Micron Technology Shares Experience Significant Decline Amid Semiconductor Selloff
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 59 minutes ago
0mins
Source: Yahoo Finance
- Price Decline: Micron Technology (NasdaqGS:MU) shares have sharply declined during a global semiconductor selloff, closing at $864.01, which is approximately 17% above the analyst price target of $739.48, indicating market concerns over its valuation.
- AI Demand Fluctuations: Following Broadcom's weaker AI chip revenue guidance, investor sentiment towards Micron's future growth has shifted, despite a 15.7% increase in stock price over the past month, reflecting a more cautious market outlook.
- Insider Trading Scrutiny: Recent insider selling has prompted a reassessment of Micron's valuation, with investors focusing on how these transactions may influence market sentiment, particularly amid uncertainties surrounding AI memory demand.
- Risk and Reward: The combination of Micron's high valuation and increased stock price volatility raises the risk of sharp swings in the future, necessitating close monitoring of AI capital spending's impact on pricing and demand for high-end memory to make informed investment decisions.
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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: 996.000
Low
235.00
Averages
336.12
High
500.00
Current: 996.000
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.
Micron Technology Profits Surge Amid AI Boom
- Surging Market Demand: Micron Technology has seen a surge in demand for its DRAM and data storage products, with customers signing contracts that cover the entire sector's future production capacity, pushing the company's market capitalization above $1 trillion and highlighting its role as a key hardware supplier in the AI revolution.
- Profit Growth Risks: Despite Micron's net income soaring over eightfold year-over-year from $1.6 billion to $13.8 billion, the high profits may attract competition, leading to potential declines in future returns, which investors should be cautious about.
- Monitoring Industry Dynamics: Investors should keep an eye on key indicators such as gross margin, product pricing, and returns on capital to assess Micron's long-term prospects, especially in light of increasing competition and production capacity expansion.
- Sustainability Considerations: Amid the AI trend, investors need to consider whether Micron's current high profits are sustainable, as this will determine whether the recent stock rally marks the beginning of a long-term growth story or the peak of another memory cycle.
See More
Micron Joins the Trillion-Dollar Club Amid AI Demand Surge
- Micron's Trillion-Dollar Milestone: Micron's market capitalization surged from $350 billion to over $1 trillion in just a few months, driven by a spike in AI demand and positive analyst price target adjustments, reflecting a strong recovery and market confidence in the semiconductor sector.
- High-Bandwidth Memory Demand Surge: Micron has sold out its entire supply of high-bandwidth memory chips for 2026, with the CEO stating they can only meet 50% to 67% of current customer demand, creating significant tailwinds for the company's growth in the coming years.
- Eli Lilly's Gene Editing Therapy Progress: Eli Lilly's VERVE-102 gene editing therapy demonstrated the potential to reduce LDL cholesterol by 62% in Phase 1B trials, with durable effects lasting up to 18 months, potentially revolutionizing heart disease management and presenting a substantial market opportunity.
- Eli Lilly's Strategic Acquisitions: Eli Lilly plans to acquire three clinical-stage vaccine developers for up to $4 billion, further solidifying its leadership in the biopharmaceutical sector and showcasing its ability to strategically invest cash flows generated from GLP-1 successes.
See More
Micron Technology Shares Experience Significant Decline Amid Semiconductor Selloff
- Price Decline: Micron Technology (NasdaqGS:MU) shares have sharply declined during a global semiconductor selloff, closing at $864.01, which is approximately 17% above the analyst price target of $739.48, indicating market concerns over its valuation.
- AI Demand Fluctuations: Following Broadcom's weaker AI chip revenue guidance, investor sentiment towards Micron's future growth has shifted, despite a 15.7% increase in stock price over the past month, reflecting a more cautious market outlook.
- Insider Trading Scrutiny: Recent insider selling has prompted a reassessment of Micron's valuation, with investors focusing on how these transactions may influence market sentiment, particularly amid uncertainties surrounding AI memory demand.
- Risk and Reward: The combination of Micron's high valuation and increased stock price volatility raises the risk of sharp swings in the future, necessitating close monitoring of AI capital spending's impact on pricing and demand for high-end memory to make informed investment decisions.
See More
Asian Tech Stocks Continue to Decline Amid AI Concerns
- Market Sentiment Deterioration: Asian tech stocks extended their sell-off on Monday as investor confidence waned in global AI-linked plays, with South Korea's Kospi index plunging as much as 8% due to declines of 5% and 2% in Samsung Electronics and SK Hynix, respectively.
