Micron ( (MU) ) has fallen by -25.52%. Read on to learn why.
Micron, a leading semiconductor company known for its memory and storage solutions, has experienced a significant stock price drop of 25.52% over the past week. This decline is part of a broader tech sell-off that saw the Nasdaq index fall by 5%. Despite Micron’s strong performance in recent quarters, the stock has been affected by weak guidance on gross margins due to NAND underutilization, leading to concerns about supply and demand imbalances.
The company’s recent earnings report showed a solid performance, with earnings of $1.56 per share on $8.05 billion in sales. However, management’s projection of a 36.5% gross margin due to oversupply issues in NAND chips has put pressure on the stock. Analysts remain optimistic about Micron’s future, highlighting its leadership in the high bandwidth memory (HBM) market and its potential to capture a significant share of this growing sector.
Despite the current challenges, Micron’s long-term prospects remain strong, with analysts maintaining a ‘Strong Buy’ consensus rating. The company’s advancements in HBM technology, including partnerships with major players like Nvidia, position it well for future growth. Investors are advised to consider the potential for recovery as the company addresses supply chain issues and capitalizes on the increasing demand for AI and high-performance computing applications.