Micron Technology Inc (NASDAQ:MU) shares are trading lower by 5.19% to $120.87 Wednesday morning. Semiconductor stocks are seeing a decline as reports suggest President Biden might implement additional restrictions on China. This comes alongside Republican nominee Donald Trump’s remarks about the China-Taiwan conflict during a Bloomberg interview. The sector’s performance is also impacted by weak guidance from ASML.
TSMC is a crucial foundry for many semiconductor companies, including those in the United States. While Micron manufactures a significant portion of its products internally, the general market dynamics influenced by TSMC’s business can impact Micron.
Trump’s comments about Taiwan taking “100% of our chip business” highlight the heavy reliance of the U.S. semiconductor industry on Taiwanese manufacturing. This dependency raises concerns about potential supply chain disruptions, especially amidst geopolitical tensions between China and Taiwan.
Negative sentiment towards TSMC due to geopolitical risks can spill over to other semiconductor companies, including Micron, as investors worry about the stability of the supply chain and potential future disruptions.
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How To Buy MU Stock
By now you're likely curious about how to participate in the market for Micron Technology – be it to purchase shares, or even attempt to bet against the company.
Buying shares is typically done through a brokerage account. You can find a list of possible trading platforms here. Many will allow you to buy ‘fractional shares,' which allows you to own portions of stock without buying an entire share. For example, some stock, like Berkshire Hathaway, or Amazon.com, can cost thousands of dollars to own just one share. However, if you only want to invest a fraction of that, brokerages will allow you to do so.
In the the case of Micron Technology, which is trading at $121.07 as of publishing time, $100 would buy you 0.83 shares of stock.
If you're looking to bet against a company, the process is more complex. You'll need access to an options trading platform, or a broker who will allow you to ‘go short' a share of stock by lending you the shares to sell. The process of shorting a stock can be found at this resource. Otherwise, if your broker allows you to trade options, you can either buy a put option, or sell a call option at a strike price above where shares are currently trading – either way it allows you to profit off of the share price decline.
MU has a 52-week high of $157.54 and a 52-week low of $61.75.