Shares in memory chip company Micron fell nearly 10% on Monday, continuing its post-earnings slide as it struggles to fill orders.
Micron shares have shed 30% since releasing earnings on 18 March. While the company reported record revenue last quarter, CEO Sanjay Mehrotra said its key customers would not receive their full orders due to the memory chip shortage.
“Micron set new records across revenue, gross margin, EPS, and free cash flow in fiscal Q2, driven by a strong demand environment, tight industry supply, and our strong execution, and we expect significant records again in fiscal Q3,” Mehrotra said in the earnings release.
However, memory chip prices have soared amid a shortage in recent months. “We are only able to supply, for our key customers in the midterm, about 50% to two-thirds of their requirements,” Mehrotra told CNBC.
Memory prices have skyrocketed in 2026 as companies including Micron, Samsung, and SK Hynix redirect production towards high bandwidth memory chips for artificial intelligence data centres.
Micron’s revenue per bit from DRAM memory components will rise 54% across 2026 amid high demand and a continuing shortage, Visible Alpha has projected. Micron’s share price has also surged by 270% across the past 12 months.
However, memory prices have begun to fall in recent days as OpenAI pares back its data centre spending, The Telegraph reported.
The decline in Micron stock also comes as oil prices remain high. Brent crude was trading at $113.90 per barrel as of 12:50 pm AEDT.
Micron (NASDAQ: MU) shares closed 9.9% lower at US$321.80, and dropped a further 2.4% after-hours. Its market capitalisation is $362.90 billion.
