Micron Stock Drops 27% Since Mid-June Amid Broader AI Spending Skepticism, Despite Strong Q3 Sales Growth of 345%
A recent analysis suggests that Micron Technology's stock has fallen 27% since mid-June, driven by general investor skepticism about the sustainability of artificial intelligence (AI) spending, rather than issues with the company's own business. This pullback occurred despite Micron reporting a 345% surge in fiscal third-quarter sales to $41.5 billion and a 1,200% spike in EPS to $25.11. The analysis highlights that other semiconductor stocks also saw significant declines, with 20 top companies collectively losing $1.3 trillion in market cap in July. However, major tech firms like Alphabet and Amazon continue to project substantial increases in AI capital expenditures for the coming years, indicating ongoing strong demand. Micron management believes the memory shortage will persist at least through 2027, with SK Hynix extending that forecast to 2030, and Apple CEO Tim Cook also expects e
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