Micron’s 72-Hour Swing: A $1 Trillion Peak, a Broadcom-Induced Rout, and What the June 24 Earnings Will Decide

Micron hit $1,000 on NVIDIA HBM4 news, then fell 17% amid chip sell-off from Broadcom miss and jobs data; HBM shortages and record revenue keep analysts bullish with $1,100+ targets.

Micron Technology shareholders just lived through one of the most dramatic reversals in the memory chip maker’s recent history. On Monday, the stock breached the $1,000 mark for the first time, buoyed by news that NVIDIA had officially certified Micron as a supplier of HBM4 memory for its upcoming “Vera Rubin” AI platform. By Thursday, that euphoria had evaporated. A disappointing forecast from Broadcom and surprisingly strong US jobs data triggered a sector-wide sell-off that erased more than $1.3 trillion in market value from American chipmakers in a single session.

The Philadelphia Semiconductor Index suffered its worst day since March 2020, plunging 10.3% on June 5. Micron fell 13% on Thursday alone, and over two trading days the stock dropped 17%. Rivals fared little better: AMD slid 12.6%, Intel lost 9%, and Asian peers Samsung and SK Hynix tumbled 6.4% and nearly 10%, respectively. ASML gave back 3.8%, while Infineon shed 6% in European trading.

The trigger was Broadcom’s third-quarter guidance for AI chip revenue: $16 billion, well below the $17.2 billion some analysts had been expecting. More damaging was Broadcom’s decision not to raise its full-year AI sales target of $100 billion for fiscal 2027, stoking fears that the pace of AI infrastructure investment might be peaking. As a key supplier of high-bandwidth memory for AI accelerators, Micron was swept into the downdraft. Then on Friday, the US jobs report showed 172,000 new positions added, extinguishing hopes for near-term rate cuts and even rekindling talk of rate hikes, according to the CME FedWatch tool. Micron closed the week at €755, down 12.16% on Friday alone, and now sits nearly 20% below its 52-week high of €938.70.

Yet the fundamental narrative has not changed. In its second fiscal quarter of 2026, Micron reported revenue of $23.9 billion, a 196% surge year over year, with an operating margin of 69%. Management is guiding for record third-quarter revenue of $33.5 billion and a gross margin around 81%. CEO Sanjay Mehrotra noted that the company is currently able to satisfy only 50% to 66% of customer demand for high-bandwidth memory. Manish Bhatia, executive vice president for global operations, described the supply-demand imbalance as structural, not cyclical, adding that some key clients can secure only about 60% of their HBM requirements. The entire HBM production capacity is sold out through the end of 2026 under binding agreements.

That scarcity story continues to attract bullish bets on Wall Street. Raymond James raised its price target to $1,100, citing an extended memory super-cycle driven by AI server demand. Morgan Stanley sees the stock at $1,050, while UBS analyst Timothy Arcuri has a $1,625 target — the highest among major banks. Susquehanna had already set a $1,750 price objective. Goldman Sachs remains the most prominent bear, with a target near $400, warning that memory chips are inherently cyclical and that current valuations leave no room for error.

Technically, the stock now shows a relative strength index of 56.2, down from overbought territory — a level that suggests some of the froth has been removed. On a year-to-date basis, Micron is still up roughly 181%.

All eyes now turn to June 24, when Micron reports its fiscal third-quarter results. The consensus EPS estimate stands between $18.97 and $19.19, up from $1.73 in the prior-year period. The company’s own revenue guidance of $33.5 billion far exceeds the analyst consensus of $22 billion to $24 billion, a gap that management must close with hard numbers. Investors will be watching for updated DRAM pricing trends and details on the production ramp of HBM4 and 1-alpha DRAM components — both critical to validating the structural bull thesis.

For now, Micron is caught between two opposing forces: a secular supply crunch that underpins record margins, and a macro-sensitive market that punished any whiff of a peak in AI spending. The next earnings report will likely determine whether the Broadcom shock was a temporary scare or the beginning of a deeper repricing.