- Chip Giants Under Pressure: Taiwan Semiconductor Manufacturing Co (TSMC) fell 2.1%, while Hon Hai Precision (Foxconn) dropped 5.1%, reflecting a pessimistic outlook for the semiconductor sector, particularly after Broadcom's fiscal second-quarter revenue missed market expectations, triggering a cascading impact across the tech sector.
- SoftBank Group Plummets: Japanese tech investor SoftBank Group saw its shares plunge 7.5%, with Tokyo Electron and Advantest down 6.7% and 5%, respectively, indicating a significant loss of investor confidence in tech stocks, especially following the fading optimism around AI demand.
- Market Capital Losses: According to a UOB note, the tech-led sell-off erased approximately $1.8 trillion in S&P 500 market capitalization; however, UOB noted that tech and software companies will remain in focus, particularly with the upcoming debut of a space exploration/AI/tech company on the Nasdaq on June 12, which may be the largest IPO ever.
See More
Tech Stock Rout Erases $1.8 Trillion in Market Cap
- Market Cap Loss: The U.S. tech-heavy Nasdaq's decline of over 4.5% last week resulted in approximately $1.8 trillion being wiped off the S&P 500 market cap, indicating a sharp decline in investor confidence towards global AI-linked stocks.
- Korean Tech Stocks Slide: Major players like Samsung Electronics and SK Hynix fell by 5% and 2%, respectively, causing the Kospi index to plunge by as much as 8%, as these companies account for over 40% of the index, reflecting widespread pessimism in the tech sector.
- Japanese Investor Setbacks: SoftBank Group's shares dropped 7.5%, while Tokyo Electron and Advantest fell by 6.7% and 5%, respectively, highlighting a significant reduction in investor confidence in tech stocks following the fading optimism around AI demand.
- Semiconductor Sector Impact: Broadcom's fiscal second-quarter revenue missed market estimates, leading to a sharp decline in its shares and triggering a cascading effect across the tech sector, with the VanEck Semiconductor ETF losing over 9% on Friday, indicating growing concerns about the semiconductor industry.
See More
Market Uncertainty Intensifies Amid AI Funding Needs
- Unexpected Job Growth: In May, nonfarm payrolls surged by 172,000, significantly exceeding the Dow Jones estimate of 80,000, which may diminish expectations for interest rate hikes by the Federal Reserve, thereby impacting market confidence.
- Increased Funding Needs for Tech Giants: Alphabet's plan to raise $80 billion through stock sales for its AI initiatives indicates that major tech companies like Amazon, Microsoft, and Meta may also need to issue stock to meet substantial funding requirements, putting pressure on the market.
- Rising Data Center Construction Costs: Sharp increases in labor, construction materials, and power costs have made the payback period for data centers uncertain, raising concerns among investors about Amazon's future profitability and the potential need for equity financing to sustain operations.
- Shift in Investor Sentiment: As confidence in tech stocks wanes, investors are pivoting towards healthcare and consumer sectors with strong organic growth, reflecting a reassessment of the tech industry that could lead to capital outflows and stock price volatility.
See More
Micron Technology Profits Surge Amid AI Boom
- Surging Market Demand: Micron Technology has seen a surge in demand for its DRAM and data storage products, with customers signing contracts that cover the entire sector's future production capacity, pushing the company's market capitalization above $1 trillion and highlighting its role as a key hardware supplier in the AI revolution.
- Profit Growth Risks: Despite Micron's net income soaring over eightfold year-over-year from $1.6 billion to $13.8 billion, the high profits may attract competition, leading to potential declines in future returns, which investors should be cautious about.
- Monitoring Industry Dynamics: Investors should keep an eye on key indicators such as gross margin, product pricing, and returns on capital to assess Micron's long-term prospects, especially in light of increasing competition and production capacity expansion.
- Sustainability Considerations: Amid the AI trend, investors need to consider whether Micron's current high profits are sustainable, as this will determine whether the recent stock rally marks the beginning of a long-term growth story or the peak of another memory cycle.
See More
Micron Joins the Trillion-Dollar Club Amid AI Demand Surge
- Micron's Trillion-Dollar Milestone: Micron's market capitalization surged from $350 billion to over $1 trillion in just a few months, driven by a spike in AI demand and positive analyst price target adjustments, reflecting a strong recovery and market confidence in the semiconductor sector.
- High-Bandwidth Memory Demand Surge: Micron has sold out its entire supply of high-bandwidth memory chips for 2026, with the CEO stating they can only meet 50% to 67% of current customer demand, creating significant tailwinds for the company's growth in the coming years.
- Eli Lilly's Gene Editing Therapy Progress: Eli Lilly's VERVE-102 gene editing therapy demonstrated the potential to reduce LDL cholesterol by 62% in Phase 1B trials, with durable effects lasting up to 18 months, potentially revolutionizing heart disease management and presenting a substantial market opportunity.
