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Micron fell 7% on Wednesday, and another 2.2% in overnight trading.
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Arizona Rep. Yassamin Ansari called for a pause on the development of advanced AI until adequate regulations are put in place.
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Retail sentiment for MU slipped to 'bullish' from 'bearish,' while the sentiment for SNDK remained 'extremely bullish.'
Micron fell 7% on Wednesday, and another 2.2% in overnight trading.
Arizona Rep. Yassamin Ansari called for a pause on the development of advanced AI until adequate regulations are put in place.
Retail sentiment for MU slipped to 'bullish' from 'bearish,' while the sentiment for SNDK remained 'extremely bullish.'
Micron Technology (MU) shares tumbled to a three-month low on Wednesday amid a rout in tech stocks, triggered by Democrats winning control of both chambers of Congress and calls for AI regulation.
The twin victories in the House and Senate return the Democratic Party to full control of Congress for the first time since 2023. The party also flipped multiple governors' offices in an election that serves as a rebuke to President Donald Trump.
On Wednesday, Arizona Rep. Yassamin Ansari called for a pause on advanced AI development until adequate regulations are in place. "Top of the Democratic agenda on day 1 needs to be a pause on advanced AI development, regulation of this out of control industry, and a ban on artificial superintelligence," Ansari posted on X.
Democrat campaigns have increasingly pushed data center operators to cover the cost of the electricity and infrastructure they use, and meet tougher environmental standards, as community opposition grows over higher power bills, heavy water use and pollution.
Investors and analysts broadly expect potential new regulations from Congress to slow the rapid buildout of data centers and, in turn, constrain AI computing capacity.
AI Trade In Red
Micron fell 7% on Wednesday to its lowest level since early August, and another 2.2% in overnight trading, while SanDisk (SNDK) and SK Hynix (SKHY) extended their losses.
Large chipmakers Nvidia (NVDA), Intel (INTC) and Advanced Micro Devices (AMD) fell 0.5% to 2% overnight, while neocloud stocks CoreWeave (CRWV), Nebius (NBIS) and Iren (IREN) slid between 2% and 3.6%.
The iShares Semiconductor ETF (SOXX) has slid 4.5% this week, and 1.2% overnight.
The drops add to the pullback seen over the past month, when investors rotated out of the red of AI-linked stocks over fears of the durability of capital expenditure spending by large tech companies.
Some analysts, however, sought to calm the nerves. "Spoke to a few large semiconductor and infrastructure CEOs and consensus is if the build slows in the U.S. the demand outside the U.S. is more than sufficient. Forecasts remain intact. Location is now fungible," The Futurum Group CEO Daniel Newman said in an X post.
Retail View On MU, Chip Stocks
On Stocktwits, the retail sentiment for MU slipped to 'bullish' from 'bearish,' while the sentiment for SNDK remained 'extremely bullish.' The sentiment was 'bullish' for NVDA and 'extremely bullish' for AMD and INTC.
"$MU Okay so, Democrats won and now we don't need anymore memory chips? Think twice," a trader remarked.
Another, with a contrarian view on chips, wrote: "$SOXX the rotation away from SOXX has only just started. Give it a couple more months to really get rolling."
For updates and corrections, email newsroom[at]stocktwits[dot]com.
Yuvraj Malik has no position in any of the stocks mentioned in this article. StockTwits' news team content is for informational purposes only and is not intended as investment advice. For more, see our editorial policy. This article was originally published on StockTwits.
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