Last week, Micron Technology (MU) posted second-quarter results. The stock dropped by 7.2% in the week after investors fretted about its gross margin pressure. While AI speculations like Quantum Computing (QUBT) and D-Wave (QBTS) trade at a premium, MU stock is on sale.
Micron grew its Q2 revenue by 38.3% Y/Y to $8.05. In Q3, it expects to post record quarterly revenue, driven by strong NAND and DRAM demand growth. Datacenter and consumer-oriented markets are tailwinds.
In the iron-ore sector, watch Cleveland-Cliffs (CLF). Shares lost 8.85% in the last week. On March 21, the company said that it would lay off 630 staff after idling two factories in Minnesota. It said that this is “necessary to rebalance working capital needs and consume excess pellet inventory produced in 2024.”
U.S. President Trump imposed 25% tariffs on the steel and aluminum industry. This is meant to protect and promote domestic steel operations.
Shoe and clothing retailer Nike (NKE) fell by more than 5%. That included recovering from a bigger post-earnings selloff on March 21. NKE stock traded at around $65.40 before closing at $67.94. In Q3, revenue fell by 9.3% Y/Y to $11.27 billion.
Nike’s Direct sales unit posted revenue falling by 12%. Wholesale revenue fell by 7% while Converse Revenue fell by 18% Y/Y. Nike lowered its inventory by 2% to $7.5 billion. The stock is becoming a good buy. It needs to clear its inventory first to reduce margin pressure.
