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micron technology Stocks fell sharply on Friday, paring gains from earlier in the week following the big earnings release.
The memory chip maker fell nearly 5% in premarket trading as other U.S. semiconductor companies also struggled. Intel fell more than 3%, SanDisk fell 5%, Arm fell 4% and Marvell fell 3.7%.
Investors remain wary of rising costs for artificial intelligence infrastructure, sending stock declines across global markets.
Major semiconductor stocks in Europe also fell. ASML fell 2.2%, Infineon fell 3.7%, ASM International fell 2.8%, STMicroelectronics fell 3.3% and B Semiconductor fell 2%. Japanese conglomerate Softbank It plunged more than 12%, led by losses in Asia.
Micron’s third-quarter sales more than quadrupled to $41.46 billion from $9.3 billion a year earlier, beating analysts’ expectations, the company said Wednesday. The company expects sales for the current quarter to be approximately $50 billion (compared to $11.3 billion in the same period last year). The company’s stock price soared more than 15% on the day and is up 863% over the past year.
Micron stock price over the past year.
When major hyperscalers build AI infrastructure, including data centers, they need large quantities of memory chips purchased from Micron.
This surge in demand has reduced the supply of memory for other devices such as smartphones and PCs, driving up prices and boosting Micron’s profits.
