Micron Technology (MU) shares tumbled 5.30% in pre-market trading on Friday, following a broader selloff in the semiconductor sector. The decline comes as part of a larger trend that saw numerous chip stocks experiencing significant drops on Thursday.

According to market data, semiconductor shares across the board faced heavy selling pressure. Notable declines included SOXL dropping nearly 30%, while other major players such as Marvell, Broadcom, and ARM saw their stocks fall by approximately 10-12%. Even industry giant Nvidia was not spared, with its shares sliding 7.8%.

While semiconductors themselves were exempt from new tariffs, Wolfe Research analyst Chris Caso pointed out a more significant concern. "The much more significant impact is, rather, the tariffs that will be imposed on finished goods containing semiconductors, most of which are exported from countries for which very high reciprocal tariffs will be applied, and there are no feasible alternatives for supply," Caso explained. This suggests that the semiconductor industry could face indirect but substantial challenges due to broader trade tensions and tariff policies affecting their end markets.