Micron Shares Drop as Investors Lock in AI Profits

Shares of Micron Technology fell between 2.82% and 4.31% on Friday, July 31, 2026, as investors engaged in profit-taking. This retreat followed a dramatic rally on Thursday where the stock surged up to 18% after Samsung Electronics reported that long-term memory chip shortages are likely to persist through 2028.

Despite achieving a $1 trillion market capitalization in May and posting record results for the third quarter of fiscal 2026, the stock remains approximately 28% to 30% below its all-time high reached in June. This volatility comes amid reports of increased competition from ChangXin Memory Technologies, a Chinese state-backed firm that recently went public, and broader market uncertainty regarding the sustainability of spending on AI infrastructure.

Internal activity also contributed to market sentiment, as Chief Executive Sanjay Mehrotra sold approximately $37.3 million in stock in late July under a 10b5-1 trading plan. However, Wall Street analysts maintain a bullish outlook on the company, with price targets ranging from $1,548.86 to $2,000. This optimism is supported by projections from SK Hynix indicating that memory wafer demand will exceed supply by 20% until 2030.