Micron Technology shares have corrected roughly 30% from their all-time high, prompting debate over whether the pullback is a buying opportunity or a warning sign. The decline comes even as the long-term demand story for AI memory remains largely intact, with Amazon hiking its 2026 capital spending target to $220 billion and Alphabet planning $200 billion. Investors have grown more cautious about how long Micron's exceptionally strong profits can last, with some concerned that memory manufacturers may eventually oversupply the market or that the AI infrastructure boom will mature. The stock had surged more than 700% over the prior 12 months as Micron outperformed robust estimates, and some early investors are now cashing out. Analysts suggest watching whether AI memory demand stays strong, profits keep growing, and margins hold up as competitors expand production.
