Micron Technology tumbles as Broadcom’s unchanged AI semiconductor revenue outlook sparks sector-wide correction concerns.
Micron Technology (NASDAQ:MU) fell nearly 20% on Friday following a sector-wide selloff triggered by Broadcom’s fiscal Q2 2026 earnings. Broadcom did not raise its full-year AI semiconductor revenue target, raising concerns about a potential plateau in AI capital expenditure.
The decline follows a year-to-date rally where Micron’s stock surged over 200%. Despite the drop, Wall Street remains bullish, with expectations of 126% EPS growth over the next five years. Morgan Stanley recently raised its price target for Micron from $520 to $1,050, citing persistent memory shortages and tight supply conditions lasting two to three more years.
Analysts view the correction as temporary, driven by structural tailwinds from sustained demand and constrained supply in the memory market.