Why Micron Stock Was Up and Down Today
2026-07-31 19:10
•Johnny Rice •The Motley Fool
••••• ••••••• Axe Cap view
Micron’s Rollercoaster: What It Means for Investors Here
Micron surged on strong tech spending but dropped as rising rates hit growth stocks.
Micron’s wild ride last Friday reveals the market’s tricky balancing act. Apple, Amazon, and Google’s continued spend on memory chips is a solid signal that demand isn’t fading anytime soon. For South African investors, this tech spending boost implies that global semiconductor shortages might keep supply tight, supporting exporters and tech-related JSE counters like Naspers and Prosus indirectly. Yet, Micron’s drop after the initial rally is a reminder that higher interest rates – now at 19-year highs in the US – punish high-growth stocks. The rand (USD/ZAR) might feel the strain if global risk appetite softens, pushing the currency weaker and squeezing companies reliant on dollar imports like retailers Woolworths or Shoprite. Despite the demand backdrop, Micron’s valuation looks stretched, signaling limited further upside from here. We’d watch dollar strength closely, as a sustained rally could dent local earnings and consumer spending. this is just our opinion and not financial advice
For now, trim growth-heavy positions and keep an eye on the USD/ZAR pair for opportunities to add selectively to Naspers and Prosus on dips. Avoid chasing Micron's valuation despite strong demand signals.
- Naspers
- Prosus
- USD/ZAR
- US interest rates rising further
- A sudden global tech spending slowdown
6/10
Micron Technology stock experienced significant volatility on Friday, rising as much as 6.4% early in the day following positive earnings from Apple and Amazon showing continued spending on memory chips. However, the stock reversed course and closed down 4.74% as rising interest rates to 19-year highs weighed on growth stocks. While the memory supply crunch should continue supporting Micron's earnings, the author believes the valuation has become too rich.
Our take is based on reporting first published by The Motley Fool.
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