Micron Technology (MU) stock is falling due to profit-taking after Nvidia's earnings report, despite Nvidia highlighting extreme memory supply constraints that are driving up prices. Nvidia's CFO noted that memory price increases have exceeded expectations and will continue to rise, impacting Nvidia's gross margins, but also suggesting strong demand for memory suppliers like Micron.
Micron's stock is experiencing a pullback primarily due to profit-taking following a significant year-to-date run, exacerbated by a 'sell the news' reaction to Nvidia's earnings. While Nvidia reported massive revenue, its CFO highlighted extreme and rising memory prices, which will impact Nvidia's gross margins but are a positive indicator for memory suppliers like Micron, SK Hynix, and Samsung. The short-term technical analysis for MU shows a cooling phase after a big run, with bearish short-term crossovers. However, the underlying demand for high-bandwidth memory, driven by AI, remains strong, suggesting potential long-term tailwinds for Micron despite current profit-taking and potential geopolitical risks from new semiconductor tariffs.