Micron Falls 4% as Kioxia's Cautious Outlook Hits Memory Stocks; Western Digital Drops 5%, SanDisk Slides 3%

Key Points:

• Micron Technology's stock fell 4% to $853.34 following cautious guidance from Kioxia Holdings, Japan’s largest memory chipmaker, contributing to a broader decline in memory stocks after an AI-driven rally.
• Despite a 20% drop in Micron's stock over the past month, the company reported record Q4 FY2026 revenue of $54.23 billion, up 379.3% year-over-year, and forecasted Q1 FY2027 revenue around $61.5 billion.
• Kioxia's December-quarter operating profit forecast of 2 trillion yen was below analyst expectations, attributed mainly to shipment timing issues, though the company expects strong AI data center demand and rapid growth in the March quarter.
• Western Digital and SanDisk also experienced stock declines, with Western Digital down 5% and SanDisk down 3%, reflecting broader concerns in the AI memory market, though SanDisk’s decline is notable despite positive recent earnings.
• Micron's diversified product mix, including DRAM and NAND flash, and long-term customer agreements position it differently from peers focused on NAND; the upcoming earnings report will be critical to assess if AI-related memory pricing momentum can be sustained amid uncertainty about supply-demand balance.