Micron Technology (MU) shares tumbled around 7% in Thursday’s trading, marking the steepest single-day market-cap loss in the company’s history at $94.24 billion. The sell-off was ignited by Broadcom’s (AVGO) earnings report, which, despite strong numbers, left investors disappointed because the company maintained its $100 billion long-term AI revenue target for fiscal 2027 instead of raising guidance. Broadcom itself shed $286 billion in market value—the fourth-largest wipeout for any U.S. firm—while the PHLX Semiconductor Index fell 2.2%. AMD dropped 3.6% and Intel slipped 0.8%, though Nvidia edged up 1.94%.
Beyond the immediate sector-wide profit-taking, a more structural concern emerged. Raymond James analyst Karl Ackerman warned on Wednesday that DRAM and NAND average selling prices are likely to peak by mid-2026, earlier than the mid-2027 consensus. Ackerman kept an Outperform rating but noted that Micron’s forward P/E, which has expanded from 4.4x to 11.7x, now implies “moderating contract ASP growth, margin degradation, and oversupply conditions looming in the next 1-2 years.” Long-term pricing agreements are expected to cushion the blow, and some analysts, including Itau BBA’s Stephano Gabriel, see evidence of intensifying memory bottlenecks that could lock in elevated prices through supply deals.
Despite the sell-off, Wall Street remains broadly bullish. Morgan Stanley, Raymond James, and Susquehanna all raised price targets shortly before the drop, with targets ranging up to $1,750. Micron’s next earnings report is due June 24, with expectations of $19.29 EPS on $33.88 billion revenue, and traders will scrutinize guidance on AI memory demand.
