Why Micron Technology Inc (MU) Stock Is Down On August 20, 2025

Price Drop
-4.69%
Key Reason
Concerns over potential government equity stakes in chip companies

What Happened?

On August 20, 2025, Micron Technology's stock price declined by approximately 6%. This drop was primarily due to reports that the Trump administration was considering taking equity stakes in chip companies, including Micron, as part of the CHIPS Act. This news led to investor concerns about increased government intervention in the semiconductor industry, contributing to a broader sell-off in technology stocks. Additionally, the upcoming Federal Reserve's Jackson Hole symposium added to market uncertainty, further impacting investor sentiment.

Effect on Investors

The news of potential government equity stakes raised concerns among investors about increased government involvement in the semiconductor sector, leading to a negative reaction in the stock market. This, combined with broader market uncertainties, resulted in a sell-off in technology stocks, including Micron.

FAQ

What is the CHIPS Act?
Why would the government consider taking equity stakes in chip companies?
How did other technology stocks react to this news?
What is the Federal Reserve's Jackson Hole symposium?
Micron Technology Inc
Semiconductors
Price
116.32
Intrinsic Value
151.39
Open
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Earnings
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Micron Technology announced an increase to its financial forecast for the fourth quarter of fiscal 2025. The company now expects revenue of $11.2 billion, plus or minus $100 million, which is higher than its previous estimate of $10.7 billion, plus o...
Aug 11, 2025
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Micron Reports Record Q3 Earnings, Driven by AI-Fueled Memory Demand
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Micron Technology announced its financial results for the third quarter of fiscal 2025, reporting record quarterly revenue of $9.3 billion. This result beat Wall Street expectations and represents a significant increase from $6.81 billion in the same...
Jun 25, 2025
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