NEW YORK, July 7, 2026, 11:05 EDT
- Micron Technology, Inc. NASDAQ:MU dropped roughly 7.9% to $906.65 in the latest late-morning trading.
- The slide wiped out around $89.4 billion in equity value, nearly matching the $100 billion minimum revenue from 14 customer deals Micron says are signed.
- Ford Motor Co NYSE:F locked in a long-term supply agreement with Micron on Monday, but trading in memory was shaped by selling out of Samsung Electronics Co Ltd KRX:005930.
Micron Technology, Inc. NASDAQ:MU was active in Tuesday’s regular Nasdaq session. According to Nasdaq’s 2026 calendar, markets close for Independence Day on July 3, not July 7. Regular U.S. trading runs from 9:30 a.m. to 4:00 p.m. ET.
The stock last traded down $78.10 at $906.65, putting the market cap near $1.038 trillion. With that market cap and price, the share count works out to roughly 1.145 billion. The day’s drop shaved about $89.4 billion from equity value. The session low of $892.50 erased about $105.6 billion in value.
| Tuesday market check | Latest quote or move |
|---|---|
| Micron NASDAQ:MU | $906.65, off 7.9% |
| Implied equity value loss | About $89.4 billion |
| Intraday low | $892.50, down 9.4% from Monday’s close |
| iShares Semiconductor ETF NASDAQ:SOXX | $539.01, slid 7.3% |
| VanEck Semiconductor ETF NASDAQ:SMH | $569.77, off 5.7% |
What investors are watching is Micron’s contract floor. Last month, Micron said in prepared comments that 14 of its 16 Strategic Customer Agreements guarantee roughly $100 billion in total revenue at minimum prices. The company also projected $22 billion in cash deposits and financial commitments tied to those deals.
| Micron contract metric | Company disclosure / Reuters calculation |
|---|---|
| Number of signed Strategic Customer Agreements | 16 |
| Minimum revenue from 14 completed deals | About $100 billion |
| Anticipated deposits and financial commitments | $22 billion |
| Share of production covered by these agreements | About 20% of DRAM; one-third of NAND |
| Revenue expected under fixed or capped prices after all SCAs are live | About 40% |
| Implied equity value drop as of Tuesday’s latest price | About $89.4 billion |
That’s what investors care about. Shares lost almost a contract floor of market cap just a day after Micron said Ford had joined as a customer. These contracts are designed to steady memory prices rather than leave them to spot volatility. But Tuesday’s trading showed investors aren’t convinced these price floors will stick if AI demand cools.
Ford and Micron announced Monday a long-term Strategic Customer Agreement aimed at securing memory and storage for Ford’s next-gen vehicles. Micron said the deal is underpinned by new DRAM capacity at its Manassas, Virginia site. Ford CEO Jim Farley said future large-scale U.S. vehicle production will require a “resilient supply chain.” Micron CEO Sanjay Mehrotra called the agreement a step toward “reliable, long-term supply.” Micron Technology
Auto makers are feeling the same memory chip squeeze as data centers. DRAM prices are up roughly 70% since December, Reuters said Monday, citing S&P Global Mobility. That’s as AI-driven data centers eat into supply. Memory chips are showing up more in cars too, with new driver-assistance features and infotainment systems using more components.
Micron’s most recent quarter gave bulls new ammo. Revenue jumped to $41.46 billion from $23.86 billion the quarter before, while non-GAAP EPS came in at $25.11. The company is guiding Q4 revenue at $50.0 billion, give or take $1.0 billion, and non-GAAP EPS at $31.00, plus or minus $1.00. Based on Tuesday’s share price, that EPS guide works out to about 7.3x earnings annualized—a simple run-rate, not a forward outlook.
Mehrotra said last month he thinks “tight conditions to persist beyond calendar 2027.” Daniel Newman, CEO of Futurum Group, said “memory will continue to command premium pricing” with supply staying tight. Jake Behan at Direxion pointed to the bear case: “pricing power is the first thing at risk” if supply loosens up. Reuters
Stocks sold off in Asia as Samsung reported a 19-fold jump in Q2 operating profit but still slid 6.9%. SK Hynix Inc KRX:000660 dropped 6%, while South Korea’s KOSPI fell 4.9%. Albert Yong at Petra Capital Management said the results were “priced in” and warned about a “risk of slower AI infrastructure spending.” Morningstar’s Jing Jie Yu said DRAM price gains were “more moderate.” Raisah Rasid at JPMorgan Asset Management saw profit “moderation” ahead. Reuters
Reuters reported U.S. markets saw the Philadelphia Semiconductor Index fall to a four-week low, off 5.5% at 09:58 a.m. ET. Micron slid 7.3%, while Intel Corp NASDAQ:INTC dropped 8.2%. Micron’s price stayed below its $920.32 open after falling as low as $892.50.
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