Micron Stock's Bearish Spiral Deepens With Tariff Surcharge On Top Of 22% Plunge

Core Viewpoint - Micron Technology Inc. is facing significant challenges in April, with its stock dropping over 22% in the past five trading days, compounded by the announcement of a tariff-related surcharge on certain products effective April 9 [1][2]. Group 1: Tariff Impact - Micron has informed U.S. customers that it will pass on costs from the latest tariffs announced by President Donald Trump, which, while excluding semiconductors, apply to memory modules and solid-state drives essential for various tech infrastructures [2][3]. - The decision to implement a surcharge follows a previous indication during the March 21 earnings call that the company intended to pass on tariff-related costs, alongside a separate price increase due to unexpected demand [3]. Group 2: Stock Performance and Technical Indicators - Micron's stock is currently trading at $71.25, significantly below all major moving averages, indicating a bearish outlook, with the eight-day SMA at$78.92, the 50-day at $92.40, and the 200-day at$101.24 [3]. - The Moving Average Convergence Divergence (MACD) indicator is at a negative 6.29, and the Relative Strength Index (RSI) has dropped to 33.35, suggesting that Micron is nearing oversold territory [4]. Group 3: Investor Sentiment - Investors are in a cautious wait-and-watch mode due to the declining stock performance and macroeconomic uncertainties, with Micron's strategy of passing costs onto customers potentially protecting margins in the short term but adding uncertainty to the stock's outlook [5].