NEW YORK, July 19, 2026, 12:06 p.m. EDT – Shares in Micron Technology NASDAQ:MU sank 13% as investors kept their attention on the company’s performance amid ongoing uncertainty over the pace of artificial intelligence spending.
- Micron ended Friday trading at $848.95, marking a 13.3% decline since July 10.
- Data-center divisions accounted for 61% of revenue in the fiscal third quarter, while automotive and embedded units made up 11%.
- Alphabet NASDAQ:GOOGL and Intel NASDAQ:INTC earnings this week will gauge the strength of AI demand.
U.S. cash markets did not open on Sunday. Micron dropped 13.3% over the past week, compared with a 10.0% decline in the semiconductor index and a 2.9% fall in the Nasdaq.
Shares fell even though Micron secured new long-term automotive supply deals. The agreements improve planning visibility but have not yet impacted Micron’s revenue breakdown.
Cloud and core data-center segments reported $25.29 billion in revenue for the last quarter, while auto and embedded posted $4.63 billion.
| Fiscal third-quarter business breakdown | Revenue | Portion of total |
|---|---|---|
| Cloud memory and core data center | $25.29 billion | 61.0% |
| Automotive and embedded | $4.63 billion | 11.2% |
| Data-center vs auto revenue ratio | 5.5 times | — |
The ratio stands at 5.5 to one, positioning hyperscaler budgets as the next potential driver for stocks.
Micron finished Friday at $848.95, slipping 0.5% on the day. Trading volume hit 63.35 million shares, exceeding its 65-day average by 24%.
The chip index fell 3.3 percentage points less than the weekly decline. Micron trailed the Nasdaq by 10.4 points.
The sector remained under pressure. The SOX ended 20.2% beneath its all-time high from June 22. Carson Group strategist Ryan Detrick referred to the sentiment as “chip fatigue.” Reuters
Micron announced deals on July 16 with Qualcomm NASDAQ:QCOM and a group of automotive suppliers. The agreements are intended to improve supply stability, establish pricing, and facilitate production planning.
Chief Executive Sanjay Mehrotra stated that “memory and storage are critical enablers” for increasingly intelligent vehicles. The agreements continue to represent a relatively small part of today’s business. Micron Technology
Micron projects fiscal fourth-quarter revenue at $50 billion, with a possible variance of $1 billion. The company expects a gross margin of approximately 86%. Adjusted earnings are estimated at $31 per share, with a possible difference of $1.
Alphabet is set to report on Wednesday. The company’s capital expenditure strategy will scrutinize projected demand for AI hardware.
Kevin Mahn, chief investment officer at Hennion & Walsh, said a downturn might trigger “ripple effects across the entire AI ecosystem.” Intel’s report offers another look at chip demand. Reuters
Risks such as reduced AI capital expenditure and continued selling in the chip sector could test the sustainability suggested by Micron’s 86% margin outlook.
Currently, automotive contracts provide a buffer that extends further out. The main near-term focus is still on AI spending.
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