Micron Shaken by Plunge in Korean AI Stocks…Drops 10% in a Day, Even $1,000 Mark Collapses

▲ Micron (MU), Stock Price Decline/AI Generated Image ©

According to cryptocurrency media Watcher.Guru on July 2 (local time), shares of U.S. memory semiconductor company Micron (Micron) plunged by 10.57% ($122.01) on July 1, followed by an additional 3.22% ($33.21) drop in after-hours trading, falling below the $1,000 mark. The media reported that this decline occurred amid a sharp drop in the South Korean stock market and a concurrent weakness in artificial intelligence (AI) semiconductor stocks.

In the South Korean stock market, the KOSPI underwent a significant correction, and leading AI semiconductor stocks, SK Hynix and Samsung Electronics, widened their losses, falling by 14.57% and 9.06% respectively. The media explained that the volatility observed in the U.S. semiconductor sector during after-hours trading likely contributed to the weakness in South Korean semiconductor stocks.

Profit-taking sell-offs were cited as the reason behind Micron's sharp decline. Fabien Yip, a market analyst at IG Markets, analyzed, "Profit-taking appears to be the main cause," and predicted that market volatility could further increase for a while.

However, Wall Street's long-term outlook remains positive. DBS raised Micron's target price from the previous $1,200 to $1,400, while Cantor Fitzgerald and Barclays set target prices of $2,000 each. The current average target price on Wall Street is $1,564.

The media reported that Micron's recent quarterly earnings recorded revenue and earnings per share (EPS) that exceeded market expectations, and a memory supply shortage is expected to continue for several years. Furthermore, with sustained demand for AI memory semiconductors, the supply of related products is anticipated to remain sold out for several years. Considering these industry conditions, Micron's stock price has the potential to rebound in the short term, but additional price volatility could occur if the U.S. Federal Reserve (Fed) raises interest rates, it added.

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