Micron Technology Shares Drop 16% Amid Forecast

Micron Technology Inc. experienced a significant share price drop of around 15% following a grim forecast that highlighted weak demand for personal computers (PCs) and smartphones. Despite a record revenue of $8.71 billion in its first fiscal quarter and strong growth in AI-related chips, analysts are concerned about the company's exposure to struggling traditional markets. Morningstar analyst William Kerwin noted a 'significant decline' in flash memory revenue expected in fiscal 2025, exacerbated by a slower transition to Windows 11 and disappointing post-pandemic growth in PC demand. Bank of America downgraded Micron to neutral, citing falling demand in various sectors and pressures on memory pricing. However, some analysts, including those from Wedbush, remain optimistic about Micron's long-term prospects due to its positioning in the AI market and anticipated growth in data center investments. Overall, while Micron's AI-related product sales are robust, the immediate outlook for traditional memory markets remains challenging.