Micron's 17% Rout: How an NVIDIA Seal of Approval Could Not Shield the Stock from a Broadcom Blast

A week that began with Micron cracking the $1,000 mark for the first time ended with a bloodbath. Over 72 hours, the memory specialist shed 17% of its value, with the worst single session — a 12.16% plunge on Friday — making it the S&P 500’s biggest decliner. At €755, the stock now sits nearly 20% below the record high of €938.70 set on June 3.

The selloff was triggered by two external shocks. First, Broadcom delivered a disappointing Q3 revenue forecast for its AI chips — $16 billion against the $17.2 billion consensus — and declined to raise its annual AI sales guidance. That was enough to spark a sector-wide rout. The Philadelphia Semiconductor Index lost 10.3% on June 5, its steepest one-day drop since March 2020, wiping roughly $1.3 trillion off the market cap of US chipmakers. AMD fell 12.6%, Intel 9%, and the contagion reached Asia: Samsung dropped 6.4%, SK Hynix nearly 10%.

Second, a research note from SemiAnalysis added fuel to the fire at Micron. The firm claimed that NVIDIA plans to halve the memory requirements in its upcoming Vera Rubin servers from 55 TB to 28 TB — a scenario that would undercut the entire AI memory thesis for Micron, SK Hynix and Samsung. Yet on the same day, NVIDIA CEO Jensen Huang officially confirmed that Micron had received HBM4 certification alongside its two Korean rivals. The certification secures Micron’s place in NVIDIA’s next-generation AI platform and came with an explicit management denial of the halving claims. Micron stated that HBM4 is already in mass production and may even ship ahead of schedule.

The macro backdrop amplified the pain. The US labor market added 172,000 jobs in May, far exceeding expectations, and dashed hopes for imminent rate cuts. According to the CME FedWatch tool, traders now price in a risk of further rate hikes by year-end, a headwind for richly valued growth stocks.

Should investors sell immediately? Or is it worth buying Micron?

Analysts remain undeterred

Despite the rout, Wall Street is largely sticking to its bullish narrative. Morgan Stanley set a price target of $1,050, Raymond James lifted its target to $1,100, and UBS analyst Timothy Arcuri stands at $1,625 — the highest on the Street. Susquehanna has been even more aggressive at $1,750. The lone prominent bear is Goldman Sachs, which holds a near-$400 target, warning that memory remains inherently cyclical.

At Friday’s close of €755, Micron’s stock trades 18.8% above the consensus analyst estimate of €635.20, a gap that highlights just how far the rally had run ahead of expectations. The stock still shows a year-to-date gain of 180.67%, and a 12-month advance of 712.53%, while the 50-day moving average of €533.47 sits 41.53% below the current price. Annualized volatility of 101% underscores the extreme nervousness in the name.

Fundamentals argue for patience

Micron’s underlying business has not deteriorated. In the fiscal second quarter of 2026, revenue surged 196% year-over-year to $23.9 billion, and the operating margin hit 69%. For the third quarter, management guided for record revenue of $33.5 billion with a gross margin around 81%. Analysts expect earnings per share between $18.97 and $19.19, compared to $1.73 a year ago.

Micron at a turning point? This analysis reveals what investors need to know now.

A critical detail: CEO Sanjay Mehrotra noted that Micron can currently meet only 50% to 66% of customer demand for high-bandwidth memory. That supply constraint is keeping prices elevated and explains why analysts see the selloff as a buying opportunity rather than the start of a structural decline.

All eyes on June 24

Investors will not have to wait long for clarity. Micron reports fiscal third-quarter results on June 24. The company’s own revenue guidance of $33.5 billion towers over the street’s prior estimates of $22 to $24 billion. That gap, combined with the HBM4 certification and persistent demand scarcity, suggests the potential for another upside surprise. Until then, the stock remains a battlefield between believers in the AI memory supercycle and those who see a peak in capital expenditure — a battle that, for now, has left Micron bloodied but far from broken.

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Micron Stock: New Analysis - 6 June

Fresh Micron information released. What's the impact for investors? Our latest independent report examines recent figures and market trends.

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