💡 Micron Technology: failure or opportunity? 📉

Shares of Micron Technology $MU are down more than 18 %, marking the worst day since the March 2020 pandemic hit the markets. The chipmaker, known for its innovations in computer memory and storage, posted a disappointing outlook for its second fiscal quarter.

Weaker expectations are behind the decline:
Revenue of $7.9 billion, well below the expected USD 8.98 billion.
Adjusted earnings per share USD 1.43, that also fell short of analysts' estimates of USD 1.91.

This weaker estimate was due to a continued decline in demand in the personal computer and smartphone segments.

As a result, Micron's shares are trading at USD 87, representing approximately 40% decline from its all-time high in June.

🌟 But there is some positive news!

Micron announced that despite difficulties in some segments, it has seen:
400% growth in data center revenue, fueled by growing demand for artificial intelligence (AI)-related technologies.

First quarter results even beat expectations. Earnings per share came in at $1.79 versus expectations of $1.75, and revenue grew by 84 % to $8.71 billion.

CEO Sanjay Mehrotra stressed that the company remains focused on strategic market segments where it sees long-term growth potential.

In the short term, it is clear that the market is reacting primarily to the current weak outlook and disappointing demand downturn. But in the long term, it may be Micron still an interesting opportunity, especially with its focus on AI-related technologies.

I think the markets are reacting emotionally. Sharp price drops may reflect investor sentiment rather than the actual state of the company. All of this was not helped by the Fed's statement.

Micron may be an example of how short-term disappointment can create opportunity for investors with a long-term horizon. That's why I'm thinking about adding a few pieces to my portfolio.

How do you feel about this situation? Are you ready to take the risk or would you rather wait?