Memory chip giant Micron Technology (MU) has recently experienced a significant shock on Wall Street. The company's stock price tumbled by 22 percent from its all-time high of USD 1,255, wiping out all the gains achieved following its late-June quarterly earnings report. Currently, Micron's stock sits at USD 984.75.
The stock drop is ironic considering Micron's operational performance actually exceeded market expectations, driven by high demand for chips needed for artificial intelligence (AI). However, analysts assess that the market reacted to momentum saturation. 22V Research strategist Jeff Jacobson warned that when a stock with positive sentiment fails to continue its rally, investors need to be wary of a potential trend reversal due to an overly crowded trade.
Selling pressure on Micron was triggered by external concerns in the tech sector. Meta Platforms signaled that its data center expansion would remain within projected corridors, raising doubts about the sustainability of capital expenditure surges by hyperscaler companies. On the other hand, speculation arose that Apple is considering using chips from Chinese manufacturers to cut costs—a move that threatens the pricing dominance of US domestic suppliers.
Despite the correction, Micron's historical track record remains impressive, with growth of around 250 percent throughout 2026 and surging nearly 700 percent over the past twelve months. However, this volatility is predicted to spill over into domestic capital markets.
Market participants on the Indonesia Stock Exchange (IDX) are advised to monitor the psychological impact of this US tech giant's correction. Given the high correlation between the global tech sector and sentiment in the local stock market, tech and digital sector stocks in the country have the potential to face selling pressure in response to uncertainty on Wall Street.
