Micron Technology shares have fallen 27% since mid-June, a decline driven by broad investor skepticism about artificial intelligence spending rather than problems in the company's own business. The sell-off began after Micron reported fiscal third-quarter sales up 345% to $41.5 billion and earnings per share spiking more than 1,200% to $25.11, yet investors worried that massive tech-company capex will eventually slow. However, Alphabet recently said it would raise AI capex to up to $205 billion this year and that 2027 spending will increase significantly, while Amazon expects around $220 billion in capex this year, up about 66% from 2025 levels. Micron management believes the memory shortage will persist at least through 2027, and the stock now trades at a trailing price-to-earnings ratio of about 19, well below the tech sector average of 35.
