Chipmaker Micron's shares slump as tepid margin forecast eclipses AI prospects


FILE PHOTO: A Micron Technology chip on display in New York City, U.S., April 26, 2024. REUTERS/Brendan McDermid/File Photo

(Reuters) - Micron's shares fell 8% on Friday, as its dour margin forecast took the shine off a robust quarterly revenue outlook driven by demand for its semiconductors used in artificial intelligence tasks.

Micron, one of only three providers of high-bandwidth memory (HBM) chips for data-intensive generative AI applications, forecast adjusted gross margin below estimates on Thursday, as lower pricing for consumer memory chips hits profitability.

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