Micron Technology shares witnessed a massive selloff on November 5, plunging 17.46% to close at $656.39, their lowest level in nearly six months. The stock also touched an intraday low of $650 as investors dumped semiconductor and AI-related stocks amid growing concerns over the outlook for the AI trade. (Sources: TradingKey, Benzinga)
The latest decline has wiped out a significant portion of Micron's recent gains. Shares have fallen more than 30% from their October 28 peak of around $990. Trading volume surged to approximately 75 million shares, more than twice the recent average, highlighting the intensity of the selloff.
Growing concerns over the sustainability of AI infrastructure spending have triggered heavy selling in semiconductor stocks. Investors are increasingly worried that potential restrictions on data centre construction, including power and water constraints and regulatory hurdles, could slow infrastructure expansion and weaken future demand for high-bandwidth memory (HBM), server DRAM and enterprise storage.
Adding to investor concerns, Micron reportedly paused construction of a planned memory chip facility in Taiwan. The development has raised questions about the company's capacity expansion plans and its ability to meet future AI-driven memory demand.
Micron was not alone in facing heavy selling. SanDisk plunged more than 22%, while AMD and Western Digital also lost more than 17%. Seagate declined 16%, while Nvidia fell around 9%. The Philadelphia Semiconductor Index plunged 12%, marking its steepest decline since March 2020.