Shares in Micron (MU) stock continued their March tumble during the month’s final trading day, despite high demand for AI data centers. MU shares fell 10% Monday, continuing a slide that began after the company reported earnings on March 18. On Tuesday, the stock did rebound 4%, but ended the month with an overall 18% slump. Since the March earnings report, Micron is down as much as 30%.
The fear among investors is that more efficient AI will lead to a drop in demand for high-bandwidth memory, a key component in AI data centers that has become increasingly important as AI models have continued to balloon in size. Micron shares are up 270% from one year ago, but most of those gains have retreated in 2026. The stock is only up about 2% year to date after the recent slide.
However, Wall Street firms remain hopeful. Morgan Stanley analyst Joseph Moore said Thursday that despite continued efficiency improvements in AI, “[t]here’s just no indication that demand for memory or storage is going down.” Moore also noted that memory will play a key role in the growth of agentic AI, which can perform tasks either semiautonomously or fully on its own. Such growth will positively affect semiconductor companies like Micron (MU), Nvidia (NVDA), and AMD.
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Furthermore, Micron expects Q3 revenue above analysts’ forecasts. Micron’s plans for heavy capital spending could lead to increased supply, potentially compressing margins and impacting stock performance. However, the semiconductor company doesn’t appear fazed. Despite that, the Street remains mixed. Citi has cut Micron’s price target to $425 from $510, citing concerns over DRAM price declines and potential impacts from Google’s TurboQuant. However, the firm maintained a buy rating.