Micron Technology Inc. (NASDAQ:MU) stock is falling on Thursday, primarily due to widespread profit-taking and a “sell the news” reaction following Nvidia Corp.’s (NASDAQ:NVDA) earnings report. The Nasdaq is up 1.26% while the S&P 500 has gained 0.79%.
Despite Nvidia delivering massive revenue figures on Wednesday, investors used the event to lock in gains following a 189.28% year-to-date run in Micron stock.
Nvidia Highlights Memory Supply Constraints
Nvidia highlighted that extreme memory constraints will continue to drive up prices. Colette Kress, chief financial officer of Nvidia, stated on Wednesday that the company is facing “extreme pricing conditions in memory.” She added, “The magnitude of the price increase has exceeded our prior expectations and is headed even higher into next year.” Nvidia buys high-bandwidth memory from suppliers, mainly Micron, SK Hynix Inc. (NASDAQ:SKHY) and Samsung Electronics.
Additionally, the Trump administration is reportedly considering new semiconductor tariffs, raising concerns among tech companies about the potential impact on U.S. leadership in AI.
Margin Pressures Across The AI Supply Chain
Nvidia reported $96 billion in second-quarter revenue, more than double the year-earlier figure. However, soaring memory costs will push Nvidia’s gross margins from 75% in the second quarter to 71%–72% in the fourth quarter. CEO Jensen Huang noted that demand is growing about 100% next year, but supply limits revenue growth to roughly 70%, stating, “The unconstrained would be a lot higher.”
Technical Analysis
MU is in a strong longer-term uptrend, up 674.24% over the past 12 months and still trading 55.7% above its 200-day SMA ($584.91). The near-term picture is choppier, with the stock 4.8% below its 50-day SMA ($956.74) and the 20-day SMA sitting below it, a bearish short-term crossover that can keep rallies capped.
Momentum is best read through RSI, which is neutral at 48.29.
Key turning points help frame the current setup: the stock logged a swing high and a 52-week high in June, then printed a swing low in July, and it also broke below support in August—consistent with a cooling phase after a big run.
- Key Resistance: $1012
- Key Support: $891.50
MU Stock Price Activity: Micron Technology shares were down 2.50% at $914.92 at the time of publication on Thursday, according to Benzinga Pro data.
Photo: Below the Sky / Shutterstock
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