Micron (MU) Stock Rebounds After 13% Drop on Friday – Here’s Why

TLDR

• Micron stock surged ~6.9% in pre-market Monday after dropping 13% on Friday in a chip-sector selloff triggered by Broadcom’s cautious AI outlook and a stronger-than-expected jobs report.
• Nvidia and SK Hynix announced a multi-year AI memory partnership on Sunday, June 7, initially a concern for Micron but Nvidia confirmed all three suppliers — Micron, SK Hynix, and Samsung — are certified for HBM4.
• Micron’s entire HBM production for the rest of fiscal 2026 is already committed under long-term contracts.
• The company is guiding for record revenue of $33.5 billion in fiscal Q3 earnings, due June 24.
• DRAM prices are forecast to rise 58%–63% in Q2 2026, supporting the bullish case for Micron.

Micron Technology (MU) stock bounced back sharply in pre-market trading Monday, rising as much as 6.9% after a brutal Friday session that wiped out more than 13% of its value.

Micron Technology, Inc., MU

Friday’s drop came after two things hit the chip sector at once. Broadcom issued a cautious outlook on AI revenue, and May’s nonfarm payrolls came in at 172,000 — more than double what Wall Street had penciled in. That raised fears of a Fed rate hike and sent the Philadelphia Semiconductor Index to one of its worst single-day drops in months. The Nasdaq fell 4.2% and the S&P 500 dropped 2.6%.

Micron stock was trading at $896.01 in pre-market, up 3.7% at the time of early reporting, reflecting a market reassessing whether Friday’s move was an overreaction.

Nvidia-SK Hynix Deal: Bad News or a Non-Event for Micron?

The weekend brought a headline that could have spooked Micron investors further. On Sunday, June 7, Nvidia and South Korean rival SK Hynix announced a multi-year strategic partnership to jointly develop next-generation AI memory products.

The partnership covers Vera Rubin supercomputers, the Vera CPU, RTX Spark PCs, and Jetson Thor robotics platforms — all high-profile Nvidia projects.

On the surface, a closer Nvidia-SK Hynix tie-up could squeeze Micron’s position. But there’s an important detail: no exclusivity. Nvidia CEO Jensen Huang confirmed Friday that the company had certified Micron, SK Hynix, and Samsung as approved providers of HBM4 — the latest generation of high-bandwidth memory.

That three-supplier setup matters. As long as Nvidia keeps buying from all three, Micron remains a key part of the AI memory stack.

Fiscal Q3 Earnings on the Horizon

Micron has its fiscal Q3 earnings report due June 24, and expectations are high. The company has guided for record revenue of $33.5 billion, a number that has drawn upgraded price targets from multiple analyst firms in recent weeks.

The structural demand story also holds up. DRAM prices are forecast to rise between 58% and 63% in Q2 2026, which would directly benefit Micron’s margins and top line.

Micron has also locked in its entire HBM production for the rest of fiscal 2026 under long-term contracts — a sign that demand from AI customers isn’t slowing.

Western Digital, Seagate, and SanDisk also moved higher in Monday pre-market, suggesting the rebound is a sector-wide mean reversion rather than Micron-specific.

Micron’s forward P/E has expanded recently as investors bet on an AI-driven memory supercycle, though the stock remains volatile given the cyclical nature of the memory chip industry.

Analysts will be watching the June 24 earnings call closely for any updates on HBM4 allocation and fiscal 2027 guidance.

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