Micron Stock Drops Over 16% Despite AI Growth Potential

Reported 2 days ago

Micron's stock plummeted more than 16% after the company issued weaker-than-expected revenue guidance for the current quarter, predicting earnings between $7.7 billion and $8.1 billion, compared to Wall Street's expectation of $9 billion. Despite increasing demand for AI chips, particularly high-bandwidth memory (HBM) used in Nvidia GPUs, traditional chip sales, especially in the PC and smartphone markets, have declined. Analysts have downgraded Micron's stock, reflecting concerns over the impact of low consumer demand on overall revenue, even as the company remains optimistic about future growth in the AI sector.

Source: YAHOO

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