Micron Shares Plunge Over 10% As Memory ETF Drops 11.8% After AI Profit Tax Proposal
Memory stocks plunged after a South Korean official proposed redistributing AI infrastructure profits to citizens, sending the Roundhill Memory ETF down 11.8% and causing Micron shares to fall over 10%. Broad semiconductor selloff deepened as higher inflation and rate concerns weighed on major tech names.
1. South Korean Profit Redistribution Proposal
A top South Korean official suggested that excess AI infrastructure profits should be redistributed to citizens rather than retained by companies and shareholders. The proposal sparked investor concern over potential tax changes or mandated payouts that could reduce corporate margins in the booming memory market.
2. Micron and Sector Performance
Following the announcement, the Roundhill Memory ETF collapsed 11.8%, while Micron shares dropped over 10%, underperforming peers like SanDisk. The broad selloff reflected heightened sensitivity in memory stocks to policy risks and profit-sharing debates.
3. Macro Headwinds Heighten Pressure
The selloff occurred alongside broader tech weakness driven by stronger-than-expected inflation readings and shifting rate-cut expectations. Rising core services inflation and a 1.9% Nasdaq-100 decline amplified downside for high-beta semiconductor names, including Micron.