Why Is Micron Technology Stock Falling Monday?

Micron Technology Inc. (NASDAQ:MU) stock fell more than 5% in Monday’s premarket session as a broader sell-off hit memory, storage and AI-linked stocks.

Nasdaq futures dropped 1.48%, while S&P 500 futures fell 0.60%.

Micron’s decline came alongside weakness across the memory and storage sector. Sandisk Corp. (NASDAQ:SNDK) fell nearly 6%, while Western Digital Corp. (NASDAQ:WDC) and Seagate Technology Holdings PLC (NASDAQ:STX) each dropped more than 4% in Monday’s premarket trading. SK hynix Inc. (NASDAQ:SKHY) fell more than 7%.

The sell-off came as investors reassessed the outlook for AI infrastructure spending. The Financial Times reported that investors are concerned calls to slow AI development could eventually translate into lower infrastructure and capital spending.

Memory and semiconductor stocks were among the hardest hit as traders reconsidered future demand for AI hardware.

Those concerns intensified after Anthropic CEO Dario Amodei called for leading AI companies to work together on managing the technology’s development and safety. OpenAI CEO Sam Altman and SpaceX (NASDAQ:SPCX) CEO Elon Musk supported the effort, according to the report.

Barclays strategist Emmanuel Cau said a greater focus on AI safety could raise questions about the pace of capital spending. Investors are also weighing what slower investment could mean for global growth and corporate earnings.

Technical Analysis

Despite Monday’s decline, Micron remains in a long-term uptrend.

The stock is 48.1% above its 200-day simple moving average of $622.07. It is also 4.1% above its 100-day SMA of $885.09.

However, shorter-term momentum has weakened. Micron is 4.3% below its 20-day SMA of $962.81 and 0.8% below its 50-day SMA of $928.61.

The relative strength index stands at 52.44. That neutral reading suggests neither buyers nor sellers have firm control.

Micron faces resistance near $1,012. On the downside, support sits around $887.50. That level is close to the 100-day SMA and could become important if selling continues.

Micron Earnings In Focus

Micron is scheduled to report earnings Sept. 30.

Wall Street expects earnings of $31.30 per share, compared with $3.03 a year earlier. Revenue is expected to reach $50.78 billion, up from $11.31 billion.

Micron has a consensus Buy rating and an average price forecast of $1,521.74.

Mizuho maintained an Outperform rating on Aug. 25 but lowered its price forecast to $1,300. New Street Research upgraded Micron to Buy on Aug. 14 with a $1,250 price forecast. Citigroup maintained its Buy rating on Aug. 7 while lowering its price forecast to $1,150.

Benzinga Edge Rankings

Micron scores strongly on Benzinga Edge for momentum, quality and growth. Its Momentum score stands at 99.5, while Quality is 96.55 and Growth is 93.72.

However, its Value score is much lower at 25.95. That suggests investors are paying a premium for Micron’s growth and momentum.

Overall, the rankings point to a strong long-term setup. However, Micron could remain sensitive to concerns about AI spending and broader technology-sector weakness.

MU Price Action

MU Stock Price Activity: Micron Technology shares were down 5.31% at $923.44 during premarket trading on Monday, according to Benzinga Pro data.

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