Google's New Algorithm Triggers Volatility in Micron's Stock
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Mar 26 2026
0mins
Should l Buy GOOGL?
Source: NASDAQ.COM
- Tech Concerns Rise: Google's new compression algorithm TurboQuant reduces memory requirements for large language models by at least 6X, causing Micron Technology shareholders to worry about declining demand for advanced memory processors, resulting in a 12% drop in Micron's stock by Thursday.
- Capital Expenditure Pressure: Micron plans to invest $25 billion in capital expenditures for 2023, and despite reporting a second-quarter EPS of $12.20, exceeding Wall Street's $8.80 estimate, investors remain concerned about the potential impact on profit margins.
- Economic Outlook Clouded: Due to the U.S. war with Iran, economists have raised the odds of a recession occurring in the next 12 to 18 months, further exacerbating market pessimism and weakening shareholder confidence in Micron's future.
- Optimistic AI Demand Outlook: Despite facing technological and economic challenges, big tech companies are expected to spend at least $650 billion on AI data center infrastructure, positioning Micron, as a leader in memory processors, to benefit from the ongoing demand growth.
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Analyst Views on GOOGL
Wall Street analysts forecast GOOGL stock price to rise
33 Analyst Rating
26 Buy
7 Hold
0 Sell
Strong Buy
Current: 297.390
Low
305.00
Averages
374.25
High
400.00
Current: 297.390
Low
305.00
Averages
374.25
High
400.00
About GOOGL
Alphabet Inc. is a holding company. The Company's segments include Google Services, Google Cloud, and Other Bets. The Google Services segment includes products and services such as ads, Android, Chrome, devices, Google Maps, Google Play, Search, and YouTube. The Google Cloud segment includes infrastructure and platform services, collaboration tools, and other services for enterprise customers. Its Other Bets segment is engaged in the sale of healthcare-related services and Internet services. Its Google Cloud provides enterprise-ready cloud services, including Google Cloud Platform and Google Workspace. Google Cloud Platform provides access to solutions such as artificial intelligence (AI) offerings, including its AI infrastructure, Vertex AI platform, and Gemini for Google Cloud; cybersecurity, and data and analytics. Google Workspace includes cloud-based communication and collaboration tools for enterprises, such as Calendar, Gmail, Docs, Drive, and Meet.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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