- Eli Lilly's Strategic Acquisitions: Eli Lilly plans to acquire three clinical-stage vaccine developers for up to $4 billion, further solidifying its leadership in the biopharmaceutical sector and showcasing its ability to strategically invest cash flows generated from GLP-1 successes.
See More
Micron Technology Shares Experience Significant Decline Amid Semiconductor Selloff
- Price Decline: Micron Technology (NasdaqGS:MU) shares have sharply declined during a global semiconductor selloff, closing at $864.01, which is approximately 17% above the analyst price target of $739.48, indicating market concerns over its valuation.
- AI Demand Fluctuations: Following Broadcom's weaker AI chip revenue guidance, investor sentiment towards Micron's future growth has shifted, despite a 15.7% increase in stock price over the past month, reflecting a more cautious market outlook.
- Insider Trading Scrutiny: Recent insider selling has prompted a reassessment of Micron's valuation, with investors focusing on how these transactions may influence market sentiment, particularly amid uncertainties surrounding AI memory demand.
- Risk and Reward: The combination of Micron's high valuation and increased stock price volatility raises the risk of sharp swings in the future, necessitating close monitoring of AI capital spending's impact on pricing and demand for high-end memory to make informed investment decisions.
See More
Asian Tech Stocks Continue to Decline Amid AI Concerns
- Market Sentiment Deterioration: Asian tech stocks extended their sell-off on Monday as investor confidence waned in global AI-linked plays, with South Korea's Kospi index plunging as much as 8% due to declines of 5% and 2% in Samsung Electronics and SK Hynix, respectively.
- Chip Giants Under Pressure: Taiwan Semiconductor Manufacturing Co (TSMC) fell 2.1%, while Hon Hai Precision (Foxconn) dropped 5.1%, reflecting a pessimistic outlook for the semiconductor sector, particularly after Broadcom's fiscal second-quarter revenue missed market expectations, triggering a cascading impact across the tech sector.
- SoftBank Group Plummets: Japanese tech investor SoftBank Group saw its shares plunge 7.5%, with Tokyo Electron and Advantest down 6.7% and 5%, respectively, indicating a significant loss of investor confidence in tech stocks, especially following the fading optimism around AI demand.
- Market Capital Losses: According to a UOB note, the tech-led sell-off erased approximately $1.8 trillion in S&P 500 market capitalization; however, UOB noted that tech and software companies will remain in focus, particularly with the upcoming debut of a space exploration/AI/tech company on the Nasdaq on June 12, which may be the largest IPO ever.
See More
Tech Stock Rout Erases $1.8 Trillion in Market Cap
- Market Cap Loss: The U.S. tech-heavy Nasdaq's decline of over 4.5% last week resulted in approximately $1.8 trillion being wiped off the S&P 500 market cap, indicating a sharp decline in investor confidence towards global AI-linked stocks.
- Korean Tech Stocks Slide: Major players like Samsung Electronics and SK Hynix fell by 5% and 2%, respectively, causing the Kospi index to plunge by as much as 8%, as these companies account for over 40% of the index, reflecting widespread pessimism in the tech sector.
- Japanese Investor Setbacks: SoftBank Group's shares dropped 7.5%, while Tokyo Electron and Advantest fell by 6.7% and 5%, respectively, highlighting a significant reduction in investor confidence in tech stocks following the fading optimism around AI demand.
- Semiconductor Sector Impact: Broadcom's fiscal second-quarter revenue missed market estimates, leading to a sharp decline in its shares and triggering a cascading effect across the tech sector, with the VanEck Semiconductor ETF losing over 9% on Friday, indicating growing concerns about the semiconductor industry.
See More
Market Uncertainty Intensifies Amid AI Funding Needs
- Unexpected Job Growth: In May, nonfarm payrolls surged by 172,000, significantly exceeding the Dow Jones estimate of 80,000, which may diminish expectations for interest rate hikes by the Federal Reserve, thereby impacting market confidence.
- Increased Funding Needs for Tech Giants: Alphabet's plan to raise $80 billion through stock sales for its AI initiatives indicates that major tech companies like Amazon, Microsoft, and Meta may also need to issue stock to meet substantial funding requirements, putting pressure on the market.
- Rising Data Center Construction Costs: Sharp increases in labor, construction materials, and power costs have made the payback period for data centers uncertain, raising concerns among investors about Amazon's future profitability and the potential need for equity financing to sustain operations.
- Shift in Investor Sentiment: As confidence in tech stocks wanes, investors are pivoting towards healthcare and consumer sectors with strong organic growth, reflecting a reassessment of the tech industry that could lead to capital outflows and stock price volatility.
See More
