Micron Technology (MU) shares endured a turbulent Monday, initially surging in premarket before reversing sharply to a 7% intraday loss, as investors assessed a potential strike at rival Samsung Electronics and broader sector headwinds. The volatility came after Micron stock dropped 6.6% on Friday amid a chip-wide sell-off triggered by a hotter-than-expected CPI print.
The dramatic swings center on Samsung workers’ threat of a general strike from May 21 to June 7, demanding the company allocate 15% of operating profit to employee bonuses. Jefferies estimates a full walkout could disrupt approximately 3% of global memory-chip production, a significant figure for an already supply-constrained market. Samsung management and union leaders resumed last-ditch talks Monday, with discussions expected to continue into Tuesday. South Korea’s Prime Minister Kim Min-seok warned that even a single day of suspended operations at Samsung’s chip assembly lines could cost up to 1 trillion won (about $667.6 million).
Analysts see the strike threat as a potential catalyst for further tightening of the memory supply. Bank of America’s Vivek Arya nearly doubled his Micron price target to $950 from $500, citing structural constraints—rising capital intensity, packaging bottlenecks, and geopolitical pressures—that could leave suppliers with pricing power through at least 2028. JP Morgan’s Jay Kwon echoed that view, forecasting higher pricing conditions until late 2027 and arguing the memory industry is “undergoing a pivotal inflection stage” that could support a valuation re-rating.
However, the broader tech sell-off and fresh concerns about AI-fueled memory demand weighed on Micron. Western Digital and Seagate Technology both commented on the shifting dynamics of AI-driven storage, with Seagate cautioning against overbuilding SSD manufacturing capacity. Despite the day’s losses, Wall Street remains broadly bullish: Da Davidson reiterated a $1,000 target on May 11, and TD Cowen raised its target to $660 on April 28. Micron’s next major catalyst is its June 24 earnings report, with EPS expected to soar to $19.15 from $1.91 a year ago, on projected revenue of $33.51 billion.
