Micron Has Entered Into Its Own Bear Market: Is a Stock Split Off the Table for 2026?

As of the morning of July 21, Micron Technology (NASDAQ: MU) is still stuck in its own bear market; its stock is trading more than 20% below its all-time high of $1,255. At one point in recent days, the stock was off by just over 30%.

Before shares dipped below $1,000 this month, some investors were wondering if a stock split might be on the table for 2026. Fast-forward to today, and there's reason to think such an event might be off the table for the foreseeable future.

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Avoiding mixing more volatility into investing

Aside from a desire to avoid the fees associated with a stock split, Micron management may want to skip one so as not to create additional volatility. One Bank of America study working with four decades of data found that, on average, in the 12 months following a company's announcement of a stock split, that stock rises by 25.4% -- more than twice the average annual return of the S&P 500 (SNPINDEX: ^GSPC) during the time periods studied.

Given that scenario, there may be traders who plan to buy stocks following split announcements with the intention of holding them only temporarily. When such traders sell later to book their short-term profits, that can weigh on a stock's price. And since Micron's management team is supposed to look out for long-term shareholders, it may want to delay a stock split as long as possible.

With the price down so sharply from its peak, a split announcement would likely just create more volatility. Also, the stock's retreat back below $1,000 eases some of the worry that retail investors may have been priced out of owning shares.

Ultimately, though, what's more important for investors to focus on is a company's long-term growth prospects.

What's next for Micron?

Watching the price of a stock you own fall by nearly 30% is jarring, especially for an investor who may have bought in near the peak. The good news is that Micron's outlook for the next few years still looks bright, and this period could prove to be just a short-term panic during which the stock is oversold.

The demand for memory and storage solutions created by the build-out of artificial intelligence (AI) data centers is expected to exceed supply for some time, but even when production capacity does eventually catch up, Micron has been planning ahead for that day.

In its fiscal 2026 third-quarter report, Micron announced that it had signed 16 strategic customer agreements (SCAs) that could "fundamentally transform" its business model. Of those 16 SCAs, 14 have a minimum cumulative revenue of around $100 billion.

Bank of America is an advertising partner of Motley Fool Money. Jack Delaney has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Micron Technology. The Motley Fool has a disclosure policy.