Micron Falls as Q2 Earnings and AI Compression Put Memory Stocks on Edge
Micron Technology shares fell 5% after releasing Q2 earnings, which raised concerns about debt and capital expenditure. The company's guidance and a new AI compression algorithm also sparked debate about long-term memory demand.
Micron Technology shares dropped 5% after Q2 earnings. The company's debt repurchase and increased capital expenditure guidance raised concerns. A new AI compression algorithm also sparked debate about memory demand. Micron's capital expenditures reached $5.39 billion in Q1, up 68% year over year. The algorithm achieves a 6x reduction in memory size with zero loss in accuracy. This has raised questions about long-term demand for high-bandwidth memory and DRAM.
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