Micron shares drop 5.5% as AI spending doubts outweigh bullish analyst target

Micron Technology shares fell 5.5% on Thursday as investors reassessed AI spending outlooks, despite Nvidia CEO Jensen Huang's assertion that memory demand will not ease and D.A. Davidson reaffirming a bullish stance with a $3,000 price target. The selloff also hit other memory-related stocks, with SK Hynix's US-listed shares dropping 6%, SanDisk falling over 8%, and Western Digital declining more than 7%. D.A. Davidson maintained its Buy rating, citing Micron's leadership in DRAM, NAND, and high-bandwidth memory, while Huang told CNBC a memory surplus is unlikely before 2029. Micron announced a new quarterly employee bonus program tied to performance starting fiscal 2027, calculated as after-tax profit minus capital expenditures. The company also increased benefits for Taiwan workers following union pressure, including higher pension contributions and shift allowances, though talks with a Taoyuan union remain ongoing.