Micron Technology shares are bouncing back from a six-session losing streak. An analyst says the recent market panic over memory efficiency breakthroughs by Google was similar to last winter’s “DeepSeek” saga, which turned out to be a short-lived blip.
In February 2022, investors were concerned about a Chinese AI startup claiming it could train sophisticated AI models with less compute. Chip stocks initially fell due to fears that other players would adopt cheaper methods, reducing demand for expensive hardware. However, advocates argued that this would lead to greater AI adoption and boost chip sales.
The recent Google announcement has sparked a similar reaction, but an analyst says investors should not be too worried.
Source: https://www.marketwatch.com/story/microns-stock-bounces-as-an-analyst-offers-a-reality-check-on-the-recent-panic-22af6915