Micron Stock Is Down 23% From Its Highs. Did Nvidia's CFO Just Give It the Green Light for a Turnaround?
The memory chip bottleneck shows no signs of slowing at the moment.
Overview
Just a few years ago, Micron Technology's (NASDAQ: MU) business was in so much pain that it had negative gross margins. This was the down cycle coming out of the pandemic-era semiconductor shortage. In fact, in Q4 of fiscal year 2023, which ended in August of that year, Micron's gross margin was negative 11%, and its stock price was in the gutter.
A few years later, everything has changed. The growing demand for artificial intelligence (AI) chips has boosted demand for Micron's memory products, with limited supply across the industry, leading to soaring profits and a surging Micron stock price. Its shares are now up almost 700% in the last year.
Details
However, as enthusiasm in the AI trade has faded, Micron's stock price has fallen 23% from its highs. Now, Nvidia (NASDAQ: NVDA) may be back to help keep the party going, with comments from the latest earnings call indicating the memory chip shortages will continue. Could this be the turnaround Micron's share price was looking for?
Source
Originally published at www.fool.com.