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▲ Micron (MU), stock price decline/AI generated image ©
According to cryptocurrency media Watcher.Guru on July 2 (local time), shares of U.S. memory chip company Micron (Micron) plummeted 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 outlet reported that this decline occurred amid a sharp fall in the Korean stock market and a simultaneous weakening of artificial intelligence (AI) semiconductor stocks.
In the Korean stock market, KOSPI underwent a significant correction, and leading AI semiconductor stocks SK Hynix and Samsung Electronics fell 14.57% and 9.06% respectively, widening their losses. The media outlet explained that the volatility seen in the U.S. semiconductor sector during after-hours trading likely contributed to the weakness in Korean semiconductor stocks.
Profit-taking was 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 the time being.
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. Currently, Wall Street's average target price is $1,564.
The media outlet reported that Micron's recent quarterly earnings recorded revenue and earnings per share (EPS) exceeding 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 expected to remain sold out for several years. Considering these market 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.
*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.*
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