Why Did Micron Stock Drop Today?

Micron (NASDAQ: MU) banal fell 4.2% done noon ET Monday connected immoderate perchance worrisome quality from hard disk thrust specializer Western Digital (NASDAQ: WDC) -- and an unrelated announcement from Seagate Technology (NASDAQ: STX), which makes some HDDs and besides solid-state drives, arsenic Micron does.

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Western Digital quality

Let's commencement with the WD news. In a property merchandise this morning, Western Digital said it is successful the process of qualifying "high-capacity Ultrastar UltraSMR hard disk drives" for sale. As WD sees it, AI is steadily moving to a satellite successful which "compute-centric deployments," wherever ample connection models (LLMs) are archetypal trained, past utilized to reply questions, go little important than remembering each the answers that person been fixed to each those questions.

In this brave caller world, "durability and security" of information go much important than accelerated information transfer, and hard disk drives go much utile (and cheaper) than solid-state drives. This would look to displacement the vantage successful representation formats from SSD to HDD -- and from Micron to Western Digital.

What's important present is that Western Digital is talking astir however it sees things playing retired successful the future, however... not needfully however things basal today, oregon adjacent implicit the adjacent respective years.

Seagate Technology quality

Entirely separately today, TheFly.com reports connected comments from Seagate CEO Dave Mosely, to the effect that Seagate's disquieted that (1) it doesn't person capable manufacturing capableness to physique each the SSDs its customers want, but besides (2) doesn't privation to physique excessively galore caller factories to conscionable this demand, for fearfulness of creating overcapacity that volition wreck the cyclical semiconductors market.

Strong request for SSDs utilizing NAND and DRAM, though? A determination not to physique up excess capacity? Both of those dependable similar affirmative developments for representation prices, though -- and for Micron stock, too.

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