Key Takeaways
- Micron’s stock plummeted 7.7% Thursday, eliminating $94.24 billion in market capitalization — marking the company’s most severe single-session loss ever.
- The decline followed Broadcom’s quarterly earnings release, which left investors disappointed after the company maintained its existing AI revenue forecast without raising expectations.
- Broadcom experienced its own massive decline, losing $286 billion in market value — ranking as the fourth-biggest one-day market cap destruction in U.S. corporate history.
- Semiconductor stocks broadly declined, with AMD falling 3.6%, Intel retreating 0.8%, and the PHLX Semiconductor Index sliding 2.2%.
- Market watchers now turn to Micron’s upcoming June 24 earnings call for updated projections on AI-driven memory chip demand.
Micron Technology (MU) shares experienced a sharp 7.7% decline Thursday, wiping away $94.24 billion in market value during a single trading day. This represents the most substantial one-day valuation loss in the company’s corporate history.
The massive sell-off followed Broadcom’s (AVGO) latest earnings announcement, which delivered solid results but failed to energize the market. The critical disappointment centered on Broadcom’s decision to maintain its existing AI revenue projections rather than raising them, triggering anxiety among investors anticipating more aggressive growth forecasts.
[[LINK_START_2]]Broadcom[[LINK_END_2]] couldn’t avoid the fallout from its own report. The company’s shares tumbled 12.6%, resulting in a staggering $286 billion market capitalization wipeout — placing it among the top four largest single-day value destructions for any American corporation in history.
The bearish sentiment cascaded throughout the semiconductor industry. AMD shares declined 3.6%, Intel dropped 0.8%, and the PHLX Semiconductor Index — serving as a comprehensive benchmark for chip manufacturers — retreated 2.2%. Notably, Nvidia bucked the trend with a 1.94% gain.
D.A. Davidson analyst Gil Luria characterized Broadcom’s financial performance as “impressive” while recognizing that the report nevertheless created uncertainty throughout the semiconductor landscape.
Micron’s Recent Momentum Before the Decline
Prior to Thursday’s selloff, Micron had been experiencing remarkable momentum. The memory chip manufacturer had recently achieved its inaugural closing price above $1,000 per share, pushing its total market capitalization near the $1.2 trillion threshold.
Wall Street analysts had been progressively elevating their price projections, highlighting several forthcoming positive developments. Among the most anticipated: Nvidia’s introduction of next-generation personal computing processors designed to accommodate expanded memory configurations, which market observers view as beneficial for Micron’s business prospects.
Itau BBA analyst Stephano Gabriel recently indicated he’s observing mounting evidence that memory supply constraints are “intensifying.” This development favors Micron, Gabriel contended, as it indicates premium memory pricing represents more than just temporary market dynamics.
Gabriel anticipates additional long-term supply contracts will be finalized at prevailing elevated price points, potentially providing Micron with greater revenue stability and visibility.
“This helps ease peak-cycle concerns,” he said.
Market Valuation and Future Outlook
Despite optimistic analyst perspectives, warning signs had begun emerging. Analyst price projections had consistently lagged behind actual market trading levels, and corporate insiders had executed notable equity sales in recent periods.
Broadcom’s decision to hold steady on AI revenue expectations — rather than delivering upward revisions — proved sufficient to spark widespread profit-taking across high-valuation semiconductor companies like Micron that had surged heading into the announcement.
Micron’s next quarterly financial disclosure is scheduled for June 24. Market participants will scrutinize the report for revised projections regarding AI-related memory chip demand, supply contract developments, and whether supply constraint dynamics continue supporting the investment narrative.
An industry communication dated June 3 had highlighted potential AI memory supply limitations across critical market segments — providing another reference point investors will evaluate against Micron’s forthcoming guidance later this month.
