Micron tumbles as AI revenue surge falls short of lofty expectations
The Hindu
Micron's stock drops 6% as revenue forecast disappoints, despite strong AI chip demand, impacting tech market expectations.
Micron shares dropped 6% in premarket trading on Thursday after the chipmaker's current-quarter revenue forecast failed to impress investors looking for outsized results powered by the AI demand surge.
The chipmaker forecast fourth-quarter revenue of $7.6 billion, plus or minus $200 million, in line with analysts' average estimate even as the company said it had "sold out" its high-bandwidth memory (HBM) chips for this year and the next.
Micron is one of the few providers of HBM chips that power the world's most advanced AI systems, allowing the company to cash in on surging demand for semiconductors and driving up its stock 67% so far this year.
"Anything less than fantastic is not good enough when your share price got multiplied by three in just about 18 months," said Ipek Ozkardeskaya, senior analyst at Swissquote Bank in a note.
(For top technology news of the day, subscribe to our tech newsletter Today’s Cache)
The chipmaker is set to lose $10 billion at current share price levels of $133.25. Peers Nvidia, Broadcom , Intel and Qualcomm were also down 0.2-2% in premarket trading.
"The market reaction underscores the high expectations for every company that is part of the AI ecosystem," said analysts at Saxo Bank.
When Sachin was denied admission for an undergraduate course due to his disability, his mother Padma petitioned the State Commission for the Welfare of the Differently-Abled. And that initiative set the ball rolling towards a significant reformation - Welfare of the Differently-Abled Persons Department issued a circular to 19 universities in Tamil Nadu that they have to reserve five per cent of the seats in higher education for persons with benchmark disabilities.
Chief Minister Siddaramaiah called on Prime Minister Narendra Modi in New Delhi on Saturday and sought the Centre’s clearance for three major pending water projects, including Mekedatu project which aims to provide drinking water to Bengaluru and surrounding residential areas from a dam that has been planned.