Micron (MU) shares faced heavy selling this week after a long rally pushed the stock close to record levels. The shares closed at $739.00 on July 29 after falling 9.94% during the session. They later slipped to about $729.65 in overnight trading.
The decline raised questions about whether the stock has entered a longer correction. However, Wall Street analysts still expect strong gains over the next year. The average price target stands near $1,507.38, which remains far above the current market price.
Micron stock came under pressure as investors sold shares across the global memory-chip sector. The fall followed SK Hynix’s plan to raise its 2026 capital spending by 50% to at least $31 billion.
The announcement raised concerns about future supply growth. Investors fear that higher spending could create excess DRAM and high-bandwidth memory capacity. South Korea’s KOSPI index fell as much as 15% and triggered two circuit-breaker halts during the week.
Global chip companies lost more than $1 trillion in market value within several sessions. Micron traded between $737.88 and $841.80 on July 29, showing how quickly market sentiment changed.
Micron continues to benefit from rising memory demand linked to artificial intelligence systems. Chief Executive Sanjay Mehrotra has said customers have struggled to forecast the scale of demand.
During Micron’s fiscal third-quarter earnings call, Mehrotra said AI growth had changed the memory industry’s structure. Data centres need more advanced memory products to train and operate large AI models.
This demand has supported Micron’s revenue growth and share price gains. Most analysts still rate the stock as a Buy or Strong Buy. The company’s market value remains near $834.62 billion despite the recent decline.
Micron trades at a trailing price-to-earnings ratio of 18.55. Its trailing earnings per share stand at $39.83, based on the latest reported figures.
The market now faces concerns about new production capacity. SK Hynix, Micron and other memory producers plan to expand output. China’s CXMT is also increasing DRAM production at a fast pace.
Higher supply could place pressure on memory prices if demand slows. That risk has caused investors to review whether AI-related revenue can support current chip valuations.
Investor Michael Burry also placed a bearish options position against Micron near $1,051.87 on July 1. The trade gained attention as the shares moved lower during July.
Micron’s 52-week trading range stands between $103.38 and $1,255.00. The wide range shows how strongly the stock has responded to AI demand and changing supply expectations.
The latest drop may continue if chip-sector selling remains strong. However, analyst targets still point to possible gains if memory demand stays firm. A new all-time high remains possible, but the timing depends on pricing, production growth and AI spending.
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