Micron's Selloff Highlights Risk of Sky-High AI Expectations
What caused Micron Technology Inc.'s recent selloff?
Micron Technology Inc.'s recent selloff was caused by the company's forecast falling short of the highest estimates, which led to an 8% drop in its shares. This occurred in the context of extreme volatility in AI-related stocks and a broader decline in semiconductor shares. The market's high expectations for AI-driven growth may have contributed to the selloff.
Which other companies were affected by Micron's selloff?
Micron's selloff impacted other memory chip providers in the AI supply chain, causing drops in South Korea's two biggest companies, Samsung Electronics Co. and SK Hynix Inc.
How did Micron's forecast compare to analyst expectations?
Micron's forecast fell short of the highest analyst expectations. While the average analyst estimate for fourth-quarter sales was $7.58 billion, some projections were above $8 billion. Micron projected revenue of $7.4 billion to $7.8 billion for the final quarter of fiscal 2024.