Investing.com — stock dropped 6.4% in morning trading today, trading at $1,080.12, as investors rushed to lock in profits at the start of the third quarter following an extraordinary rally that saw shares soar over 240% during Q2 2026 and hit an all-time high of $1,255 just days ago. Memory chip stocks fell in early trading as investors booked profits after last week’s rally and institutional funds rebalanced their portfolios at the start of the year’s second half.
A significant secondary drag on sentiment is a class-action antitrust lawsuit filed on June 25 in California federal court. , , and Micron were named in the suit, which alleges that they illegally coordinated to restrict DRAM supply and inflate prices, which have risen by roughly 700% over four years. For investors, the lawsuit strikes at the industry’s biggest bullish argument — pricing power — since if plaintiffs ultimately prove coordinated supply restrictions violated antitrust law, court-ordered remedies could weaken the supply discipline that supports today’s elevated memory prices. Compounding matters, SK Hynix’s planned ~$29.4 billion listing, expected to begin trading on July 10, is stoking fears of investor rotation: with a dominant position in the high-bandwidth memory market, where it holds around 60% market share, SK Hynix may lure investors away from Micron’s stock, making it suddenly less desirable for growth investors. On a more positive note, Micron and General Motors announced a Strategic Customer Agreement today to secure a long-term, reliable supply of memory and storage platforms for GM’s vehicle production and delivery at scale, though the news was insufficient to offset the broader selling pressure.
The macro backdrop offered little support. Stocks were edging lower after the second quarter ended with major U.S. indexes posting their strongest quarterly performances since 2020. Private sector employment rose by 98,000 jobs in June, below expectations and down from an unrevised 122,000 in May, according to the ADP National Employment Report, adding uncertainty as investors awaited Fed commentary. The Nasdaq slipped 0.4% and the edged 0.1% lower, while the broader semiconductor sector also pulled back after a record-setting Q2. Morgan Stanley’s overweight ratings on Micron and SanDisk frame the selloff as rotation, not a fundamental collapse in the memory super-cycle.
Taken together, today’s decline reflects a classic post-rally consolidation amplified by legal risk and competitive uncertainty, rather than any deterioration in Micron’s underlying business. Micron delivered a solid earnings report last week, easily beating Wall Street expectations, and following the earnings, 23 analysts raised their price targets on the stock. The pullback brings shares well off their record high but still within a historically elevated range, as the market digests what has been one of the most dramatic stock runs in the semiconductor industry’s history.
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