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Why Micron’s stock is leading the chip sector’s decline - MarketWatch

1. Micron expects Q2 gross margin decline to 38.5%, down from 39.5%. 2. Sequential margin decline of 'a few hundred basis points' expected in May quarter. 3. Better-than-expected volumes in consumer segments are lower-margin businesses. 4. NAND underutilization exists; inventory drawdown is underway. 5. Volatile pricing and margins may impact Micron's stock performance.

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FAQ

Why Bearish?

The projected decline in margins could lead to reduced investor confidence, similar to past downturns when margins contracted due to market pressures.

How important is it?

The article highlights key revenue and margin trends critical for investors monitoring Micron.

Why Short Term?

Immediate margin pressures are likely to affect stock performance in the upcoming quarter, akin to previous examples of stock volatility linked to earnings expectations.

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