Micron Shares Fall After Chip-Sector Selloff Despite New Auto Deals

TSMC’s higher 2026 capital spending is raising concern that rising costs to build AI capacity could squeeze memory prices and margins.

Overview

Micron’s stock dropped about 5.7%, trading near $848.34 after a two-day slide that intensified following the sector move on July 16.
The broader selloff followed TSMC’s increase in 2026 capex guidance to $60–$64 billion, which investors say raises the cost of meeting AI demand and pressures margins across chip suppliers.
Micron announced multi-year, take-or-pay auto supply agreements with firms including Qualcomm, Harman and Hyundai Mobis, but roughly 20% of DRAM volume is covered so most DRAM revenue stays exposed to spot prices.
Reports that Chinese memory maker CXMT is preparing an $8.55 billion IPO and that AI cloud firm CoreWeave has explored hedges have amplified worries about longer-term capacity growth and downward price pressure.
Analysts remain broadly positive with a Strong Buy consensus and an average price target around $1,569, though short-term risks to DRAM pricing and higher industry capex could increase volatility and squeeze Micron’s near-term margins.