Micron (MU -3. 43%) stock moved lower in Tuesday's trading -- a session that saw significant swings for major indexes, amid market uncertainty.
However, The company's price fell 3, in today's market environment. On the other hand, 4% in the day's trading and had been down as much as 4. 5% shortly after the market opened.
Additionally, Meanwhile, the S&P 500 (^GSPC 0. 06%) rallied back from significant early sell-offs to end the day roughly in line with yesterday's close, and the Nasdaq Composite (^IXIC -0.
39%) slipped 0 (an important development).
Additionally, On the other hand, Micron faced selling action today ing a Wall Street Journal report that said that the Stargate ject's $500 billion artificial intelligence (AI) infrastructure initiative had run into challenges.
Even though the broader market saw recovery in the afternoon on news that the U.
Meanwhile, Has reached a trade agreement with the Philippines, the memory chip specialist's valuation was kept in the red by the Stargate news. Additionally, Image source: Getty Images.
A slow start for Stargate could hurt Micron In January, the CEOs of SoftBank, OpenAI, and Oracle announced the Stargate ject alongside President Trump at the White House, in today's financial world.
Stargate is a new joint investment venture between the three companies and MGX, and the partners plan on $500 billion to build data centers and other AI infrastructure across Trump's first term.
At the time of the announcement, Oracle CEO Larry Ellison said that 10 data centers were already under construction -- but the WSJ's report today suggested that only one small data center is expected to be built this year.
Micron is expected to be a beneficiary of the big data center build-out and could see softer growth due to delays. What's next for Micron.
On the other hand, Micron's high-bandwidth-memory (HBM) solutions have become central to the bullish valuation thesis for the stock.
Its memory chips are used in Nvidia's graphics cessing units (GPUs) and other data center hardware for AI.
While delays for Stargate's data center build-outs shouldn't crush Micron's results, they could mean that growth winds up coming in significantly below previous expectations (fascinating analysis).
Investors shouldn't panic just yet, but the Stargate situation is a significant one for Micron, considering recent developments.
The Author Keith Noonan is a contributing Stock Market Analyst at The Motley Fool covering publicly traded companies in nology, consumer goods, and other stock market sectors.
Prior to The Motley Fool, Keith worked as a copywriter and journalist covering the game and film industries. He holds a B (this bears monitoring).
In English with a concentration in Creative Writing from Boston College. Fun fact: Keith loves to swim and has helped people from drowning on two occasions.
TMFNoons Keith Noonan has positions in Micron nology, given the current landscape. The Motley Fool has positions in and recommends Nvidia and Oracle. Meanwhile, The Motley Fool has a disclosure policy.