$1,000 to $797! July brings tears to Micron (MU) investors

▲ Micron (MU), Artificial Intelligence (AI), Semiconductors, Bear Market, Short Selling / AI Generated Image ©

A $1,000 investment in Micron Technology (MU) at the beginning of July shrank to approximately $797 in just one month, inflicting painful losses on late-entry investors.

According to crypto news outlet Finbold on August 1 (local time), Micron's stock price fell from $1,032 on July 1 to $823 on July 31. The decline over the month was approximately 20.25%, meaning a $1,000 investment made at the beginning of July recorded a loss of about $203, leaving only $797 by the end of the month.

This correction largely stemmed from profit-taking after the stock surged to an all-time high amidst the artificial intelligence (AI) boom. After Micron announced its Q3 fiscal year 2026 earnings on June 24, its stock price briefly rose to around $1,255, an all-time high, but the burden of the steep rally led to weakness throughout July. Notably, on July 31, the stock plummeted by approximately 6% in a single day.

The earnings themselves were at an all-time high. Q3 revenue increased by 346% year-over-year to $41.46 billion, and adjusted earnings per share exceeded Wall Street's expectations at $25.11. The gross margin also jumped from 37.7% a year ago to approximately 84.6%. Surging demand for high-bandwidth memory (HBM), DRAM, and NAND used in AI infrastructure drove the improvement in profitability.

However, as volatility across tech stocks expanded in July, concerns about future increases in AI investment and heightened market expectations fueled selling pressure. Nevertheless, Micron projected Q4 fiscal year 2026 revenue to be approximately $50 billion, adjusted earnings per share around $31, and gross margin to approach 86%. Its high-bandwidth memory production for 2026 is already sold out, and a portion of its 2027 production capacity has also been allocated to customers.

Micron has also secured 16 strategic customer agreements, backed by approximately $22 billion in customer deposits and over $100 billion in minimum revenue commitments. Despite the recent correction, the stock price has risen by several hundred percent over the past year, and its market capitalization has approached $1 trillion. While investors who purchased in early July incurred losses, Wall Street's positive outlook continues, driven by strong earnings and demand for AI memory.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*