Micron Technology (MU) is an American global corporation that produces several forms of semiconductor devices. It was one of the S&P 500’s top losers on November 29. Following a four-week gaining streak, Micron Technology started this week on a weaker note and fell to three-week low price levels.
Why it pulled back
Despite the strong sentiment, Micron Technology pulled back on Wednesday. The selling pressure in Micron Technology increased on Wednesday amid the sell-off in semiconductor chip makers and IT stocks. The downgrade of Micron Technology’s peer Western Digital (WDC) by Morgan Stanley along with profit-booking at elevated levels made Micron Technology fall more. The reports released on the pricing of dynamic random-access memory (DRAM) and NAND memory chips along with neutral to negative dynamics in the near term triggered the sell-off in semiconductor chip makers. The near-term outlook for DRAM chips is better compared to the outlook for NAND chips.
Progress in the healthcare industry’s technology transformation with the help of artificial intelligence is expected to improve the demand for digital capacity and drive Micron Technology’s sales. Considering its strength as a flash memory supplier, Micron Technology is expected to dominate the market amid positive trends in technology transformation across industries.
On November 29, Micron Technology fell 8.7% and closed the day at $43.74—the lowest daily close since November 9. Micron Technology is part of S&P 500 Information Technology sector, which fell 2.6% on November 29.