Memory Chips Just Fell Into a Bear Market. Micron Is Down 30% From Its High Even as AI Demand Booms.
The fundamentals say boom. The stock price says the boom is ending. One of them is wrong.
Overview
Micron Technology (NASDAQ: MU) trades about 30% below its 52-week high of $1,255 as of this writing, after memory stocks dragged the chip sector into a bear market this month. The sell-off has erased more than $400 billion of Micron's market value -- from a company that just guided for the biggest quarter in its history.
The whole chip complex is hurting. Global chip stocks have given up about $3.3 trillion of market value in about a month. But memory has taken the worst of it, with Micron and its Korean rivals Samsung and SK Hynix all down more than 20% from their highs.
Details
The strange part? The underlying business has never been better.
Source
Originally published at www.fool.com.