Why Micron Tech (MU) Stock Is Trading Lower Monday - Micron Technology (NASDAQ:MU)

Micron Technology, Inc MU stock is trading lower Monday after China banned some of its product sales after a seven-week investigation into Micron.
The Cyberspace Administration of China flagged serious cybersecurity issues posed by Micron products and potential risk to the country's key information supply chains, Financial Times reports.
The regulator urged domestic firms that provide "key information infrastructure" to stop buying from Micron.
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Mainland China and Hong Kong accounted for 25% of Micron's $30.8 billion in revenue in 2022.
Last October, Washington introduced expansive chip export controls, and the Netherlands and Japan have since followed.
The U.S. also prohibited Nvidia Corp NVDA from exporting H100, its state-of-the-art GPU for generative AI training, to China.
Analysts said Micron is an obvious first target for Beijing as competitors' chips from South Korean rivals Samsung Electronics Co, Ltd SSNLF and SK Hynix could easily replace the former.
In April, the White House asked South Korea to urge its chipmakers not to fill any market gap in China if they restricted Micron products.
Beijing's ruling follows the G7's stark denunciation of China during the annual meeting of global leaders in Hiroshima.
Analysts warned against a domino effect from Chinese companies that did not provide "critical information infrastructure" to seek to eliminate Micron from their supply chains.
Price Action: MU shares traded lower by 4.77% at $64.92 premarket on the last check Monday.
Photo via Wikimedia Commons

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Why Micron Tech Stock Is Trading Lower Monday