Micron erases weeks of gains as semiconductor sector faces broad selloff
The sharp correction in Micron Technology stock reflects broader pressure on high-growth tech amid rising Treasury yields, even as the company’s high-bandwidth memory remains fully committed for 2026.
Micron Technology shares fell 21% over two trading days on June 4 and 5, 2026, wiping out weeks of gains that had seen the stock more than double in value this year. The decline followed a 12% drop in Broadcom shares after its artificial intelligence revenue guidance disappointed, triggering a broader sell-off in the semiconductor sector. The iShares Semiconductor ETF dropped 10%, marking its worst day since March 2020, with chip stocks shedding a combined $1 trillion in market value.
The sell-off was exacerbated by a strong US May jobs report, which showed 172,000 new positions against an expectation of 80,000. This data pushed 10-year Treasury yields above 4.5% and increased expectations of a Federal Reserve rate hike, pressuring high-growth stocks with elevated valuations. Micron’s relative strength index had hit 85 in mid-May, indicating overbought conditions that rarely hold for long.
Despite the sharp price correction, Micron’s high-bandwidth memory output remains sold out for 2026. Management stated it can meet only half to two-thirds of customer demand, a scarcity that has also lifted prices for standard dynamic random-access memory and NAND flash storage. The stock had crossed the $1 trillion market value mark in late May before the recent decline.
Wall Street analysts remain divided on Micron’s valuation following the reset. Mizuho maintained an $800 price target with an Outperform rating, while Goldman Sachs held a $400 target. The divergence highlights the challenge for the memory maker, which must now surpass high expectations to justify its previous multiples, particularly as the semiconductor industry remains historically cyclical.
The impact was felt across the sector, with peers such as Marvell Technology falling more than 16%. While Micron was not the trigger for the downturn, its steep decline underscores the vulnerability of stocks that climb fastest when sentiment turns. Investors are now watching for signs of slowing AI capital spending and whether Treasury yields will continue to pressure high-multiple equities.
