Micron Stock Drops Despite Revenue Surge Trading Volume Plummets to 21st Position
1min read On March 25, 2025, micron technology (MU) experienced a significant decline, with its stock price dropping by 2.85%. The trading volume for the day was 20.92 billion, marking a 39.01% decrease from the previous day, placing it at the 21st position in terms of trading volume for the day.
Micron's recent earnings report, released on March 21, 2025, showed a 38% year-over-year revenue growth to $8.05 billion, with adjusted earnings per share (EPS) increasing by 271% to $1.56. Despite these positive figures, the stock price fell due to concerns over gross margins, which are projected to decrease to 36.5% in the current quarter. This decline is attributed to increased sales of lower-margin consumer electronics memory and a weak NAND flash market.
However, Micron's management highlighted that these negative impacts are temporary and that the company's enterprise data center business, driven by AI, is expected to continue growing. The HBM market, a critical component in AI applications, is projected to grow significantly, reaching over $100 billion by 2030. This growth, along with the increasing demand for DRAM, is expected to offset the short-term challenges and drive long-term revenue and profit growth for micron.
Ask Aime: What caused Micron's stock price to drop despite strong revenue growth?
