Micron’s stock sinks toward worst monthly drop in 11 years as China fears escalate
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- Micron Technology shares fell 8.9% on Tuesday, extending a steep selloff driven by escalating concerns over China's domestic chip and manufacturing tool supply.
- Micron is down more than 29% so far in July, putting the stock on track for its worst monthly performance since a 32.6% drop in June 2015.
- Sandisk and other U.S. chip stocks are also extending sharp declines on Tuesday as developments in Asia send ripples through the semiconductor sector.
- Analysts note that investor anxiety centers on China's domestic supply of chips and manufacturing tools, fueling a broader rotation away from U.S. semiconductor names.
- The July decline marks a sharp reversal for Micron, which earlier this year rode AI-fueled memory demand to record gains before China fears triggered the steep monthly pullback.
Why it matters: A potential 29%+ monthly wipeout would be Micron's worst single-month performance since June 2015, and the selloff is dragging down Sandisk and other U.S. chip peers — indicating investors are repricing sector-wide China supply-chain risk rather than reacting to any company-specific issue. The speed of the reversal shows how quickly geopolitical supply fears can override even strong AI-driven fundamentals in semiconductor names.
