Micron shares drop 5.5% as AI spending outlook shifts despite Nvidia CEO's demand forecast

Micron Technology shares fell 5.5% on Thursday as investors reassessed artificial intelligence spending outlooks, despite Nvidia CEO Jensen Huang stating memory demand is unlikely to decline and D.A. Davidson reiterating a bullish stance with a $3,000 price target. The decline reversed a 2% gain from the prior session, with other memory-related stocks also dropping: SK Hynix's US-listed shares fell 6%, while SanDisk and Western Digital lost over 8% and 7%, respectively. D.A. Davidson analyst Gil Luria maintained a Buy rating, citing Micron's leadership in DRAM, NAND, and high-bandwidth memory technologies. Separately, Micron announced a quarterly employee bonus program starting fiscal 2027, calculated using after-tax profit minus projected capital expenditure, with half paid in cash and half in stock vesting after one year. The announcement followed a union agreement in Taichung, Taiwan, while negotiations continue in Taoyuan.