Micron shares fell to $848 after reports of slowing AI software spending raised concerns over future chip demand.
Micron Technology (NASDAQ: MU) stock declined 30% from its recent high of $1,213 to close at $848 on July 17. The drop follows reports that some businesses are reducing AI software spending, potentially impacting demand for high-bandwidth memory (HBM) chips used in AI hardware.
Micron’s HBM chips are critical for AI workloads, providing faster data access for graphics processing units (GPUs). The company recently began shipping its HBM4 chips, which offer a 60% capacity increase and 20% better energy efficiency. Earlier gains drove the stock up 2,070% from around $50 in early 2023.
The pullback reflects broader concerns about sustained AI-driven growth, though supply constraints for HBM remain tight.