Why is Micron's stock plummeting despite Trump's praise and massive investment?

▲ Micron (MU) logo / Source: X ©

Despite former U.S. President Donald Trump's full endorsement and the announcement of a massive investment, Micron Technology (MU)'s stock price continues to plummet, drawing market attention to the underlying reasons. Immediately after the news broke that Micron decided to invest $250 million in the so-called Trump Account for the future of American children, President Trump solidified a bullish stance, but the stock market's harsh reaction has been strangely contrary to this.

According to crypto media outlet Finbold on July 2 (local time), President Trump announced via his Truth Social account that Micron, a great American company, has confirmed its decision to invest $250 million in the Trump Account (530A Account) for future children. As part of this investment, Micron has fully introduced employee benefits that match up to $1,000 per child under 18 years of age. In addition, it also launched a community support program to deposit a one-time initial seed money of $250 into Trump Accounts for children in communities where its business sites are located, including Idaho, New York, Virginia, California, Colorado, Minnesota, and Texas.

Regarding this large-scale financial support, Sanjay Mehrotra, Chairman of Micron's Board of Directors and CEO, explained that this investment, made to commemorate the 250th anniversary of the founding of the United States, aims to support the workforce and communities that will shape American semiconductor leadership, while also building a strong foundation for children to seize future opportunities. The Trump Account, into which Micron has injected funds, is a system established under the Working Families Tax Cuts Act enacted in 2025, based on a welfare policy where the government provides $1,000 free of charge to all infants born in the United States between January 1, 2025, and December 31, 2028.

However, despite such full bullish support from President Trump, Micron's stock market performance remains dismal. Over the past five trading days, Micron's stock price has plunged by more than 20%, falling to around $985.50 during trading, experiencing severe downward pressure. As a result, Micron's total corporate value, which was once soaring, has significantly shrunk to approximately $1.2 trillion as of the time of reporting, entering a deep short-term correction phase.

A key factor pulling down Micron's stock price is the rapid cooling of investor sentiment following media reports that CEO Mehrotra recently sold a large portion of his holdings. Although the stock price is accelerating its decline due to the impact of the executive's share sale and recent weeks of value erosion, it is encouraging that Micron's stock price has still surged by more than 690% over the past 12 months, driven by the artificial intelligence (AI) boom. The media reported that Wall Street analysts are still maintaining an optimistic bullish outlook for Micron, citing President Trump's strong backing and robust industry conditions.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*