Shares of Micron Know-how (NASDAQ: MU) tumbled on Thursday, falling as a lot as 7.9%. As of three:15 p.m. ET, it had recovered considerably, although the inventory was nonetheless down 5.9%.The catalyst that despatched the reminiscence and storage chipmaker decrease was the corporate’s quarterly monetary report.Sturdy resultsFor its fiscal 2024 third quarter (ended Could 30), Micron generated income that surged 82% 12 months over 12 months to $6.8 billion, driving adjusted earnings per share (EPS) to $0.62, in comparison with a lack of $1.43 within the prior-year quarter.Analysts’ consensus estimates have been calling for income of $6.67 billion and adjusted EPS of $0.50, so Micron simply cleared each benchmarks.The corporate famous that the stability between provide and demand continued to enhance, which helped improve pricing energy. The outcomes additionally bought a lift due to “strong synthetic intelligence (AI) demand.” File gross sales to information facilities jumped greater than 50% sequentially due to high-margin AI-related product classes, together with high-bandwidth reminiscence, high-capacity twin in-line reminiscence modules, and information heart solid-state drives.That sounds good, so why is the inventory down?Since AI went viral early final 12 months, AI-related shares have been fetching a premium to their historic valuations, and Micron is not any completely different. That is due to baked-in expectations of additional good points to come back. Sadly, the timing is typically troublesome to foretell, at the least with any accuracy, and that is what’s weighing on the inventory right this moment.For the upcoming fiscal fourth quarter, administration is guiding for income of $7.6 billion, which might characterize progress of 90% 12 months over 12 months. Whereas that is actually an enviable forecast, it got here exactly in keeping with Wall Avenue’s consensus estimates, whereas buyers have been hoping for a beat and lift.Micron is presently promoting for roughly 52 occasions earnings and 126 occasions ahead earnings, so buyers had excessive — if not unrealistic — expectations headed into the corporate’s report. One quarter doesn’t a 12 months make, and administration was doubtless being conservative. It is essential to do not forget that whereas the trajectory of AI is rising, demand will are available in matches and begins.Moreover, 90% year-over-year progress is nothing to sneeze at, so buyers ought to concentrate on the long run and ignore right this moment’s stock-price motion.Must you make investments $1,000 in Micron Know-how proper now?Before you purchase inventory in Micron Know-how, think about this:The Motley Idiot Inventory Advisor analyst group simply recognized what they consider are the 10 finest shares for buyers to purchase now… and Micron Know-how wasn’t certainly one of them. The ten shares that made the minimize may produce monster returns within the coming years.Story continuesConsider when Nvidia made this record on April 15, 2005… when you invested $1,000 on the time of our suggestion, you’d have $774,526!*Inventory Advisor gives buyers with an easy-to-follow blueprint for achievement, together with steerage on constructing a portfolio, common updates from analysts, and two new inventory picks every month. The Inventory Advisor service has greater than quadrupled the return of S&P 500 since 2002*.See the ten shares »*Inventory Advisor returns as of June 24, 2024Danny Vena has no place in any of the shares talked about. The Motley Idiot has no place in any of the shares talked about. The Motley Idiot has a disclosure coverage.Why Synthetic Intelligence (AI) Inventory Micron Applied sciences Stumbled Thursday was initially printed by The Motley Idiot