Why Micron Stock Keeps Going Down
The Motley Fool • • business
Key Points:
- Micron's stock has declined for six consecutive sessions following a strong earnings report, with a notable drop after Alphabet announced new compression technology that could reduce demand for Micron's high-bandwidth memory (HBM) chips.
- The announcement from Alphabet led to a 3.4% decrease in Micron's market value, with further losses continuing into the next trading day.
- Despite the sell-off, Morgan Stanley views the decline as a potential buying opportunity, emphasizing that memory remains a critical bottleneck for expanding AI capacity.
- Morgan Stanley highlights that customers are pre-paying for HBM deliveries, suggesting confidence in sustained demand and possibly exacerbating supply shortages, which could benefit Micron's profitability.
- The contrasting perspectives reflect ongoing uncertainty about the long-term impact of Google's compression technology on Micron's market but underscore the importance of memory in AI development.
