TLDR
- Micron stock slipped about 0.3% in premarket trading Wednesday after closing Tuesday at $1,096.16.
- The pullback follows four straight gains and a roughly 14% rise so far in September.
- A potential strike at Micron’s Taoyuan plant in Taiwan is adding a new operational risk.
- Michael Burry has also disclosed larger short positions in Micron and other AI-linked investments, arguing memory valuations have moved too far.
- Micron reports earnings Sept. 30, with tight memory supply and AI-driven demand still supporting the broader outlook.
Micron Technology (MU) stock slipped about 0.3% in Wednesday premarket trading, recently changing hands near $1,093 after closing Tuesday at $1,096.16. The modest decline follows a 5% gain Tuesday and four consecutive winning sessions.
Investors appear to be taking some profits after Micron’s rapid advance ahead of its Sept. 30 earnings report. The stock has gained roughly 14% in September and more than 500% over the past 12 months.
The pullback also comes as several new risks move into focus. These include a potential labor strike in Taiwan, growing competition in memory chips and questions over how much future AI growth is already reflected in Micron’s valuation.
Taiwan Strike Risk Adds Uncertainty
Workers at Micron’s Taoyuan facility are preparing for a possible strike vote after mediation over profit sharing failed to produce an agreement. The union wants a permanent system allocating 15% of operating profit to employee bonuses.
Micron said it remains open to further discussions, while separate talks at its Taichung facility have been described as constructive. No strike has been called and production has not been affected.
The issue matters because Taiwan is Micron’s largest manufacturing hub and an important production center for DRAM and high-bandwidth memory used in AI servers. Any prolonged disruption could worsen an already tight memory supply environment.
Micron has already announced large fiscal 2026 rewards for Taiwan employees, worth between 35 and 68 months of base pay. The unions are still pushing for a longer-term profit-sharing formula rather than one-time compensation.
Valuation Debate Grows Ahead of Earnings
Michael Burry has also increased short exposure to Micron and other AI-related investments. His argument is that memory stocks have become expensive after a sharp rally and could fall hard if the supply cycle eventually reverses.
Competition is also increasing. China’s CXMT recently began mass production of a new DRAM platform, while Samsung and SK Hynix continue investing heavily in advanced memory.
The counterargument is that memory supply remains constrained. Stifel expects DRAM shipment growth of only 15% to 20% in 2027 and believes supply would need to expand much faster to fully meet demand, which could keep prices and margins elevated.
That makes Wednesday’s decline relatively small compared with Micron’s recent rally. The bigger test comes Sept. 30, when investors will focus on revenue growth, HBM demand, margins and whether management still sees tight supply extending into 2027.
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