Micron Technology's stock plummeted 5.01% in the pre-market trading session on Monday, as the broader chip sector faced selling pressure due to a combination of analyst downgrades and rising bond yields.
The semiconductor industry was rattled after HSBC analyst Frank Lee lowered the price target for Nvidia shares, citing expectations of a slower ramp-up of the company's AI server business in the first half of fiscal 2026. Despite maintaining a "Buy" rating, Lee's move sparked concerns about potential challenges facing the chip industry in the near term.
Adding to the downward pressure, robust payroll numbers released last week fueled bets that the Federal Reserve will maintain a hawkish stance for most of 2025, leading to a surge in bond yields. This broader market sell-off spilled over into the technology sector, with chip stocks like Micron, Nvidia, AMD, and Qualcomm all declining in pre-market trading.
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