Why Micron (MU) Stock Is Falling

Micron Technology Inc MU shares are trading lower by roughly 1% to $109.18 since Monday’s open amid overall market weakness.

Shares of Micron have seen increased volatility recently in July, driven by reports that President Joe Biden is considering further restrictions on China and Donald Trump's comments on the China-Taiwan standoff during a Bloomberg interview. Additionally, recent tech earnings updates have impacted the semiconductor sector.

Why This Matters

The semiconductor industry, including Micron, has been buoyed by investments in AI and data centers in 2024. The decline in the Invesco QQQ Trust, Series 1 QQQ and the specific drops in stocks like NVIDIA Corp (a key player in AI hardware) this week signal possible reductions in these investments.

Any slowdown in AI-related spending directly affects Micron's sales, particularly its high-performance memory products used in AI and data center applications.

Recent, mixed macroeconomic signals, such as the strong services growth but contracting manufacturing activity, create uncertainty about future economic conditions. Manufacturing contraction is particularly concerning for Micron, as it can indicate a slowdown in the production of goods that use their memory products.

Read Also: U.S. Economy Expands 2.8% In Q2, Tops Estimates; Weekly Jobless Claim Fall

How To Buy MU Stock

By now you're likely curious about how to participate in the market for Micron Technology – be it to purchase shares, or even attempt to bet against the company.

Buying shares is typically done through a brokerage account. You can find a list of possible trading platforms here. Many will allow you to buy ‘fractional shares,' which allows you to own portions of stock without buying an entire share. For example, some stock, like Berkshire Hathaway, or Amazon.com, can cost thousands of dollars to own just one share. However, if you only want to invest a fraction of that, brokerages will allow you to do so.

In the the case of Micron Technology, which is trading at $108.08 as of publishing time, $100 would buy you 0.93 shares of stock.

If you're looking to bet against a company, the process is more complex. You'll need access to an options trading platform, or a broker who will allow you to ‘go short' a share of stock by lending you the shares to sell. The process of shorting a stock can be found at this resource. Otherwise, if your broker allows you to trade options, you can either buy a put option, or sell a call option at a strike price above where shares are currently trading – either way it allows you to profit off of the share price decline.

According to data from Benzinga Pro, MU has a 52-week high of $157.54 and a 52-week low of $61.75.

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