Micron Technology shares fell more than 5% in early trading on Tuesday as a patent dispute with Netlist Inc. intensified, compounding broader market headwinds.
The selloff follows Netlist’s filing of a complaint with the U.S. International Trade Commission on August 12, seeking exclusion orders and cease-and-desist directives against Micron, Super Micro Computer, Hewlett Packard Enterprise, and Lenovo. The complaint alleges infringement of four DDR5 RDIMM and MRDIMM patents, with two of the same patents also cited in a separate federal lawsuit filed simultaneously in the Central District of California. Netlist contends that Micron’s overseas manufacturing of the accused memory products warrants import restrictions.
The legal pressure comes at a time when Micron’s AI server memory business, a key growth driver, faces scrutiny. The company’s shares had surged more than 5% on Monday after remarks by the U.S. Commerce Secretary signaled opposition to Apple sourcing memory chips from Chinese rivals, positioning Micron as the sole U.S.-based competitor in DRAM and NAND at scale.
Broader market conditions added to the downward pressure. The Nasdaq Composite declined 1.2%, while rising oil prices and climbing Treasury yields weighed on technology stocks. The S&P 500 also retreated, reflecting a risk-off tone across equities.
Bank of America maintained its Buy rating on Micron with a $1,550 price target, projecting earnings per share could exceed $230 by fiscal 2030. The firm’s outlook underscores confidence in Micron’s long-term position despite the near-term legal uncertainty. Shares were down nearly 5% at mid-morning, erasing part of Monday’s gains.
