Micron (MU 0.23%) stock is losing ground in Thursday's trading. The company's share price was down 1.8% as of 12:15 p.m. ET, but it had been down as much as 7.5% close to the opening of the market.
Micron started today's trading deep in the red following recent comments from President Donald Trump on the U.S.'s war with Iran. On the other hand, the company's share price has seen a substantial recovery in the daily session following some other Iran-related news.
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Micron stock sees volatile trading on Iran news
Last night, President Trump gave a televised address to the nation in which he provided updates on the war with Iran. While Trump indicated that the U.S.'s war with the country would soon draw to a close, he also said that some big strikes on Iran were on the near horizon. The potential for a near-term escalation of the conflict leading to a more protracted war is prompting bearish momentum across the broader market today, and Micron stock is pulling back in response. Despite many tech stocks still being solidly in the red as of this writing, the tech sector and broader market have seen intraday valuation recoveries in conjunction with news that Iran is negotiating to allow ships from Oman to pass through the Strait of Hormuz.
NASDAQ: MU
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What's next for Micron?
Micron has been one of the tech sector's hottest stocks over the last year, with soaring demand for the company's high-bandwidth-memory (HBM) chips for artificial intelligence (AI) processors translating into huge gains for the tech specialist's share price. Even after recent pullbacks, the stock is still up 307% over the last year.
In addition to geopolitical and macroeconomic pressures, Micron has also recently seen sell-offs connected to Alphabet's announcement of new data compiling technologies that could potentially reduce demand for memory chips. The market's reaction to the potential impacts of the new compiling tech will likely continue to play a significant role in shaping Micron's near-term stock moves.
