Micron Technology Tumbles 5% Pre-Market, Falling Below Key $900 Level

TradingKey - Memory stocks under pressure across the board as Micron plunges nearly 5%, breaking below the $900 level.

On July 28, Eastern Time, Micron Technology ( MU) fell significantly in pre-market trading, dropping 4.74% and losing the key $900 psychological level, with the latest pre-market trading range between $855 and $865. Yesterday, Micron fell over 2%, narrowly avoiding a break below that level.

Micron Technology stock price chart, Source: TradingView

The decline in Micron's stock price is not an isolated case, but rather dragged down by the decline in the broader chip sector. In pre-market trading today, major global memory giants generally slumped, including Western Digital ( WDC ), SanDisk ( SNDK ), Seagate ( STX ), and SK Hynix ( SKHY) which all recorded losses ranging from 4% to 6%, indicating that capital is fleeing the entire memory chip sector.

Currently, the market's scrutiny over the return on investment (ROI) of AI capital expenditures by mega-cap tech giants has intensified, driving profit-taking at high valuations across the semiconductor supply chain. Meanwhile, although demand for High Bandwidth Memory (HBM) remains strong, Micron's major competitors (such as SK Hynix and Samsung) have recently accelerated their capacity expansion in South Korea and the United States. Consequently, the market is beginning to evaluate the turning point for medium-to-long-term DRAM/HBM supply-demand balance and pricing power.

Micron may not only lose its advantage in pricing and supply but is also facing the impact of order reallocation from Apple. To reduce procurement costs and secure the iPhone/Mac supply chain, Apple recently sought waivers from the U.S. government to purchase memory chips from Chinese companies such as ChangXin Memory Technologies (CXMT) and Yangtze Memory Technologies (YMTC) for products destined for non-U.S. markets.

Under the weight of these negative factors, Micron's stock price is likely to continue its downward trend and hit new recent lows. Since late June, the stock's lower highs and lower lows have formed a classic descending channel, sending a strong bearish signal. The $800 level, serving as the midline of this channel, provides some support, but mostly acts as a buffer. The stock is projected to break below this level this week and fall toward $700.

Micron Technology stock price chart, Source: TradingView