Micron Tumbles 13% as Analyst Warns Memory Chip Prices Could Peak by Mid-2026

Micron Technology (MU) shares plunged 13.25% on June 5, 2026, deepening a two-day sell-off, after a Raymond James analyst warned that DRAM and NAND average selling prices may peak by mid-2026 and could decline sequentially as early as early 2027. The stock closed at $864.01, reflecting growing investor unease over the memory chip cycle. Analyst Kal Ackerman flagged supply-and-demand risks: Chinese manufacturers CXMT and YMTC are ramping up production, while AI server demand has crowded out purchases from other end markets. Counterpoint Research projects global smartphone shipments will fall about 14% this year. In response, nine U.S. trade associations sent a letter on June 4 to Treasury Secretary Scott Bessent and Commerce Secretary Howard Lutnick, urging action to prevent AI-driven chip hoarding from harming broader industries. Despite the price-peak call, Ackerman kept an Outperform rating, citing long-term pricing agreements that could soften the downturn. Micron’s forward P/E has climbed from 4.4 in April to 11.7, suggesting markets have already priced in slowing contract-price growth and margin compression.