On Wednesday, November 5, Micron (NASDAQ: MU) stock extended its 30-day losses by recording a 7% daily plummet, smashing below the $800 psychological level and closing at $795.23. The equity then resumed its drop in the subsequent extended session, falling another 5.05% to $755.05 by press time on Thursday morning.
While such a steep collapse might signal a bullish correction is around the quarter, the causes for the drop indicate that buying MU shares remains a risky option.
Specifically, Micron stock has been declining through October amidst a relatively decisive narrative shift away from an artificial intelligence (AI) ‘boom’ and toward the existence of an AI ‘bubble’, indicating Wall Street is preparing for a broader drop.
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The danger of a greater sell-off in the tech sector has also been exacerbated by the ‘blue wave’ in the November 3 midterm elections, as the Democratic Party has been pushing for stricter regulation of big tech.
Micron stock at risk of massive sell-off as AI data center buildout slows
Additionally, hyperscalers themselves recently started reducing capital expenditures (CapEx) on AI data centers, and the latest vote in the U.S. also saw the public overwhelmingly back moratoriums on such infrastructure.
Micron famously abandoned the consumer market late in 2025, opting instead to focus primarily on large corporate clients. The move arguably tied the firm’s fate to the success of the AI ‘boom’, while also drawing the ire of the general public.
Under the circumstances, MU shares appear set for an even steeper plunge in the foreseeable future, barring a major policy reversal in the Democratic Party or an unquestionable, positive breakthrough among AI labs such as OpenAI and Anthropic.
Here’s why Micron stock can still see a major breakout
Notably, the fact that the narrative shift toward an artificial bubble existing does not include a consensus that a crash is imminent lends credence to the notion that Micron stock might enjoy another bullish breakout in the coming months.
Meanwhile, though MU equity’s short-term fortunes appear to have soured, the long-term case for the company is generally bullish.
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One of the most prominent and optimistic big tech bulls on Wall Street, Dan Ives, for example, forecasted that the ‘Democratic sweep’ will cause a slowdown in the ‘AI revolution’ but will not alter its endgame.
Furthermore, he appears to have judged the development as overall positive since ‘slowing the pace down of datacenters and Capex is also seen as bullish = less Capex worries which helps Big Tech stocks’.
Why December could make or break Micron stock
Still, the deciding moment for deciding if Micron stock is a ‘Buy’ following the brutal sell-off might earnestly come only in mid-December when the memory giant is expected to make its last quarterly filing of 2026.
Recent earnings of other big tech firms showed that the sector is still recording strong results – as seen with, for example, Apple (NASDAQ: AAPL) – but also warned not only that guidance might be experiencing a downward move, but that disappointing forecasts could have rapid and devastating consequences – as in the case of Intel (NASDAQ: INTC).
Lastly, despite the sustained positivity among many executives and analysts, the market is not bereft of downright bearish voices. While Michael Burry’s stance on AI-involved big tech is well known, other prominent experts have joined the pessimistic chorus by press time.
On Monday, November 2, professor and economist Steve Hanke, for example, explained that the odds of a Dot-com-like crisis are approaching 50% with the technology sector staring down a potential 70% correction regardless of the outcome of the then-imminent Midterms.
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