Shares of Micron Technology (MU) climbed sharply Monday as investors returned to the memory sector following a bruising Friday selloff across semiconductor stocks.
The rebound came after Micron shares fell 13.25% on Friday amid a broad retreat in AI-related chip names triggered by profit-taking across the sector.
The Friday decline was partly sparked by Broadcom, which reported solid quarterly results but chose to maintain rather than raise its long-term AI semiconductor revenue forecast, disappointing investors with elevated expectations.
A major positive catalyst emerged over the weekend when Nvidia and SK Hynix announced a multi-year strategic partnership to jointly develop next-generation AI memory products.
The collaboration spans Vera Rubin supercomputers, the Vera CPU, RTX Spark PCs, and Jetson Thor robotics platforms, signaling a deepening commitment to high-bandwidth memory across multiple product lines.
The deal reinforced strong demand for high-bandwidth memory, a critical component in AI infrastructure buildout, and cast a broadly favorable light on memory chipmakers including Micron.
Nvidia CEO Jensen Huang, speaking in South Korea following the chip sector’s sharp pullback, delivered a bullish message for investors, saying the semiconductor supply crunch is likely to persist for years as demand for AI infrastructure continues to outpace supply.
Micron has secured official certification as an HBM4 supplier for Nvidia’s Vera Rubin platform and has its entire HBM production for the remainder of fiscal 2026 already committed under long-term contracts.
The company’s next significant milestone is its scheduled June 24 earnings report, with Wall Street expecting earnings of $19.33 per share, up dramatically from $1.91 in the same period a year earlier.
Analysts are also forecasting revenue of $33.90 billion for the quarter, compared with just $9.30 billion in the prior-year period, reflecting the explosive growth in AI-driven memory demand.
KKM Financial CEO Jeff Kilburg told CNBC on Friday that the sharp decline was “eye-opening,” but urged investors not to flinch given that the broader technology trend remains firmly intact.
Kilburg characterized the recent semiconductor pullback as a buying opportunity rather than a signal that the AI-driven chip rally is approaching its end.
Monday’s recovery in Micron shares suggested that many investors agreed, with confidence in the memory trade clearly reasserting itself heading into a critical earnings stretch for the chip sector.
