MU - 3 Reasons the Market Yawned at China's Micron Ban
2023-05-24 07:37:00 ET
The semiconductor space is one of the most exciting and dynamic sectors in the world. However, with the potential exception of oil and other commodity companies, semiconductor companies are perhaps more prone than others to get embroiled in geopolitics. One factor was the pandemic-related shortages of key chips. Currently the scary new capabilities of chip-powered artificial intelligence (AI) applications have national governments on edge.
Last weekend, China's Cyberspace Administration announced the results of its "security review" of Micron 's (NASDAQ: MU) memory products, concluding they posed a potentially serious national security risk. Thus, the Administration instructed China's "critical infrastructure" companies to cease buying Micron's products.
Yet Micron's stock only fell marginally on Monday, then stayed fairly even on Tuesday, even as the rest of the market and tech sector were down significantly.
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3 Reasons the Market Yawned at China's Micron Ban