Micron Technology shares fell 11% despite strong earnings, pulling down AMD and Intel as tech stocks retreated broadly.
The NASDAQ dropped 3% as semiconductor stocks led declines, with Micron Technology (MU) tumbling 11% intraday from $1,211.38 to $1,083.84. The sell-off followed a historic rally, with MU up 716% over the past year and 230% year-to-date, prompting positioning unwinds despite strong fundamentals.
Micron reported a 39.74% EPS beat on $23.86 billion in revenue and guided next quarter to $33.5 billion with 81% gross margins. The stock trades at a forward P/E of 11x, but cyclical concerns triggered profit-taking. AMD fell nearly 5%, while Intel also declined, amplifying the tech sector’s losses.
IBM rose 5% after a JPMorgan upgrade, contrasting with Oracle’s 4% drop following a 21,000-job cut announcement to fund cloud expansion. The NASDAQ-100 proxy QQQ fell 2.57% intraday, reflecting broader weakness in high-multiple tech stocks.