Micron Technology (NASDAQ:MU) saw its stock price plummet 8.48% in pre-market trading on Monday, as the semiconductor industry faced a barrage of negative factors. The sharp decline comes amid a broader market selloff, with Nasdaq futures falling 4% and the tech-heavy index entering bear market territory.

The plunge in Micron's stock can be attributed to several interconnected factors. Firstly, escalating trade tensions between the United States and China have put significant pressure on the semiconductor sector. China's retaliatory tariffs have raised concerns about potential supply chain disruptions and increased costs for chipmakers like Micron. This geopolitical uncertainty has led to a sector-wide selloff, with the SOXL semiconductor index tumbling 15%.

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 already fallen by 27% over the past week, potentially triggering large shareholders to reduce their exposure. Despite these short-term challenges, some analysts maintain a positive long-term outlook for Micron, citing its recent AI memory solutions announcement as a potential catalyst for future growth. However, the current market sentiment and macroeconomic headwinds continue to weigh heavily on the stock, contributing to its substantial pre-market plunge.