Institutional investors are engaging in "strategic trimming" of Micron Technology ($MU) shares, citing concerns over the stock's high valuation and a massive $20 billion capital expenditure budget announced for fiscal 2026, which revives historical fears of oversupply.
- Bearish analysts suggest the fair value may be closer to $163, implying significant downside if the AI boom softens.
- Firms like Sumitomo Mitsui Trust Group reduced their positions by 13.4% amid the institutional anxiety.
- This trimming occurs despite the company's high-bandwidth memory (HBM) production being reportedly sold out through 2026.