Micron shares fall 15% as AI memory demand stays strong

Shares of Micron Technology have retreated sharply in recent weeks, highlighting the volatile sentiment surrounding semiconductor stocks even as underlying demand for artificial intelligence infrastructure remains robust. The memory chipmaker's stock closed at $829.50 on August 3, 2026, down approximately 15% over the past month and about 29% from a peak in early July. This pullback follows a period of extraordinary gains, with the stock still up roughly 190% year-to-date.

The decline appears largely disconnected from Micron's recent operational performance. On June 24, the company reported blockbuster fiscal third-quarter results, with revenue of $41.46 billion significantly exceeding estimates and earnings per share of $25.11. Management issued strong guidance for the current quarter, projecting revenue between $49 billion and $51 billion. CEO Sanjay Mehrotra stated the results reflect the strategic value of memory in the AI era.

Analysts and company executives point to sustained, powerful demand drivers. Mehrotra has said AI demand continues to accelerate, with tight supply conditions expected to persist into 2027. Major customers are signaling ongoing investment, with Amazon...