Micron Technology (MU 2.24%) stock ended Monday's trading in the red. The company's share price fell 3% in the session and had been down as much as 4.6% earlier in the day. The S&P 500 index fell 2.4%, and the Nasdaq Composite ended the day down 2.6%.
NASDAQ: MU
Key Data Points
Micron's valuation moved lower today as investors reacted negatively to President Trump's latest comments targeting the Federal Reserve and its Chair Jerome Powell. The stock is now down 21% year to date and 56.5% from its high.
Micron stock moves lower following Trump's Fed comments
In a message posted to Truth Social today, President Trump said that Fed Chair Jerome Powell was a "major loser" and called him "Mr. Too Late" -- a moniker referencing a belief that the central-bank leader has been slow in lowering interest rates. While Powell was nominated by Trump in his first term, the president has clearly soured on the Fed leader's approach to monetary policy. The Trump administration is conducting legal analysis to determine whether it has the power to fire Powell before his term as Fed Chair ends in 2026, and investors are concerned that such a move could have a destabilizing effect.
What's next for Micron?
Following some big sell-offs, Micron stock is now trading at just 9.6 times this year's expected sales. Given the company's recent business momentum, tech strengths, and near-term performance outlook, the stock looks cheaply valued even with the understanding that the business has historically been heavily shaped by cyclical trends.
Micron is a leading provider of high-bandwidth-memory (HBM) chips that are used in processors for training artificial intelligence (AI), and the demand outlook for these products continues to be quite strong.
On the other hand, the business faces significant exposure to headwinds related to new tariffs and the escalating trade war between the U.S. and China. So while the stock looks cheap by many conventional measures, investors should understand that there are unusual sets of catalysts that will likely continue to have big impacts on its share price in the near term.
