Key Highlights

• Shares traded at $710.56 pre-market, up 8.25% from the $656.39 prior close.

• The stock closed down 17.46% on Thursday.

• A media report said the $4.5 billion Taoyuan plant is all but halted.

• The Philadelphia Semiconductor index fell 12% on Thursday.

Micron Technology (NASDAQ:MU) shares were higher in pre-market trading on Friday, November 6, at $710.56, up 8.25%, after closing Thursday at $656.39, down 17.46%, about 40% below the October 1 close. The stock fell during an AI chip rout triggered by fears that Democratic midterm wins will slow Data Center buildouts, compounded by Margin commentary from Qualcomm (NASDAQ:QCOM).

Taiwan Plant Report Adds to the Selloff

A media report said Micron has all but halted its $4.5 billion Taoyuan, Taiwan plant over a union profit-sharing dispute. The Philadelphia Semiconductor Index fell 12% on Thursday, and Nasdaq-100 futures were steadying early Friday as losses narrowed.

Valuation Metrics and the Bull and Bear Arguments

The stock has a forward P/E of 3.75, a trailing P/E of 8.84 and EPS of $75.51. The market cap is $742.65 billion, and the 52-week range is $192.59 to $1,255.00.

Bulls point to roughly 5 times forward Earnings and heavy contracted supply, while bears flag cyclical risk and customer pushback on memory costs.

Taoyuan Talks, Jobs Data and the December Report Are the Next Reference Points

Investors are watching today's October jobs report, the Taoyuan union talks and the December earnings report. These are the reference points for the stock after Thursday's decline and Friday's early recovery.