvement: The company's gross margin increased dramatically from 37.7% a year ago to 84.6%, reflecting successful cost control and enhanced profitability in a high-demand environment, providing a stronger financial foundation for future investments.
- Long-Term Agreements Locking Revenue: Approximately 40% of Micron's revenue is secured through long-term strategic customer agreements, which not only mitigates market volatility risks but also provides stable cash flow for the company over the coming years, enhancing its resilience.
- Increased Capital Expenditure: Micron raised its capital expenditure budget to $27 billion to support new project construction, which is expected to further boost DRAM and NAND supply capabilities to meet the growing market demand, ensuring the company maintains its competitive edge in the semiconductor industry.
See More
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- Stock Surge: Sandisk's stock has skyrocketed approximately 800% in the first half of 2026, significantly outperforming Micron Technology's 300% increase, indicating strong market performance and investor confidence.
- Industry Shortage: With surging demand for NAND memory from data centers, Sandisk faces severe production capacity constraints, leading to soaring memory chip prices, which directly enhance the company's profitability and market position.
- Future Growth Outlook: Wall Street analysts project a 122% growth for Sandisk in fiscal 2027, with an impressive 336% growth in the fourth quarter of fiscal 2026, indicating substantial growth potential ahead for the company.
- Reasonable Valuation: With a price-to-earnings ratio of 11 times, Sandisk's stock is considered reasonably priced given its future earnings expectations, suggesting it could easily double from current levels, attracting more investor interest.
See More
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- Record Earnings: Micron Technology reported a remarkable earnings per share of $24.67 for Q3 2026, with revenue soaring 346% year-over-year to $41.46 billion and net income reaching $28.24 billion, driven by robust demand for high-bandwidth memory used in AI accelerators.
- Strong Cash Flow: The company generated $25.4 billion in operating cash flow and $18.3 billion in adjusted free cash flow during the quarter, ending with approximately $30.2 billion in cash and investments, underscoring its strategic value in the AI era.
- Optimistic Outlook: Management guided for Q4 revenue of about $50 billion, representing a further 20% increase, reflecting strong demand for high-bandwidth memory and confidence in market conditions.
- Capital Allocation Strategy: Micron plans to return 100% of its excess cash to shareholders, with potential increases in dividends and stock buybacks, as management adopts a cautious approach to avoid over-investing during the peak of the memory cycle.
See More
Micron Technology Expands Factory in Japan
- Massive Investment: Micron Technology has announced a $9.3 billion investment for the expansion of its factory in Higashihiroshima, Japan, aimed at boosting large-scale production of advanced memory chips, reflecting its ambitions in the global semiconductor market.
- Government Support: Japan's Ministry of Economy, Trade, and Industry will provide up to $3.3 billion in subsidies, enhancing Micron's investment appeal in Japan and ensuring its competitive edge in the rapidly growing AI market.
- Construction Timeline: The expansion will proceed in phases, with semiconductor manufacturing equipment installation expected to begin in the second half of 2028, providing Micron with flexibility to adapt to future technological innovations and market demands.
- Strategic Implications: This expansion will not only enable Micron to produce next-generation high-bandwidth memory chips required for AI processors but also promote the localization of Japan's semiconductor industry, ensuring a stable supply chain that aligns with the government's strategic goal of semiconductor self-sufficiency.
See More
Buying Opportunities in AI Stocks Amid Recent Pullback
- Market Pullback Opportunity: Despite the recent pullback in AI stocks, hyperscalers are still planning significant investments in AI data centers, indicating strong ongoing demand for AI infrastructure and potential buying opportunities for investors.
- Nvidia's Market Leadership: As the world's largest company by market cap, Nvidia dominates AI model training with its GPUs and has expanded into inference chips through the acquisition of Groq, positioning itself for continued strong growth and reinforcing its market advantage.
- AMD's Growth Potential: Although trailing Nvidia in AI model training, AMD's focus on inference and agentic AI provides substantial market potential, with expectations to benefit from a $120 billion market over the coming years, enhancing its market share.
- Micron's Strong Performance: Micron Technology reported a revenue surge from $9.3 billion to $41.5 billion in its latest fiscal quarter, with gross margin rising from 37.7% to 84.6%, and anticipates the high-bandwidth memory market to reach $100 billion next year, showcasing its robust competitiveness in the memory market.
See More
Tech Stocks Face Intense Sell-Off Pressure
- Nasdaq Decline: The Nasdaq Composite closed 0.8% lower on Thursday, primarily dragged down by declines in chipmakers like Nvidia (NVDA) and Sandisk (SNDK), reflecting heightened investor concerns over the tech sector's stability.
- Meta's Cloud Business Plan: Meta Platforms (META) saw its shares rise nearly 9% on Wednesday following reports that it is building a cloud business to monetize excess AI computing power, indicating a strategic pivot towards AI revenue generation.
- Analyst Rating Changes: DA Davidson upgraded Palantir (PLTR) from Neutral to Buy, raising the price target from $165 to $175, highlighting its competitive advantages in the AI era, which signals strong market confidence in its growth prospects.
- Microsoft Layoff Plans: Microsoft (MSFT) is reportedly preparing a fresh round of layoffs that could affect 2.5% of its global workforce, while also investing $2.5 billion to establish a new business to assist clients in implementing AI solutions, demonstrating a strategic balance between cost management and technological investment.
See More
Micron Technology Reports Strong Q3 Performance Amid AI Demand
- Significant Revenue Growth: Micron Technology's revenue surged from $9.3 billion to $41.5 billion in Q3, easily surpassing the $35.8 billion consensus, demonstrating the company's robust performance driven by AI infrastructure demand, which solidifies its market position.
- Gross Margin Improvement: The company's gross margin increased dramatically from 37.7% a year ago to 84.6%, reflecting successful cost control and enhanced profitability in a high-demand environment, providing a stronger financial foundation for future investments.
- Long-Term Agreements Locking Revenue: Approximately 40% of Micron's revenue is secured through long-term strategic customer agreements, which not only mitigates market volatility risks but also provides stable cash flow for the company over the coming years, enhancing its resilience.
- Increased Capital Expenditure: Micron raised its capital expenditure budget to $27 billion to support new project construction, which is expected to further boost DRAM and NAND supply capabilities to meet the growing market demand, ensuring the company maintains its competitive edge in the semiconductor industry.
See More
Sandisk Emerges as Top Performer in S&P 500 for First Half of 2026
- Stock Surge: Sandisk's stock has skyrocketed approximately 800% in the first half of 2026, significantly outperforming Micron Technology's 300% increase, indicating strong market performance and investor confidence.
- Industry Shortage: With surging demand for NAND memory from data centers, Sandisk faces severe production capacity constraints, leading to soaring memory chip prices, which directly enhance the company's profitability and market position.
- Future Growth Outlook: Wall Street analysts project a 122% growth for Sandisk in fiscal 2027, with an impressive 336% growth in the fourth quarter of fiscal 2026, indicating substantial growth potential ahead for the company.
- Reasonable Valuation: With a price-to-earnings ratio of 11 times, Sandisk's stock is considered reasonably priced given its future earnings expectations, suggesting it could easily double from current levels, attracting more investor interest.
See More
