Why Micron Stock Is Sinking Today
Key Points
Chip stocks are getting hit with broad selling action in Tuesday's trading.
Macroeconomic and geopolitical dynamics are factoring into Micron's pullback.
Investors also appear to be nervous about the impact that SpaceX's IPO could have on the stock market.
- 10 stocks we like better than Micron Technology ›
Micron (NASDAQ: MU) stock is getting hit with sell-offs in Tuesday's trading and was down 3.7% as of 1:45 p.m. ET. At the same point in the daily session, the S&P 500 and the Nasdaq Composite were down 0.8% and 1.9%, respectively. Micron stock had been off as much as 10% earlier in trading.
Valuations for artificial intelligence (AI) chip stocks are taking substantial steps back today in a broad risk-off trade, and investor concerns tied to potential volatility stemming from SpaceX's IPO appear to be a significant factor in the dynamic. Concerns about the next round of inflation data are also a catalyst driving the selling action.
Will AI create the world's first trillionaire? Our team just released a report on the one little-known company, called an "Indispensable Monopoly" providing the critical technology Nvidia and Intel both need. Continue »
Image source: Getty Images.
Is the chip trade losing steam?
Chip stocks have been big winners this year, and Micron has been one of the companies leading the charge. The company's share price is still up roughly 219% year to date even after recent sell-offs.
Along with a broad-based surge of bearish trading for AI chip companies and fears that SpaceX's record-setting, $1.77 trillion IPO valuation could create a substantial new source of volatility for the market, Micron's valuation may also be under pressure due to geopolitical news. Bloomberg published a report today stating that Taiwan is moving to introduce much stricter export restrictions on the sale of advanced AI hardware to China.
Tomorrow could be a big day for Micron stock and the market at large
In addition to concerns about the sustainability of bullish momentum for the AI chip trade and potential adverse valuation impacts connected to SpaceX's IPO, investors are also feeling jittery ahead of tomorrow's Consumer-Price-Index (CPI) report. The Bureau of Labor Statistics (BLS) will publish CPI data for May before the market opens tomorrow, and the print could have a huge impact on the broader market. The market could soar if inflation comes in relatively muted, but there's a risk that tech stocks will see big sell-offs if inflation ticks upward.
Should you buy stock in Micron Technology right now?
Before you buy stock in Micron Technology, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Micron Technology wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $445,672!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,280,566!*
Now, it’s worth noting Stock Advisor’s total average return is 948% — a market-crushing outperformance compared to 206% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
See the 10 stocks »
*Stock Advisor returns as of June 9, 2026.
Keith Noonan has positions in Micron Technology. The Motley Fool has positions in and recommends Micron Technology. The Motley Fool has a disclosure policy.
Recommended Articles
