Micron Stock's Bearish Spiral Deepens With Tariff Surcharge On Top Of 22% Plunge

Micron Technology Inc. MU is having a brutal April – and not just on the charts. The chipmaker's stock has tanked over 22% in the past five trading days.

As investors hoped for a reprieve, Reuters dropped a fresh blow: Micron is slapping a tariff-related surcharge on some of its products, effective April 9.

Tariffs Trigger Trouble

Micron, which manufactures much of its portfolio in Asia – including China, Taiwan, Malaysia, Japan and Singapore – has informed U.S. customers that it will pass on costs from the latest round of tariffs announced by President Donald Trump. While semiconductors were excluded, the tariffs apply to memory modules and solid-state drives, critical components for laptops, data centers and other tech infrastructure.

Reuters reports that Micron communicated the decision via a letter, explaining that customers will now face a surcharge. This follows similar messaging from its March 21 earnings call, where executives said they intended to pass on tariff-related costs. It also comes on the heels of a separate price increase due to "un-forecasted demand."

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Micron Stock’s Bearish Breakdown

Chart created using Benzinga Pro

The news couldn't have come at a worse time for Micron's technical setup. Micron stock, at $71.25 is underwater relative to every major moving average. It's well below its eight, 20, 50, and 200-day simple moving averages (SMAs), all of which flag a bearish outlook. The eight-day SMA is at $78.92, the 50-day sits at $92.40, and the 200-day is up to $101.24.

Meanwhile, the Moving Average Convergence Divergence indicator is flashing red at a negative 6.29, and the Relative Strength Index has sunk to 33.35, pushing Micron closer to oversold territory.

Micron Stock Investors On Edge

With a falling knife for a chart and macroeconomic clouds gathering, investors are left in wait-and-watch mode. Micron's no-nonsense approach – telling customers to absorb the cost or go without – may protect margins in the short run, but it adds another layer of uncertainty for a stock already in a technical tailspin.

If there's a recovery coming, it's not on the radar just yet.

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