Micron Shares Plunge About 9% as Semiconductor ETFs Drop Over 20%
MU•Micron shares plunged around 9% Tuesday after a broader semiconductor selloff drove the Direxion 3X Semiconductor ETF down over 20% and the iShares Semiconductor ETF about 7%, dragging the Nasdaq Composite down more than 2%. Analysts Dan Ives and Morgan Stanley’s Andrew Slimmon called the pullback healthy profit-taking, reaffirming bullish AI outlooks.
1. Sharp Selloff in Micron and Semiconductor ETFs
Micron shares fell near 9% as the broader chip sector tumbled, with the Direxion Daily Semiconductor Bull 3X ETF plunging over 20% and the iShares Semiconductor ETF down about 7%, while the Nasdaq Composite dropped more than 2%.
2. Analyst Dan Ives Reaffirms AI Bull Case
Analyst Dan Ives noted that short-term volatility driven by a selloff in South Korean tech stocks does not alter his long-term bullish view on leading AI playmakers, attributing weakness to profit-taking rather than fundamental shifts.
3. Morgan Stanley Labels Pullback Healthy
Andrew Slimmon of Morgan Stanley said the memory and semiconductor selloff reflects crowded momentum trades and healthy market rebalancing, arguing current valuations remain reasonable and the correction supports sustainable growth in the AI infrastructure boom.
