Shares of chipmaker SK Hynix (NASDAQ: SKHY) plunged after the company reported second-quarter results that fell short of the near-impossible expectations set by investors and analysts.
The company’s sales surged 257% to $54.5 billion, and operating profit skyrocketed 557% to $41.7 billion
Wall Street’s average estimate anticipated more. SK Hynix shares plummeted on the news, and they grabbed fellow chipmaker Micron Technology (NASDAQ: MU) on its way down, pulling Micron stock lower. Micron’s shares were already sliding in the weeks leading up to the recent decline, but the latest tumble has some investors acting as if the memory chip boom is over.
Here’s why they’re wrong and why Micron shareholders should stay the course (or buy more). 1. Micron’s sales and earnings are surging Micron reported its latest quarterly results on June 25, and by all accounts, it was a huge success. Micron’s revenue skyrocketed 345% in the fiscal third quarter (ended May 28) to $41.5 billion, a company record.