Micron Technology shares MU rebounded on Tuesday as US equities recovered and oil prices retreated from recent highs, easing some pressure on technology stocks following a sharp selloff.
Micron shares rose 0.73% in trading, reversing earlier losses as the technology sector recovered.
The stock had lost nearly 20% since October 7 amid concerns about elevated valuations and the debt required to finance artificial intelligence infrastructure.
The broader market also advanced. The Dow Jones Industrial Average gained 453 points, or 0.87%, while the S&P 500 rose 0.37% and the Nasdaq Composite added 0.14%.
Oil prices declined after reports of a potential diplomatic breakthrough between the United States and Iran raised hopes of easing Middle East tensions.
West Texas Intermediate crude traded around $102 a barrel, down less than 1%, while Brent crude fell 0.79% to approximately $108.
Chip stocks recover as oil prices retreat
Memory-related stocks participated in the recovery, with SanDisk rising 0.65% and Marvell Technology gaining 1.89%.
However, the rebound remained uneven across the semiconductor industry.
Shares of SK Hynix listed in South Korea fell 4.2%, closing at their lowest level since mid-April. Its Nasdaq-listed shares declined 1.7% in trading.
The weakness followed concerns about the sustainability of AI-related investment after South Korean cloud infrastructure company Elice Group fell approximately 30% in its stock market debut.
Micron also faces a potential labour disruption.
A union representing workers at its Taoyuan facility in Taiwan said it planned to begin a strike on Thursday amid a dispute over employee bonuses.
Taoyuan is one of the company’s important manufacturing hubs.
The possible strike adds uncertainty for investors already assessing the outlook for memory-chip demand and the broader AI investment cycle.
Micron backs indium supply-chain expansion
Micron announced strategic funding for Indium Corporation to expand refining and manufacturing operations in New York.
The companies also plan to establish a long-term supply agreement that would give Micron access to the resulting high-purity materials.
The companies did not disclose the amount of Micron’s investment or the financial terms of the proposed agreement.
The initiative forms part of Micron’s plan, announced in July, to invest up to $3 billion in strengthening the US semiconductor supply chain.
The programme began with $500 million in financing for GlobalWafers’ 300-millimetre wafer plant in Sherman, Texas, alongside a 10-year wafer supply agreement.
The $3 billion initiative is separate from Micron’s commitment to spend more than $250 billion on US manufacturing through 2035.
The partnership comes as supply-chain concerns persist around indium, a material used in various industrial applications.
China produces nearly 70% of global indium, and Beijing introduced export controls covering indium compounds in February 2025.
AI memory demand supports Micron’s investment plans
Micron plans to build as many as four DRAM fabrication plants in Clay, New York, over more than 20 years.
Construction has begun, while production from the first facility is expected in 2030 or later.
The company expects capital spending of approximately $11.5 billion in its fiscal first quarter and around $25 billion in the first half of fiscal 2027, with spending expected to increase further in the second half.
Demand for memory used in AI applications helped Micron generate record revenue of $54.23 billion last quarter. The company forecast revenue of $61.5 billion for the following quarter.
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