Micron Technology Shares Are Falling: What's Going On?

Micron Technology Inc. MU shares are trading lower Thursday following remarks from a supplier to Nvidia Corp. NVDA. Elon Musk also expressed doubt about the Stargate project which may be weighing on sentiment.

What To Know: The broader semiconductor industry has also been impacted by recent U.S. export restrictions on AI chips, further straining sentiment. According to Reuters, Nvidia, which derives a significant portion of its revenue from international markets, warned that these restrictions could disrupt global innovation and economic growth. Shares of Nvidia, Microsoft Inc. MSFT and Arm Holdings ARM saw modest declines as investors weighed the implications of these developments.

Adding to the sentiment shift, Tesla Inc. TSLA CEO Musk expressed skepticism about the viability of the $500 billion Stargate AI initiative. Musk asserted that SoftBank Group, the lead investor in the project, had secured "well under $10 billion" of the required funding.

This statement followed the project’s announcement at a White House briefing, where it was touted as a transformative effort in artificial intelligence infrastructure spearheaded by OpenAI, SoftBank and Oracle Corp. ORCL.

The Stargate initiative aims to deploy an initial $100 billion to construct a network of data centers, with the first facility planned in Abilene, Texas. Despite its ambitious goals, Musk’s criticism, combined with SoftBank’s reported financial constraints, has cast doubt on the project's feasibility.

MU Price Action: Micron Technology shares closed Thursday down 4.02% at $104.84, according to Benzinga Pro.

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