Micron Technology's stock fell 5.01% on Thursday morning, caught in the broader selloff of semiconductor stocks amid disappointing earnings and concerns over future demand for artificial intelligence chips.
The plunge in Micron shares was led by Marvell Technology, which plunged over 18% after reporting earnings. While Marvell's results beat Wall Street estimates, investors appeared underwhelmed by the outlook, sending shockwaves through the chip sector. Nvidia, AMD, Intel, and other semiconductor giants all traded lower, with the iShares Semiconductor ETF (SOXX) down nearly 3%.
Adding to the bearish sentiment were growing fears over weakening demand for AI chips. Nvidia, a leader in AI processors, saw its stock slide as reports surfaced about supply chain issues and missed deadlines impacting major cloud customers. Alibaba's unveiling of a new AI model that could reduce hardware spending also weighed on the sector.
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