TLDRMicron shares declined 5.7% following TSMC’s announcement of increased capital expenditure guidance to $60–$64 billion, triggering semiconductor sector weaknessThe previous session saw an 8.2% decline driven by concerns over Chinese competitor CXMT’s planned $8.55 billion IPO and softening memory chip pricingSK Hynix’s dramatic 15%+ plunge during its July 10 Nasdaq listing created additional selling pressure throughout memory stocksShares currently trade at $848.34, representing a 26.5% retreat from the $1,154 52-week peak reached in June 2026Top-tier analysts continue recommending the stock with price objectives between $1,400 and $1,600The past several trading sessions have been punishing for Micron. The memory semiconductor manufacturer has experienced substantial declines as broad-based sector selling pushed shares significantly lower from record levels. Currently priced at $848.34, MU has retreated 26.5% from its June 2026 high-water mark of $1,154.Micron Technology, Inc., MUThe initial catalyst emerged when TSMC delivered robust revenue figures but simultaneously increased its annual capital spending forecast to $60–$64 billion from a previous upper limit of $56 billion. This capex revision triggered anxiety throughout semiconductor equities, resulting in a 5.7% decline for MU.While TSMC emphasized that artificial intelligence demand continues to be “extremely robust,” market participants shifted their attention to cash flow considerations. Elevated capital expenditures translate to reduced free cash flow generation, creating headwinds for an industry segment already trading at premium valuation metrics.The preceding session had witnessed an even steeper 8.2% decline. That downturn stemmed from news that Chinese semiconductor manufacturer ChangXin Memory Technologies (CXMT) is advancing plans for an $8.55 billion initial public offering — signaling intensifying competitive dynamics over the long term.Additionally, cloud infrastructure provider CoreWeave was allegedly examining financial instruments to protect against potential memory chip price deterioration. Such defensive positioning by a significant customer raises concerns about near-term pricing momentum.Memory-focused stocks also absorbed spillover effects from SK Hynix’s (SKHY) July 10 Nasdaq debut, which saw shares crater more than 15%, creating contagion throughout the subsector. Escalating geopolitical tensions surrounding the Strait of Hormuz compounded pressure on risk-sensitive assets, with chip stocks bearing the brunt of selling.What the Charts Are SayingFrom a daily chart perspective, technical indicators flash warning signals. The RSI registers 41, the Stochastic RSI has plummeted to 0.000 — indicating extreme oversold conditions — and the MACD confirms downward momentum at -15.3. Near-term technical readings across all intervals suggest a Strong Sell recommendation.However, extending the timeframe reveals a different narrative. Both weekly and monthly indicators register Strong Buy signals. The weekly RSI maintains a constructive 59 level while the MACD remains firmly positive at +177.6. With shares up 631% over the trailing twelve months, market observers characterize the current pullback as occurring within a structurally sound upward trajectory.Critical support emerges at $813–$825, where weekly trend support intersects with recent daily selling. A decisive close beneath $786 would represent a more troubling technical development.What Analysts ThinkThe investment community maintains conviction. Citi holds a Buy recommendation with a $1,400 price objective and recently placed Micron on its 90-Day Upside Catalyst Watch List. TD Cowen projects a $1,600 target, citing supply constraints extending past 2027 and DDR average selling price expansion exceeding 15% in Q3. UBS forecasts DRAM undersupply persisting through at least Q2 2028, with 2027 demand expansion of 36.2% year-over-year outpacing supply growth of merely 19.3%. Bank of America characterized the downturn as a “healthy reset before rally.”DA Davidson highlighted that MU has transitioned into a new business model phase, with Supply Commitment Agreements now representing nearly 50% of total revenues — a dramatic departure from its historical commodity-driven volatility.Skeptics are present as well. Michael Burry established put positions around $1,052 on July 1, near all-time highs. Insider dispositions reached their most elevated level since 2010, with Director Lynn Dugle offloading approximately $1.5 million in shares on June 30.Micron’s upcoming earnings release is scheduled for September 22, 2026.The post Micron (MU) Stock Tumbles Amid Sector Selloff — Why Analysts Remain Bullish appeared first on Blockonomi.