Micron Technology Inc. (NASDAQ:MU) stock fell about 6% in Tuesday’s premarket session as semiconductor stocks came under pressure following a broad tech selloff.

The weakness also followed declines in South Korean memory-chip makers after Samsung Electronics Co., Ltd.’s (OTC:SSNLF) preliminary second-quarter results sparked a “sell-the-news” reaction, even as the company reported a sharp jump in operating profit.

The broader market also weakened, with Nasdaq futures down 0.99% and S&P 500 futures slipping 0.13%.

High-beta semiconductor names often face the strongest selling pressure when market sentiment weakens, particularly after extended rallies.

The stock has posted strong gains over the past year. As a result, traders may be taking profits after its recent run.

Technical Picture Remains Mixed

Despite Tuesday’s decline, Micron continues to trade in a longer-term uptrend.

The stock remains 7.5% above its 50-day simple moving average, 45.7% above its 100-day moving average and 106.7% above its 200-day moving average. However, it is trading 11.1% below its 20-day moving average, suggesting short-term momentum has weakened.

The relative strength index stands at 49.17, indicating neutral momentum. An RSI near 50 generally signals that buyers and sellers remain balanced.

Micron reached a 52-week high in June and has been consolidating since then. The stock still maintains a bullish moving-average structure, with the 20-day average above the 50-day average and the 50-day average above the 200-day average.

The next resistance level sits near $1,089.50. Key support is around $854.50, close to the 50-day moving average, where buyers may step in if selling pressure continues.

Rising Memory Prices Support Long-Term Outlook

Micron’s longer-term investment case also continues to be supported by higher memory prices across the industry.

Counterpoint Research said in its July Memory Price Tracker that DRAM prices are now expected to rise 15% to 20% quarter over quarter in the third quarter, exceeding earlier forecasts due to sustained customer demand and Micron’s strong financial results.

The research firm said the higher memory costs are already moving through the supply chain. It expects Apple Inc. (NASDAQ:AAPL), Amazon.com Inc.’s (NASDAQ:AMZN) Amazon Web Services, gaming console makers and smartphone vendors to pass at least part of those increases on to consumers through higher prices.

Counterpoint also said hyperscale cloud providers continue to prioritize server deployments and data center expansion despite rising costs. Many are purchasing larger volumes of lower-capacity memory modules now and plan to increase memory capacity later, helping sustain demand for DRAM.

The firm added that server memory pricing remains resilient despite recent concerns about slowing demand. At the same time, mobile DRAM prices have nearly doubled from the previous quarter, highlighting persistent tightness in the memory market.

Analyst Outlook

The stock carries a consensus Buy rating with an average analyst price forecast of $1,542.05. Recent analyst actions include:

• Cantor Fitzgerald raised its price forecast to $2,000 on June 29 while maintaining an Overweight rating.
• Cantor Fitzgerald maintained its Overweight rating with a $1,500 price forecast on June 25.
• Barclays raised its Overweight price forecast to $2,000 on June 25.

Benzinga Edge Ratings

Benzinga Edge rates Micron highly for Momentum, Growth and Quality, while assigning a weaker Value score. That combination suggests investors continue to view the company as a long-term growth story, although premium valuations could lead to sharper swings during market pullbacks.

Price Action

MU Stock Price Activity: Micron Technology shares were down 6.03% at $925.37 during premarket trading on Tuesday, according to Benzinga Pro data.

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