Micron Technology Shares Drop Amid Google AI Concerns
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Mar 26 2026
0mins
Source: Fool
- Stock Decline: Micron Technology's shares have fallen 12% over the past week due to investor concerns that Google's new AI compression algorithm could reduce demand for advanced memory processors, compounded by worries over the company's $25 billion capital expenditures.
- AI Model Impact: Google's TurboQuant algorithm, which reportedly reduces memory requirements for large language models by at least 6X, has sparked panic among Micron investors, although some analysts suggest this could actually increase memory demand.
- Economic Outlook Worries: Concerns about a potential U.S. recession have risen due to the ongoing war with Iran, with economists raising the likelihood of a downturn in the next 12 to 18 months, further exacerbated by the OECD's inflation forecast of 4.2% this year.
- Strong Earnings Contrast: Despite these challenges, Micron reported a remarkable second quarter with earnings per share of $12.20, significantly surpassing Wall Street's estimate of $8.80, and a 196% revenue surge to $23.9 billion, indicating a robust position in the AI infrastructure market.
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Current: 343.710
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Averages
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400.00
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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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