SpaceX IPO Sparks Warning: Is Micron (MU) Headed for a 10% Correction?

Wall Street is on edge as Elon Musk’s SpaceX moves closer to its highly anticipated IPO, triggering new volatility in Micron (MU) stock. After surging to an all-time high of $1,089.29 on June 3, 2026, fueled by explosive demand for its High Bandwidth Memory (HBM) in AI infrastructure, analysts now warn that the SpaceX listing could siphon capital from the semiconductor sector. With MU’s recent gains making it a prime profit-taking target, traders fear a potential 10% correction as institutional investors rebalance portfolios ahead of the SpaceX debut. Despite Micron’s critical role in AI storage, the IPO’s gravitational pull on market liquidity poses a near-term threat to its blistering rally.

Will SpaceX IPO Challenge Micron’s (MU) Momentum?

SpaceX may be a primarily a space venturing company. However, the firm acquired Musk’s xAI company earlier this year. The acquisition makes SpaceX indirectly part of the AI sector, if not directly. SpaceX’s highly anticipated IPO is expected to be among the biggest in US history and is sure to stir the market. SpaceX going public could also have an impact on Micron (MU).

Micron (MU) is expected to continue its upswing in the coming months. However, the company could face supply issues due to the US-Iran conflict. Investors may take the opportunity to divest from MU and move their funds to SpaceX instead. Such a liquidity drain could negatively impact Micron’s price. The SpaceX IPO could soak up substantial market capital which could challenge MU’s momentum. The IPO has significant hype and investors are eagerly waiting to participate.

Despite the possibility of a liquidity drain, SpaceX and Micron are not competitors. SpaceX may offer AI services, it is not in the hardware business. Micron, on the other hand, caters to the hardware needs of the AI industry. Hence, even if there is some liquidity drainage, things may balance out eventually.