NEW YORK, June 5, 2026, 18:06 (EDT)
Micron Technology fell about 13% on Friday, closing at $864.01. The memory-chip maker got caught in a sweeping semiconductor rout that wiped out around $1.3 trillion from U.S. chip stocks. Reuters said Micron lost about $150 billion in market value.
Micron shares dropped, a move that caught attention since the stock is now a high-beta play on artificial-intelligence memory demand. High-bandwidth memory, or HBM, is stacked and fast and sits next to AI processors to speed up data movement—it’s been key for Micron as data-center spending picks up.
Chip stocks dragged the market down Friday. The PHLX Semiconductor Index tumbled 10.3% for its worst single-day loss since March 2020. The Nasdaq gave up 4.18%. The S&P 500 fell 2.64%. A U.S. jobs report that came in hotter than forecast fueled bets the Federal Reserve might have to stick with higher rates.
Broadcom kicked things off this week. The chipmaker fell short on its second-quarter revenue, kept its AI chip revenue goal for the current quarter at $16 billion, below the $16.36 billion analysts had expected, and didn’t boost its 2027 AI sales target, holding it at $100 billion. “Nothing slows down what was estimated prior — they just didn’t raise it,” said Ben Bajarin, CEO of Creative Strategies. Direxion’s Ryan Lee said the miss “showed the market demands perfection for this chip rally to keep running.” Reuters
Micron shares still came under pressure, even though a new supply-chain update looked positive. Nvidia CEO Jensen Huang told reporters Samsung Electronics, SK Hynix and Micron had all passed qualification to supply HBM4 chips for Nvidia’s Vera Rubin AI platform. “All three vendors are in production, and they are all racing to support Vera Rubin,” Huang said. He said memory was still tight, usually a plus for suppliers. Reuters
Micron’s latest numbers point to a strong run. The company posted fiscal Q2 revenue of $23.86 billion. That’s up from $13.64 billion in the prior quarter and $8.05 billion a year ago. Guidance for fiscal Q3 revenue is $33.5 billion, give or take $750 million. CEO Sanjay Mehrotra said Micron hit records for revenue, gross margin, EPS and free cash flow. “Memory has become a strategic asset” in the AI era, he said. Micron Technology
Friday didn’t look like investors dumping Micron’s order book so much as traders pulling back on pricey AI names. “After the record run we’ve seen the last nine weeks in equities, specifically tech and semiconductors, the dam just broke today,” Ryan Detrick, chief market strategist at Carson Group, said. Ohsung Kwon, chief equity strategist at Wells Fargo, said the sector was “way overbought.” He also said he doesn’t think the chip rally is over. Reuters
Mixed signals for Micron. Nvidia qualifying Micron with SK Hynix and Samsung keeps Micron in the lead group on next-gen AI memory, but it puts focus on how much share, the timing of production, and pricing, not just the qualification itself. DRAM and NAND are still key; Micron has both in its portfolio.
Traders are starting to hit stocks that deliver “good but not better” news. If AI demand keeps beating supply, Micron’s margins may hold and the drop in shares could stop. But if it only matches forecasts again, if HBM prices get softer, or if rate bets jump, the stock could take another hit after running up and seeing two rough sessions for chip names. Financial Times
Micron’s next big test comes June 24, when it will release fiscal Q3 numbers after the bell at 4:30 p.m. EDT, followed by an analyst call at 6:00 p.m. EDT.
