Shares in Micron (MU) inventory continued their March tumble in the course of the month’s last buying and selling day, regardless of excessive demand for AI knowledge facilities. MU shares fell 10% Monday, persevering with a slide that started after the corporate reported earnings on March 18. On Tuesday, the inventory did rebound 4%, however ended the month with an general 18% hunch. For the reason that March earnings report, Micron is down as a lot as 30%.
The worry amongst traders is that extra environment friendly AI will result in a drop in demand for high-bandwidth reminiscence, a key element in AI knowledge facilities that has change into more and more vital as AI fashions have continued to balloon in dimension. Micron shares are up 270% from one yr in the past, however most of these positive aspects have retreated in 2026. The inventory is barely up about 2% yr up to now after the current slide.
Nonetheless, Wall Avenue companies stay hopeful. Morgan Stanley analyst Joseph Moore stated Thursday that regardless of continued effectivity enhancements in AI, “[t]right here’s simply no indication that demand for reminiscence or storage goes down.” Moore additionally famous that reminiscence will play a key function within the progress of agentic AI, which may carry out duties both semiautonomously or totally by itself. Such progress will positively have an effect on semiconductor corporations like Micron (MU), Nvidia (NVDA), and AMD.
Moreover, Micron expects Q3 income above analysts’ forecasts. Micron’s plans for heavy capital spending may result in elevated provide, probably compressing margins and impacting inventory efficiency. Nonetheless, the semiconductor firm doesn’t seem fazed. Regardless of that, the Avenue stays blended. Citi has minimize Micron’s value goal to $425 from $510, citing considerations over DRAM value declines and potential impacts from Google’s TurboQuant. Nonetheless, the agency maintained a purchase ranking.
