Memory Stocks Tumble as Micron Slumps Over 4%, Losing $800 Mark Again

TradingKey - Micron leads decline in memory stocks, likely to remain under downward pressure.

On August 3, Eastern Time, memory stocks fell collectively in pre-market trading. Among them, Micron Technology ( MU) fell the most, dropping 4.2% to temporarily trade at $788.48; while SanDisk ( SNDK) fell 4.16%, Seagate Technology ( STX) fell 3.79%, SK Hynix ( SKHY) fell 3.74%, Western Digital ( WDC) fell 3.15%.

The collective plunge in U.S. memory stocks is not an operational issue of a single company, but a chain reaction triggered by a combination of multiple factors, including changes in customer market strategies, the transmission of intraday crashes from Asian peers, and the implementation of geopolitical policies. Last week, Apple intended to break the pricing power barrier of the DRAM oligopoly, and Japan introduced semiconductor export control policies. During today's Asian trading session, both SK Hynix's underlying shares and Samsung Electronics' stock price plummeted by over 7%, directly transmitting liquidity selling pressure across markets.

As the leader in the memory industry, Micron, after experiencing high-level volatility, faced more significant pre-market selling pressure than its peers due to a combination of factors, including Apple expressing dissatisfaction with soaring costs and seeking diverse supply sources, short sellers increasing their positions, and the liquidation of highly leveraged funds.

Over the past month, Micron has continued to fall to new lows, and its rebound highs have steadily shifted downward, indicating that the decline has not yet halted. It is expected to find temporary support around $650, but a stronger support level is near $500, which is an important psychological barrier and close to the support level converted from last year's February-April resistance level.

Micron Technology stock price chart, Source: TradingView