Micron Technology (MU) saw its stock price plummet by 5.01% in pre-market trading on Wednesday, caught in a broader selloff affecting the semiconductor industry. The sharp decline comes as the tech sector, particularly chip stocks, faced significant pressure following news of tightened export controls on chip sales to China and concerns over potential tariffs on critical minerals.

The semiconductor industry was rattled after it was announced that the U.S. government would require licenses for exporting certain AI chips to China, signaling an escalation in trade restrictions. This development sent shockwaves through the chip sector, with Micron and its peers experiencing substantial declines. Other major players in the industry, such as Advanced Micro Devices (AMD), Broadcom, and Intel, also saw their stock prices drop significantly in pre-market trading.

Adding to the sector's woes, President Donald Trump ordered an investigation into potential tariffs on critical minerals, further stoking fears of increased trade tensions and their potential impact on the semiconductor supply chain. In light of these developments, BofA Global Research cut its price objective for Micron Technology from $110 to $84, reflecting the uncertain outlook for the company. As investors reassess the implications of these geopolitical developments on the chip industry's future prospects, Micron's stock may continue to face volatility in the near term.