Citadel Reduces Stake in Micron Amid AI-Driven Chip Stock Surge
Ken Griffin's hedge fund, Citadel Advisors, has significantly reduced its stake in Micron Technology (MU), cutting holdings by nearly 87% over the past three months. Despite a surge of more than 600% in MU stock this year and strong financial performance from Micron—including record revenue and gross margins—Citadel trimmed four million shares to just under 601,000. The move is part of broader portfolio adjustments by Citadel across multiple sectors, including cuts in positions for General Electric, Citigroup, Merck, Tesla, and Meta. The hedge fund also reduced its stake in other semiconductor firms like Taiwan Semiconductor Manufacturing (TSM) and STMicroelectronics. While the 13F filing does not explain the rationale behind these moves, they may reflect risk management or portfolio rebalancing rather than a bearish outlook on specific stocks. Micron's CEO has highlighted strong demand for memory chips driven by AI growth and long-term supply agreements with major clients as key factors in continued performance. Despite recent stock volatility, Micron remains optimistic about sustained industry strength through 2027.
Topics: hedge_fund semiconductors stock_trading