Key Takeaways

Micron’s share price has tumbled approximately 20% following its second-quarter results released March 18, as investors worry about Google’s TurboQuant potentially cutting memory requirements
Mizuho’s Vijay Rakesh continues to rate the stock as Outperform with a $530 target, characterizing the downturn as an attractive entry point
The company’s DRAM average selling prices climbed in the mid-60% range during Q2, while NAND ASPs jumped in the high-70% range, demonstrating robust pricing strength
Wall Street remains divided: certain analysts view the selloff as panic-driven, while others highlight risks from customer concentration and pricing sustainability
Over the trailing twelve months, Micron shares have surged 324%, eclipsing gains from Nvidia, AMD, TSMC, and Broadcom

The past several weeks have proven turbulent for Micron. Following one of the most impressive rallies in the chip industry — climbing 324% year-over-year — the memory specialist encountered serious resistance. The trigger came from Google’s unveiling of TurboQuant, a lossless compression algorithm that sent jitters through the investment community about potential declines in DRAM and NAND requirements. Markets responded swiftly.

Micron Technology, Inc., MU

Following Micron’s fiscal second-quarter report on March 18, shares have declined approximately 20%. This represents a significant pullback for a business that recently stood as a poster child for the artificial intelligence boom.

The downturn revolves around one core concern: if Google’s TurboQuant technology enables superior data compression while preserving model precision, cloud giants may require substantially less physical memory for their AI operations. Reduced DRAM and NAND consumption translates to weakened pricing leverage for Micron. This narrative, though, faces pushback from multiple industry watchers.

Vijay Rakesh from Mizuho mounted a strong counterargument. He retained Outperform classifications for both Micron and Sandisk (SNDK), assigning price objectives of $530 and $710 respectively. Rakesh invoked the Jevons paradox — an economic principle suggesting efficiency gains frequently stimulate increased usage rather than decreased demand. His reference point: when DeepSeek emerged in 2025 and initially shook GPU equities, AI infrastructure investments ultimately intensified.

Rakesh further noted that Google’s TurboQuant documentation itself suggests possibilities for expanded models and accelerated inference capabilities, which would still necessitate considerable memory resources. He characterizes the present decline as excessive market pessimism.

Examining the Financial Performance

Micron’s second-quarter results painted an impressive picture. DRAM unit shipments increased mid-single digits on a sequential basis, while average selling prices surged in the mid-60% range. NAND unit volumes expanded low-single digits, accompanied by ASP growth in the high-70% territory. These represent exceptional pricing premiums, propelled by constrained availability rather than explosive volume expansion.

Seeking Alpha’s Oliver Rodzianko highlighted this pattern. He noted that Micron currently faces greater supply limitations than demand constraints, and that DRAM and NAND market tightness should persist past 2026 based on company guidance. His apprehension doesn’t center on technological factors — rather, he questions how much of Micron’s profitability stems from price inflation versus sustainable structural advantages.

Should pricing revert to historical norms, profit margins could face pressure. Rodzianko additionally emphasized customer concentration concerns: Micron maintains heavy exposure to hyperscaler capital expenditure, meaning any slowdown in that deployment cycle would deliver swift and substantial stock impact.

Optimistic Voices Emphasize AI Infrastructure Growth

Analyst Dmytro Lebid offered a decidedly positive perspective. He attributed the decline to “irrational investor behavior” and suggested the market is overstating deceleration threats. From his vantage point, cloud providers’ hunger for HBM3E memory remains undiminished, while Micron’s supply-limited status preserves margin health.

Nvidia’s ongoing requirements alone should sustain growth momentum, he contended, establishing a solid foundation beneath Micron’s pricing structure.

The company is simultaneously expanding production capabilities across Idaho, Tongluo, and Singapore facilities stretching into 2027–2028 — representing a strategic commitment that AI-powered memory consumption will maintain its upward trajectory.

As of early April 2026, Micron traded near $366 per share, commanding a market capitalization approaching $413 billion within a 52-week trading band of $61.54 to $471.34.

The post Micron (MU) Stock Plunges 20%: Is This a Dip Worth Buying or a Red Flag? appeared first on Blockonomi.

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Filed under: Bitcoin - @ April 5, 2026 10:24 am