Micron Technology, Inc. (NASDAQ: MU) shares took a hit in the aftermath of Broadcom Inc.'s (NASDAQ: AVGO) second-quarter earnings release. The logic behind the selloff was sloppy at best - and the tape has since punished anyone who sold into it.
Dip buyers who stepped in near $751 are sitting on gains of roughly 43.1%. Micron trades at $1,074.66 as of Monday afternoon, within striking distance of its 52-week high, according to Benzinga Pro.
What Broadcom Actually Said
Broadcom's Q2 transcript makes clear why the Micron selloff was misdirected.
CEO Hock Tan guided Q3 AI semiconductor revenue to approximately $5.1 billion, up 60% year over year. He went further, telling analysts that Broadcom "may actually see an acceleration of XPU demand into the back half of 2026 to meet urgent demand for inference."
He confirmed the 60% AI revenue growth rate seen in fiscal 2025 should "sustain into fiscal 2026."
Broadcom's accelerator story is about custom XPUs and Ethernet networking - not high-bandwidth memory. Broadcom does not compete with Micron for HBM supply.
Tan's commentary on inference acceleration is, if anything, a driver of demand for HBM. More inference deployments mean more GPU clusters. More GPU clusters mean more HBM consumption.
Micron's HBM Story Was Never Broadcom's to Tell
Micron's own fundamental setup had not changed. The company confirmed that its entire 2026 HBM supply - including next-generation HBM4 - is sold out, with pricing and volume agreements already locked.
Negotiations for 2027 deliveries are already underway.
Only Micron, SK Hynix and Samsung Electronics produce HBM at scale, and the mechanical constraints of 12-layer stacks limit how fast supply can ramp. Goldman Sachs has projected HBM TAM growth from $35 billion today to over $100 billion by 2028.
Selling Micron because Broadcom's gross margins guided slightly lower on XPU mix, ignored the distinction between memory suppliers and accelerator designers entirely.
The Broader Read
The early June selloff reflected a reflex, not analysis. Broadcom's gross margin guide came down roughly 130 basis points sequentially due to a higher XPU mix - a detail that has nothing to do with DRAM pricing, HBM supply contracts or Micron's ability to sell every stack it manufactures.
Broadcom shares are trading at $392.58, still well below their 52-week high, while Micron has essentially recovered.
MU Stock Price Activity: Micron stock was up 9.03% at $1070.29 at the time of publication on Monday, according to Benzinga Pro.
Over the past month, MU has gained about 42.6% versus a 2.2% rise in the S&P 500 and is up roughly 263% year-to-date compared to the index's 10.3% gain. The stock is trading just below its 52-week high of $1089.29.