Micron Slides 5% As Oil Spikes 12%, Analysts Cite Sold-Out 2026 Demand
Micron Technology shares plunged about 5% after oil prices jumped over 12% following a U.S. warning of possible strikes on Iran, dragging Nasdaq chip stocks down. Mizuho and other analysts argue the pullback is overdone as AI-driven memory demand remains robust, with 2026 supply already fully booked.
1. Geopolitical Tensions Trigger Market Selloff
Micron shares fell around 5% after the U.S. signaled potential strikes on Iran, sending Brent crude up roughly 7.6% and WTI up 12.2%. The Nasdaq declined about 2%, with the chip sector leading losses on heightened risk sentiment.
2. Semiconductor Peers Also Decline
Other major chip names slid as well, with Nvidia down about 2%, AMD nearly 3%, Broadcom and Qualcomm each off 2–3%, and ARM and Marvell down roughly 4%.
3. Analysts Push Back on Selloff
Mizuho Securities and others argue the pullback reflects overblown concerns about memory peak demand, pointing to historical trends where efficiency gains spurred greater usage rather than reducing hardware needs.
4. AI Demand and Future Supply Outlook
Efficiency improvements like Google’s TurboQuant raised fears of lower hardware demand, but analysts highlight that AI expansion and sold-out 2026 memory supply position Micron well for ongoing infrastructure buildout.