What Happened?

Shares of memory chips maker Micron (NYSE:MU) fell 5.3% in the morning session after peer, SK Hynix, raised concerns about potential demand challenges. During the earnings call, CFO Woo-Hyun Kim stated, "2025's memory demand outlook is clouded by inventory adjustments from PC and smartphone OEMs [original equipment manufacturers] as well as strengthened protective trade policies and geopolitical risks." This cautious outlook highlights broader industry pressures that could also affect competitors like Micron.

The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Is now the time to buy Micron? Access our full analysis report here, it’s free.

What The Market Is Telling Us

Micron’s shares are very volatile and have had 21 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business. 

The previous big move we wrote about was 16 days ago when the stock gained 6.7% on the news that Nvidia identified the company (Micron) as a key supplier of its GPUs. At the CES 2025 event, Nvidia's CEO, Jensen Huang, unveiled the GeForce RTX 50 Series GPUs for desktops and laptops, targeting gamers. These innovations could spark more demand for next-generation computing devices and the critical components powering them, such as Micron's memory chips.

Micron is up 19.5% since the beginning of the year, but at $104.38 per share, it is still trading 32% below its 52-week high of $153.45 from June 2024. Investors who bought $1,000 worth of Micron’s shares 5 years ago would now be looking at an investment worth $1,763.

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