Micron's AI Opportunity Isn't as Big as It Looks

Memory chip manufacturer Micron (NASDAQ: MU) threw investors for a loop on Thursday with a quarterly report that featured an outlook that wasn't even in the ballpark of Wall Street's expectations.In the first quarter of its fiscal 2025, Micron's performance was solid, buoyed by soaring demand for high-bandwidth memory (HBM), which is critical for AI accelerators. However, the companies that buy its PC and mobile memory chips now have too much inventory on hand and are pulling back. Micron's guidance for the fiscal second quarter calls for revenue of $7.9 billion, more than $1 billion below the consensus analyst estimate.Micron is pitching itself as an AI play. The company predicts that the market for HBM chips will soar from $16 billion this year to more than $100 billion in 2030. Investors, though, were more concerned about the company's weak near-term outlook than they were excited about the AI opportunity on Thursday, sending the stock down by a double-digit percentage in the session. While demand for high-bandwidth memory will almost certainly continue to rise, it's unlikely to escape the boom-and-bust nature of the memory chip market.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool