Micron’s 17% Two-Day Slide: How a Broadcom Warning and Hot Jobs Data Undid a $1,000 Milestone

The week began with a landmark. Micron shares crossed the $1,000 mark for the first time on Monday, extending a rally that had already delivered sevenfold gains over the past year. By Friday evening, the stock had surrendered nearly a fifth of that peak value, closing at €755 after a two-day rout that erased 17% of its market capitalisation. The whiplash was brutal — and it carries a warning for anyone betting on the AI memory boom.

The trigger came from an unexpected corner. Broadcom, a key player in custom AI chips, issued a softer-than-expected revenue outlook for its third quarter, projecting $16 billion against a consensus of $17.2 billion. More importantly, it failed to lift its full-year guidance for AI-related semiconductors. That was enough to ignite a broader sell-off across the chip sector. The Philadelphia Semiconductor Index plunged 10.3% on Thursday — its steepest single-day drop since March 2020. American chipmakers collectively shed roughly $1.3 trillion in market value. AMD fell 12.6%, Intel 9%, and Micron lost roughly 13% on the day alone.

Adding to the pressure was a surprisingly strong US jobs report. The economy added 172,000 new positions in May, dashing hopes that the Federal Reserve would cut interest rates any time soon. According to CME FedWatch, the odds of a rate hike by year-end actually rose. Growth stocks, particularly those with rich valuations like Micron, bore the brunt of the repositioning.

A third factor compounded the anxiety. A report from SemiAnalysis suggested that Nvidia might reduce its memory requirements in the upcoming Vera Rubin server architecture. Although Nvidia CEO Jensen Huang confirmed on Friday that Micron had secured HBM4 certification, the reassurance failed to stem the selling. By Friday, Micron shares fell another 12.16% to €755, pushing the two-day decline to 17%. The stock now sits nearly 20% below the all-time high it touched on Wednesday.

Should investors sell immediately? Or is it worth buying Micron?

For investors who have ridden the stock’s meteoric rise, the long-term picture remains dazzling. Micron is still up roughly 180% year to date and more than 700% over the past twelve months. The 200-day moving average, a key technical support, sits at €311 — a level that suggests the current pullback is still within a broader uptrend. Yet the underlying business has not skipped a beat. In the second fiscal quarter of 2026, the company posted revenue of $23.9 billion, a 196% jump from the prior year, with operating margins of 69%. For the third quarter, management guided to a record $33.5 billion in revenue and a gross margin of roughly 81%. CEO Sanjay Mehrotra has pointed out that Micron can currently satisfy only 50% to 66% of customer demand for high-bandwidth memory, underscoring the supply scarcity that has kept prices elevated.

The analyst community remains deeply divided on valuation despite the bullish fundamentals. Bullish calls run from Raymond James’ $1,100 target to Morgan Stanley’s $1,050 and UBS analyst Timothy Arcuri’s aggressive $1,625. Susquehanna had already set a $1,750 price target. On the opposite end, Goldman Sachs maintains a target near $400, warning that memory chips are inherently cyclical. The average analyst price target in euros stands at roughly €635, implying further downside from the current €755 level — though that target has been drifting higher in recent weeks.

The next defining moment is already on the calendar. On 24 June, Micron will report its fiscal third‑quarter results. The consensus earnings per share estimate ranges from $18.97 to $19.19, a staggering leap from the $1.73 recorded a year ago. Management’s own revenue guidance of $33.5 billion already exceeds the broader consensus range of $22–24 billion, a gap that reflects both the scarcity of HBM supply and the market’s uncertainty about how long the boom can last. For bulls, the current weakness is a buying opportunity before the numbers confirm the story. For bears, it is a chance to exit before the cycle turns. Three weeks will decide which side is right.