Why Micron Stock Skyrocketed Last Month But Is Plummeting in July

Micron Technology (MU) jumped 18.9% in June after fiscal Q3 2026 results crushed expectations, with revenue hitting $41.46 billion versus the $35.84 billion consensus and EPS landing at $25.11 against the $20.78 estimate. The company guided to $50 billion in forward revenue, fueling the rally.

The momentum reversed sharply in July. Micron has dropped 19.6% from its all-time high as investors pivot from AI chip stocks into AI software names. Meta's announcement of launching its own AI compute service added pressure, signaling potential excess capacity in the AI infrastructure market that could threaten future demand for memory chips.

The rotation reflects growing concern that AI infrastructure buildout may be peaking while software applications are just hitting their stride. Meta's move to internalize compute services suggests hyperscalers may reduce third-party chip purchases, directly impacting suppliers like Micron.