U.S. Stocks Close Lower Amid Tech Selloff
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 4 days ago
0mins
Source: Yahoo Finance
- Tech Selloff: U.S. stock markets closed lower on the first trading day of the new quarter, with the Nasdaq Composite dropping about 173 points, or 0.66%, indicating weakened investor confidence in technology and semiconductor stocks, which may affect future market trends.
- Fed Chair Optimism: Kevin Warsh expressed optimism about artificial intelligence at the ECB Forum in Portugal, stating that AI will create more jobs, despite current inflation levels being 'too high', which could influence future monetary policy decisions.
- Job Growth Data: ADP reported that private sector employers added 98,000 jobs in June, indicating continued growth in the labor market, which is expected to positively impact the upcoming non-farm payroll report.
- Oil Price Retreat: Crude oil prices fell as markets monitored developments between the U.S. and Iran, with Brent crude futures trading around $70.75 per barrel and WTI down approximately 1.33%, reflecting the geopolitical risks affecting market dynamics.
Trade with 70% Backtested Accuracy
Stop guessing "Should I Buy MU?" and start using high-conviction signals backed by rigorous historical data.
Sign up today to access powerful investing tools and make smarter, data-driven decisions.
Analyst Views on MU
Wall Street analysts forecast MU stock price to fall
26 Analyst Rating
24 Buy
2 Hold
0 Sell
Strong Buy
Current: 975.560
Low
235.00
Averages
336.12
High
500.00
Current: 975.560
Low
235.00
Averages
336.12
High
500.00
About MU
Micron Technology, Inc. provides memory and storage solutions. The Company delivers a portfolio of high-performance dynamic random-access memory (DRAM), NAND, and NOR memory and storage products through its Micron and Crucial brands. The Company's products enable advancing in artificial intelligence (AI) and compute-intensive applications. Its segments include Cloud Memory Business Unit (CMBU), Core Data Center Business Unit (CDBU), Mobile and Client Business Unit (MCBU) and Automotive and Embedded Business Unit (AEBU). CMBU is focused on memory solutions for large hyperscale cloud customers, and high bandwidth memory (HBM) for all data center customers. CDBU is focused on memory solutions for mid-tier cloud, enterprise, and OEM data center customers and storage solutions for all data center customers. MCBU is focused on memory and storage solutions for mobile and client segments. AEBU is focused on memory and storage solutions for the automotive, industrial, and consumer segments.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Micron Technologies Signs Strategic Customer Agreements Amid Industry Challenges
- Earnings Surprise: Micron Technologies reported a fivefold year-over-year revenue increase in its latest earnings report, achieving record profitability, which underscores its strong position in the memory chip market despite fierce competition.
- Strategic Customer Agreements: The company signed long-term agreements with 16 customers, covering about 20% of its DRAM and one-third of its NAND volume, ensuring predictable demand and pricing stability over the next three to five years, with a total contract value expected to reach $100 billion.
- Intensifying Industry Competition: SK Hynix and Samsung plan to invest approximately 2,000 trillion won (about $1.3 trillion) in new facilities over the next decade, which could pressure Micron's market share and pricing power, impacting its profitability.
- Cautious Future Outlook: While Micron's management expresses confidence in capital expenditures and R&D investments, the long construction timelines for new facilities suggest that market equilibrium may shift by the end of the decade, posing significant challenges to Micron's earnings cycle.
See More
SK Hynix and Samsung Invest $2 Trillion to Expand Memory Production
- Expansion Investment: SK Hynix and Samsung have pledged over $2 trillion to double memory chip production capacity over the next five years, aiming to address the ongoing shortage and tremendous demand, which could pressure Micron Technology's market share.
- Market Share Comparison: Samsung and SK Hynix control 67% of the global dynamic random-access memory (DRAM) market and 47% of the NAND flash market, while Micron holds only 22% and 13%, making the expansion of these Korean giants a direct threat to Micron.
- Price Pressure Outlook: Analysts are concerned that the new capacity could lead to oversupply, negatively impacting memory prices, especially as Micron relies on high memory prices to drive its earnings growth.
- Long-Term Growth Potential: Despite short-term challenges, the structural growth of the memory market driven by AI, with high-bandwidth memory demand expected to rise at an annual rate of 42%, may provide Micron with sustained growth opportunities, alleviating investor concerns.
See More
Micron and Ford Sign Long-Term Supply Agreement
- Agreement Signing: Micron and Ford have signed a long-term agreement to ensure a reliable supply of memory and storage solutions for Ford's next-generation vehicles, with Ford CEO Jim Farley emphasizing the need for a strong domestic supply chain to build high-volume vehicles in the U.S.
- Production Capacity Commitment: The pact includes Micron's commitment to expand production capacity to support Ford's manufacturing needs over many years, which will help ensure consistent support for Ford as vehicles become more intelligent and data-heavy.
