Why Micron (MU) Stock Is Volatile This Month

Micron Technology Inc MU shares are down slightly Monday and are down roughly 16% in July. Micron’s volatility this month is influenced by President Biden’s potential restrictions on China, Trump’s comments on the China-Taiwan standoff and recent tech earnings reports affecting the semiconductor sector.

The semiconductor industry, including Micron, has benefited from AI and data center investments in 2024. However, a decline in the Invesco QQQ Trust, Series 1 QQQ and key AI hardware stocks like NVIDIA Corp suggests potential reductions in these investments.

A slowdown in AI spending would directly impact Micron’s sales, particularly its high-performance memory products used in AI and data centers. Mixed macroeconomic signals, such as strong services growth but contracting manufacturing activity, add uncertainty to future economic conditions. This is concerning for Micron, as manufacturing contraction could signal a slowdown in the production of goods using their memory products.

The semiconductor industry also often faces inventory and pricing pressures. Given the broader market declines and economic uncertainty, there could be concerns about excess inventory or declining prices for memory products, which would negatively impact Micron's financial performance.

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How To Buy MU Stock

Besides going to a brokerage platform to purchase a share – or fractional share – of stock, you can also gain access to shares either by buying an exchange traded fund (ETF) that holds the stock itself, or by allocating yourself to a strategy in your 401(k) that would seek to acquire shares in a mutual fund or other instrument.

For example, in Micron Technology’s case, it is in the Information Technology sector. An ETF will likely hold shares in many liquid and large companies that help track that sector, allowing an investor to gain exposure to the trends within that segment.

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