The whipsaw in Micron shares this week tells a story of two competing forces. On Monday, the stock shot up 8.53% to EUR 819.40, clawing back a fraction of the damage from Friday’s 13.25% plunge — the chip sector’s worst single-day rout in over six years. The recovery comes as the market digests a brutal lesson: even a company with its entire high-bandwidth memory output already spoken for through 2026 can get caught in the crossfire of a sector-wide sentiment shift.
The immediate trigger for the selloff was Broadcom’s June 4 earnings. Despite a 48% revenue surge to $22.19 billion and an 88% profit jump, investors balked at the outlook. Management forecast AI chip sales of roughly $16 billion for the current quarter, shy of the $17.2 billion some analysts had baked in. The failure to raise the annual AI target, coupled with a strategic pivot toward selling chips instead of full systems, sent Broadcom shares down 12.6%. That shockwave rippled across the semiconductor landscape, hitting Micron with a double blow: 7.7% on Thursday, then another 13.25% on Friday.
The paradox is that nothing in Micron’s fundamental picture has deteriorated. CEO Jensen Huang confirmed that Micron, alongside SK Hynix and Samsung, has been certified for HBM4 memory destined for Nvidia’s upcoming Vera Rubin platform. That certification is a golden ticket into the next generation of AI infrastructure. Cantor Fitzgerald and Wells Fargo have raised their price targets, both citing the acute shortage of high-performance memory driven by hyperscaler demand. The 12.6% drop on Friday was pure contagion — a reflex selloff that treated all AI-linked chip stocks as interchangeable.
Analyst sentiment remains strikingly bullish. Of the 42 analysts covering Micron, 76% assign a Strong Buy rating; not a single one recommends selling. UBS lifted its target to $1,625 in late May, pointing to long-term supply agreements that stabilise pricing and margins. Susquehanna sits at the high end with $1,750. Yet the consensus target of around $640.84 (converted) sits a full 21.4% below the current EUR 819.40 level — a stark reminder that the stock already prices in a lot of good news.
Should investors sell immediately? Or is it worth buying Micron?
The technical picture underscores the tension. The 52-week high of EUR 938.70 set on June 3 is still 12.71% away. The stock trades 50.82% above its 50-day moving average of EUR 543.28 and a whopping 160.41% above the 200-day line at EUR 314.66. Those distances signal strength, but also extreme overextension. The RSI has cooled to 61.2, no longer in overheated territory, but the annualised 30-day volatility of 102.45% leaves the door open for sudden swings in either direction.
The next catalyst is already circled on the calendar: Micron’s fiscal third-quarter earnings on June 24. Analysts expect revenue growth of 263% year over year. The company has its entire HBM4 production capacity pre-sold, and the HBM3E ramp continues to accelerate. If the numbers beat expectations — and they are already high — the sector could recapture its upward momentum. A miss, however, could trigger another wave of profit-taking.
What this week reveals is a market that has transformed from rewarding any AI-related name to punishing anything that fails to deliver perfection. Broadcom’s near-perfect quarter was not enough; Micron’s sold-out pipeline was ignored in the panic. The recovery on Monday suggests that many investors view the selloff as tactical rather than structural. But with the stock trading well above the average analyst target, the next few weeks will test whether fundamental scarcity can outmuscle valuation anxiety.
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