Micron Falls 5.3% as Intel Warns Memory Shortage Threatens PC Recovery

Micron Technology (MU) shares closed down 5.3% at $884.74 on Friday after Intel (INTC) warned that soaring memory chip costs are hampering its business, underscoring the memory sector's outsized profits while raising concerns about the durability of the hardware upcycle. Intel, whose shares plunged 29% after a weak forecast, blamed part of its problems on the memory chip shortage, saying insufficient supply is hurting the PC market and curbing demand for its chips. "We don't expect a sustained recovery until memory supply improves and prices normalize," CFO Dave Zinsner said on the earnings call, adding he is "not optimistic" about next year. The shortage lets Micron earn higher margins, but mid- and low-end smartphone makers are cutting specifications or passing costs to consumers. Investors fear that if AI spending slows, PC and smartphone customers will have already pulled back, leaving no buffer for memory makers. Major tech firms largely held capex forecasts this week, with only Microsoft trimming slightly.