Micron Technology Stock Has Stumbled, but Here's Why I'm Not Buying the Dip
The artificial intelligence infrastructure spending boom has run into some turbulence.
Overview
Micron Technology (NASDAQ: MU) stock closed at $958.73 on Monday, Aug. 31, which was 21% below its June all-time high. But just to keep things in perspective, the stock is still sitting on an eye-popping one-year gain of 680%.
Micron supplies some of the world's best high-bandwidth memory (HBM) for data centers, a critical component in the artificial intelligence (AI) hardware stack. Demand is currently through the roof and supply remains tight, giving the company an unprecedented ability to dictate prices.
Details
However, the supply-demand imbalance could resolve during the next year or two, potentially hurting Micron's financial performance. Therefore, although its stock is trading at a very attractive valuation, it isn't a straightforward buy right now. Here's why I'm steering clear despite the recent dip.
Source
Originally published at www.fool.com.