Micron's Stock Drops 8% After Margin Concerns Overshadow AI-Driven Growth

Despite strong Q2 earnings and record data center revenue, Micron's lower-than-expected gross margin forecast raises investor concerns.

Micron reported Q2 2025 revenue of $8.05 billion and EPS of $1.56, exceeding Wall Street estimates.
Data center revenue tripled year-over-year, driven by surging demand for AI-related high-bandwidth memory products.
The company forecasted Q3 revenue of $8.8 billion, surpassing analyst expectations, but its gross margin projection of 36.5% fell short.
NAND flash memory oversupply and pricing pressures continue to weigh on profitability, impacting investor sentiment.
Micron's stock initially rose after the earnings report but fell 8% on March 21 due to concerns over margin pressures.