Why Micron Stock Just Dropped Again
Yahoo Finance ·
Topsy-turvy Micron ( MU 8.26% ) stock took another tumble on Wednesday, sliding an unlucky 7.7% through 2:50 p.m. ET after Warren Buffett warned that it's becoming "tough to find values when everybody is preferring gambling" on the artificial intelligence revolution and similar themes. Investors have been running hot and cold on semiconductor stocks like Micron for weeks -- sometimes responding to the very same news with buying or selling, depending on the day of the week. For example, after South Korea's SK Hynix ( SKHY 9.71% ) began selling stock on the Nasdaq last week, investors first bought computer memory semiconductor stocks on the theory that SK's CEO thought demand would outstrip supply for years. They then turned around and sold these same stocks a few days later, though, worried that SK Hynix's plans to increase production to satisfy this memory demand might hurt prices and profits for both SK and its competitors (like Micron). So basically, Buffett is right : investors are taking each bit of news as it happens, and gambling on whether it might drive memory stocks up or down.
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