Micron Technology Stock Is Plummeting, but Here's Why I'm Not Buying the Dip
Investors are increasingly nervous about the sustainability of the artificial intelligence spending boom.
Overview
Micron Technology (NASDAQ: MU) is one of the world's top suppliers of high-bandwidth memory (HBM) for data centers, which helps maximize processing speeds in artificial intelligence (AI) workloads. Demand for this hardware is off the charts, resulting in a severe shortage that is giving Micron the ability to dictate prices.
But despite these favorable conditions, Micron stock recently plummeted by 32% from its June record high. Concerns are growing about the sustainability of the AI infrastructure spending boom, as the soaring cost of chips and components threatens the financial viability of deploying AI software.
Details
To keep things in perspective, Micron stock is still sitting on a one-year gain of almost 700%, so the sky isn't exactly falling just yet. But here's why I won't be buying the recent dip.
Source
Originally published at www.fool.com.