Micron Stock Crashes 13% as Broadcom Shocks Chip Market, June 06

Micron Technology shares fell 13% to $864.01 on June 4, wiping out $94 billion in market value. The sell-off followed Broadcom’s disappointing AI chip guidance, which fell $1.2 billion short of analyst expectations. The broader semiconductor sector crashed as investors questioned whether AI infrastructure spending is slowing. For Micron investors, this marks a critical test of the stock’s valuation after a 712% gain over the past year.

Broadcom’s Guidance Miss Triggers Panic

Broadcom reported AI chip revenue guidance of $16 billion for the quarter, missing the $17.2 billion analysts expected. The company also refused to raise its full-year AI semiconductor revenue target of $100 billion, signaling confidence in growth may be plateauing. Broadcom shares plunged 12.6%, erasing an estimated $280 to $286 billion in market value—the largest one-day loss for any US company in history.

Micron Caught in Sector Collapse

Micron had climbed to $1,089 before the sell-off, driven by insatiable demand for high-bandwidth memory (HBM) and DRAM chips that power AI infrastructure. The stock’s 7.7% decline on June 4 translated into $94.24 billion in lost market value. The iShares Semiconductor ETF dropped 10% for its worst day since March 2020, with Intel and AMD falling around 11% and Marvell Technology down more than 16%.

Analyst Support Remains Despite Weakness

Morgan Stanley raised its price target to $1,050, citing persistent DRAM supply tightness expected to last two to three years. Bernstein began coverage with a Buy rating on the same day. Nvidia CEO Jensen Huang confirmed that Micron obtained HBM4 sample certification for the Vera Rubin AI platform, a positive long-term signal. With Meyka rating MU a B+ and 75 analysts rating it Buy, the data points to limited downside despite near-term volatility.

Macro Headwinds Amplify Tech Selloff

The nonfarm payrolls report showed 172,000 jobs added in May, well above the 80,000 expected. This stronger-than-forecast labor market fueled bets that the Federal Reserve will hike interest rates this year, pressuring tech valuations. The sell-off also reflects portfolio rotation ahead of the SpaceX IPO on June 12, with investors raising cash from semiconductor and AI trades to fund the $75 billion offering.

Final Thoughts

Micron lost $94 billion in market value as Broadcom’s AI guidance miss sparked sector panic. With analyst support intact and Meyka’s B+ grade, the stock faces a near-term test but retains long-term upside if AI demand remains strong.

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