NEW YORK, June 4, 2026, 10:05 (EDT)
Micron Technology dropped 8.3% to $989.46 at the open on Nasdaq Thursday, part of a larger chip-stock slide that sent the iShares Semiconductor ETF down 5.0% and the QQQ off 1.3%. Despite the selloff, Micron still held a market cap close to $1.13 trillion, a sign of just how far the AI memory rally went before buyers stepped back.
Micron is now seen by Wall Street as a clear play on tight supply for memory chips in artificial-intelligence servers. High-bandwidth memory, or HBM, sits near AI processors and offers fast data speeds. DRAM acts as working memory for servers and computers. NAND flash handles data storage in phones, SSDs, and a range of other gadgets.
Selling hit before Micron. S&P 500 dropped 0.49% at the open, with the Nasdaq Composite off 1.02% after Broadcom’s revenue file disappointed and weighed on chip stocks, prompting some investors to book profits after recent highs.
Broadcom dropped 15.5%, with AMD down 6.6%. SanDisk slipped 2.6%, caught up with other memory stocks in the shortage trade. Reuters said Broadcom’s second-quarter revenue missed forecasts and its outlook for current-quarter AI-chip sales just missed what Wall Street wanted. “A classic case of very high expectations meeting a market that wanted perfection,” said Matt Britzman, senior equity analyst at Hargreaves Lansdown. Reuters
Micron is still in favor with bulls. Morgan Stanley’s Joseph Moore boosted his price target on the stock to $1,050, up from $520. Moore said “there’s no quick fix to the memory shortage,” and noted tight supply could last two or three years or more. “We don’t think the run of strong performance is over,” Moore said in a note. Investing.com
Micron stock is dropping today, but analysts are sticking with the chip shortage story and moving earnings estimates and target prices higher. Even with shares up almost fourfold this year and trading above some new targets, the upgrades keep coming.
The squeeze is hitting more than just investors. U.S. industry groups for automakers, retailers, electronics and telecom warned Treasury and Commerce that AI data centers are grabbing much of the available memory-chip supply. They said this could push up prices and disrupt supplies of consumer and industrial products.
But there’s a risk memory pricing may be topping out sooner than investors think. Raymond James analyst Karl Ackerman said “DRAM and NAND average selling prices will peak in mid-CY26,” Barron’s wrote. That’s the price Micron and other chip makers get for each chip. Ackerman is still at Outperform, but flagged that more output from Chinese suppliers and slower demand, especially in smartphones, could drag prices down later. Barron’s
This would matter because memory runs in cycles. If supply meets demand, prices tend to drop quickly, margins get squeezed, and investors lose interest in the profits that seemed hard to find just months before.
Micron will report fiscal third-quarter results after the bell on June 24. The company plans a financial call at 4:30 p.m. EDT, followed by an analyst call at 6 p.m. EDT.
Micron’s drop Thursday isn’t enough to throw out the AI-memory story. But the move is a signal. The stock isn’t acting like a regular cyclical chip name now. With a $1 trillion tag, investors want a cleaner run—misses, even near misses, stand out more now.
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