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May 18, 2026 4:50 PM

Micron Stock's Worst 2-Day Drop In A Year: Is The Chip Bubble Bursting?

For weeks, the AI memory trade has been the most crowded ride on Wall Street. Micron Technology Inc. (NASDAQ:MU) rode it from $300 in late March to an all-time high of $818.67 on May 11, a 100% gain in six weeks that left the stock 170% above its 200-day moving average.

That ride hit a wall.

After Friday’s 6.6% drop, Micron fell another 6% Monday, extending its 2-day decline to near 13%.

That is the worst 2-day stretch since the Liberation Day shock in April 2025.

What Sparked The Micron Slide

Friday’s leg lower was tied to a broader semiconductor pullback after reports emerged that no AI chip deals got closed during the Trump-Xi summit in Beijing, with Alibaba Group Holding Ltd. (NYSE:BABA) and ByteDance reportedly unable to secure Chinese government authorization to complete H200 purchases from Nvidia Corp. (NASDAQ:NVDA)

Monday brought few new developments, while overheated technical indicators continued to fuel selling pressure.

Read Also:

Micron, AMD, Intel Stocks Could Face An Abrupt Reversal, Top AI Expert Warns

What The Technicals Say Now

The 2-day ...

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