Micron (MU) Stock Drops 5% After Touching All-Time High — Is the Rally Over?

TLDR

• Micron stock fell ~4.7% in pre-market Friday after hitting an all-time high of $1,255 on Thursday
• Q3 FY2026 revenue came in at $41.46 billion, up 346% year-over-year, crushing estimates
• Goldman Sachs raised its price target but kept a Neutral rating, warning the good news may be priced in
• SK Hynix announced plans to raise $29.4 billion via a Nasdaq ADR listing, adding competitive pressure
• Q4 guidance of $49–$51 billion far exceeded Wall Street’s $43.2 billion estimate

Micron Technology stock surged 15.8% on Thursday, briefly overtaking both Meta Platforms and Tesla in market cap before pulling back 4.7% in pre-market Friday as profit-taking set in.

Micron Technology, Inc., MU

The stock hit an all-time high of $1,255 during Thursday’s session. By the close, Micron’s market cap stood at $1.37 trillion, just below Meta’s $1.38 trillion and Tesla’s $1.41 trillion.

The move came after Micron posted fiscal Q3 2026 results on June 24. Revenue hit $41.46 billion, up 346% year-over-year and well above the $35.7 billion analysts expected. Adjusted EPS of $25.11 also beat the $20.49 consensus.

Looking ahead, Micron guided for Q4 revenue of $49–$51 billion — roughly $50 billion at the midpoint — versus Wall Street’s $43.2 billion estimate. That’s a wide beat on guidance, and it rattled the market in the best way possible.

CEO Sanjay Mehrotra told analysts there was “no line of sight” to supply catching up with demand, and that tight conditions are expected to continue beyond 2027, with supply improving only gradually in 2028.

Micron also disclosed $22 billion in customer commitments to secure future memory chip supply, underlining just how locked-in demand has become from AI infrastructure customers.

The stock is now up roughly 326% in 2026 alone. Micron first crossed the $1 trillion market cap mark in late May.

Goldman Stays Neutral Despite the Blowout

Not everyone is piling in. Goldman Sachs raised its price target on Micron but held its Neutral rating. Analyst James Schneider pointed to stronger fundamentals and better supply visibility, but cautioned the stock’s run may have already priced in much of the upside.

That measured stance gave some investors reason to lock in gains after a historic week.

The broader Nasdaq also didn’t help. The index fell 0.5% Thursday to 25,358.60, marking its fourth straight losing session — the longest streak since February. Apple’s 6.1% drop, after it raised prices on iPads and MacBooks to offset rising chip costs, weighed heavily on the index.

SK Hynix Adds a New Wrinkle

South Korean rival SK Hynix announced plans to raise up to $29.4 billion via a Nasdaq ADR listing, expected to begin trading as early as July 10.

The move gives U.S. investors a direct alternative to Micron in the high-bandwidth memory space, a dynamic that could pull some capital away from MU going forward.

Despite the pullback, the earnings sparked a wider rally across the chip sector. The Philadelphia Semiconductor Index rose 3.2% Thursday and is tracking for its best quarterly performance on record. Sandisk jumped 22%, Western Digital gained 7.4%, and Seagate advanced 4.3%.

Micron’s Q4 guidance of $49–$51 billion remains the headline number heading into the next quarter.

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