New York, Feb 3, 2026, 10:36 EST — Regular session
- MU shares dropped about 4% in early trading after climbing 5.5% on Monday
- SEC filing shows an officer plans to sell 25,000 shares
- Traders eye surging AI-driven memory demand, though signals suggest the rally may be running out of steam
Micron Technology shares fell Tuesday, sliding $19.46, or 4.4%, to $418.34 in morning trading. The stock kicked off higher but quickly pulled back, swinging between $415.05 and $452.31.
This is key since Micron stands out as a prime gauge of whether AI data-center spending continues to push memory-chip prices higher—or if that boost has already been priced into the stock.
This week, investors are jittery about crowded tech positions. Micron’s volatility has ramped up, forcing quick traders to cut risk sharply as momentum flips.
Micron surged 5.5% Monday, buoyed by a strong rally in AI chip stocks. SanDisk climbed as well, following gains from Advanced Micro Devices, pushing memory shares into focus amid the market’s risk-on sentiment. (Reuters)
Analyst chatter fueled the surge. Phillip Securities’ Yik Ban Chong initiated coverage with a buy rating, pegging a $500 price target. He highlighted robust demand for Micron’s high-bandwidth memory, suggesting it may start “chipping away” at SK Hynix’s market share once HBM4 production scales beyond Q2. (HBM is a type of fast memory used alongside AI chips.) (TipRanks)
The wider bull argument rests on constrained supply. IDC described it as an “unprecedented memory chip shortage,” and analysts quoted by Business Insider pointed to AI data-center demand outstripping supply. Companies like Western Digital and Seagate Technology are cashing in. Tim Cook highlighted that memory prices are “increasing significantly” and said Apple is “in a supply chase mode” to secure components.
Investors are watching insider activity closely. On Feb. 2, Micron officer Sumit Sadana submitted a Form 144, signaling an intent to sell 25,000 shares worth about $10.7 million via Morgan Stanley Smith Barney. (Keep in mind, a Form 144 indicates proposed sales under Rule 144 but doesn’t guarantee the shares have been sold.) (Micron Technology)
Technicians are flagging the pace of the rally. BTIG analyst Jonathan Krinsky noted Micron’s shares were trading about 147% above their 200-day moving average — a crucial long-term trend gauge. He described that level as historically extreme for the stock. (MarketWatch)
The situation works both ways. Tight memory supply and rising prices could persist longer than shorts expect, with Micron standing out as a key case in point.
The risk here is familiar: memory markets swing, and new supply—particularly from big players—can ramp up faster than expected once prices look attractive. A dip in AI server demand would hit sentiment just as fast.
The spotlight now moves to Advanced Micro Devices, which will report earnings after Tuesday’s close, with a conference call scheduled for 5:00 p.m. EST. Traders will be digging for clues on AI-driven demand and data-center spending, factors that could ripple through memory stocks like Micron. (amd.com)
