NEW YORK, July 1, 2026, 14:13 EDT
- Micron Technology, Inc. NASDAQ:MU dropped around 9.8% after hours, falling harder than most major AI-chip names and semiconductor ETFs.
- Micron lost about $130 billion in value from Tuesday’s close, wiping out an amount about 1.9 times General Motors Co’s NYSE:GM market cap.
- GM’s deal isn’t really about current auto volumes. It’s about if Micron’s 16 strategic customer agreements can keep margins up.
- KeyBanc’s John Vinh said June DRAM contracts were up around 3% and NAND moved 2.4% higher, but memory stocks still sold off.
Micron Technology NASDAQ:MU fell 9.8% to $1,041.12 as of 13:58 EDT, in delayed trading. The memory-chip company and General Motors NYSE:GM announced a long-term supply agreement. Even so, shares sank $113.17 from Tuesday’s close, wiping around $130 billion from Micron’s value based on its quoted share count. That’s roughly 1.9 times GM’s total market cap.
Micron took a hit, and that’s the story. The GM deal adds another buyer for Micron’s memory and storage over the long haul, but the market wants proof. The shares now bake in a tough bet—memory chips trading more like a contracted AI part and less like a classic boom-bust commodity.
Micron stayed weaker than the rest of the chip group in the intraday moves:
| Name | Delayed price | Day move | From day high |
|---|---|---|---|
| Micron Technology Inc. NASDAQ:MU | $1,041.12 | fell 9.8% | down 7.8% from the session high |
| VanEck Semiconductor ETF (NASDAQ:SMH) | $623.05 | dropped 5.0% | off 4.5% from its high |
| iShares Semiconductor ETF NASDAQ:SOXX | $602.59 | lost 6.0% | off 5.2% from high of day |
| Invesco QQQ Trust NASDAQ:QQQ | $727.59 | slipped 1.2% | off 0.9% from its day peak |
| NVIDIA Corp NASDAQ:NVDA | $198.82 | eased 0.6% | off 0.3% from its high |
| Advanced Micro Devices Inc. NASDAQ:AMD | $549.26 | fell 5.4% | off 4.7% from its high |
Micron and GM said they reached a deal to lock in supply of LPDRAM, NOR and UFS NAND for GM’s future vehicles. Micron said it’s tying the agreement to its U.S. manufacturing expansion, which includes a $2 billion upgrade at its Manassas, Virginia fab. That site started production earlier this year.
Micron CEO Sanjay Mehrotra said the company is “proud to expand our strategic relationship with General Motors,” according to a statement. GM’s Mary Barra said building future vehicles at scale requires a “resilient and closely aligned supply chain.” Micron Technology
Reuters said the GM deal is one of 16 strategic customer agreements Micron talked about last quarter. S&P Global Mobility data put DRAM prices up around 70% since December, with AI data-center demand pushing memory supply tighter for other sectors.
The auto business is still small compared to data center, but it’s not just low-margin filler.
| Micron business unit, fiscal Q3 | Revenue | Share of company revenue | Sequential growth | Operating margin |
|---|---|---|---|---|
| Cloud memory | $13.77 bln | 33.2% | 77.7% | 78% |
| Core data center | $11.52 bln | 27.8% | 102.6% | 83% |
| Mobile and client | $11.52 bln | 27.8% | 49.4% | 86% |
| Automotive and embedded | $4.63 bln | 11.2% | 71.1% | 75% |
Micron Technology reported record results for its third quarter, the company said in a release.
The GM deal stands out for investors. Auto and embedded made up just 11.2% of Micron’s fiscal Q3 sales, but this segment’s 75% operating margin is near Micron’s core data center numbers. It could move the needle if more automakers commit to fixed or long-term memory buys. Micron hasn’t disclosed what the GM deal is worth in dollars.
Micron reported fiscal Q3 revenue of $41.46 billion, jumping from $23.86 billion last quarter and $9.30 billion a year ago. Gross margin was 84.6%. For the fourth quarter, the company guided revenue to $50 billion, give or take $1 billion, and forecast gross margin at roughly 86%. CEO Mehrotra said the numbers and outlook point to the “strategic value of memory in the AI era.” Micron Technology
Selling hit the stock even as memory prices edged up. KeyBanc’s John Vinh said standard DRAM contract pricing went up about 3% in June over May, and NAND flash gained 2.4%. “Meaningful capacity is not expected until 2027,” Vinh wrote. He kept his Overweight call on Micron and a $1,600 target. Invezz
UBS’s Timothy Arcuri is keeping a Buy on Micron with a $1,625 target, saying his margin checks focus on long-term deals and minimum pricing. Invezz, citing FactSet, put the average Wall Street target at $1,543.
Micron just wrapped its best quarter ever, Barron’s said, up 241.7% from April to June and 304% since the start of the year. With that pace, investors didn’t have much patience for shaky numbers. The shares traded today as if investors were pulling back after the surge, not reacting to the GM deal as a supply story shift.
Western Digital Corp. NASDAQ:WDC slid 6.8% and Seagate Technology Holdings Plc NASDAQ:STX lost 5.2% as weakness hit storage and memory stocks.
Micron wrapped up its fiscal Q3 holding $30.2 billion in cash, marketable investments and restricted cash. The company set its quarterly dividend at 15 cents a share, with payment scheduled for July 21 to shareholders on record July 6.
