Micron shares took a sharp hit on June 4, sliding 7.74% and closing at $996.00 after an $83.57 one-day loss. The move wasn’t triggered by anything Micron itself announced—rather, it was collateral damage from a sector-wide selloff after Broadcom’s earnings.
What happened
- Broadcom beat on fiscal Q2 revenue—$22.19 billion, up 48% year-over-year—and issued Q3 revenue guidance of $29.4 billion. Still, CEO Hock Tan did not lift Broadcom’s full-year AI semiconductor revenue target of $100 billion. That disappointed traders who had been hoping for an upgrade.
- Tan said, “The momentum continues and in Q3 we expect semiconductor revenue from AI to grow over 200 percent year-over-year to $16.0 billion.” Strong figures, but below the hyped “whisper” expectations for hyperscaler AI orders, and that gap sparked profit-taking across chip stocks.
- Micron, up 271% year-to-date, was an obvious and immediate target as selling swept through the memory space. Concerns over the cyclical memory market and rising competition from Chinese suppliers amplified the pressure.
Why Micron still looks structurally strong
- Wall Street hasn’t abandoned Micron. Morgan Stanley raised its price target to $1,050 (from $520) and kept an Overweight rating; Raymond James holds an Outperform with a $1,100 target.
- Valuation looks relatively cheap: Micron trades at a forward P/E of 11.50 versus a sector average of 26.69 (AMD 57.24, Broadcom 31.56, Nvidia 23.75).
- Supply dynamics for advanced AI memory are tight: HBM3E and HBM4 allocations for 2026 are sold out, and a large chunk of 2027 output is already committed via long-term contracts—giving Micron a structural edge in supplying AI chipmakers.
Analyst landscape and the near-term catalyst
- The average analyst price target sits at $745.29, with a wide spread—Susquehanna’s $1,750 high and a $190 low underscore ongoing debate on upside risk and cyclicality.
- The market will get more clarity on June 23, 2026, when Micron reports fiscal Q3 results. Consensus expectations are about $34.83 billion in revenue and adjusted EPS of $19.83—numbers that, if met or exceeded, would materially strengthen Micron’s upside case.
Bottom line
The June 4 decline looks more like a sector-wide reset tied to Broadcom’s guidance than a sudden fundamental breakdown at Micron. The memory shortage and long-term demand for high-bandwidth AI DRAM remain intact, and major analysts still rate Micron favorably. That said, the path forward hinges on coming earnings and the memory cycle—making the pullback either a buying opportunity for longer-term bulls or a cautionary flag for those worried about cyclical volatility.
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