Micron Technology shares fall 17.5 percent following Taiwan plant reports

Micron Technology shares dropped 17.46 percent to $656.39 on November 5, marking a significant decline following reports regarding its operations in Taiwan and a broader selloff in AI-linked stocks.

A Bloomberg report indicated that construction at a Taoyuan site, valued between $3 billion and $4.5 billion, has been “all but halted” due to a protracted labor dispute. While Micron did not confirm a pause, the company told Taiwanese media that its operations are “continuing as normal” and that negotiations with the local union are ongoing with assistance from the city government.

Despite the stock volatility, Micron’s fiscal first-quarter guidance remains at $38.15 in adjusted earnings per share. The company also has a $35.16 billion buyback authorization scheduled to begin on December 9. Analysts note that Micron is positioned to benefit from the growing demand for high-bandwidth memory (HBM) used in artificial intelligence data centers, a market that could see significant revenue growth through 2030.