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Micron shares fall 27% since mid-June as AI spending worries spread
After Micron’s fiscal third quarter results, investors questioned whether fast AI related capex will slow, even as the company posted a sharp jump in sales and earnings.
Micron Technology shares have pulled back sharply, falling 27% since mid-June, as investors broadly question how much artificial intelligence related spending will last across the semiconductor sector, Yahoo Finance reports. The sell off follows Micron’s fiscal third quarter results, covering the period ended May 28, when the company reported sales growth of 345% to $41.5 billion and a more than 1,200% jump in earnings per share to $25.11. Instead of treating those results as a positive signal for Micron’s business momentum, investors worried that the intense spending spree by major technology companies could eventually cool, making Micron’s growth unsustainable. The concerns were reinforced as other semiconductor stocks also declined, with Yahoo Finance citing a CNBC report that 20 of the world’s most valuable semiconductor companies, including Micron, lost $1.3 trillion in market cap value in July. The article also notes the drop resembles a knee jerk reaction more than an assessment of Micron’s longer term opportunities, pointing out that Micron remains up 720% over the past 12 months. On the demand outlook, the report points to continued large scale investment in AI infrastructure, including Amazon’s expectation that 2026 capex will reach about $220 billion, up roughly 66% from 2025 levels. It also says Micron management expects a memory shortage to persist at least through 2027, while SK Hynix believes it could last through 2030, and adds that Apple CEO Tim Cook has said he expects memory prices to remain
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