Micron Shares Plummet Amid AI Spending and China Competition Fears
Micron Technology shares dropped 15.81% in a single session as investors weighed AI infrastructure sustainability and competition from China's ChangXin Memory Technologies.
Chip stocks suffered their worst single-day decline since 2020 on November 8, 2026, driven by investor anxiety over data center policy following recent elections. Micron Technology saw its shares plummet 15.81% to $669.51 on Thursday, marking a total decline of over 40% since June. The selloff reflects broader concerns regarding the sustainability of AI infrastructure spending, rising inflation, and a labor dispute that paused work at a Micron plant in Taiwan.
Market pressure intensified as China's ChangXin Memory Technologies announced advancements in DRAM memory and plans to ship server memory by the end of 2026. Despite the stock volatility, Micron reported fiscal Q4 revenue of $54.23 billion and projected its largest quarter ever for fiscal Q1 2027, with revenue expected to reach $61.5 billion.
Management noted that over 75% of fiscal 2027 shipments are already contracted, with 26 supply agreements covering roughly 35% of sales through 2030. Analysts remain constructive on the sector's fundamentals, citing a persistent supply-and-demand imbalance for high-bandwidth memory through 2030 and noting that no new fabrication plants are expected before 2028.
