Micron (MU) Stock Falls 8% as Broadcom Earnings Hit Chip Sector

TLDR

• Micron stock dropped 7.7% on Thursday, wiping out $94.24 billion in market cap — the largest single-day market-cap loss in its history.
• The sell-off was triggered by Broadcom’s earnings report, which disappointed investors by holding its AI revenue outlook steady.
• Broadcom itself shed $286 billion in market cap, the fourth-largest single-day wipeout for any U.S. company on record.
• The wider chip sector also fell, with AMD down 3.6%, Intel down 0.8%, and the PHLX Semiconductor Index dropping 2.2%.
• Micron’s next earnings report is scheduled for June 24, where investors will look for fresh guidance on AI memory demand.

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Micron Technology (MU) stock fell 7.7% on Thursday, erasing $94.24 billion in market capitalization in a single session. That’s the largest one-day market-cap loss the company has ever recorded.

Micron Technology, Inc., MU

The drop came after Broadcom (AVGO) reported quarterly earnings that struck some analysts as strong but left investors cold. The issue? Broadcom kept its AI revenue outlook unchanged, which spooked investors who were hoping for an upgrade.

Broadcom itself didn’t escape the damage. Its stock fell 12.6%, wiping out $286 billion in market cap — the fourth-largest single-day market-cap loss for any U.S. company ever.

The sell-off spread across the sector. AMD dropped 3.6%, Intel slipped 0.8%, and the PHLX Semiconductor Index — a broad measure of chip stocks — fell 2.2%. Nvidia was a rare exception, finishing up 1.94%.

D.A. Davidson analyst Gil Luria described Broadcom’s results as “impressive” but acknowledged the report cast a shadow over the wider chip sector.

What Had Been Going Right for Micron

Micron had been on a strong run heading into Thursday’s sell-off. The stock had just notched its first-ever close above $1,000, and its market value had briefly approached $1.2 trillion.

Analysts had been raising price targets, pointing to a series of upcoming catalysts. One of the more closely watched: Nvidia’s rollout of new personal-computing chips that support higher memory capacity, which analysts see as a potential tailwind for Micron.

Itau BBA analyst Stephano Gabriel recently said he sees growing evidence that the bottleneck for memory is “intensifying.” That’s a positive signal for Micron, he argued, because it suggests elevated memory prices aren’t just a temporary, cyclical blip.

Gabriel said he expects more long-term supply agreements to be locked in at current high prices, which could give Micron more predictable revenue going forward.

“This helps ease peak-cycle concerns,” he said.

Valuation and What Comes Next

Despite the bullish analyst commentary, some caution was already building. Analyst price targets had remained well below recent trading levels, and insider equity disposals had been noted in recent months.

Broadcom’s steady AI outlook — rather than an upgrade — was enough to trigger profit-taking across high-valuation chipmakers like Micron that had run hard into the report.

Micron’s next scheduled earnings report is June 24. Traders will be watching closely for any updated guidance on AI memory demand, supply agreements, and whether the memory bottleneck thesis continues to hold.

A June 3 industry letter had flagged potential AI memory supply constraints across key end markets — another data point investors will be cross-referencing with whatever Micron says later this month.