Micron Technology declined 2% on Friday, joining a broader technology selloff as OpenAI is reportedly considering delaying its IPO to next year due to SpaceX's poor performance following its debut and overall volatility in AI-related shares. According to The New York Times, the **OpenAI IPO delay
Micron Technology fell nearly 5% in pre-market trading on June 26, reversing its earlier gains after delivering exceptional fiscal Q3 results. The company had ripped 12.32% intraday to $1,177.73 after posting exceptional results, with fiscal Q3 revenue of $41.46 billion against a $35.25 billion consensus and non-GAAP EPS coming in at $25.11 with a GAAP gross margin at 84.6%. Cloud Memory alone generated $13.77 billion in revenue, with CEO Sanjay Mehrotra calling it "the strategic value of memory in the AI era." The company had guided Q4 to $50 billion in revenue and 86% gross margin, demonstrating the strength of AI infrastructure buildout demand, but the profit-taking reflects broader market sentiment shifts.
The memory chip sector pulled back significantly in pre-market trading, with Micron Technology falling nearly 5%, SanDisk (SNDK) falling over 5%, Western Digital (WDC) and Seagate Technology (STX) falling over 2% as reported by TradingKey. ON Semiconductor (ON) fell over 14% to lead the decline in the chip sector, while Intel (INTC) fell more than 3%, Nvidia (NVDA) fell about 1%, ARM (ARM) fell over 4%, and optical communication concept stocks Lumentum (LITE), Marvell Technology (MRVL), and Coherent (COHR) fell over 3%. The correction follows Micron's earlier surge that had boosted memory chip stocks across the board, but Western Digital, Seagate Technology, and SanDisk all fell over 5% in pre-market trading, indicating widespread profit-taking across the sector.
The sell-off was particularly severe in Asia, with SoftBank Group, which is a key backer of OpenAI, leading losses across the region on Friday, plunging more than 12%. South Korean equities finished sharply lower, with the Kospi declining 5.81% to 8,411.21 and the Kosdaq shedding 4.10% to 851.37, as the broad-based technology selloff swept across the region. Japan's Nikkei 225 fell 4.15%, while the broader Topix lost 1.32%, and Hong Kong's Hang Seng index closed 1.76% lower, while the mainland's CSI 300 lost 3%. European stocks also fell on Friday, as a global sell-off in technology stocks sent major bourses into the red, with the pan-European Stoxx 600 dropping 1%. Chip stocks were weaker after the New York Times report that OpenAI is considering delaying its IPO to next year due to SpaceX's poor performance and overall volatility in AI-related shares.
US index futures fell across the board with Dow futures down 0.10%, Nasdaq 100 futures falling 1.08%, and S&P 500 futures declining 0.44% as reported by TradingKey. The final US Michigan Consumer Sentiment Index for June is set to be released at 10:00 AM ET on June 26, with the previous reading at 44.8 and a market forecast of 50. The Fed's Kashkari will deliver a speech at 11:30 AM, which may offer further clues on the policy path. Grasso argued rate cuts are coming, stating "I think the rate hike story is over. It's done... It's at 1.85% right now, so I think he's going to be smart and create an argument by the end of the summer to be able to cut rates again." Kalshi's January 2027 contracts price a 61% probability of fed funds staying above 3.25%.
