Micron Shares Drop Over 4% as Profit-Taking and Chinese Rivals Pressure Memory Outlook
Updated
Updated · Yahoo Finance · Jul 24
Micron Shares Drop Over 4% as Profit-Taking and Chinese Rivals Pressure Memory Outlook
3 articles · Updated · Yahoo Finance · Jul 24
Summary
Micron fell more than 4% Friday, giving back part of this week's rally after investors locked in gains and reassessed the memory-chip outlook.
Tesla had boosted the stock earlier when Elon Musk said the automaker secured a substantial Micron chip supply on favorable terms, but that support faded as traders focused on industry competition.
CXMT and YMTC added pressure by expanding in memory chips, with CXMT landing multibillion-dollar supply deals with ByteDance and Tencent that sharpened concerns over server-memory competition.
Bearish analyst commentary also pointed to potentially softer DRAM pricing as AI computing costs evolve, while Intel's stronger-than-expected results offered little lift to the broader semiconductor sector.
Major indexes were little changed, suggesting Micron's slide was driven mainly by company-specific and industry factors even as Wall Street remains broadly positive on its long-term prospects.