- Positive Market Reaction: Following the announcement of the agreement, shares of Micron (MU) rose approximately 2% while Ford (F) shares increased by 4%, indicating a positive market response and reflecting investor confidence in future supply chain stability.
- Industry Context Analysis: Amid a shortage of memory chips driven by explosive demand from artificial intelligence, this agreement provides greater supply certainty for automakers like Ford and GM, helping them mitigate the impacts of past semiconductor shortages on production.
See More
Sandisk Stock Rises on DRAM Price Forecast
- Stock Surge: Sandisk (SNDK) shares rose 3.8% by 1 p.m. ET on Monday, driven by UBS analyst Nicolas Gaudois's DRAM price forecast, despite Sandisk's focus on NAND production, leading investors to have a positive outlook on Sandisk's performance.
- DRAM Market Outlook: Gaudois predicts a 32% sequential increase in DRAM prices in Q3 2026, nearly double the previous forecast of 17%, which may entice DRAM manufacturers' customers to consider Sandisk's high-bandwidth flash products, thereby boosting its market demand.
- Supply-Demand Imbalance: Gaudois noted that global DRAM supply will remain in deficit until at least Q2 2028, with supply growth at 19.3% and demand at 36.2%, indicating that the market gap will widen, making Sandisk's high-bandwidth flash a potential alternative.
- Industry Sales Growth: Memory demand is expected to drive industry sales to $992 billion this year, nearly doubling to $1.76 trillion by 2027, as volumes and prices rise rapidly, presenting a favorable market outlook for Sandisk, despite its P/E ratio of 60 being three times that of Micron.
See More
Micron Technology's Stock Soars Nearly 8x Amid Strong Demand and Positive Outlook
- Surge in Market Demand: Micron Technology's stock has surged nearly 8x over the past year, driven by a rapid increase in demand for memory chips, which has significantly improved the company's financial performance and is expected to continue fueling future earnings growth.
- Increased Competitive Risks: Samsung and SK Hynix plan to double their memory chip production capacity over the next five years with over $2 trillion in investments, which could narrow the supply-demand gap in the memory industry and threaten Micron's pricing power.
- Structural Market Changes: Despite heightened competition, the ongoing demand for high-bandwidth memory (HBM), projected to grow at an annual rate of 42%, suggests that the memory shortage may persist, particularly in the smartphone and personal computing sectors.
- Attractive Valuation: With a price-to-earnings ratio of 23, Micron is considered a value stock compared to the Nasdaq-100's 35 times earnings, and analysts predict that by 2028, its stock price could reach $4,198, indicating that investors can continue to hold or buy more of this stock.
See More
Wall Street Boosts Micron Stock After Sell-Off
- Micron Stock Recovery: Following last week's sell-off, Wall Street's support has led to a rebound in Micron (NASDAQ: MU) stock, reflecting market confidence in its future performance and potentially attracting more investor interest.
- Sandisk Stock Surge: Sandisk (NASDAQ: SNDK) shares rose 3.8% on Monday, as investors speculate that good news for Micron could also benefit Sandisk, despite Sandisk primarily producing NAND rather than DRAM.
- Optimistic DRAM Market Outlook: UBS analyst Gaudois forecasts a 32% increase in DRAM prices in Q3 2026, nearly doubling the previous 17% estimate, indicating that the DRAM supply shortage will persist until at least Q2 2028, potentially driving Micron customers to seek Sandisk's high-bandwidth flash memory as an alternative.
- Industry Sales Growth: Memory demand is expected to generate $992 billion in industry sales this year, nearly doubling to $1.76 trillion by 2027, showcasing the strong growth potential in the memory market, although Sandisk's P/E ratio of 60x raises questions about its valuation sustainability.
See More
Micron Technologies Signs Strategic Customer Agreements Amid Industry Challenges
- Earnings Surprise: Micron Technologies reported a fivefold year-over-year revenue increase in its latest earnings report, achieving record profitability, which underscores its strong position in the memory chip market despite fierce competition.
- Strategic Customer Agreements: The company signed long-term agreements with 16 customers, covering about 20% of its DRAM and one-third of its NAND volume, ensuring predictable demand and pricing stability over the next three to five years, with a total contract value expected to reach $100 billion.
- Intensifying Industry Competition: SK Hynix and Samsung plan to invest approximately 2,000 trillion won (about $1.3 trillion) in new facilities over the next decade, which could pressure Micron's market share and pricing power, impacting its profitability.
- Cautious Future Outlook: While Micron's management expresses confidence in capital expenditures and R&D investments, the long construction timelines for new facilities suggest that market equilibrium may shift by the end of the decade, posing significant challenges to Micron's earnings cycle.
See More
SK Hynix and Samsung Invest $2 Trillion to Expand Memory Production
- Expansion Investment: SK Hynix and Samsung have pledged over $2 trillion to double memory chip production capacity over the next five years, aiming to address the ongoing shortage and tremendous demand, which could pressure Micron Technology's market share.
