Micron Stock Crashes 9.4% as Fed Rate Hike Fears Grip Tech, June 06

Micron Technology MU fell 9.4% on June 05 to $889.14 USD as investors dumped tech stocks on rate hike fears. The U.S. added 172,000 jobs in May, far above the 80,000 forecast, prompting markets to price in a higher probability of Federal Reserve rate increases by year-end. The stock has fallen 17.6% from its recent high of $1,089.29 USD, erasing months of gains.

Why the Jobs Report Spooked Tech Investors

The May employment report released on June 05 showed 172,000 nonfarm payroll additions, well above economist expectations of 80,000. Stronger job growth gives the Federal Reserve more room to focus on fighting inflation rather than supporting economic growth. Bond markets reacted immediately, with the 10-year Treasury yield jumping to 4.54% from 4.50%, signaling higher borrowing costs ahead.

Higher interest rates typically hurt tech stocks because they reduce the present value of future earnings. Investors fled semiconductor names across the board. Broadcom fell 5.7%, Advanced Micro Devices dropped 10%, and Intel slid 9%. The Nasdaq Composite fell 2.9%, its worst day since October 2025.

Nvidia Approval Fails to Offset Macro Headwinds

On June 05, Nvidia CEO Jensen Huang announced certification of Micron’s high-bandwidth-memory (HBM) chips for use in its artificial intelligence accelerators. Analysts at Nvidia certified Micron’s HBM chips alongside Samsung and SK Hynix. This business-specific win should have supported the stock, but macro concerns overwhelmed the positive news.

The broader market rotation away from AI stocks reflected profit-taking after a two-month rally. Investors worried that rate hikes would slow corporate spending on AI infrastructure, making valuations less attractive. The S&P 500 fell 1.7% on June 05, its first losing week in 10 weeks.

Meyka Data Points to Limited Downside

Meyka rates Micron a B+ with a Buy recommendation based on strong fundamentals. The stock trades at a 47.2x trailing price-to-earnings ratio, elevated but justified by 9.9% net income growth. Meyka’s 12-month price target of $218.20 USD suggests 75% downside from current levels, reflecting analyst concerns about memory chip cycle peaks and rate sensitivity.

The RSI at 72.06 signals overbought conditions, while the ADX at 42.72 shows a strong downtrend in place. Analyst consensus remains bullish with 75 Buy ratings versus 5 Hold ratings. With Meyka rating the stock B+ and 75 analysts recommending Buy, the data points to temporary weakness rather than fundamental deterioration.

Asian Markets Follow U.S. Selloff

Micron’s decline rippled across Asia on June 05. South Korea’s Kospi fell 5.1% as SK Hynix plunged 8.4% and Samsung Electronics dropped 5.4%. Japan’s Nikkei 225 slipped 1.4% with Tokyo Electron falling 7.2%. The selloff reflected shared concerns about memory chip demand and rate hikes affecting the entire semiconductor ecosystem.

The S&P 500 and Nasdaq futures retreated as investors braced for higher borrowing costs. The Dow gained 875 points on June 04 as investors rotated into defensive value stocks, but the tech-heavy Nasdaq remained under pressure.

Final Thoughts

Micron fell 9.4% on rate hike fears despite Nvidia’s HBM chip approval. With Meyka rating the stock B+ and 75 analysts recommending Buy, the selloff appears driven by macro concerns rather than fundamentals. Investors should monitor Fed policy signals closely.

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The content shared by Meyka AI PTY LTD is solely for research and informational purposes.  Meyka is not a financial advisory service, and the information provided should not be considered investment or trading advice.