For weeks, the AI memory trade has been the most crowded ride on Wall Street. Micron Technology Inc. (NASDAQ:MU) rode it from $300 in late March to an all-time high of $818.67 on May 11, a 100% gain in six weeks that left the stock 170% above its 200-day moving average.
That ride hit a wall.
After Friday’s 6.6% drop, Micron fell another 6% Monday, extending its 2-day decline to near 13%.
That is the worst 2-day stretch since the Liberation Day shock in April 2025.
What Sparked The Micron Slide
Friday’s leg lower was tied to a broader semiconductor pullback after reports emerged that no AI chip deals got closed during the Trump-Xi summit in Beijing, with Alibaba Group Holding Ltd. (NYSE:BABA) and ByteDance reportedly unable to secure Chinese government authorization to complete H200 purchases from Nvidia Corp. (NASDAQ:NVDA)
Monday brought few new developments, while overheated technical indicators continued to fuel selling pressure.
What The Technicals Say Now
The 2-day drop is the deepest reading since April 2025, but Micron still trades 118% above its 200-day moving average.
That gap has compressed from 170% just a week ago, but it leaves Micron stretched well beyond historical norms even after the pullback.
The 14-day RSI has cooled to 57 from a reading above 85 a week ago, meaning Micron is no longer overbought.
The MACD remains firmly in positive territory at 81.30, above its signal line at 75.27 — the longer-term trend signal has not flipped.
The real tell sits in the candle itself. Jordi Visser, head of AI Macro Nexus Research at 22V Research, said the wicks carry the message.
“When you have big wicks and candlesticks, that is the exact definition of buyers and sellers fighting each other at that point,” Visser said.
Monday’s session opened at $750, printed a low of $663 and a close at $681 — a 12.4% intraday range on elevated volume.
That is not a one-way liquidation.
Two of the Street’s Biggest Micron Bulls Just Got Bigger
Citi raised its price target to $840 from $425 and kept a Buy rating, citing a view that Micron is raising DRAM prices and that the DRAM upturn will run through calendar 2027.
The firm also expects HBM pricing to push higher in 2027, given tight HBM capacity and an expectation that memory makers stay disciplined on supply.
Melius Research analyst Ben Reitzes lifted his target to $1,100 from $700 — the new Street high — while maintaining Buy. Reitzes said his team feels “incrementally good” about memory and AI semiconductor companies despite no major encouraging signal from President Donald Trump‘s trip to China last week.
He argued that as AI-driven demand keeps creating supply bottlenecks, chipmakers including Micron, SanDisk Corp. (NASDAQ:SNDK), Advanced Micro Devices Inc. (NASDAQ:AMD), Intel Corp. (NASDAQ:INTC), Marvell Technology Inc. (NASDAQ:MRVL), and Qualcomm Inc. (NASDAQ:QCOM) will capture more market value than traditional software companies or non-chip Magnificent Seven names.
Bottom line, the chart says Micron’s stock momentum is cracking. The analysts pricing the cycle say it hasn’t.
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