Why Micron Technology Stock Is Sinking Today

Source The Motley Fool

Shares of Micron Technology (NASDAQ: MU) were slipping Thursday. The firm's stock is down 2.9% as of 1:25 p.m. ET, but lost as much as 5.4% earlier in the day. The move down comes as the S&P 500 (SNPINDEX: ^GSPC) gained 0.3% and the Nasdaq Composite (NASDAQINDEX: ^IXIC) fell 0.1%.

Despite news of a new artificial intelligence (AI) initiative from the Trump administration, Micron shares were hurt by its rivals' recent earnings report.

Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. See the 10 stocks »

Losing memory

Micron is a semiconductor firm specializing in memory, supplying Nvidia with the high-bandwidth memory (HBM) components necessary to build Nvidia's AI-powering Superchips. The relationship is not exclusive, however. Among Micron's rival Nvidia suppliers is SK Hynix.

The company's earnings, released Wednesday, showed strong revenue growth. This would normally bode well for rival firms like Micron, indicating its next report would show similar growth. However, the earnings call included a warning from the company's CFO, Kim Woohyun, that demand in the coming year was uncertain. While AI-driven demand appears strong, demand from mobile and PC clients is less so amid shifting trade policy and geopolitical risks.

What's next for Micron?

Despite the uncertainty from mobile and PC clients, AI demand doesn't look to be waning. The company is in an excellent position to take advantage of the continued monster growth we're seeing in the AI market. Headquartered in Idaho, it's also more likely than its South Korean peers to benefit from President Trump's initiatives, like the newly announced Project Stargate. It would make a great addition to a well-rounded portfolio.

Where to invest $1,000 right now

When our analyst team has a stock tip, it can pay to listen. After all, Stock Advisor’s total average return is 934% — a market-crushing outperformance compared to 177% for the S&P 500.*

They just revealed what they believe are the 10 best stocks for investors to buy right now…

Learn more »

*Stock Advisor returns as of January 21, 2025

Johnny Rice has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Nvidia. The Motley Fool has a disclosure policy.

Disclaimer: For information purposes only. Past performance is not indicative of future results.
placeholder
Best Stock to Buy Right Now: Amazon vs AppleAmazon (NASDAQ: AMZN) and Apple (NASDAQ: AAPL) have become among the world's most recognized companies. They've also become very valuable, with the former's market cap exceeding $2
Author  The Motley Fool
10 hours ago
Amazon (NASDAQ: AMZN) and Apple (NASDAQ: AAPL) have become among the world's most recognized companies. They've also become very valuable, with the former's market cap exceeding $2
placeholder
EUR/USD stays firm ahead of US CPIEUR/USD moves higher to near 1.0380 in Wednesday’s European session ahead of the United States (US) Consumer Price Index (CPI) data for January, which will be published at 13:30 GMT.
Author  FXStreet
10 hours ago
EUR/USD moves higher to near 1.0380 in Wednesday’s European session ahead of the United States (US) Consumer Price Index (CPI) data for January, which will be published at 13:30 GMT.
placeholder
Dogecoin Ready For A $2.43 Rally? Elliott Wave Says YesA new chart shared by BigMike7335 (@Michael_EWpro) via X suggests that Dogecoin could be on the verge of a strong bullish wave targeting $2.43. His analysis relies on Elliott Wave theory, which
Author  NewsBTC
12 hours ago
A new chart shared by BigMike7335 (@Michael_EWpro) via X suggests that Dogecoin could be on the verge of a strong bullish wave targeting $2.43. His analysis relies on Elliott Wave theory, which
placeholder
NZD/USD Price Forecast: Remains above 0.5650, resistance appears at nine-day EMAThe NZD/USD pair edges lower after registering losses in the previous session, trading around 0.5650 during the European hours on Wednesday.
Author  FXStreet
12 hours ago
The NZD/USD pair edges lower after registering losses in the previous session, trading around 0.5650 during the European hours on Wednesday.
placeholder
US Dollar Index Price Forecast: Treads water above nine-day EMA support near 108.00The US Dollar Index (DXY) recovers its losses from the previous two sessions, trading around 108.10 during Asian hours on Wednesday.
Author  FXStreet
14 hours ago
The US Dollar Index (DXY) recovers its losses from the previous two sessions, trading around 108.10 during Asian hours on Wednesday.
goTop
quote