Micron Shares Drop After Texas Governor Pledges Data Center Halt
Micron Technology shares fell 7% following the election of a Texas governor who pledged to halt new data center construction.
Shares of Micron Technology fell 7% in a single session, contributing to a monthly decline of 25.25%. The volatility follows the election of a Democratic governor in Texas who pledged to halt the construction of new data centers. Because Texas is estimated to account for 25% to 30% of planned U.S. data center capacity, analysts warn that such moratoria could affect up to 45% of planned national expansion for AI infrastructure.
Despite the stock price drop, the company reports strong financial fundamentals. Micron maintains a non-GAAP gross margin of 87.0% and reports record demand for high-bandwidth memory used in AI clusters. For the first quarter of fiscal 2027, the company projects revenue of $61.5 billion and non-GAAP earnings per share of $38.15.
Market sentiment remains divided. Supporters of the stock point to a low valuation relative to growth and the fact that 75% of fiscal 2027 shipments are already covered by committed supply agreements. Conversely, critics argue that the political shift in Texas introduces significant risk to the broader expansion of AI data centers.
