Why Micron Stock Is Up Today
Micron Technology (MU +4.00%) stock is bouncing back, up 4.1% as of 2:14 p.m. ET on Friday, Nov. 6, after chip stocks got hammered on Thursday.
The S&P 500 (^GSPC +0.46%) and the Nasdaq Composite (^IXIC +1.05%) are up 0.5% and 1.1%, respectively.
MU Micron Technology
$682.68+$26.29 (+4.00%)
NASDAQ · As of 1:05 PM ET 11/06/26
Why Micron stock is rebounding after the chip sell-off
Thursday was the market’s worst day since April 2025, with the Nasdaq sinking 5.5%. Micron had it worse than most — the stock fell 17.5% as investors worried that Democratic victories in Tuesday’s midterm elections could curb data center construction.
Micron’s growth narrative hangs almost entirely on the data center build-out.
Today, the market seemed to feel yesterday could have been an overreaction, especially given a better-than-expected jobs report that showed the U.S. added 165,000 jobs in October.
Micron earnings were huge, but data center risk remains
Micron’s latest numbers were huge: Q4 sales jumped to $54.23 billion from $11.32 billion a year earlier, and the company set forward guidance for $61.5 billion in the current quarter. Wall Street was only looking for $57 billion.
Image source: Getty Images.
The continuation of this incredible pace of growth is mostly baked into the company’s share price. That makes the question of a data center slowdown so important. I think it’s likely we will see some moratoriums on new construction that could lead to a somewhat of a pullback in AI capital expenditures.
Johnny Rice has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Micron Technology. The Motley Fool has a disclosure policy.
