BOISE, Idaho, August 18, 2026, 05:55 MDT — U.S. cash markets remained shut while activity took place in premarket trading.
- Micron was down 4.4% in premarket trade at $967, compared to its closing price on Monday.
- The drop wiped out Monday’s gain of $40.09 per share and more.
- The yield on the 30-year Treasury climbed to its highest point since 2007.
Micron Technology, Inc. NASDAQ:MU slipped 4.4% to $967 in premarket trading Tuesday, wiping out Monday’s 4.1% gain. The decline put the stock 0.5% lower than Friday’s closing level.
The reversal is significant as memory fundamentals are still notably strong. However, investors are assigning a higher discount rate to those earnings. The 30-year Treasury yield reached its highest level since 2007.
Micron saw approximately $50 billion trimmed from its premarket value, equivalent to nearly double its most recent quarterly operating cash flow. The calculation is based on the company’s market capitalisation of $1.14 trillion as of Monday.
| Micron price step | Price | Change | Read-through |
|---|---|---|---|
| Friday close | $971.66 | Baseline | Move on Monday points to this level |
| Monday close | $1,011.75 | +$40.09, or 4.13% | Memory shares continued rallying |
| Tuesday premarket | $967.00 | -$44.75, or 4.42% | 111.6% of Monday’s increase wiped out |
The storage sector was caught in the selloff. SanDisk Corp. NASDAQ:SNDK declined 4.7% before the bell. Western Digital Corp. NASDAQ:WDC slipped 5.7%, and Seagate Technology Holdings plc NASDAQ:STX was down 5.9%.
| Company | Monday change | Tuesday premarket | Premarket to Friday |
|---|---|---|---|
| Micron | up 4.13% | down 4.42% | down 0.48% |
| SanDisk | up 8.88% | down 4.71% | up 3.75% |
| Western Digital | up 5.35% | down 5.67% | down 0.62% |
| Seagate | up 2.19% | down 5.86% | down 3.79% |
The decline came after memory stocks rallied for five straight sessions. On Monday, Jim Cramer called attention to Micron, SanDisk, Seagate, and Western Digital. He noted that constrained AI capacity, along with lengthier customer contracts, might reduce the sector’s customary boom-bust cycles.
“I do not think I am late,” Cramer said. He expressed a preference for Micron, highlighting its opportunity for growth. Shares had climbed 254% in 2026 ahead of Tuesday’s pullback. Quartz
The operational figures bolster that argument. Revenue for the fiscal third quarter climbed to $41.46 billion, marking a 346% increase over the prior year. GAAP gross margin rose to 84.6%, more than doubling.
| Micron operating measure | Fiscal Q3 2026 | Fiscal Q2 2026 | Fiscal Q3 2025 |
|---|---|---|---|
| Revenue | $41.46B | $23.86B | $9.30B |
| GAAP gross margin | 84.6% | 74.4% | 37.7% |
| Operating cash flow | $25.39B | $11.90B | $4.61B |
| Adjusted free cash flow | $18.30B | $6.90B | $1.95B |
Micron projects fiscal fourth-quarter revenue at $50 billion, give or take $1 billion. The company anticipates an approximate GAAP gross margin of 86%. Guidance for GAAP earnings stands at $30.73 per share, with a $1 margin of error.
Chief Executive Sanjay Mehrotra stated that multi-year customer deals are expected to bolster the durability of earnings. This is the main point of contention. Maintaining strict contracts is necessary to avoid fresh capacity flooding the market and pushing prices down in the future.
| Analyst | Firm | Rating | Target | Upside from $967 |
|---|---|---|---|---|
| Vivek Arya | Bank of America | Buy | $1,550 | 60.3% |
| Timothy Arcuri | UBS | Buy | $1,625 | 68.0% |
| Vijay Rakesh | Mizuho | Buy | $1,375 | 42.2% |
| Atif Malik | Citi | Buy | $1,150 | 18.9% |
| Mark Li | Bernstein | Buy | $1,300 | 34.4% |
| John Vinh | KeyBanc | Buy | $1,750 | 81.0% |
Valuation is moderate in comparison to other profitable peers. Micron holds a trailing price-earnings ratio of 22.9. The company’s beta of 2.18, meanwhile, illustrates the pronounced, rate-driven shift seen on Tuesday.
| Valuation and risk | Micron | Western Digital | Seagate |
|---|---|---|---|
| Trailing P/E | 22.90x | 22.08x | 71.55x |
| Beta | 2.18 | 2.14 | 2.07 |
| Premarket drop from 52-week high | 22.9% | 36.8% | 18.2% |
Two key events are expected in the coming week. Minutes from the Federal Reserve are due Wednesday. NVIDIA Corporation NASDAQ:NVDA is set to report next week, providing fresh insights into demand for AI infrastructure.
Risks: Increased yields might pressure Micron’s valuation multiple. Memory pricing could be impacted by a slowdown in data center demand or accelerated supply expansion. The stock’s 254% gain over the year also limits tolerance for disappointing guidance.
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