Micron stock sinks 10%, further cratering in post-earnings sell-off

Shares of Micron Technologies experienced a significant drop of 10% on Monday, marking a continued trend in the company's post-earnings sell-off. After a brief reprieve on Friday, where the stock managed a modest gain, the latest decline has pushed Micron's overall loss to 30% since its impressive earnings report released on March 18. The downturn wasn't isolated to Micron; other technology stocks also faced substantial losses. This comes amid rising oil prices linked to escalating tensions in the Middle East, with the ongoing conflict in Iran entering its fifth week and President Donald Trump making threats against the country's oil infrastructure. Among the tech casualties, cloud service providers CoreWeave and Nebius each dropped approximately 8%. Memory manufacturers SanDisk and Western Digital faced respective declines of 7% and 9%. Despite this tumultuous market reaction, Micron's strong earnings for the second quarter were primarily driven by an overwhelming demand for AI chips. Micron, along with competitors SK Hynix and Samsung, stands as a key supplier of high-performance memory chips necessary for AI applications from companies like Nvidia. This surge in demand has resulted in a notable supply shortage. In a conversation with CNBC's "Squawk on the Street," CEO Sanjay Mehrotra highlighted the issue, revealing that important Micron clients are receiving only "half to two-thirds of their requirements" due to the current supply constraints. While Micron shares have soared by 270% over the past year, a considerable portion of those gains has diminished in 2026. Currently, the stock shows only a slight increase of about 2% year-to-date, reflecting the impact of recent market fluctuations.