Why Micron Stock Dropped Again Today
Rich Smith, The Motley Fool
Wed, July 29, 2026 at 11:39 PM GMT+5:30
2 min read
Micron(NASDAQ: MU) stock declined another 6% through 1:30 p.m. ET Wednesday, as new news from South Korea spooked investors in semiconductor stocks:
Korea is curbing investments in leveraged exchange-traded funds (ETFs)
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Risk and reward
The funds in question invest in single stocks and use financial engineering to magnify the returns on those stocks as they trade up and down
That was all fun and games when semiconductor stocks — and particularly Korean stocks specializing in manufacturing computer memory — were mostly going up. Now that SK Hynix (NASDAQ: SKHY), Samsung, and others have rediscovered the law of gravity, Korea is suffering a market rout — and taking measures to prevent individual investors from losing even more money
Finance Minister Koo Yun-cheol says Korea will limit retail investment in leveraged ETFs, including by increasing trading costs and capping the percentage of an investor’s total portfolio invested in such products. Specific details on the measures to be put in place have not yet been decided, however
What this means for Micron
The Korean ETFs in question do not invest directly in Micron — SK Hynix and Samsung being the more popular artificial intelligence chip plays locally. But Korea’s move could have an indirect effect on Micron
In fact, it already is doing just that
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