Why Micron Technology Stock Fell More Than 2% Today
Shares of memory chip manufacturer Micron Technology (NASDAQ: MU) fell 2.2% today. In fact, the stock is down some 10% since Micron reported earnings on the evening of March 29. It was a solid quarterly update, one that beat expectations and showed Micron's momentum continuing through this year as the world continues to suffer from a shortage of chips.
As for specific numbers, Micron management said that in the second quarter of fiscal 2022 (the three months ended March 3), sales and adjusted earnings rose 25% and 118% year over year, respectively. Pricing on its memory chips is expected to rise at a double-digit percentage for the balance of the year as demand for electronic components continues to outpace the supply Micron can crank out.
That means at least a couple more quarters of strong growth is likely. So why the glum mood among Micron investors? Some stock analysts are beginning to sound the alarm on the industry, noting that white-hot demand (especially for consumer devices) might start to ease in 2023.
Source Fool.com
