MU Stock Dips Premarket, But Retail Feels Samsung Worker Strike Could Bring Windfall

• MU shares dropped 2% in Friday’s premarket session; Samsung’s shares in Seoul closed 9% lower.
• Retail sentiment for MU was ‘extremely bullish.’
• MU short interest has risen in recent months, even as the stock rallied.

Micron Technology stock fell about 2% in early premarket trading on Friday and was among the top-discussed tickers on Stocktwits. Retail traders speculated that a worker strike at Samsung Electronics next week, which seemed imminent, could potentially divert orders to the U.S. memory chip giant.

Samsung Electronics’ South Korean labor union said on Friday it remained committed to a planned strike ‌starting May 21, even after the company proposed resuming pay talks without conditions, Reuters reported.

Government-mediated negotiations between the union and the company over pay and bonus schemes collapsed this week, heightening concerns about a strike at the world's biggest memory chipmaker. Samsung shares fell nearly 9% in Seoul on Friday.

Retail Sees Imminent Samsung Strike Benefitting MU

Micron shares were volatile in early U.S. premarket trading. On Stocktwits, sentiment remained ‘extremely bullish’ as traders speculate that a potential strike at Samsung will force Nvidia and other major tech firms to secure supply from Micron at premium prices.

“If I am in the MU sales department then I will be mentioning this ‘Samsung strike scare’ and ‘instability in that region’ on every call for years to come. Supply chain stability is key when there already isn’t enough supply,” said a trader, referring to the ongoing shortage of memory chips in the market.

“This event will prove to be huge for MU over the coming months and years. MU Global market share going to be going up.”

US-China Summit Updates

Adding to the sentiment were updates from the U.S.-China bilateral summit in Beijing. U.S. President Donald Trump departed Friday after two days of talks with Chinese President Xi Jinping that ran the gamut from Iran and Taiwan to trade, oil, and Boeing.

Xi said the two sides agreed to “strategic stability” as a framework for the next three years, according to state media. Trump said China has agreed to buy U.S. oil and will purchase 200 airplanes from Boeing, in an interview with Fox News.

MU Short Interest Climbs Amid Rally

Micron shares have risen a staggering 172% year-to-date. Simultaneously, short interest has risen. About 3.2% of Micron shares were shorted as of Thursday, up 2% at the start of the year, according to Koyfin.

For updates and corrections, email newsroom[at]stocktwits[dot]com.

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