NEW YORK — Micron Technology Inc. shares fell for a fourth consecutive trading session on Monday, extending a post-earnings slide that has erased roughly 15% of the chipmaker’s market value even after it reported revenue that nearly tripled from a year ago.
The Boise, Idaho-based company late Wednesday posted fiscal second-quarter sales of $5.82 billion, up 92% year over year and ahead of Wall Street’s estimates. Micron also swung to an adjusted profit of $476 million, or 42 cents a share, following five straight quarters of losses as demand for artificial-intelligence servers drove a sharp recovery in high-bandwidth memory (HBM) chips.
Yet the stock, which touched an all-time high above $130 earlier this month, has retreated steadily since the report and closed Monday at $109.73. “The numbers were spectacular, but expectations were even higher,” said a semiconductor analyst at a large U.S. brokerage. “Traders worry that supply will ramp faster than demand in the second half, pressuring pricing.”
Micron executives sought to reassure investors on the post-earnings conference call, saying that HBM capacity for 2024 is already sold out and that the company has begun negotiating 2025 volumes. Chief Executive Sanjay Mehrotra added that cloud providers are scrambling to secure additional AI-optimized memory modules.
Still, some portfolio managers note that Micron’s volatile history makes them cautious. “We have seen several boom-bust cycles in DRAM. The question is whether AI creates a structurally higher floor, or if this is another peak,” said a fund manager whose firm reduced its Micron position last week.
Looking ahead, Wall Street will focus on Micron’s capital-expenditure guidance when it reports third-quarter results in late June. Any hint that the company is expanding output aggressively could renew fears of oversupply. Conversely, continued evidence of tight HBM availability could spark a rebound in the shares.