Micron Technology (NASDAQ: MU) experienced a sharp 16% plunge on December 19, marking its worst trading day since March 2020.
Micron Technology (NASDAQ: MU) experienced a sharp 16% plunge on December 19, marking its worst trading day since March 2020.
In this video, I will go over Micron Technology's (MU -16.18%) first-quarter earnings report and explain why the stock is dropping. Watch the short video to learn more, consider subscribing, and click the special offer link below.
Micron Technology's 16% stock drop post-Q2 guidance miss is driven by weaker NAND and mobile orders, not AI-related issues. Despite short-term challenges, Micron's AI and data center DRAM markets remain robust, with strong demand from Nvidia and potential from AMD. The company's forward P/E ratio is significantly below the sector median, presenting a unique buying opportunity with a 108% upside potential.
Kim Forrest, CIO of Bokeh Capital Partners, says it's a buying opportunity for Micron as shares plunge on the company's weak chips outlook. She joins Caroline Hyde on "Bloomberg Technology" to discuss.
Micron Technology (MU) shares sank Thursday after the chipmaker warned about softness in consumer-oriented markets and some analysts lowered their outlook for the company.
In my fiscal Q1 FY25 preview note on Micron Technology, Inc., I had expressed a cautious stance, which correctly anticipated a weak NAND market ahead (NAND makes up 26% of Micron's revenues). The NAND demand cycle seems to be at a local peak as it faces volume and pricing headwinds due to slower growth and inventory corrections at the customers' level. NAND weakness has impacted fiscal Q2 FY25 revenue and gross margin guidance and caused it to miss expectations, and the outlook is expected to remain weak for at least a couple more quarters.
Micron Technology, Inc.'s Q1 2025 results show strong revenue and margins, driven by record data center demand, but the company faces risks from concentrated customer dependency. DRAM and NAND markets show potential weakness, with slowing demand growth and reduced capital expenditures indicating limited pricing power and future challenges. Micron's heavy reliance on the data center market and geopolitical risks, particularly with China, pose significant threats to its future performance.
CNBC's Deirdre Bosa reports on news regarding Micron's quarterly earnings results.
CNBC's Seema Mody reports on the latest news from Micron.
Shares of Micron plummeted on Thursday after the chipmaker issued weaker-than-expected guidance for the second quarter. "Micron expects further delay in the PC refresh cycle and cited pockets of elevated customer inventory in smartphones," Stifel analysts wrote in a report to clients.
MU's Q1 performance reflects the benefits of the robust demand for the product portfolio across DRAM and NAND technologies.