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Micron gave Wall Street more than it wanted. Why isn’t the stock higher?

1. Micron's stock dropped 2% despite strong earnings guidance. 2. High investor expectations may lead to profit-taking on MU's stock. 3. HBM pricing is expected to remain stable, beneficial for Micron. 4. Tight DRAM supply driven by AI demand supports revenue potential. 5. Analysts suggest cautious optimism regarding Micron's market position.

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FAQ

Why Neutral?

Despite exceeding expectations, profit-taking and bearish market conditions temper sentiment towards MU, similar to past cycles like in April 2021 when the stock peaked.

How important is it?

The article highlights upcoming opportunities and challenges affecting Micron's stock, signaling a pivotal moment in the memory sector's transitions.

Why Short Term?

Immediate reactions from profit-taking may create short-term volatility, but strong fundamentals may support stability over a longer horizon.

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