Micron Shares Slide as TurboQuant Sparks AI Memory Demand Concerns
Micron stock slid in early Tuesday trading as investors fear Google's TurboQuant compression algorithm will reduce high-bandwidth memory demand in AI data centers. Morgan Stanley believes demand remains strong, citing Q2 EPS of $12.20 on $23.86B revenue and forecasting Q3 revenue above analysts’ estimates.
1. Stock Slides on TurboQuant Fears
Micron shares fell in early Tuesday trading as Google's TurboQuant compression algorithm raised investor concerns about reduced high-bandwidth memory demand in AI data centers.
2. Morgan Stanley Analyst Reassures Demand Outlook
Joseph Moore stated there is no indication memory demand is declining and highlighted memory's critical role in powering agentic AI tasks requiring significant processing and storage.
3. Blow-Out Q2 Results and Guidance
Micron posted Q2 EPS of $12.20 on $23.86 billion revenue, a 682% EPS increase and 196% revenue jump year-over-year, and expects Q3 revenue above analyst forecasts.
4. Stock Performance and Industry Impact
Micron stock is down over 27% since the March 18 earnings release yet remains up 263% over the past year, as global memory shortages drive higher prices and margin pressure for consumer electronics makers.