Micron shares dropped over 13% as investors brace for a potential 17% post-earnings swing amid broader semiconductor sector declines.
Chip stocks faced heavy selling pressure, led by Micron (MU), which fell more than 13% ahead of its fiscal Q3 earnings report on Wednesday. The decline followed a 9.9% drop in South Korea’s market, raising concerns about valuations in memory and semiconductor stocks. Options markets are pricing in a 17% move for Micron post-earnings, prompting aggressive de-risking by investors.
The selloff extended to broader chip stocks, with the SOXX semiconductor index down 7.9%. Despite a recent multi-year AI supply deal with Anthropic, Micron’s pre-earnings volatility overshadowed the positive news. Meanwhile, broader markets showed mixed performance, with the S&P 500 down 1.4% and the Nasdaq Composite falling 2.2%, while the Dow Jones Industrial Average remained flat.
Tech giants Microsoft and Amazon rose 2% and 1%, respectively, offsetting losses in other sectors. The S&P 100 saw more advancers than decliners, though the overall tone remained cautious ahead of Micron’s results.