Why Micron Melted Down and Intel, AMD, and Nvidia Followed
Thursday is looking like a miserable day to own semiconductor stocks. Last night, after close of trading, computer memory-maker Micron (NASDAQ: MU) reported a fiscal Q1 2023 loss four times bigger than expected, and added that it also missed on sales. Instead of Wall Street's expected $0.01-per-share loss, Micron lost $0.04 per share in the quarter. Sales were $4.09 billion, just shy of analysts' projected $4.11 billion.
Micron stock slid 3.9% through 11:10 a.m. EST, and the losses weren't limited to Micron. Falling in sympathy were Intel (NASDAQ: INTC), Advanced Micro Devices (NASDAQ: AMD), and Nvidia (NASDAQ: NVDA) -- down 4.2%, 6%, and 6.9%, respectively.
Micron's sales are melting down, having fallen 47% from Q1 a year ago, and its earnings results were even worse. That "$0.04" loss, you see, was only a pro forma figure. When calculated according to generally accepted accounting principles (GAAP), Micron's losses were actually $0.18 per share -- a complete reversal from one year ago, when Micron earned $2.04 per share.
Source Fool.com
