Why Micron Stock Dropped Today
Yahoo Finance ·
Micron ( MU -2.63% ) stock slipped 2.5% thorugh 2:25 p.m. ET Monday after OpenAI announced over the weekend that it will pause training on some of its artificial intelligence models as it investigates new reports of AI agents going "rogue." Training AI models -- and even more using AI to answer questions (inference) and operate AI agents requires enormous amounts of memory. All year long, this rise in demand for computer memory has been pushing prices higher for the DRAM and NAND memory chips that Micron produces, boosting sales, profit margins, and bottom-line profits, too. A chorus of calls lately to slow the pace of AI advancement, however, has investors wondering how long the big profits can last for Micron. Additionally, a recent rise in U.S. interest rates -- and warnings that persistently high inflation may require further rate increases -- is putting pressure on tech stocks in general.
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