Shares of Micron Technology and SanDisk came under heavy selling pressure on Friday as a broad retreat in semiconductor stocks gathered pace.
Investors reassessed the outlook for artificial intelligence-related names following Broadcom’s latest earnings report and a stronger-than-expected US jobs report.
The weakness extended a sharp sector-wide pullback that began after Broadcom issued fiscal third-quarter AI revenue guidance that failed to meet elevated market expectations.
At the same time, fresh labor market data fueled concerns that the Federal Reserve could raise interest rates later this year, adding further pressure to high-valuation technology stocks.
MU and SNDK shares both fell around 12% in the session. Micron shares had reached a record high earlier in the week.
Strong jobs report weighs on AI-linked stocks
Investor sentiment shifted after the US Bureau of Labor Statistics reported that nonfarm payrolls increased by 172,000 in May, well above forecasts that had called for roughly 80,000 additional jobs.
The stronger-than-expected employment data raised concerns that the Federal Reserve may place greater emphasis on controlling inflation, potentially through additional interest rate increases.
Higher interest rates typically weigh more heavily on growth-oriented sectors, including technology and semiconductor companies that have benefited from investor enthusiasm surrounding artificial intelligence.
SanDisk, which has delivered strong financial results in recent quarters, appeared particularly vulnerable to the shift in market sentiment because of its elevated valuation following a significant rally.
Despite recently surpassing third-quarter fiscal 2026 revenue and earnings expectations and issuing strong fourth-quarter guidance, investors appeared focused on broader macroeconomic risks rather than company-specific fundamentals.
Recent insider selling also contributed to cautious sentiment, with Alper Ilkbahar, Sandisk’s executive vice president and chief technology officer, sold 2,000 shares of the company on June 1 in transactions valued at approximately $3.51 million, according to a regulatory filing.
Broadcom outlook triggers wider semiconductor retreat
The broader semiconductor sector also remained under pressure following Broadcom’s latest earnings release.
Although Broadcom reported solid quarterly results, its AI revenue outlook disappointed investors, sparking a selloff across chipmakers that have led the market’s advance this year.
The weakness spread beyond Broadcom to companies tied to AI infrastructure and advanced memory products.
Highflying memory-chip stocks Micron and SanDisk both retreated after reaching record highs earlier in the week, reflecting investor concerns that the rapid gains across the semiconductor sector may be vulnerable to a broader correction.
Micron’s AI position remains intact
The latest market decline came despite positive developments for Micron’s long-term business outlook.
The company recently secured certification as a supplier of HBM4 memory products for Nvidia’s next-generation Vera Rubin AI platform, joining Samsung Electronics and SK Hynix as approved vendors.
The certification strengthens Micron’s position in the rapidly expanding AI memory market and reinforces its role within Nvidia’s advanced hardware ecosystem.
Micron has also continued to expand its portfolio of AI-focused products, including HBM solutions, DDR5 memory, low-power DRAM, and enterprise storage offerings designed for data centers and artificial intelligence workloads.
Even so, investors largely overlooked those developments as broader concerns surrounding interest rates and semiconductor valuations dominated trading.
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