According to a prominent analyst, Micron’s miss on Q3 earnings and guidance for the second quarter of next year might signal that the AI PC and

AI PC revolution appears dead on arrival — 'supercycle’ for AI PCs and smartphones is a bust, analyst says

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2024-12-22 18:00:04

According to a prominent analyst, Micron’s miss on Q3 earnings and guidance for the second quarter of next year might signal that the AI PC and smartphone supercycle isn’t happening. Most of the company's woes stem from a weaker market than expected for memory products for PCs and smartphones, and multiple reports from other market analysis firms have pointed out that the AI PC 'revolution' simply isn't happening. At least not yet.

In its latest financial report, the American memory manufacturer Micron reported Q3 revenue of $8.709 billion, somewhat below the $8.721 figure the market anticipated. Even worse, Micron's guidance for the second quarter of 2025 was $7.9 billion instead of the $8.98 billion that Wall Street expected. At the time of writing, its stock is down over 16%.

Calling the miss and forecast a “big whiff,” semiconductor analyst Daniel Newman said in an X post that it’s not the “beginning of the end for the AI trade” and companies like Nvidia, which has grown to be one of the world’s biggest companies since AI chips took off earlier this year.

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