NVIDIA, Micron, SMCI Stocks Are Down Monday: What's Going On?

Shares of NVIDIA Corp. NVDA, Super Micro Computer, Inc. SMCI and Micron Technology, Inc. MU shares are trading lower Monday. Here's a look at what's moving the stocks. 

What To Know:

The intense growth of early-2024 in the semiconductor sector has slowed recently amid speculation surrounding a possible AI "bubble" as investors grow impatient for returns on the massive capital expenditures involved with AI-infrastructure build-out.  

Micron’s stock has shed more than $70 billion in market value since June, and Raymond James recently lowered its price target on the stock from $160 to $125. Investors will be watching when the company reports its fourth-quarter financial results after the market close on Sept. 25. 

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The market has also digested a recent short report on SMCI, coupled with the company's delayed 10-K filing, and investors were less-than-impressed with Nvidia's second-quarter results. 

However, Nvidia shares rose last week after CEO Jensen Huang said the company is experiencing "great demand" for its Blackwell chips causing frustration among some of its customers. Huang also addressed concerns related to the rising geopolitical tensions surrounding key Nvidia-supplier, Taiwan Semiconductor Manufacturing Company Ltd. TSM.

In addition to rising tensions between China and Taiwan, chipmakers face increasing restrictions and scrutiny on exports to China and its allies which may be dragging on the sector as well. 

NVDA, SMCI, MU Price Action: According to Benzinga Pro, Nvidia shares are down 2.64% at $116.96, SMCI shares are down 1.17% at $451.81 and Micron shares are down 5.03% at $86.62 at the time of publication Monday.

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