What's Going On With Micron (MU) Stock (CORRECTED)

Editor’s Note: Shares of Micron were down 3.77% at the time of publication

Micron Technology Inc MU shares are trading lower by 3.77% to $115 Thursday morning. Semiconductor stocks are rebounding amid Taiwan Semiconductor Mfg. Co. Ltd. reporting a second-quarter earnings beat. Semiconductor stocks fell Wednesday as reports suggested President Biden might implement additional restrictions on China.

This comes alongside Republican nominee Donald Trump's remarks about the China-Taiwan conflict during a Bloomberg interview. The sector's performance is also impacted by weak guidance from ASML.

TSMC plays a vital role as a foundry for numerous semiconductor companies, including several based in the United States. Although Micron produces many of its own products, it remains susceptible to the broader market trends influenced by TSMC's operations.

Trump's remarks about Taiwan taking "100% of our chip business" underscore the U.S. semiconductor industry's significant dependence on Taiwanese manufacturing. This reliance raises alarms about possible supply chain interruptions, particularly in the context of geopolitical frictions between China and Taiwan.

Concerns about geopolitical risks associated with TSMC can affect other semiconductor companies like Micron. Investors may worry about the supply chain's stability and the possibility of future disruptions.

Read Also: What's Going On With Alibaba And Peer Chinese Stocks On Wednesday?

Should I Sell My MU Stock?

Whether to sell or hold a stock largely depends on an investor's strategy and risk tolerance. Swing traders may sell an outperforming stock to lock in a capital gain, while long-term investors might ride out the turbulence in anticipation of further share price growth.

Similarly, traders willing to minimize losses may sell a stock that falls a certain percentage, while long-term investors may see this as an opportunity to buy more shares at a discounted price.

Investors may also consider market dynamics. The Relative Strength Index can be used to indicate whether a stock is overbought or oversold. Micron Technology stock currently has an RSI of 22.71, indicating oversold conditions.

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MU has a 52-week high of $157.54 and a 52-week low of $61.75.