New York, Feb 5, 2026, 09:33 EST — Regular session
Micron Technology (MU.O) shares dropped 9.5% to $379.40 in early Thursday trading, as a wider tech selloff took hold and investors pulled back from crowded AI-related bets.
The slide is significant since Micron has long been seen as a direct barometer for AI infrastructure demand. Now, sharp moves in that trade are rippling through hardware, software, and semiconductor sectors. Traders are less focused on individual earnings beats and more on how quickly risk is being slashed.
Flows played a key role. Goldman Sachs reported that hedge funds faced their toughest day in nearly a year on Wednesday, as crowded tech bets took a hit during a sharp selloff. They called it a momentum unwind — traders chasing price swings instead of fundamentals.
Big Tech’s spending plans sparked fresh tension. Alphabet warned its 2026 capital expenditure might almost double, projecting $175 billion to $185 billion as it boosts investments to tackle compute bottlenecks. CEO Sundar Pichai told analysts that AI infrastructure spending is fueling the company’s growth.
Talk of a memory crunch has shifted from “good for suppliers” to “bad for the chain.” Qualcomm warned its results would miss estimates, citing a global memory shortage that could hurt handset volumes. Executives and analysts pointed to rising memory prices as a headwind for smartphone shipments and chip demand. Reuters
Micron, a top global producer of DRAM and NAND memory, finds itself caught in the middle. While tight supply can push prices up, rising component costs risk crimping device makers’ margins and dragging down sales, particularly in the phone and PC sectors.
The caution was mirrored in related chip stocks. Following Arm’s earnings, Summit Insights analyst Kinngai Chan flagged the steep memory costs facing smartphones as a clear headwind. Investors fretted over the implications of softer device demand for the broader tech ecosystem.
The broader market has felt the strain. A Reuters global markets report flagged a tech selloff spanning several days, driven by worries over soaring costs linked to the AI surge. Chip stocks took a hit, intensifying the sell pressure, while investors are now zeroing in on Amazon’s earnings as a fresh gauge of AI spending.
In software, sentiment echoed similar themes but for other reasons. Societe Generale strategist Manish Kabra predicted cyclical sectors would outperform, while Saxo’s John Hardy flagged rising leverage in markets. Their remarks highlighted why risk assets often move in sync when positioning changes.
Yet Micron bulls face a clear risk: if the selloff morphs into a prolonged shift away from high-multiple AI plays, valuation—not pricing power—could dictate the stock’s direction. On top of that, rising memory costs might prompt customers to slow their builds or cut device production, softening demand even if supply remains constrained.
Investors are eyeing a blend of broader macro trends alongside Micron-specific news. Micron announced that its executives will speak at Wolfe Research’s Auto, Auto Tech and Semiconductor Conference on Feb. 11, which could offer fresh insights on supply and demand. Attention is also turning to Micron’s upcoming quarterly report, with Nasdaq’s earnings calendar currently listing March 19 as an estimated date, not officially confirmed by the company.
