In Thursday’s trade, Micron Technology (MU) shares lost 16.18%. The MU stock trading range of $100 – $110 broke down, closing at $87.09. Investors thought that the artificial intelligence semiconductor suppliers would not face a slowdown. Instead, Micron cut its outlook for the second quarter.
Micron expects an EPS of $1.33 – $1.53, with gross margins (adjusted) at 37.5% – 39.5%. Analysts expected at least 41%.
D-Wave Quantum (QBTS) slumped by 28.91% as short-sellers regained control of their position. The short float is 14.50%. Shares are still up 25.6% for the week, despite Thursday’s profit-taking. Recently, Alphabet (GOOG) announced developments in its quantum computing hardware. It announced Willow, a quantum chip that reduces errors as it scales up. This led to a frenzy in the buying of QBTS stock.
Quantum Computing (QUBT) lost 41.04% to close at $15.14. Still up by 107.97% in five days, short sellers are likely in control They hold a 12.35% short interest against this firm. Quantum posted revenue of just $100,000 in the last quarter. That suggested its rise from a low of $0.35 this year to $27.15 would not last. At a $3 billion market capitalization, fundamentals could not support its short-lived rally.
Investors should be wary of QBTS and QUBT stock. IonQ (IONQ) may have a sustainable rally, however. It reported $12.4 million in revenue in Q3, up by 103.3% Y/Y while it lost $0.24 a share.