{"id":5265,"date":"2026-06-26T15:15:51","date_gmt":"2026-06-26T15:15:51","guid":{"rendered":"https:\/\/tradertideinsights.com\/?p=5265"},"modified":"2026-06-26T15:15:51","modified_gmt":"2026-06-26T15:15:51","slug":"micron-shares-fall-after-ai-fuelled-rally-despite-blowout-earnings","status":"publish","type":"post","link":"https:\/\/tradertideinsights.com\/?p=5265","title":{"rendered":"Micron shares fall after AI-fuelled rally despite blowout earnings"},"content":{"rendered":"
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Micron Technology’s MU shares fell sharply on Friday, giving up part of the gains recorded earlier in the week despite the memory chipmaker reporting stronger-than-expected quarterly results.<\/p>\n

The stock declined nearly 5% in premarket trading as weakness spread across the broader semiconductor sector.<\/p>\n

Other US chipmakers also traded lower, with Intel down just over 3%, Sandisk falling 5%, Arm shedding 4%, and Marvell declining 3.7%.<\/p>\n

The decline came as investors remained cautious about the rising costs associated with artificial intelligence infrastructure, triggering a broader sell-off across global semiconductor stocks.<\/p>\n

Semiconductor stocks under pressure worldwide<\/h2>\n

The weakness extended beyond the United States.<\/p>\n

In Europe, ASML fell 2.2%, Infineon declined 3.7%, ASM International lost 2.8%, ST Microelectronics dropped 3.3%, and Be Semiconductor slipped 2%.<\/p>\n

In Asia, Japanese conglomerate SoftBank led regional losses, plunging more than 12%.<\/p>\n

The broader pullback followed a strong rally in AI-related semiconductor companies, even as Micron delivered robust financial results and issued an optimistic outlook.<\/p>\n

Revenue beats expectations<\/h2>\n

MU reported third-quarter revenue of $41.46 billion, compared with $9.3 billion in the same period a year earlier.<\/p>\n

The result exceeded analysts’ expectations.<\/p>\n

Adjusted earnings reached $25.11 per share on revenue of $41.5 billion, representing a 346% year-on-year increase.<\/p>\n

Adjusted gross margin stood at 85%, while adjusted operating margin reached 81%.<\/p>\n

The company also projected revenue of around $50 billion for the current quarter, compared with $11.3 billion in the corresponding period last year.<\/p>\n

Micron also said customers had committed $22 billion to secure future memory chip supply.<\/p>\n

Following the earnings announcement on Wednesday, Micron’s shares surged more than 15% in a single session.<\/p>\n

The stock has gained approximately 863% over the past year.<\/p>\n

Micron overtakes Meta briefly in market capitalisation<\/h2>\n

The rally briefly pushed Micron ahead of Meta Platforms and close to Tesla in terms of market capitalisation on Thursday.<\/a><\/p>\n

Micron’s market value had peaked at $1.398 trillion on Thursday’s session compared with Meta Platforms at $1.392 trillion. <\/p>\n

Tesla stood at around $1.4 trillion.<\/p>\n

Micron currently has a market capitalisation of $1.37 trillion.<\/p>\n

The company first crossed the $1 trillion market valuation mark on May 26, joining a group of semiconductor companies benefiting from investor enthusiasm surrounding artificial intelligence infrastructure.<\/p>\n

Micron said second-quarter revenue quadrupled as demand for memory chips continued<\/a> to outpace supply.<\/p>\n

The company described the market as being supported by a demand-driven chip shortage that it expects to continue beyond 2027, marking a change from earlier expectations that supply constraints would ease sooner.<\/p>\n

Micron now has 16 long-term chip supply agreements in place.<\/p>\n

Growth was primarily driven by the company’s two data-centre business segments, which together generated $25 billion in revenue, up 415% from a year earlier.<\/p>\n

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The post Micron shares fall after AI-fuelled rally despite blowout earnings<\/a> appeared first on Invezz<\/a><\/p>\n

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Micron Technology’s MU shares fell sharply on Friday, giving up part of the gains recorded earlier in the week despite the memory chipmaker reporting stronger-than-expected quarterly results.The stock declined nearly 5% in premarket trading as weakness spread across the broader semiconductor sector. Other US chipmakers also traded lower, with Intel down just over 3%, Sandisk…<\/p>\n","protected":false},"author":1,"featured_media":5266,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2],"tags":[],"class_list":["post-5265","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-stock"],"_links":{"self":[{"href":"https:\/\/tradertideinsights.com\/index.php?rest_route=\/wp\/v2\/posts\/5265","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/tradertideinsights.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/tradertideinsights.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/tradertideinsights.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/tradertideinsights.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=5265"}],"version-history":[{"count":0,"href":"https:\/\/tradertideinsights.com\/index.php?rest_route=\/wp\/v2\/posts\/5265\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/tradertideinsights.com\/index.php?rest_route=\/wp\/v2\/media\/5266"}],"wp:attachment":[{"href":"https:\/\/tradertideinsights.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=5265"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/tradertideinsights.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=5265"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/tradertideinsights.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=5265"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}