Tech Stocks That Are Down Today: AMD, Palo Alto Networks, DataDog and Micron Technology

After yesterday’s debacle in which approximately $1 trillion in market capitalization was erased from the stock market, some technology stocks are still hunting a bottom. With the Nasdaq Composite now down 3% for the month of November so far, the AI rally has lost its steam for the time being as the markets wrestle with bullish fundamentals overshadowed by negative headlines. While the selling hasn’t been pretty for the bulls, it does not appear to be over, at least not yet. The following technology stocks – Micron Technology (Nasdaq: MU), Data Dog (Nasdaq: DDOG), Advanced Micro Devices (Nasdaq: AMD) and Palo Alto Networks (Nasdaq: PANW) – are heading lower today in a most volatile time to be invested in the U.S. stock market.

Micron Tech

After sinking as much as 11% in Thursday’s market sell-off, and even dipping below the psychologically sensitive $200 threshold, the bottom has seemingly fallen out in the stock. Today MU stock is down another 3.6%. Investors have been spooked by Micron’s aggressive AI capex plans in which management conceded that its $18 billion plan would face headwinds. Investors are having to get used to these massive balance sheets committed massive amounts of capital to stay in the AI race.

Also, profit taking is normal with a stock that has run up over 100% year-to-date.  Rosenblatt has a whopping $300 price target on the stock, owing to its massive total addressable market and leaving room for plenty of upside potential. Morgan Stanley analysts are targeting a very bullish $325 stock price with an “overweight” rating. Therefore investors might look to any pullback in the stock as a potentially strategic buying opportunity but not for the faint of heart.

Datadog

After spiraling by 9.5% on Thursday, Datadog is widening its losses today, falling 3.4% as of mid-morning trading. After nearing the $200 level in November, Datadog has taken a step backwards, threatening to fall below the $150-per-share level in recent days. Year-to-date, the stock is up 8.2%, and Wall Street analysts are bullish with an average price target of $218 attached.

With OpenAI integration a bullish sign, today’s declines may be technical in nature, as there is no apparent negative catalyst, but the declines are still hitting investor portfolios hard.

AMD

After losing 7.8% in Thursday’s market downturn, Advanced Micro Devices stock can’t get out of its own way. AMD stock has now dipped below the $200 level, falling a steep 4% in today’s session. AMD clinched its latest all-time high last month when it rose as high as $264 per share, and investors may be taking profits off the table.

AMD also has a spot in the coveted OpenAI club, having clinched a recent partnership with the maker of ChatGPT. The consensus is that the stock is worth close to $300 per share, but the ride up is likely going to be bumpy.

Palo Alto Networks

After falling 7.4% yesterday, Palo Alto Networks is down a further 1.2% today. The cybersecurity company reported earnings and suffered a downgrade by HSBC, which lowered its view on the stock from “hold” to “reduce” with a price target of $157. PANW announced a merger in which it is buying a cloud-management company in a $3.3 billion transaction, which as the buyer could also be weighing on the stock.

PANW announced a merger in which it is buying a cloud-management company in a $3.3 billion transaction, which as the buyer could also be weighing on the stock.