Micron Technology shares plunged 7.2% to $908.73 on July 13, wiping its market cap to $1.03 trillion as a sector-wide semiconductor rout accelerated. The selloff followed Samsung Electronics' preliminary earnings that, despite showing a 129% revenue surge, disappointed investors expecting even stronger AI-driven growth.
Micron Technology shares slid 7.2% to $908.73, slashing its market value to $1.03 trillion, as a deepening semiconductor rout erased more than $200 billion in sector market cap on July 13.
"The market is pricing in peak cycle fears — investors see Samsung's blowout quarter as the high-water mark rather than proof of sustained AI demand," a semiconductor analyst at a major investment bank said, asking not to be named because they are not authorized to speak publicly.
The selloff swept across the chip industry. Intel fell 10.6%, Lam Research dropped 7.7%, and the VanEck Semiconductor ETF (SMH) — which holds Micron as its third-largest position at 9.39% of assets — declined 7% over the trailing week. Samsung Electronics, whose preliminary results showed revenue surging approximately 129% year-over-year and operating profits climbing 19-fold, saw its own stock tumble 10% in Seoul trading as investors judged the results already priced in.
The selloff threatens to unwind a 64% year-to-date gain in SMH, a fund that concentrates more than 60% of its assets in just seven chip names including Micron, Nvidia, and Broadcom. Micron, which trades as a bellwether for memory-chip demand, now faces questions about whether DRAM and NAND pricing can hold as hyperscaler capital spending — the primary driver of AI chip demand — shows signs of peaking after three years of expansion. The Nasdaq Composite fell 1.3% on the same session, with semiconductor names accounting for the bulk of the decline.
This article is for informational purposes only and does not constitute investment advice.
