Micron Drops 7% to $940.89 as Rising Yields Unwind AI Chip Trade
Updated
Updated · Yahoo Finance · Aug 18
Micron Drops 7% to $940.89 as Rising Yields Unwind AI Chip Trade
3 articles · Updated · Yahoo Finance · Aug 18
Summary
Micron fell about 7% Tuesday morning to $940.89, extending a broader selloff in AI-linked chip stocks as investors pulled back from richly valued semiconductor names.
Rising Treasury yields drove the risk-off move, while investors increasingly questioned whether the AI trade had run too far, too fast after huge gains across memory shares.
Micron's underlying business remained strong: fiscal third-quarter revenue jumped to $41.46 billion from $23.86 billion in the prior quarter, with operating cash flow at $25.39 billion and GAAP net income at $28.24 billion.
Valuation appears to be the pressure point. After a rally of more than 700% over the past year, Micron traded roughly 60.62% above GuruFocus's $586.15 fair-value estimate.
The drop follows an earlier sector slide tied to concerns over AI spending commitments and long rates, underscoring how quickly sentiment can reverse even when memory demand stays robust.