What Happened?

A number of stocks fell in the afternoon session after China announced new export controls on the critical minerals. Beijing's Commerce Ministry stated that foreign suppliers now need government approval to export products containing certain rare-earth materials. These materials are essential for producing high-tech goods, including computer chips, electric vehicles, and defense technology. Analysts view the move as a strategic assertion of China's dominance in the global rare earth supply chain, particularly amid ongoing trade tensions and ahead of an anticipated meeting between the US and Chinese presidents. The new policies are expected to tighten global supply chains, potentially causing licensing delays and cost increases for manufacturers in key strategic sectors. Also, investors paused a record-setting rally amid uncertainty from the ongoing U.S. government shutdown. 

The S&P 500 and Nasdaq pulled back from all-time highs as the shutdown entered its second week, creating a data vacuum for investors. The political impasse has halted the release of vital economic indicators, including key reports on jobs and inflation. Without this crucial information, it becomes more difficult for the Federal Reserve and market participants to accurately assess the nation's economic health. This uncertainty has prompted traders to take profits following a prolonged period of gains. In the absence of official data, investors are paying close attention to upcoming speeches from Fed officials for any guidance on future monetary policy. 

In addition, Jamie Dimon raised concerns about a market correction. He added, "I would give it a higher probability than I think is probably priced in the market and by others, so if the market is pricing in 10%, I would ... say it's more like 30%." Dimon's remarks are closely watched, given his influence as head of one of the nation's largest banks.

The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks.

Among others, the following stocks were impacted:

• Memory Semiconductors company Micron (NASDAQ: MU) fell 3%. Is now the time to buy Micron? Access our full analysis report here, it’s free for active Edge members.
• Analog Semiconductors company onsemi (NASDAQ: ON) fell 2.5%. Is now the time to buy onsemi? Access our full analysis report here, it’s free for active Edge members.
• Processors and Graphics Chips company Qorvo (NASDAQ: QRVO) fell 2.6%. Is now the time to buy Qorvo? Access our full analysis report here, it’s free for active Edge members.

Zooming In On Micron (MU)

Micron’s shares are very volatile and have had 28 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.

The previous big move we wrote about was 1 day ago when the stock gained 4.6% as analysts raised their price targets on the stock, pointing to strong demand for its memory chips used in artificial intelligence (AI) applications. UBS increased its price target on Micron to $225 from $195, maintaining a Buy rating due to stronger projections for high-bandwidth memory (HBM) sales. Goldman Sachs also adjusted its price target upward to $180 from $145. This optimism was supported by a broader surge in the semiconductor industry, fueled by the rapid adoption of AI. Adding to the positive developments, Micron launched a new, faster, and more power-efficient memory module designed for AI-ready laptops and workstations, which the company expected would boost future revenues.

Micron is up 120% since the beginning of the year, and at $192.40 per share, it is trading close to its 52-week high of $196.54 from October 2025. Investors who bought $1,000 worth of Micron’s shares 5 years ago would now be looking at an investment worth $3,856.

Unless you’ve been living under a rock, it should be obvious by now that generative AI is going to have a huge impact on how large corporations do business. While Nvidia and AMD are trading close to all-time highs, we prefer a lesser-known (but still profitable) semiconductor stock benefiting from the rise of AI. Click here to access our free report on our favorite semiconductor growth story.