Should You Buy the Dip on Micron?

By Catie Hogan – Mar 26, 2026 at 4:07PM ESTKey PointsMicron's latest earnings exceeded expectations with revenue reaching nearly $24 billion.Micron now expects capital expenditures of at least $25 billion.Increased competition, heavy spending, and Google's TurboQuant all negatively impacted Micron's stock price recently.Micron Technology (MU 6.93%) hit an all-time high of $471 on March 18. Since then, the stock has been in a free-fall, trading $90 lower just a week later. The 20% drop from the peak presents an interesting question for investors. Should you buy the dip or accept that demand for memory might actually have a ceiling? ExpandNASDAQ: MUMicron TechnologyToday's Change(-6.93%) $-26.47Current Price$355.62Key Data PointsMarket Cap$431BDay's Range$351.93 - $374.1652wk Range$61.54 - $471.34Volume2MAvg Vol37MGross Margin58.54%Dividend Yield0.12% Micron's latest quarterly earnings were extraordinary to say the least. For the second quarter of fiscal 2026, Micron reported revenue of $23.9 billion. This figure represents a 75% increase quarter over quarter and a 196% increase year over year. So why are investors selling? There are three reasons investors are questioning Micron's long-term prospects. First, there's increased competition in the high-bandwidth memory (HBM) market. Image source: Getty Images. Next, Micron increased its capital expenditures to exceed $25 billion. This budget is about $5 billion higher than its previous guidance. Heavy spending is likely good for the long term, but will negatively impact short-term cash flow. Lastly, Alphabet's (GOOGL 3.45%) (GOOG 3.02%) Google released the TurboQuant AI model compression model, which claims to reduce memory requirements significantly. This news from Google is rattling memory stocks across the industry. Even with these headwinds, Micron is still a compelling stock. The company has completely sold out of memory through 2026. Micron is still expecting substantial increases in revenue and gross margins in the coming quarters, and it just signed its first five-year strategic customer agreement (SCA). This dip from the all-time high looks more like an opportunity than a red flag at this point. Micron has massive demand and market share that'll be difficult to beat in the next few years. The sell-off is overblown.Read NextMar 26, 2026 •By Chris NeigerHere's Why Micron Stock Fell 12% This WeekMar 26, 2026 •By Rich SmithWhy Micron Stock Keeps Going DownMar 26, 2026 •By Adam SpataccoWill Micron Technology Stock Split in 2026?Mar 26, 2026 •By Parkev Tatevosian, CFAThe Secret Reason Why Micron Stock is Dropping After the Spectacular Investor UpdateMar 26, 2026 •By Geoffrey SeilerGot $2,000? 2 Semiconductor Stocks to Buy Before the Memory Supercycle Peaks.Mar 25, 2026 •By David Jagielski, CPAMicron Technology's Earnings Skyrocketed 771% Last Quarter. This Is a Key Reason Why Its Growth Was So IncredibleAbout the AuthorCatie is a contributing Motley Fool stock market analyst covering technology, consumer goods, transportation, industrials, materials, and energy. She's the founder of the family finances newsletter, Cents of Humor. Catie was formerly the Head of Advice & Coaching at Parthean and an advisor at Element Financial Group. She's the writer and a producer of the hit off-Broadway show, Vape!

The Grease Parody. Catie has a degree in journalism from Emerson College.TMFCatieHoganStocks MentionedMicron TechnologyNASDAQ: MU$355.62(-6.93%)-$26.47AlphabetNASDAQ: GOOGL$280.90(-3.45%)-$10.03AlphabetNASDAQ: GOOG$280.83(-3.02%)-$8.76*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.