Micron shares plunge on weak second-quarter guidance
Sanjay Mehrotra, CEO of Micron Technology Inc., speaks during an interview with CNBC on the floor at the New York Stock Exchange (NYSE) in New York City, U.S., April 26, 2024.
Brendan Mcdermid | Reuters
Micron shares plunged 13% in extended trading on Wednesday after the chipmaker issued weak second-quarter guidance despite an earnings beat for the latest period.
Here’s how the company did compared to analysts’ expectations surveyed by LSEG:
- Earnings per share: $1.79, adjusted vs. $1.75 expected
- Revenue: $8.71 billion vs. $8.71 billion expected
For the second quarter, Micron said it expects revenue of $7.9 billion, plus or minus $200 million, and adjusted earnings per share of $1.43, plus or minus 10 cents. Analysts were expecting revenue of $8.98 billion and EPS of $1.91, according to LSEG.
The computer memory and storage company has seen its shares climb 22% year to date as of market close, trailing the Nasdaq’s 29% gain. In the earnings report, Micron highlighted data centers and artificial intelligence ventures with Nvidia’s processors as growth areas.
“While consumer-oriented markets are weaker in the near term, we anticipate a return to growth in the second half of our fiscal year, said CEO Sanjay Mehrotra in a press release. “We continue to gain share in the highest margin and strategically important parts of the market and are exceptionally well positioned to leverage AI-driven growth to create substantial value for all stakeholders.”
Jensen Huang, NVIDIA founder and CEO, has a Q&A session at a press conference during the APEC CEO summit on October 31, 2025 in Gyeongju, South Korea.
Woohae Cho | Getty Images News | Getty Images
Even Nvidia CEO Jensen Huang couldn’t save the tech and artificial intelligence trade this week.
The chip giant’s talismanic leader trumpeted “off the charts” chip sales and dismissed talk of an “AI bubble,” and for a while, the tide lifted all boats.
“There’s been a lot of talk about an AI bubble,” Huang said during an earnings call this week. “From our vantage point, we see something very different.”
The buzz from the blowout report quickly reversed, sending the AI winners deeply into the red — and few beneficiaries were left unscathed.
Every member of the Magnificent 7, except for Alphabet, was tracking for a losing week, with Nvidia, Amazon and Microsoft staring down the biggest losses.
Amazon and Microsoft have led the group’s drop lower, falling about 6% this week. Meanwhile, Alphabet has gained nearly 8%. The search giant is also the only megacap of the group on pace for November gains thanks to a boost from the launch of Gemini 3.
Oracle, which is another major Nvidia customer, slumped about 10%. The chipmaker also supplies major model developers such as OpenAI and Anthropic.
Chip stocks have also declined amid the broader tech market turmoil. Advanced Micro Devices and Micron were on pace for 17% losses. Marvell Technology has slumped about 10%. Quantum computing stocks Rigetti, IonQ and D-Wave have dropped at least 10%
CoreWeave, which buys and rents out Nvidia’s chips in data centers, initially soared on the chipmaker’s earnings report, but swiftly reversed course. The company’s stock is looking at an 8% blow this week.
AI fever was cooling in the runup to Nvidia’s earnings report on Wednesday, and investors looked to the print to alleviate fears that the AI bubble was on shaky ground. Since the launch of ChatGPT in late 2022, the stock has helped power the market to new all-time highs.
But concerns have mounted in recent weeks as tech stocks hit stretched valuations.
Major investors, including Bridgewater’s Ray Dalio told CNBC Thursday that the market is definitely in a bubble.
Much of the worries have stemmed from a boom in capital expenditures spending to support AI, with few signs of a payoff in view for many of the players.
Investor Michael Burry recently accused some of the biggest cloud and infrastructure providers of understating depreciation expenses and estimating a longer life cycle for their chips, calling it “one of the more common frauds of the modern era.”
Earlier this month, Burry revealed bets against Nvidia and Palantir.
Shares of the software analytics company, which supplies AI tools to the government and businesses, are down 11% this week. The stock has shed nearly a quarter of its value this month.
WATCH: Bridgewater founder Ray Dalio: We are definitely in a bubble, but that doesn’t mean you should sell
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