Micron Technology shares slide as semiconductor sector retreats

Semiconductor sector selloff follows midterm elections

Investors are withdrawing from semiconductor and memory stocks following the United States midterm elections held on November 3, 2026.

The iShares Semiconductor ETF dropped nearly 3% in premarket trading on Thursday after a 3% loss on Wednesday.

This follows a 7% drop in the PHLX Semiconductor Sector index on October 30, 2026, following guidance from Intel.

Investors also fear rising memory prices are impacting the hardware market, including potential data centre moratoriums in Texas.

Competitive pressure from China's CXMT

Investors are concerned about advances by Chinese competitor ChangXin Memory Technologies in advanced DRAM designs.

The market share for China’s ChangXin Memory Technologies declined from 10% to 9%.

Micron's financial valuation and market position

In fiscal 2023, Micron experienced a 49% decline in sales and a loss of $5.83 billion.

During the first half of 2026, Micron Technology shares increased by 304%, representing the second-largest gain among S&P 500 stocks.

The company trades at 12 times earnings. Its forward price-to-earnings ratio is 8.1, the lowest multiple among the 20 largest S&P 500 gainers. The information technology sector trades at 22.8 times expected earnings, a figure approximately 2.8 times higher than Micron’s forward price-to-earnings ratio.

In 2026, Micron's forward multiple increased slightly, with earnings estimates trailing its share price gains.

Writers Philip van Doorn and Britney Nguyen attribute the discount on Micron's stock valuation to investor concerns regarding the cyclical nature of the company's business.

Micron CEO Sanjay Mehrotra said new customer agreements were expected to "significantly enhance the durability and predictability" of the company's financial performance. The company aims to use steadier financial results to reduce the "boom-and-bust" fears that have kept its valuation lower than other top-performing stocks.

Micron management stated on 30 September 2026 that more than 75% of the company's shipments for the year were already committed.

Global memory market performance trends

SK Hynix recorded a sequential revenue increase of more than 40%, while Micron's growth remained slower than these two rivals.

Demand for agentic AI drove DDR revenue up about 500% and LPDDR revenue up nearly 400% year over year. Counterpoint Research expects server demand to drive DRAM prices higher in 2027, though rising costs might pressure consumer devices.

Memory and storage rivals SK hynix, Western Digital, and Seagate Technology faced selling pressure after falling between 5% and 8% on Wednesday, November 4. Western Digital shares traded at $337.21 on 5 November, down 3% on the day and 19% over the preceding month. Seagate Technology traded at $578.80, a 5% decline. Western Digital chief financial officer Kris Sennesael said on 22 October that the company uses "some DRAM and some NAND inside our hard disk drives".

Micron strategic investments and corporate updates

Micron Technology is headquartered in Boise, Idaho, and was founded in 1978. The company announced on 27 October an investment of more than $67 million in Idaho for transport, housing, and children.

DRAM process, with High-NA EUV lithography expected in later generations.

SanDisk and industry peers report mixed results

SanDisk shares traded at $1,075.20 on 5 November, reflecting a 5% decline. The company reported Q1 fiscal 2027 revenue of $11.03 billion on 29 October, a 377.9% increase year over year. SanDisk stock has gained 353% year to date as of 5 November. Consumer revenue at SanDisk fell 29% sequentially to $397 million.

Management stated that its long-term New Business Model pipeline "exceeds our supply throughout the end of the decade". The company projects Q2 fiscal 2027 revenue between $12.2 billion and $12.6 billion.

Kioxia, a joint venture partner of SanDisk, issued a conservative forecast for the December quarter on 2 November, citing the timing of shipments. The chief financial officer of Kioxia said that AI data center demand remains robust and the company's planned output for next year is sold out. Meanwhile, the Invesco QQQ Trust, which tracks the NASDAQ 100, rose 2% on 5 November.