Micron falls 5% in premarket, paring earlier gains amid tech rout
Samuel Boivin | Nurfoto | Getty Images
Micron Technology Stocks fell on Friday, paring gains from earlier in the week after big earnings were reported.
The memory chip maker was down nearly 5% in premarket trading as other U.S. semiconductor firms also struggled. Intel was last down just over 3%, Sandisk was down 5%, Arm was down 4% and Marvell was down 3.7%.
Investors continue to be wary of the increasing costs of artificial intelligence infrastructure as the sales are reflected in global markets.
Major European chip stocks also saw losses. ASML was down 2.2%, Infineon was down 3.7%, ASM International was down 2.8%, ST Microelectronics was down 3.3% and Be Semiconductor was down 2%. japanese conglomerate softbank It led losses in Asia, falling more than 12%.
Micron’s third-quarter revenue quadrupled to $41.46 billion from $9.3 billion a year earlier, beating analysts’ expectations. Revenue of approximately $50 billion is projected for the current quarter, compared to $11.3 billion a year ago. The company’s shares rose more than 15% on the day and are up 863% over the past year.
Shares of Micron last year.
As large hyperscalers build AI infrastructure, including data centers, they need large quantities of memory chips to purchase from Micron.
This increase in demand reduces the supply of memory for other devices such as smartphones, computers and more, causing prices to rise and Micron’s earnings to increase.