- Market Share Comparison: Samsung and SK Hynix control 67% of the global dynamic random-access memory (DRAM) market and 47% of the NAND flash market, while Micron holds only 22% and 13%, making the expansion of these Korean giants a direct threat to Micron.
- Price Pressure Outlook: Analysts are concerned that the new capacity could lead to oversupply, negatively impacting memory prices, especially as Micron relies on high memory prices to drive its earnings growth.
- Long-Term Growth Potential: Despite short-term challenges, the structural growth of the memory market driven by AI, with high-bandwidth memory demand expected to rise at an annual rate of 42%, may provide Micron with sustained growth opportunities, alleviating investor concerns.
See More
Micron and Ford Sign Long-Term Supply Agreement
- Agreement Signing: Micron and Ford have signed a long-term agreement to ensure a reliable supply of memory and storage solutions for Ford's next-generation vehicles, with Ford CEO Jim Farley emphasizing the need for a strong domestic supply chain to build high-volume vehicles in the U.S.
- Production Capacity Commitment: The pact includes Micron's commitment to expand production capacity to support Ford's manufacturing needs over many years, which will help ensure consistent support for Ford as vehicles become more intelligent and data-heavy.
- Positive Market Reaction: Following the announcement of the agreement, shares of Micron (MU) rose approximately 2% while Ford (F) shares increased by 4%, indicating a positive market response and reflecting investor confidence in future supply chain stability.
- Industry Context Analysis: Amid a shortage of memory chips driven by explosive demand from artificial intelligence, this agreement provides greater supply certainty for automakers like Ford and GM, helping them mitigate the impacts of past semiconductor shortages on production.
See More
Sandisk Stock Rises on DRAM Price Forecast
- Stock Surge: Sandisk (SNDK) shares rose 3.8% by 1 p.m. ET on Monday, driven by UBS analyst Nicolas Gaudois's DRAM price forecast, despite Sandisk's focus on NAND production, leading investors to have a positive outlook on Sandisk's performance.
- DRAM Market Outlook: Gaudois predicts a 32% sequential increase in DRAM prices in Q3 2026, nearly double the previous forecast of 17%, which may entice DRAM manufacturers' customers to consider Sandisk's high-bandwidth flash products, thereby boosting its market demand.
- Supply-Demand Imbalance: Gaudois noted that global DRAM supply will remain in deficit until at least Q2 2028, with supply growth at 19.3% and demand at 36.2%, indicating that the market gap will widen, making Sandisk's high-bandwidth flash a potential alternative.
- Industry Sales Growth: Memory demand is expected to drive industry sales to $992 billion this year, nearly doubling to $1.76 trillion by 2027, as volumes and prices rise rapidly, presenting a favorable market outlook for Sandisk, despite its P/E ratio of 60 being three times that of Micron.
See More
Micron Technology's Stock Soars Nearly 8x Amid Strong Demand and Positive Outlook
- Surge in Market Demand: Micron Technology's stock has surged nearly 8x over the past year, driven by a rapid increase in demand for memory chips, which has significantly improved the company's financial performance and is expected to continue fueling future earnings growth.
- Increased Competitive Risks: Samsung and SK Hynix plan to double their memory chip production capacity over the next five years with over $2 trillion in investments, which could narrow the supply-demand gap in the memory industry and threaten Micron's pricing power.
- Structural Market Changes: Despite heightened competition, the ongoing demand for high-bandwidth memory (HBM), projected to grow at an annual rate of 42%, suggests that the memory shortage may persist, particularly in the smartphone and personal computing sectors.
- Attractive Valuation: With a price-to-earnings ratio of 23, Micron is considered a value stock compared to the Nasdaq-100's 35 times earnings, and analysts predict that by 2028, its stock price could reach $4,198, indicating that investors can continue to hold or buy more of this stock.
See More
Wall Street Boosts Micron Stock After Sell-Off
- Micron Stock Recovery: Following last week's sell-off, Wall Street's support has led to a rebound in Micron (NASDAQ: MU) stock, reflecting market confidence in its future performance and potentially attracting more investor interest.
- Sandisk Stock Surge: Sandisk (NASDAQ: SNDK) shares rose 3.8% on Monday, as investors speculate that good news for Micron could also benefit Sandisk, despite Sandisk primarily producing NAND rather than DRAM.
- Optimistic DRAM Market Outlook: UBS analyst Gaudois forecasts a 32% increase in DRAM prices in Q3 2026, nearly doubling the previous 17% estimate, indicating that the DRAM supply shortage will persist until at least Q2 2028, potentially driving Micron customers to seek Sandisk's high-bandwidth flash memory as an alternative.
- Industry Sales Growth: Memory demand is expected to generate $992 billion in industry sales this year, nearly doubling to $1.76 trillion by 2027, showcasing the strong growth potential in the memory market, although Sandisk's P/E ratio of 60x raises questions about its valuation sustainability.
See More
