Micron Stock Falls 20% in a Month as ASML Technology Advances Concern Investors on July 16

MU-5.93%
ASML-1.05%
SK Hynix-11.52%
SKHY-9.83%
SKHYV-0.98%
Micron Technology (MU-US) stock declined 4.12% intraday to $867.01 per share on July 16, extending a 20% loss over the past month as investors grew concerned about potential oversupply in the memory chip sector. The selloff was driven by three factors: ASML's new extreme ultraviolet (EUV) lithography equipment enabling more efficient memory production, with competitors SK Hynix and Samsung planning adoption; reports of cloud computing providers hedging against potential memory price declines; and leveraged exchange-traded funds amplifying daily volatility through derivative instruments. JPMorgan analysts noted memory sector leveraged ETFs saw asset declines of 34% since June, significantly above the broader 13% decline in equity leveraged ETFs.
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