Bad Guidance Makes Micron Slump

Summary:

• Micron’s recent earnings beat estimates, but weak Q2 guidance caused a 16% share price drop, raising concerns about near-term earnings growth.
• Despite an 80% year-over-year revenue increase, MU’s cyclical nature and weak consumer market outlook impact near-term performance.
• Data center business shows strong growth, benefiting from AI investments, but consumer-oriented markets remain weaker for now.
• Micron’s current valuation at 10–11x earnings suggests potential undervaluation, but further downside is possible; it’s not a must-own but worth considering.

Article Thesis

Micron Technology, Inc. (NASDAQ:MU) reported its most recent quarterly earnings results on Wednesday afternoon. While the numbers for the past quarter were far from bad, Micron’s guidance for the current quarter was a lot weaker than expected. This made

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