Micron Technology's stock dropped sharply, declining 5.7% following Taiwan Semiconductor Manufacturing Company’s announcement to increase its capital expenditure guidance to $60 to $64 billion from the previous $56 billion ceiling. This adjustment unsettled investors in the semiconductor sector, contributing to pressure across related stocks including Micron.
The previous day, Micron suffered an 8.2% decline triggered by reports of Chinese competitor ChangXin Memory Technologies planning an $8.55 billion initial public offering, a move signaling intensified competition in the memory chip market. also CoreWeave, a significant cloud services provider, was reported to explore financial mechanisms for hedging against potential falls in memory chip prices, raising concerns about short-term pricing dynamics.
Further added to the selling pressure was the poor stock performance of SK Hynix which plunged over 15% on its Nasdaq debut on July 10. This contributed to a broader negative sentiment toward memory-related stocks. Geopolitical tensions near the Strait of Hormuz also increased risk aversion within the market, with semiconductor shares among the hardest hit.
Technical Indicators and Market Sentiment
Daily charts portray a bearish trend for Micron with indicators such as RSI at 41, Stochastic RSI at zero indicating deep oversold conditions, and MACD reflecting negative momentum at -15.3. Short-term technical signals classify the stock as a Strong Sell. However, on a weekly and monthly scale, technical trends are more positive with an RSI of 59 and MACD showing positive momentum at +177.6. Over the past year, Micron has gained 631%, and analysts consider the recent decline a correction within a broader upward trajectory.
The critical support zone lies between $813 and $825, where the weekly uptrend aligns with recent daily lows. Falling below $786 would mark a more significant breakdown.
Analyst Ratings and Forecasts
Major financial institutions maintain confidence in Micron despite recent setbacks. Citi holds a Buy rating with a $1,400 price target and has added the stock to its 90-Day Upside Catalyst Watch List. TD Cowen projects a target of $1,600, citing anticipated supply tightness beyond 2027 and a more than 15% increase in DDR average selling prices in the third quarter. UBS expects continued DRAM undersupply through at least the second quarter of 2028, alongside a 36.2% year-over-year demand increase.
At present, Micron shares trade at $848.34, down 26.5% from their 52-week high of $1,154 reached in June 2026.
Material is for informational purposes only and does not constitute financial advice.
