Micron Tumbles 13% on AI Forecast Cut and $50B SpaceX Selloff
MU•Micron shares plunged 13% on Friday in their largest single-day drop since April 2025 after Broadcom withheld an increase to its full-year AI semiconductor revenue forecast. BNP Paribas strategist Greg Boutle warns investors may sell over $50 billion of equities to fund the SpaceX IPO, potentially triggering rebalancing flows.
1. Friday’s 13% Drop
Micron shares fell 13% on Friday, marking their largest single-day decline since April 2025 and erasing a portion of the stock’s parabolic year-to-date gains. The drop made Micron the worst performer in the S&P 500 and heightened volatility in the memory chip sector.
2. AI Revenue Forecast Withheld
Broadcom’s decision not to raise its full-year AI semiconductor revenue target prompted investors to reassess whether AI infrastructure spending is plateauing. That shift in expectations struck at the core of Micron’s premium valuation as a leading memory supplier for AI workloads.
3. SpaceX IPO Selling Pressure
BNP Paribas strategist Greg Boutle estimates retail and passive investors could sell over $50 billion of equities to free up cash for the upcoming SpaceX IPO. He warns that these outflows, potential leveraged ETF adjustments and mechanical rebalancing flows could exacerbate downward pressure on Micron shares.
