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Micron Technology Inc. (NASDAQ:MU) stock fell more than 6% Thursday as a broader technology selloff weighed on semiconductor stocks and investors shifted toward defensive sectors.
The Nasdaq dropped 2.59%, while the S&P 500 declined 1.29%. The Technology Select Sector SPDR Fund (NYSEARCA:XLK) fell 3.15%, making technology the day's worst-performing sector.
Micron's decline came as investors reduced exposure to technology stocks amid broader market weakness.
Defensive sectors outperformed, with consumer staples gaining 2.54% and utilities rising 1.37%. Meanwhile, the market's advance-decline ratio stood at 1.2, suggesting slightly more stocks advanced than declined.
Micron fell 6.23%, underperforming the technology sector by 3.08 percentage points. The sharper decline suggests the stock faced greater selling pressure than the broader sector.
Technology stocks have lost 6.99% over the past 30 days but remain up 3.80% over 90 days.
Micron also faces labor uncertainty in Taiwan, where a union representing workers at its Taoyuan plant planned a 24-hour strike Thursday over a profit-sharing dispute, according to Reuters.
The planned walkout comes despite Micron reaching an agreement with a separate union at its larger Taichung facility Wednesday.
TrendForce analyst Ellie Wang told Reuters that the strike's impact would depend on which production lines and essential personnel were affected.
She explained that operations could continue if enough workers remained available for maintenance, process monitoring and handling production issues.
Moreover, a one-day strike would likely have limited effects on Micron's supply chain and global memory markets if critical production continued without disruption.
Micron remains in a longer-term uptrend despite its recent decline.
The stock trades 18.4% above its 200-day simple moving average (SMA) of $729.45. However, it has fallen 13.4% below its 20-day SMA of $997.26 and 12.3% below its 50-day SMA of $984.30.
This pattern suggests short-term weakness within a broader upward trend.
Meanwhile, the moving average convergence divergence (MACD) indicator remains below its signal line. Its negative histogram points to weakening bullish momentum.
Traders are watching resistance near $1,012, with the 20-day SMA providing another potential obstacle to a recovery.
On the downside, $804 represents a key support level. A break below that level could signal further weakness, while a recovery above resistance could strengthen the bullish outlook.
The stock trades at a price-to-earnings ratio of 12.3.
Micron maintains a consensus Buy rating, with an average analyst price forecast of $1,622.38.
On Thursday, Rosenblatt maintained its Buy rating and $1,900 price forecast. Needham also reiterated its Buy rating and $1,650 forecast. Rosenblatt previously maintained its Buy rating and $1,900 forecast on Oct. 13.
Micron continues to score highly across several categories in the MarketDash Edge Rankings.
Its growth score stands at 99.63, while momentum and quality score 99.54 and 97.02, respectively.
However, its value score of 51.71 indicates a more neutral valuation profile.
These rankings suggest Micron retains strong growth, momentum and quality characteristics despite its recent stock decline.
Still, the stock's near-term direction could depend on whether it holds support near $804 and whether broader technology stocks stabilize.
Micron shares fell 6.19% to $857.10 Thursday at the time of publication, according to market data.
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