Micron Slides 29.8% in Nine Sessions as $650 Support Faces Its Test

Micron Technology (MU) closed at $690.00 on November 6, up 5.12% — but still roughly 29.8% below its October 28 close of $983.23. The rebound came after a brutal session on November 5, when the stock fell 17.46% to $656.39 on roughly 77.9 million shares, nearly 2.9 times its 30-session average volume.

The selloff wasn't isolated. The Philadelphia Semiconductor Index dropped more than 12% that day, while the Nasdaq Composite fell 5.52% and entered correction territory, as investors reassessed expectations for AI infrastructure spending and future data-center construction.

How the decline unfolded

The slide started well before November 5. After peaking at $983.23 on October 28, MU lost 4.98% on October 29 and another 5.30% on October 30. Selling then accelerated: the stock opened November 5 at $752.69, briefly touched $761.81, and collapsed to an intraday low of $650.00 before closing at $656.39 — the lowest close in 50 sessions.

Friday's bounce told a cautionary story too. Shares opened at $708.35 and reached $724.80, but finished at $690.00, below the opening print and near the bottom of the daily range. Despite opening 7.92% higher, the stock closed at only 28.7% of its daily range — evidence that sellers stayed active during the rebound.

What does the chart actually change for traders?

The levels to watch are now clearly defined. The $650.00 intraday low from November 5 is the primary downside reference. On the upside, $724.80 and $761.81 form initial resistance, followed by the November 4 close of $795.23. Holding above $650 preserves the possibility of stabilization; a sustained recovery through $724.80 and $761.81 would offer stronger evidence that selling pressure is easing.

The moving-average picture remains firmly bearish. MU trades 21.50% below its 20-day SMA near $879.01 and 28.25% below its 50-day SMA near $961.64. The stock also sits about 43.12% below its June 25 record close near $1,213.

Volatility is extreme by any frame. Thursday's intraday range of $650.00 to $761.81 spanned roughly 17% of the closing price — nearly four times the 50-session average range of 4.4%. Friday's range narrowed to about 7.1%, still well above normal.

The fundamentals behind the technicals

Micron's business, at least on paper, is booming. On September 30 the company reported fiscal fourth-quarter revenue of $54.23 billion, up 379% from $11.32 billion a year earlier. GAAP net income reached $37.70 billion, or $32.87 per diluted share. Full-year revenue totaled $133.19 billion, representing 256% annual growth.

DRAM contributed $39.8 billion in quarterly revenue and NAND added $14.1 billion. Management guided fiscal first-quarter 2027 revenue to approximately $61.5 billion, plus or minus $1.5 billion, against analyst expectations near $56.8 billion. It also expects non-GAAP gross margin around 86.25%, non-GAAP EPS of approximately $38.15, and sequential revenue growth throughout fiscal 2027.

The wildcard: Taiwan

A November 5 report said Micron had suspended plans for a $4.5 billion memory-chip facility in northern Taiwan following a labor dispute. The project had been intended to support DRAM and high-bandwidth memory production, and its suspension adds operational uncertainty to an already volatile stretch for the sector.

Valuation reset or cycle top?

The bull case leans on numbers: a trailing price-to-earnings ratio near 9.3, forward multiples below 4 by several measures, and a Strong Buy analyst consensus. The bear case points to the memory industry's cyclicality — profitability swings fast with memory prices — plus AI spending doubts and a price chart still far below its major averages.

The practical question for position sizing: can MU defend $650 and reclaim $725 to $762, or was Friday's bounce just a pause in a broader correction? With Thursday's 17% intraday range as a fresh reminder of how fast this stock moves, the answer will define the risk calculus either way.