MU: Micron Stock Fall After Stops Selling Server Chips to China Data Centers

Oct 17 - Micron Technology MU shares slid about 4% on early Friday after Reuters reported the company plans to stop selling server chips to data centers in China, a move reflecting a prolonged downturn after Beijing's 2023 ban on its products in critical infrastructure, industry sources said, according to a Reuters report, raising investor concern.

The company will still supply chips to two Chinese customers that operate major data centers outside China, including Lenovo (LNVGY), and will continue sales to clients in the automotive and mobile sectors, Reuters added. Mainland China made up $3.4 billion, or about 12%, of Micron's revenue in its most recent fiscal year.

Analysts said the decision highlights persistent geopolitical risks that have shadowed global chip suppliers since trade measures escalated. Micron was the first U.S. memory-chip maker singled out by Beijing in what many saw as retaliation for U.S. export controls.

The move could sharpen the tech split between Washington and Beijing and weigh on Micron's near-term revenue growth in China, even as the company retools its supply strategy to protect other business lines.