Micron Technology (NASDAQ:MU) saw its stock plummet by 5.44% in Sunday's trading session, as the semiconductor giant grappled with broader market turmoil and escalating global trade tensions. The sharp decline comes as the tech-heavy Nasdaq index entered bear market territory, with chipmakers particularly affected by China's retaliatory tariffs.

The sell-off in Micron's shares appears to be driven by multiple factors. Firstly, the semiconductor sector as a whole has been under pressure due to the ongoing trade disputes between the US and China. The implementation of new tariffs by China has raised concerns about potential supply chain disruptions and increased costs for chipmakers. Additionally, Micron's recent underperformance compared to both the US Semiconductor industry and the broader US market over the past year has likely contributed to investor unease.

Adding to the downward pressure, institutional investors, who hold a significant 80% stake in Micron, may be reconsidering their positions. The company's share price has fallen by 27% over the past week, potentially triggering some large shareholders to reduce their exposure. This institutional selling could be exacerbating the stock's decline. Despite these short-term challenges, some analysts maintain a positive long-term outlook for Micron, citing its recent AI memory solutions announcement and credit restructuring as potential catalysts for future growth. However, the current market sentiment and macroeconomic headwinds continue to weigh heavily on the stock.