Micron Stock Plummets on SpaceX IPO Fears

Micron Technology (NASDAQ:MU) saw its stock price plummet by more than 13% on Friday, continuing a steep two-day downturn. This decline has significantly eroded its year-to-date gains and has been influenced by a sector-wide reassessment of AI infrastructure spending, following Broadcom's earnings report. A primary driver for Micron's sharp sell-off, however, appears to be the anticipated impact of the forthcoming SpaceX IPO. BNP Paribas equity derivatives strategist Greg Boutle suggests that retail investors, who have heavily bought Micron over the past month, may need to sell stocks to finance their participation in the highly anticipated SpaceX listing. This potential capital shift could amount to over $50 billion. Boutle has identified the SpaceX IPO as a major market catalyst that could trigger substantial portfolio repositioning among both retail and passive investors. Furthermore, broader portfolio rebalancing as the quarter ends and US equities outperform fixed income could add to significant selling pressure.