Why is Micron Stock Falling, and is it a Buying Opportunity for Long-Term Investors? | MU Stock

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마이크론 주가가 한 달간 34% 하락했으며, 반도체 ETF(SMH)도 21% 하락했다. 애널리스트들이 2024·2025년 EPS 추정치를 하향했고, AI 수요 붐은 클라우드에서 엣지 디바이스로 이동하며 2025~2026년 이후 본격화될 전망이다. 시장 전반의 매도세도 압력을 더했다. 선행 PER 9.42배로 올해 들어 가장 저평가 구간이며, 여전히 매수 추천 리스트 top 25에 포함되어 있다.

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01. hey everyone Micron Technology stock is down 34% in the last month which has many investors asking if that's a buying opportunity furthermore the semiconductor ETF is down nearly 21% in the last month as well as a broader semiconductor stock selloff has taken hold in markets worldwide so in this video I'll review why I think Micron Technology is facing some challenges in the near term and if I think Micron Technology stock is a Buy on this dip here have a price chart here for Micron Technology and the semiconductor ETF SMH and you'll notice here the correlation between the two but also you'll notice that Micron Technology is down 33.9 6% along with the semi conductor ETF which is down 21% usually the semiconductor ETF will be less volatile than Micron Technology stock what that means is when the semiconductor ETF price Falls Micron Technology stock price will fall more than the semiconductor ETF and the opposite is also true when the semiconductor ETF Rises Micron Technology stock will rise more than the semiconductor ETF and that means Micron Technology is more volatile or in other words it has a higher beta than the semiconductor ETF and that makes sense right semiconductor ETF is supposed to diversify your portfolio across several semiconductor stocks instead of taking exposure to just one semiconductor stock like Micron Technology one of the reasons why Micron Technology stock prices down in the last month is because of decreasing earning per share expectations what I have here is company in 2024 and 2025 and you'll notice in the last 30 days those have decreased 30 days ago those analysts were expecting the company to deliver a122 in EPS in 2024 they've now lowered that to a111 or 10% lower similarly for next year they previously thought Micron Technology would deliver $951 in EPS they now think it will deliver $8.74 in EPS next year and that has worsened in the last 7 days as well going from $963.66 so have decreased in the last month and in the last 7 days for both 20 24 and 2025 now this isn't only for Micron Technology several of the companies I'm following that are similar to Micron Technology that have reported earnings recently are also facing decreasing earnings per share expectation forecasts for 2024 and 2025 including the big giant AI company itself Nvidia which has seen analyst downgrade its earnings per share expectations in the last seven days the same can be said for Intel for AMD for Taiwan semiconductor Etc so the earnings per share expectations in the first half of 2024 for all of these companies that I just mentioned were seemingly jumping ahead of themselves going higher and higher and higher that was especially true for NVIDIA but in recent weeks they've now kind of settled and they're kind of coming back down it seems like now the analyst on Wall Street that are following following these AI related stocks they've raised their earnings per share expectations enough to account for the surging demand for AI make no mistake about it AI is creating an absolute surge in demand for these products for products that Micron Technology sells more so for products that Nvidia sells and for Micron Technology the Boom in demand is more likely to come next year the year after that and the year year after that rather than this year because right now more of the Computing requirements for artificial intelligence are happening in the cloud in AI servers like those that are invested in by Amazon uh Microsoft alphabet Etc but over the next few years the forecasts suggest and certainly Micron Technology management team expect that more of those Computing requirements will be happening on the edge that means on the device on your phone on your tablet on your computer on your TV and so it's going to go away from the cloud and on the edge which is an area where Micron Technology will benefit right they sell the memory in the storage for those devices and there will need those devices will need more memory those devices will need more storage if they are going to take more responsibility for the Computing for these AI capabilities so longer term that is still intact that Rising demand is still intact for micron but on the edges maybe it was a little bit less than expected right a little bit less than forecasted and you see that little bit less it's 10 roughly 10% right now in the last month where analysts have lowered their expectations for Micron Technology now that was talking about Micron Technology specifically more broadly you'll notice the market on undertaking a massive selloff in the last three trading days right on Monday and then Friday and Thursday those three trading days have seen a significant selloff in markets worldwide so that creates an added selling pressure on Micron Technology stock caused by the broader stock market selloff so you have several factors causing Micron Technology stock price to decrease now all that being said is it a buying opportunity or is this an excuse and a reason for investors to sell Micron Technology stock well after this selloff Micron Technology just 9.42 n a forward PE of just 9.42 n which is close to as cheap this stock has traded for all year long in 2024 and especially now that we're you know closer to the time when Micron Technology will benefit benefit from the rise in demand which will start more so in the fourth quarter of this year and then in 2025 and then in 2026 you're now closer to that but you're getting the stock at a lower valuation and so I think I still think Micron Technology is a buy you'll notice here that I had placed Micron Technology on my list of top 25 stocks to buy and I last updated that recommendation on July 2nd I put it on my list here of top 25 stocks to buy and you can see I have various ratings on the stocks that I cover they can be a top 10 growth stock a top 25 stock the best stock which I think is alphabet right now and then they could be a hold it could be a buy it could be a sell so I have several categories of rating and I have Micron in the top 25 here given its risk versus reward at current valuations so after these recent Market volatility and the price declines I think Micron Technology stock is still as attractive as it was when I placed it on my list of top 25 stocks to bu