New York, January 14, 2026, 16:21 ET — After-hours
Micron Technology (MU.O) shares dropped 1.4% on Wednesday, slipping to $333.37. The dip followed a strong rally as investors digested new supply plans announced by a major competitor in the AI memory sector.
The timing is tricky for the stock. Retail investors have been piling into memory and storage companies, betting that AI data centers will keep pushing supply tight. Reuters noted that Micron has jumped 18% so far in 2026, after soaring 240% last year. Samsung co-CEO TM Roh described the shortage as “unprecedented,” while Interactive Brokers strategist Steve Sosnick called it “not unusual” to see Micron leading the pack. (Reuters)
The combination of scarcity and speculative trading can swing either way. This stock now acts as a fast indicator of whether the memory market remains tight or begins to ease.
South Korea’s SK Hynix announced Tuesday a 19 trillion won ($12.9 billion) investment to build a cutting-edge chip packaging plant domestically. Construction kicks off in April, with plans to wrap up by the end of next year. The company highlighted surging demand for high-bandwidth memory (HBM), a stacked DRAM used with AI processors. Macquarie Equity Research estimated SK Hynix held a 61% share of the HBM market last year, outpacing Micron and Samsung. (Reuters)
The broader tape showed mixed results. Western Digital gained 0.5%, but Seagate dropped 1.9% and SanDisk edged down 0.5%. The iShares Semiconductor ETF dipped 0.4%. Nvidia, dependent on HBM for its leading AI gear, slid roughly 1.5%.
Micron’s supply situation remains a key driver. With the market tight on high-end memory, prices hold steady. Still, investors haven’t forgotten how fast the memory cycle can reverse when fresh capacity comes online.
Micron posted record results for its fiscal first quarter last month and forecasted higher revenue, margins, and cash flow for the second quarter. CEO Sanjay Mehrotra highlighted investments aimed at meeting rising demand for memory and storage from customers. The company also declared a quarterly dividend of $0.115 per share, payable on Jan. 14. (Micron Technology)
The risk is well known: overspending and excess capacity lead to falling prices. If AI infrastructure orders slow down or buyers delay deliveries, the tight market that boosted shares could swiftly flip into a margin squeeze.
Traders are now looking to see if the supply crunch starts to ease — and if the heavy retail positioning holds once the story shifts from shortage to capacity.
Micron shareholders will convene virtually on Thursday, Jan. 15. The very next day, Jan. 16, the company plans to begin construction on its New York megafab, a project pegged at $100 billion in central New York. (SEC)
