TLDR
- Micron Technology (MU) plans to stop supplying server chips to data centers in China following its failed recovery from Beijing’s 2023 product ban
- The company will continue selling chips to Chinese customers with operations outside China and to automotive and mobile phone sectors within the country
- CEO Sanjay Mehrotra sold $5.13 million worth of stock in late October through transactions totaling 18,586 shares
- Stock prices during Mehrotra’s sales ranged from $221.68 to $231.45 per share across multiple transactions on October 29 and 30
- The sales were executed under a Rule 10b5-1 trading plan that Mehrotra established in August 2024
Micron Technology is pulling the plug on server chip sales to Chinese data centers. The move comes after the company couldn’t bounce back from Beijing’s 2023 ban on its products.
Reports surfaced on October 17 revealing the chipmaker’s decision to exit this market segment. The company was the first American semiconductor firm to face pressure from Chinese authorities.
Beijing’s ban came as retaliation for Washington’s restrictions on Chinese tech industry growth. Micron found itself caught in the crossfire of escalating trade tensions between the two nations.
Despite China’s booming data center expansion, Micron failed to capture any piece of that growth. The 2023 ban effectively locked the company out of a lucrative market opportunity.
The chipmaker isn’t completely abandoning the Chinese market though. Micron will keep selling chips to Chinese customers who maintain substantial operations outside the country.
Selective Market Approach
The company also plans to continue serving China’s automotive and mobile phone sectors. These segments remain open for business despite the data center exit.
This selective approach allows Micron to maintain some presence in the world’s second-largest economy. The strategy balances market access with the reality of government restrictions.
Meanwhile, CEO Sanjay Mehrotra has been active in the stock market himself. He sold $5.13 million in company shares during late October transactions.
The sales occurred on October 29 and 30, involving 18,586 shares total. Prices ranged from $221.68 to $231.45 per share across multiple transactions.
CEO Stock Activity
On October 29, Mehrotra sold 8,968 shares at $230.23 average and 2,930 shares at $231.45 average. The following day saw more sales at lower prices.
October 30 transactions included 527 shares at $221.68, 596 shares at $223.04, and 1,131 shares at $224.30. He also sold 3,225 shares at $225.05, 4,911 shares at $226.14, and 212 shares at $226.79.
All sales happened under a Rule 10b5-1 trading plan. Mehrotra established this plan on August 8, 2024.
The CEO also gifted 10,000 shares on October 29. After these transactions, he directly owns 409,078 shares.
Mehrotra maintains indirect ownership too. He holds 675,000 shares in grantor retained annuity trusts for himself and his family.
The timing of Mehrotra’s stock sales coincides with the company’s strategic pivot away from Chinese data centers. The Rule 10b5-1 plan allows executives to sell shares on a predetermined schedule.
The post Micron (MU) Stock: Company Abandons Chinese Data Center Fight After Ban appeared first on Blockonomi.
This articles is written by : Nermeen Nabil Khear Abdelmalak
All rights reserved to : USAGOLDMIES . www.usagoldmines.com
You can Enjoy surfing our website categories and read more content in many fields you may like .
Why USAGoldMines ?
USAGoldMines is a comprehensive website offering the latest in financial, crypto, and technical news. With specialized sections for each category, it provides readers with up-to-date market insights, investment trends, and technological advancements, making it a valuable resource for investors and enthusiasts in the fast-paced financial world.