NEW YORK, July 17, 2026, 07:05 (EDT)
- The main Nasdaq session is closed. Premarket trading continues.
- Micron finished Thursday at $853.20, falling 5.65%. A lagging premarket quote indicated $830.
- Data-center segments accounted for 61.0% of revenue this quarter, while automotive and embedded contributed 11.2%.
Micron shares dropped 5.65% on Thursday, with memory-chip makers leading a decline in semiconductor stocks. The Nasdaq Composite finished down 1.47%. A delayed quote at 5:48 a.m. showed Micron falling a further 2.72%.
The drop occurred even after Micron secured fresh long-term deals with seven automotive technology partners, including Qualcomm NASDAQ:QCOM. The company stated that these agreements enhance both supply and pricing clarity.
Investors are focused on scale. Last quarter, automotive and embedded segments contributed $4.63 billion, making up 11.2% of total revenue. Meanwhile, Micron’s data-center divisions delivered $25.29 billion, accounting for 61.0%.
| Fiscal third-quarter unit | Revenue ($bn) | Share of total | Gross margin |
|---|---|---|---|
| Cloud Memory | 13.77 | 33.2% | 83% |
| Core Data Center | 11.52 | 27.8% | 87% |
| Mobile and Client | 11.52 | 27.8% | 87% |
| Automotive and Embedded | 4.63 | 11.2% | 79% |
Figure based on Micron’s stated $41.46 billion revenue. Rounded values used.
The size of the gap is more significant than the number of contracts. Automotive agreements could add some stability to revenue. However, at their current scale, they are not enough to offset reduced hyperscaler demand.
Chief Executive Sanjay Mehrotra stated that the agreements are expected to “strengthen the durability and predictability” of Micron’s results. Micron’s July 16 statement did not reveal any contract amounts, quantities or pricing terms. SEC
The valuation gap brings the matter into focus. Micron ended Thursday with a trailing price-to-earnings ratio of 19.3. A first-pass estimate, annualizing its $31 non-GAAP EPS midpoint for the quarter, produces a multiple of 6.9. This is not a projection for the year.
The spread indicates that investors anticipate today’s earnings momentum will slow. Auto contracts could help cushion this slowdown, but their current contribution to revenue is not sufficient on its own to lift the stock.
Micron outpaced other storage sector firms on Thursday. Western Digital NASDAQ:WDC slid 9.15%, while Sandisk NASDAQ:SNDK lost 12.63%. Micron’s more diversified offerings might have contributed to its relative resilience.
Optimism from the previous week dissipated swiftly. Micron jumped around 8% on July 9 after announcing it would increase its planned U.S. investment to over $250 billion by 2035. However, by Thursday, the stock had recorded a five-day decline of 12.88%.
The next test of demand comes Wednesday, July 22, when Alphabet NASDAQ:GOOGL will report earnings, with attention on AI-related capital spending. Kevin Mahn, chief investment officer at Hennion & Walsh, highlighted the potential risk, warning that a reduction could “ripple across the entire AI ecosystem.” Micron’s 15-cent dividend will be paid on Tuesday. Reuters
Risks persist. A reduction in hyperscaler spending could impact Micron’s main revenue segment. Premarket quotes typically have less liquidity and greater volatility. The details of contract economics have not been revealed.
At present, Micron’s share price movement continues to be guided by demand from data centers.
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