Are Micron Technology (MU) earnings a canary in the coal mine for AMD stock, Nvidia?

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Micron $MU earnings outlook worries the semi-conductor industry, $AMD stock is down 51% year-to-date and computer chip sector suffers from lower demaned. $NVDA stock is trading in a demand zone by claymarkets stocks trading

, down 52%. Micron is actually now trading below its share price at the beginning of 2020.Micron's quarterly earnings last Thursday were the icing on the cake. At first glance, earnings were strong. Adjusted earnings per share of $2.59 beat consensus by 16 cents and amounted to a 38% YoY increase. Revenue of $8.64 billion was also in line. However,quickly suffocated any cause for celebration.

When a CEO stays focused on long-term prospects rather than near-term catalysts, you know there is a problem. Rather than the $2.60 a share in adjusted EPS thathad pegged for the current quarter – the fourth fiscal quarter – Mehrota said to expect $1.63. He also reduced expectations for sales from $9.05 billion to $7.2 billion. The reduced guidance stems from a sudden cutback in orders for chips used in smartphones and laptops.

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