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Hedge funds cut Micron stakes as data center AI demand supports memory
Appaloosa Management reduced its Micron position by 41% in Q2 2026, while Coatue Management increased its stake by 1,794% to $3.63 billion.
Hedge funds trimmed exposure to Micron Technology even as the memory maker has posted gains tied to AI demand, according to Yahoo Finance, citing second-quarter 2026 13F filings. Appaloosa Management cut its Micron stake by 41%, though the holding remained among the billionaire David Tepper firm’s top picks.
Other major investors that reduced positions during the June quarter included Citadel Advisors, Renaissance Technologies, Two Sigma Investments, and Bridgewater Associates. In contrast, Coatue Management added to Micron, raising its stake by 1,794% to a $3.63 billion position in the prior period.
Yahoo Finance also noted that about half of Micron revenue comes from data centers, and management expects DRAM and NAND supply to stay tight even beyond 2028. The article cites NAND revenue jumping about 360% year over year in the last quarter, driven by pricing power rather than volume, and frames Micron’s growth as linked to AI capital spending rather than the traditional memory cycle.
The bear case highlighted in the report includes the risk that future supply expansions could pressure average selling prices and margins, along with higher per-unit production costs for newer mobile, server, and HBM products. It also points to competition from China’s CXMT, whose market share rose to about 5.5% last year and 7.7% in the first quarter of 2026, while Micron’s DRAM market share increased only slightly from 19% in 2016 to 22.4% in 2026.