Micron Technology’s stock plunged 18% in March despite robust AI data center demand, losing gains from its 270% year-over-year rise. Investor fears center on AI efficiency reducing need for high-bandwidth memory, a key Micron product. While Wall Street analysts like Morgan Stanley remain optimistic about memory demand, Citi cut its price target citing DRAM price concerns. Micron itself projects Q3 revenue above forecasts.
Shares in Micron (MU) dropped 10% on the final Monday of March, continuing a slide initiated after its March 18 earnings report. The stock rebounded 4% on Tuesday but concluded the month with an overall 18% slump, having fallen as much as 30% since the earnings announcement.
Investors are concerned that more efficient AI could decrease demand for high-bandwidth memory, a crucial component for growing AI models. Although Micron shares are up 270% from one year ago, most 2026 gains have retreated, leaving the stock only about 2% higher year-to-date.
Morgan Stanley analyst Joseph Moore stated Thursday that despite AI efficiency improvements, “[t]here’s just no indication that demand for memory or storage is going down.” He noted memory will be key for agentic AI growth, benefiting semiconductor firms like Micron, Nvidia (NVDA), and AMD.
Micron anticipates Q3 revenue above analysts’ forecasts. The company’s plans for heavy capital spending may increase supply, potentially compressing margins and affecting stock performance.
Wall Street sentiment remains mixed, as Citi reduced Micron‘s price target to $425 from $510. The firm cited concerns over DRAM price declines and potential impacts from Google’s TurboQuant, though it maintained a buy rating.
