Why Micron Stock Skyrocketed Last Month But Is Plummeting in July

Micron stock surged 18.9% in June following exceptional fiscal Q3 2026 results that beat analyst expectations on revenue ($41.46B vs. $35.84B expected) and earnings ($25.11 EPS vs. $20.78 expected), along with strong forward guidance of $50B in revenue. However, the stock has declined 19.6% from its lifetime high as investors rotate out of AI chip stocks into AI software plays, and Meta's announcement of launching its own AI compute service signals potential excess capacity in the market.