Micron Technology’s shares took a sharp hit last month, dropping more than 20% between July 1 and July 31. An investment of $1,000 at the beginning of July would have shrunk to roughly $797 by month’s end.
The stock started July at about $1,032 and closed near $823, marking a 20.25% decline. This retreat came despite Micron’s eye-popping fiscal Q3 2026 results announced in late June, which saw revenues surge 346% year over year to $41.46 billion and adjusted earnings per share soar to $25.11, well above analyst estimates.
Profit margins also ballooned, with gross margin climbing to 84.6%, up from 37.7% the prior year. This was fueled by soaring demand for high-bandwidth memory, DRAM, and NAND products key for AI infrastructure. After the earnings release, the stock almost hit an all-time peak near $1,255 before giving back gains throughout July.
Profit Taking and Market Volatility Weigh on Shares
Investors appeared to cash in on Micron’s rapid rally, which had made it one of the biggest beneficiaries of the AI boom. The broader technology sector faced heightened volatility during July, adding pressure on AI-related stocks. Concerns about the sustainability of AI spending and sky-high expectations following Micron’s surge contributed to the pullback.
The selling intensified on July 31, when the stock plunged nearly 6% in a single day. Still, Micron remains a top long-term winner, having multiplied several times over the past year and approaching a market capitalization near $1 trillion.
Underlying fundamentals remain solid. The memory chip maker forecasted fiscal Q4 revenue around $50 billion, well above Wall Street’s projections, with adjusted earnings per share expected near $31 and gross margin climbing to about 86%. Demand for AI memory solutions continues to outpace supply, supporting Micron’s strong outlook.
This material is for informational purposes and does not constitute financial advice.
