Micron Technology stock slides despite strong AI memory demand

Micron Technology’s shares have fallen 30‑36% from recent record highs after the company reported robust third‑quarter earnings and announced that its high‑bandwidth memory capacity for 2026 is fully allocated. The decline follows a broader sell‑off in AI‑related chip stocks, including Nvidia, AMD and Intel, as investors rotate out of memory equities despite ongoing AI‑driven demand.

Analysts note that AI applications are driving a structural shortage in DRAM and NAND flash, with supply expected to lag demand through 2030. Competitors such as SK Hynix and Samsung are expanding capacity, challenging Micron’s pricing power. Nevertheless, the firm’s backlog extends several quarters and earnings per share are projected to rise sharply, leading some investors to view the recent pullback as a buying opportunity.

Institutional investors have made modest new purchases, with GS Investments adding about $1.05 million of stock in the first quarter. While the sector faces a technical correction, Micron’s long‑term growth outlook remains tied to expanding AI memory markets.