Micron Technology Shares Fall 4.3% Following Google Algorithm Announcement

Micron Technology shares fell 4.3% to $341.565 on Monday, following Google's announcement of a new memory compression algorithm. The decline marked a reversal after a strong year-to-date performance.

Google's TurboQuant Algorithm Drives Sell-Off

The catalyst for the sell-off was Google's unveiling of its TurboQuant compression algorithm. This new technology reduces memory usage in artificial intelligence models while simultaneously boosting processing speed, prompting investor concerns over future demand for Micron's memory chips. The stock's previous close was $357.07.

The drop occurred during afternoon trading, coinciding with broader profit-taking in the market. Micron had recorded a 48% gain year-to-date prior to Monday's session. The company's planned capital expenditure increase exceeding $25 billion for fiscal year 2026 also contributed to investor apprehension.

Analyst Outlook Amidst AI Demand

Despite the sell-off, analysts maintained a positive outlook for Micron. Deutsche Bank, for example, reiterated a Buy rating on the stock, setting a price target of $550. The bank cited resilient demand for memory chips, driven by the expanding artificial intelligence sector, as a key factor supporting its assessment.