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Why Micron Stock Is Up Today

The Motley Fool · 1d ago

Key Points

  • Micron stock is bouncing back on Friday after falling 17.5% on Thursday, when investors worried that Democratic midterm wins could curb data center construction.

  • Micron’s latest quarter brought sales of $54.23 billion, up from $11.32 billion a year earlier, and guidance of $61.5 billion that topped the $57 billion Wall Street expected.

  • With Micron’s rapid growth mostly baked into the share price, I think the risk is that moratoriums on new construction could lead to some pullback in AI spending.

Micron Technology (NASDAQ:MU) 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 (SNPINDEX:^GSPC) and the Nasdaq Composite (NASDAQINDEX:^IXIC) are up 0.5% and 1.1%, respectively.

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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.

Micron sign outside a corporate campus, surrounded by red and white flowers

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.