TLDR
- Micron stock fell 5.3% Monday during a broad tech selloff over AI slowdown fears, then rose 1.1% in premarket Tuesday.
- Micron’s Taiwanese union is threatening a strike, pushing for a 15% operating profit-sharing bonus system.
- Micron already announced pay deals worth 35 to 68 months of base salary for fiscal 2026, including a one million New Taiwan dollar bonus.
- Pella Funds CIO Jordan Cvetanovski told CNBC memory stocks could have a “very good time” for the next one to two years.
- Wall Street expects Micron to report earnings of $31.30 per share on revenue of $50.78 billion on September 30.
Micron Technology (MU) stock was trading at $923.11 in premarket Tuesday, down 0.10%, after falling 5.25% the previous session. The Monday drop came as a broad tech selloff hit the sector on fears around AI spending slowdowns.
By Tuesday premarket, MU had bounced 1.1% as investor nerves around AI settled. But a new issue moved to the front burner: a threatened strike from Micron’s Taiwanese workforce.
Micron’s Taiwanese union is pushing for the company to replace its current incentive scheme with a profit-sharing plan that would allocate 15% of operating profit to employee bonuses, according to Reuters.
The demand comes even after Micron announced pay deals for Taiwanese production workers worth 35 to 68 months of base salary for fiscal 2026. That package included a one million New Taiwan dollar bonus, roughly $31,377, for each employee who joined before August 29, 2025.
The union does not appear satisfied with that offer and is still threatening industrial action. Under Taiwanese law, a strike must be preceded by mediation before any work stoppage can take place.
Labor Pressure Across the Memory Sector
Micron is not the only memory chipmaker dealing with worker demands. Samsung averted a strike in South Korea in May by promising a bonus pool equivalent to 10.5% of its semiconductor division’s operating profit, paid in stock. SK Hynix is also in active negotiations with its unions, having previously pledged 10% of annual operating profit to employee bonuses.
The pattern across all three companies points to a sector where workers are pushing back and wanting a share of the recent profit surge in memory chips.
Pella Funds CIO Jordan Cvetanovski told CNBC Tuesday that despite recent pressure, memory stocks could continue to perform well over the next one to two years, citing high margins and strong industry returns as key supports. He did warn that strong profitability could eventually draw in more production capacity, which could pressure prices.
Earnings and Analyst Outlook
Micron is due to report earnings on September 30. Wall Street expects $31.30 per share on revenue of $50.78 billion, compared to $3.03 per share and $11.31 billion in revenue a year earlier.
The stock carries a Buy consensus rating with an average price target of $1,521.74. Mizuho maintained Outperform in August with a $1,300 target. New Street Research upgraded to Buy with a $1,250 target. Citigroup held its Buy rating with a $1,150 target.
Technically, MU is trading 3.8% below its 20-day moving average and just below its 50-day SMA. Key support sits near $887.50, while resistance is around $1,012.
Micron had not responded to a request for comment as of early Tuesday.
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