Micron Stock Is Down 23% From Its Highs. Did Nvidia's CFO Just Give It the Green Light for a Turnaround?
The memory chip bottleneck shows no signs of slowing at the moment.
Micron Technology, once mired in financial distress with negative gross margins due to the semiconductor shortage post-pandemic, has witnessed a remarkable turnaround in recent years. The surge in demand for artificial intelligence (AI) chips has driven up the demand for Micron's memory products, despite industry-wide supply constraints, resulting in record profits and a skyrocketing stock price.
In fact, the company's shares have risen nearly 700% in the past year. However, this enthusiasm has recently waned, causing Micron's stock price to drop 23% from its all-time highs. In a recent earnings call, Nvidia's CFO hinted that memory chip shortages might persist, suggesting Micron could be poised for a resurgence.
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