Micron Technology's stock experienced a significant intraday decline of 5.02% on Thursday, contributing to a broader downturn across the semiconductor sector. The memory-chip maker's shares retreated from recent record highs as investors engaged in profit-taking amid growing concerns about the sustainability of the artificial intelligence-driven rally.
The selloff was primarily triggered by disappointing quarterly results and revenue guidance from fellow chipmaker Broadcom. Broadcom's mediocre outlook caused investors to question how fast AI demand will accelerate, leading to a sector-wide reassessment of growth expectations. This sentiment sparked a broad rotation out of semiconductor names that had seen substantial gains in recent months.
Additional pressure on Micron came from analyst concerns that memory-chip prices could be nearing a peak in the current cycle, prompting fears about future growth potential. The stock had also reached extremely overbought technical conditions after a massive rally, with its 14-day RSI recently reaching elevated levels not seen in decades, making it vulnerable to a correction.
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