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Micron shares slide 31% from peak as investors weigh chip demand risks
Micron reported fiscal third-quarter revenue of $41.5 billion, up 346% year over year, with a record sequential gain driven largely by pricing.
Micron Technology shares have pulled back about 31% from their high after a strong rally, as investors took profits and grew concerned about tougher competition and the outlook for softer memory chip pricing, Yahoo Finance reported. Pressure also came from a broader pullback in AI hardware and semiconductor stocks.
The selloff reflects worries about memory pricing and industry sentiment, but the outlet said demand for DRAM and NAND remains supported by AI infrastructure spending, data center expansion, and rising memory requirements across end markets including PCs and mobile devices, as well as automotive and robotics.
Yahoo Finance also pointed to valuation support and Micron’s strategic customer agreements, which are designed to provide visibility into future demand and pricing and reduce earnings volatility.
Micron’s momentum, Yahoo Finance noted, includes fiscal third-quarter revenue of $41.5 billion, a 346% year-over-year increase, and its largest sequential revenue gain on record, with sales rising by $17.6 billion from the prior quarter, according to the report. The outlet said tight industry supply and an improved product mix helped Micron command higher prices across its portfolio, supporting revenue and margin expansion.