Micron stock reverses gains as broader semiconductor sector sentiment weighs despite Citi’s bullish call on AI-driven demand.
Micron (NASDAQ: MU) shares fell 5.7% in early trading Friday, erasing a 3.2% gain from the prior session. The decline comes despite positive sentiment from Citigroup, which labeled the recent semiconductor sell-off a buying opportunity for investors.
Citi highlighted insatiable demand for AI and memory chips, with data center demand accounting for 34% of semiconductor sales. Automotive and industrial chips contribute another 21%, while weakening PC and mobile phone markets make up 42%. The firm expects demand to outpace supply through 2030.
Intel’s (NASDAQ: INTC) earnings report reinforced the sector’s strength, with $0.42 per share in pro forma profits—double estimates—and $16.1 billion in sales, marking its fastest revenue growth in nearly 15 years.