New York, Feb 3, 2026, 10:36 EST — Regular session
- MU shares fell roughly 4% in early trading, following a 5.5% gain on Monday
- SEC filing reveals an officer intends to offload 25,000 shares
- Traders weigh soaring AI-driven memory demand even as signs point to the run nearing exhaustion
Micron Technology shares dropped Tuesday, slipping $19.46, or 4.4%, to $418.34 during morning trading. The stock had started the day higher but reversed course, fluctuating between $415.05 and $452.31.
This matters because Micron is one of the clearest indicators in the market for whether AI data-center spending is still driving memory-chip prices up—or if that rally is already baked into the stock.
This week, investors are on edge over crowded tech trades. Micron’s price swings have intensified, pushing quick traders to slash risk fast when momentum shifts.
Micron jumped 5.5% Monday, lifted by a rally in AI-related chip stocks. SanDisk surged alongside Advanced Micro Devices, driving memory shares back into the spotlight for the market’s risk-on mood. (Reuters)
Analyst buzz added fuel to the rally. Phillip Securities’ Yik Ban Chong kicked off coverage with a buy rating and set a $500 target. He pointed to strong demand for Micron’s high-bandwidth memory, noting it could start “chipping away” at SK Hynix’s share once HBM4 production ramps up past Q2. (HBM is a type of fast memory paired with AI chips.) (TipRanks)
The broader bull case hinges on tight supply. IDC called it an “unprecedented memory chip shortage,” while analysts cited by Business Insider flagged AI data-center demand as outpacing supply. Companies like Western Digital and Seagate Technology are reaping the benefits. Tim Cook noted memory pricing is “increasing significantly” and said Apple is “in a supply chase mode” to lock down components. (Business Insider)
Investors are keeping an eye on insider moves. On Feb. 2, Micron officer Sumit Sadana filed a Form 144 indicating plans to sell 25,000 shares valued around $10.7 million through Morgan Stanley Smith Barney. (Note: A Form 144 signals a proposed sale under Rule 144 but doesn’t confirm the transaction has occurred.) (Micron Technology)
Some technicians are already raising concerns about the speed of the rally. BTIG analyst Jonathan Krinsky pointed out that Micron’s stock was trading roughly 147% above its 200-day moving average — a key long-term trend indicator — a level he called historically extreme for the company. (MarketWatch)
But the situation cuts both ways. Limited memory supply and climbing prices might drag on beyond what shorts anticipate, with Micron serving as a prime example of that bet.
The downside scenario is well-known in this sector: memory is cyclical, and fresh supply—especially from major producers—can emerge faster than investors anticipate if prices become too appealing. A slowdown in AI server orders would also quickly affect sentiment.
Attention shifts to the next trigger: Advanced Micro Devices is set to release earnings after Tuesday’s close, followed by a conference call at 5:00 p.m. EST. Investors will be focused on any insights into AI-driven demand and data-center investments, which might also impact memory stocks such as Micron. (Amd)
