Micron Post-Earnings Selloff Highlights Risks That Come With Sky-High AI Hopes

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Stocks Analysis by Investing.com (David Wagner) covering: Micron Technology Inc. Read Investing.com (David Wagner)'s latest article on Investing.com

We will assess that and also consider if the market's overreaction was justified.Just last week, Micron hit an all-time high of $157.5, but the stock has since experienced a steep correction. This pullback is likely profit-taking as the stock has already rallied 66% YTD.

Micron reported EPS of $0.62, exceeding the anticipated $0.51. Similarly, sales reached $6.81 billion, surpassing the projected $6.67 billion. However, the company's forward guidance for the current quarter proved to be the source of investor discontent. Investors punished the stock not for missing expectations, but for merely meeting them. This reaction might seem excessive at first glance, but it reflects the high valuation already priced into Micron's stock.

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