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Micron Technology shares fell 9% as investors weigh Chinese competition and AI spending uncertainty.

Micron Technology shares dropped 9% on Tuesday as the memory chipmaker faced a multi-day sell-off in the semiconductor sector. The decline was driven by concerns that Chinese competitors, such as ChangXin Memory Technologies, will undercut prices for Korean and U.S.-based chipmakers. Additionally, investors are showing signs of patience with the massive spending habits of big tech hyperscalers and the uncertainty regarding the return on investment for artificial intelligence. While Micron Technology remains in a long-term uptrend, near-term momentum has weakened. Analysts note that the stock is currently undergoing a healthy pullback after reaching a 52-week high in June. Despite the recent correction, the company maintains a strong growth profile and a 'Buy' consensus rating from analysts. The market is also watching for the Federal Reserve's next rate decision tomorrow, with some experts suggesting a potential interest rate hike may be in store.

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