Micron Technology Shares Plunge on Disappointing Forecast

Micron Technology's shares plummeted by approximately 14% in extended trading after the company issued a second-quarter revenue forecast of $7.9 billion, significantly below analysts' expectations of $8.97 billion. The forecast also included adjusted earnings per share predictions that fell short of consensus estimates. CEO Sanjay Mehrotra acknowledged weakened consumer markets but expressed optimism for growth in the second half of the fiscal year, emphasizing their strategic position in AI-driven sectors. The memory chip market, particularly for DRAM chips, remains sluggish due to decreased demand from PCs and smartphones. Micron's recent fiscal first-quarter performance showed a profit of $1.87 billion, with revenue rising 84% to $8.71 billion, yet the outlook indicates challenges ahead. The company is also expanding operations with a new mega campus in New York to bolster production capabilities.