NEW YORK, August 2, 2026, 16:00 EDT — U.S. markets have ended trading for the day.
- Micron closed at $823.03 on Friday, falling 5.9%, with a weekly drop of 10.6%.
- Micron Technology’s fiscal fourth-quarter forecast points to sequential revenue growth of 20.6% and a gross margin near 86%.
- Cloud and core data center segments accounted for 61.0% of revenue in the fiscal third quarter.
Micron Technology, Inc. NASDAQ:MU closed out a turbulent week, even as it projected another quarter of earnings improvement. The chipmaker’s revenue outlook for the current quarter points to 20.6% growth over the previous period, but shares slid 10.6%. The decline indicates investors may view the current surge as the market’s top.
Shares finished Friday at $823.03, falling 5.9%, even as the Nasdaq Composite rose 1.0%. The index posted a 1.6% gain for the week, highlighting the sharp nature of Micron’s decline.
Markets saw sharp swings as Thursday posted an 18.4% rally after three consecutive losses. However, some of those gains were lost on Friday.
| Session | Micron close | Daily move |
|---|---|---|
| Monday, July 27 | $900.20 | -2.25% |
| Tuesday, July 28 | $820.53 | -8.85% |
| Wednesday, July 29 | $739.00 | -9.94% |
| Thursday, July 30 | $874.66 | +18.36% |
| Friday, July 31 | $823.03 | -5.90% |
| Week total | — | -10.63% |
The decline affected memory stocks broadly, with Micron recording the steepest drop among U.S.-listed peers. Sandisk Corp. NASDAQ:SNDK slid 5.2%, and SK Hynix Inc. NASDAQ:SKHY declined 3.6%.
| Friday comparator | Closing level | Daily move |
|---|---|---|
| Micron | $823.03 | -5.90% |
| Sandisk | $1,214.83 | -5.22% |
| SK Hynix | $143.73 | -3.58% |
| Nasdaq Composite | 25,373.85 | +1.00% |
Apple Inc. NASDAQ:AAPL was the latest company to pressure memory manufacturers, as CEO Tim Cook stated that Apple is “evaluating all options” regarding alternative memory suppliers. The company also anticipates further increases in memory expenses. Reuters
The impact is twofold: increased prices boost margins, but the entry of new suppliers reduces bargaining strength.
Amazon.com, Inc. NASDAQ:AMZN acted as the main support on the demand side, raising its 2026 cash capital expenditure to $220 billion from the previous $200 billion. The rise in memory prices contributed to this adjustment, and AWS revenue climbed 37% to $42.2 billion.
Demand continues to absorb the price.
Micron’s revenue split is weighted toward cloud and data center demand, with Amazon’s investment standing out as a key indicator. Cloud memory and primary data center segments made up 61.0% of revenue in the fiscal third quarter, while mobile and client offerings accounted for 27.8%. Automotive and embedded products contributed the remaining 11.2%.
| Fiscal Q3 business unit | Revenue | Share of total | Gross margin |
|---|---|---|---|
| Cloud Memory | $13.77 billion | 33.2% | 83% |
| Core Data Center | $11.52 billion | 27.8% | 87% |
| Mobile and Client | $11.52 billion | 27.8% | 87% |
| Automotive and Embedded | $4.63 billion | 11.2% | 79% |
The figures continue to show strength despite last week’s volatility. Micron projects fourth-quarter revenue of $50.0 billion and an estimated gross margin near 86%. The midpoint for GAAP EPS guidance stands at $30.73.
| Fiscal period | Revenue | GAAP gross margin | GAAP diluted EPS |
|---|---|---|---|
| FQ3 2025 | $9.30 billion | 37.7% | $1.68 |
| FQ2 2026 | $23.86 billion | 74.4% | $12.07 |
| FQ3 2026 | $41.46 billion | 84.6% | $24.67 |
| FQ4 2026 guidance | $50.0 billion ± $1.0 billion | Approximately 86% | $30.73 ± $1.00 |
At the close on Friday, shares were trading at a multiple of 18.6 based on trailing earnings. Using the midpoint of $31 non-GAAP EPS and annualizing it results in an example multiple of 6.6 times. This figure does not represent a consensus forward P/E; it is based on the assumption of the peak quarter repeating.
The spread highlights how quickly investors anticipate earnings to revert to normal levels. A low run-rate multiple does not necessarily indicate a bargain.
Micron has addressed the uncertainty by securing extended commitments from clients. The company now holds sixteen strategic agreements amounting to $22 billion in commitments and nearly $100 billion in outstanding performance obligations. CEO Sanjay Mehrotra stated that constrained conditions are expected to last “beyond calendar 2027.” Reuters
The contracts provide greater visibility, yet they do not eliminate cycle risk.
Key tests approach next week, drawing attention to both arguments in the thesis. Advanced Micro Devices, Inc. NASDAQ:AMD is scheduled to report after the market closes on Tuesday. Sandisk’s report follows at 16:30 EDT on Wednesday, while July’s U.S. employment report is set for Friday at 08:30 EDT.
Risks are still focused on customer replacement, expanding supply, and the cost of financing. Pricing leverage may fall if alternative suppliers gain traction, whereas rising rates can limit semiconductor multiples. Should capacity increase more rapidly, margins would come under initial pressure.
This week sends a clear signal: Micron’s business is gaining momentum, but its share price reflects expectations of an imminent peak. Demand for AMD and Sandisk will be under scrutiny. Valuation faces a test with Friday’s jobs data.
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