Micron Technology's stock experienced a 5.04% plunge in night session trading, marking a significant downturn for the memory-chip maker.
The selloff was primarily triggered by disappointing quarterly results and revenue guidance from fellow chipmaker Broadcom, which caused investors to question the pace of AI demand growth and sparked a broad rotation out of semiconductor stocks. Additional pressure came from analyst warnings that memory-chip prices could be nearing a peak in the current cycle, with concerns that DRAM and NAND average selling prices may top out sooner than previously expected.
The decline also reflected profit-taking activity after Micron's substantial rally in recent months, with the stock having reached extremely overbought technical conditions prior to the correction.
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