Stock Analysis | Micron Plunges 10%, Earnings Beat Expectations, Stock Price Falls 30% Consecutively, Can AI Memory Chips Still Be Bought?

Micron Technology's stock has declined nearly 30% post-earnings despite robust financial results, signaling market re-evaluation of the AI storage boom's sustainability. While Q2 revenues and Q3 guidance exceeded expectations, increased capital expenditure for 2026 and 2027 suggests future supply growth. Concerns over AI demand elasticity and potential technological shifts reducing memory requirements are driving this recalibration. The market is shifting from "scarcity" to validating demand quality, leading to a valuation re-rating rather than a reversal of industry fundamentals.