Bridgewater Dramatically Trimmed Its Position in Micron During Q2. What This Means for MU Stock.

Bridgewater Associates, the world's largest hedge fund, significantly reduced its stake in Micron Technology during the second quarter of 2026. According to its latest 13F filing, Bridgewater sold about 1.36 million shares of Micron, retaining only around 110,000 to 117,000 shares. However, this does not necessarily mean Bridgewater is bearish on Micron.

The reduction occurred as Micron shares had already surged by 225% year-to-date, driven by strong demand for high-bandwidth memory and advanced DRAM used in AI applications.

Bridgewater's large sale raises questions about whether it represents routine profit-taking after an exceptional rally or a sign that Micron's stock may be entering a tougher phase of the AI-driven memory cycle. Micron Technology, a $1.14 trillion U.S. semiconductor company, manufactures memory and storage chips for various industries, including data centers, AI systems, smartphones, PCs, vehicles, and industrial equipment.

Its stock has risen 660.2% over the past 52 weeks and 32.8% over the last three months. The company's price-to-earnings ratio of 21.23 is below the sector median of 35.62, while its price-to-sales ratio of 11.72 is significantly higher than the sector median of 3.73.

Micron reported impressive Q3 2026 revenue of $41.46 billion, surpassing expectations by 14.3%, and adjusted earnings per share (EPS) of $25.11, beating the consensus estimate by 27.7%. The company generated $33.68 billion in adjusted operating income, with an operating margin of 81.2%. Bridgewater's Q2 sale appears to be more profit-taking than a warning sign for Micron's fundamentals, as the company continues to benefit from strong AI memory demand, improving pricing, and guidance that exceeds market expectations.