Micron Stock Is Down 23% From Its Highs. Did Nvidia's CFO Just Give It the Green Light for a Turnaround?
Key PointsMicron's earnings have soared because of memory chip shortages, but the stock price has fallen from its highs.
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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