Micron Technology stock pulls back amid broader AI chip decline

Micron Technology joined a broad semiconductor retreat on July 28, 2026, with shares dropping more than 8% in a single session. The selloff swept across the chip sector, pulling down SK Hynix, Sandisk, Nvidia, AMD, and TSMC in what amounted to one of the more jarring single-day corrections the AI trade has seen after a historically strong run. The PHLX Semiconductor Index, which tracks the sector’s major players, fell more than 3% on the same day. When you add up the damage across the biggest names, the July correction wiped out more than $1 trillion in combined market capitalization. What triggered the selloff The proximate cause was profit-taking. Micron’s own shares had gained more than 200% year-to-date heading into the pullback, trading near the $950 to $1,000 range as of mid-August 2026. Beyond profit-taking, the market was quietly asking a harder question: how long can the AI capital expenditure cycle actually sustain this pace? Major tech companies have been pouring money into data center buildouts, and the July correction reflected a moment of collective recalibration, with investors reassessing whether the pace of AI infrastructure investment could hold up under broader e...