Micron Technology shares slumped 13% in Tuesday’s trading, falling to $1,055, as a broader sell-off in the semiconductor sector intensified.
The sharp decline was driven by growing investor concerns that the rally in chip stocks had advanced too far and too quickly, raising questions about current valuations in the artificial intelligence space.
The selloff extended beyond individual names, with a key index of chip manufacturers dropping 7% in the session.
The pressure on Micron was compounded by reports of slowing production in AI memory chips by key peer SK Hynix.
This development added to the bearish sentiment, suggesting potential headwinds in the supply chain for high-bandwidth memory, a critical component for AI infrastructure.
The selloff extended beyond individual names, with a key index of chip manufacturers dropping 7% in the session.
This represents a sharp reversal for a sector that had more than doubled its value since the lows triggered by geopolitical tensions earlier in the year.