Micron Rallies After $100B AI Selloff; Buyers Defend $700 Support
Micron recovered sharply after a steep AI-linked chip selloff that erased nearly $100 billion in market value, with shares bouncing off support near $700. Investors cited strong demand for AI memory products and looming Samsung labor-strike risks as factors driving the sector-wide rebound.
1. Sharp AI Selloff and Recovery
Micron shares plunged after failing to hold above the $800 level earlier in the week, triggering a steep selloff that wiped out almost $100 billion in market capitalization. The dramatic drop reflected investor concern over potential cooling in AI memory demand.
2. Defensive Buying at $700 Support
Buyers stepped in aggressively as shares neared the $700 mark, viewing that level as a strong floor for AI-linked chip stocks. The rapid rebound signaled confidence that long-term demand for high-performance memory remains intact.
3. Samsung Supply Risk
Market participants flagged a possible labor strike at Samsung’s memory plants as a key driver behind renewed buying interest in Micron. Concerns over production disruptions at a top competitor boosted expectations for tighter supply and firmer pricing.
4. Outlook and Upcoming Catalysts
Wall Street analysts maintain a strong buy consensus on Micron, focusing on the company’s next earnings report and AI memory demand updates as critical catalysts. Traders will monitor whether Micron can sustain its support levels amid ongoing sector volatility.