Micron shares fell 10% on Monday, continuing a sharp decline that began after the company reported its second-quarter earnings on March 18. Since that earnings report, Micron's stock has cratered 30%, erasing most of its previous gains for 2026 and leaving it up only about 2% year-to-date, despite being up 270% from one year ago [1]. The company's strong earnings were driven by insatiable demand for artificial intelligence chips, but CEO Sanjay Mehrotra acknowledged on the earnings call and in a CNBC interview that Micron has been unable to meet soaring demand, with key customers receiving only "half to two-thirds of their requirements" due to a persistent supply crunch [1].
The surge in AI demand has led to a shortage of memory chips, affecting not only Micron but also other major suppliers such as SK Hynix and Samsung, who provide high-performance chips for companies like Nvidia [1]. The broader technology sector also experienced significant losses on Monday, with neocloud companies CoreWeave and Nebius each down about 8%, and memory makers SanDisk and Western Digital sinking 7% and 9%, respectively [1]. These declines coincided with rising oil prices as the Iran war entered its fifth week and President Donald Trump threatened to destroy the country's oil facilities, adding further geopolitical risk to the market [1].
Morgan Stanley's Joe Moore commented that "Memory stock fundamentals will remain strong if AI capex continues," emphasizing that the sector's outlook depends on ongoing investment in artificial intelligence infrastructure [1]. Technical analysis suggests that Micron shares have retraced much of their previous gains, with support likely being tested around current levels after the 30% drop since the March 18 earnings report [1].
The post-earnings sell-off highlights heightened volatility in memory chip stocks as investors react to supply shortages and geopolitical risks affecting broader technology markets [1].
CONCLUSION
Micron's stock has experienced a dramatic 30% decline since its March 18 earnings report, driven by persistent supply shortages amid surging AI demand and compounded by geopolitical tensions. The broader tech sector has also suffered significant losses, reflecting heightened volatility and uncertainty. Analyst commentary suggests that the memory chip sector's outlook remains tied to continued investment in AI infrastructure.