Why Micron Stock Just Slipped 5%

Shares of computer memory maker Micron (NASDAQ: MU) dropped for a second day running on Tuesday, falling 5.4% in the last 15 minutes of the trading day as news broke of a potential glut in the supply of dynamic random access memory -- DRAM.

As Investor's Business Daily reported today, tech industry market researcher TrendForce is predicting that DRAM prices will decline 5% sequentially in Q4 this year. Granted, that's a forecast still two quarters away. But already, it seems TrendForce can see that manufacturers of personal computers are carrying "relatively high levels of DRAM inventory because they substantially stocked up on PC DRAM beforehand in anticipation of an upcoming shortage."

And no wonder they stocked up, given that headlines all year long have declared that semiconductors of any form or function are going to be hard to come by all the way into 2023. But this new report appears to contradict that prevailing wisdom.

Source Fool.com