AMD Dips as Micron’s Blowout Results Lift Memory Stocks but Shake AI Optimism
AMD•Memory and storage stocks rallied, with SanDisk up 10% and Western Digital rising 4% after Micron’s blowout quarter drove the iShares Semiconductor ETF up over 1%. Conversely, a broad semiconductor sell-off pressured Advanced Micro Devices alongside Nvidia and Intel as investors reassess whether AI spending will generate returns to justify current valuations.
1. Micron’s Blowout Results
Micron reported record quarterly revenue and gross margins that significantly exceeded analyst expectations, sending memory and storage stocks higher. SanDisk shares jumped 10% and Western Digital rose 4%, while the iShares Semiconductor ETF ticked up more than 1%, underscoring strong demand for AI-related memory solutions.
2. AMD and Sector Reaction
Despite the rally in memory names, broader semiconductor stocks including Advanced Micro Devices, Nvidia and Intel moved sharply lower as investors questioned whether massive AI capital spending will translate into sustained earnings growth. The sector pullback reflects growing scrutiny of lofty valuations and the pace at which AI investments convert into revenue.
