Micron Technology shares MU rose on Monday as semiconductor stocks rebounded from a broad selloff driven by concerns over the sustainability of artificial intelligence spending and the valuations of companies linked to the AI boom.
Micron shares gained 2.85% during the session, recovering some of the losses from the previous week, when the memory-chip maker’s stock fell 11%.
Other semiconductor stocks also advanced as investors reassessed the outlook for AI-related demand.
The Nasdaq Composite rose 1.17%, while Nvidia, Advanced Micro Devices, Intel and SanDisk also moved higher.
Micron received additional attention after China’s ChangXin Memory Technologies (CXMT) forecast a sharp increase in revenue for the first nine months of 2026, highlighting the strength of demand in the memory-chip market while renewing questions about competition.
Semiconductor stocks recover as AI concerns ease
The rebound followed an eight-session decline across the semiconductor sector as investors questioned whether spending on AI infrastructure could continue growing at its recent pace.
Concerns surrounding the financial progress of privately held AI companies OpenAI and Anthropic contributed to the selloff.
Rising inflation also raised concerns that the Federal Reserve could need to increase interest rates more aggressively, potentially increasing financing costs for companies borrowing to build data centres.
However, the recovery on Monday suggested that investors were becoming more willing to buy semiconductor stocks after their recent declines.
Brian Mulberry, chief market strategist at Zacks Investment Management, said in a MarketWatch report that the sector’s rebound reflected confidence in AI spending and companies’ ability to monetise their AI offerings.
As third-quarter earnings season begins, Mulberry said investors would look for evidence across other industries that demand remained strong and adoption of AI technology was continuing.
Luke Rahbari, chief executive of Equity Armor Investments, said in the MarketWatch report that the selloff showed that the initial enthusiasm surrounding AI stocks might be fading as investors scrutinise valuations more closely.
He said investors were increasingly focusing on companies with stronger market positions and technological innovation.
CXMT revenue forecast highlights memory-chip demand
China’s CXMT expects revenue of between 265 billion yuan and 270 billion yuan ($39.6 billion to $40.4 billion) for the first nine months of 2026, according to a filing. That compares with 32 billion yuan a year earlier.
Despite the revenue forecast, CXMT shares fell 7.77% on Monday as concerns over AI-related valuations also affected Chinese technology stocks.
The development presents competing implications for Micron.
Strong revenue growth at CXMT could indicate that demand for memory chips remains robust as AI infrastructure expands.
However, CXMT’s progress also raises concerns about competition and the possibility that the Chinese manufacturer could take market share from established suppliers such as Micron.
Investors have recently focused on CXMT’s advances in developing memory chips capable of storing more data, adding to pressure on Micron shares.
For now, the broader recovery in semiconductor stocks has helped investors look beyond those competitive concerns, although the longer-term implications remain uncertain.
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