Micron Plunges On Weakness, Musk's Political Power
Bloomberg Technology
Deep Dive
Why did Micron's stock plummet by more than 17%?
Micron's stock plummeted due to a weak outlook for smartphone, PC, and auto chip demand, missing expectations by 12%. Despite excitement around AI applications, consumer demand for devices like smartphones and PCs remained low, leading to a significant inventory correction.
What role does AI play in Micron's current challenges?
While Micron has seen 400% growth in AI-related demand, products like high bandwidth memory for AI applications are still nascent and not generating significant revenue yet. The company’s growth is still driven by traditional compute products, which are moderating in demand.
How did Elon Musk influence the potential US government shutdown?
Elon Musk used his platform, X, to amplify opposition to a stopgap funding bill, urging lawmakers and President-elect Trump to risk a government shutdown. His influence led to the bill being scrapped, showcasing his political clout.
What is the significance of the Biden administration's deal with SK Hynix?
The Biden administration granted SK Hynix $460 million in grants and $500 million in loans to support a chip packaging facility in Indiana. This deal is part of US efforts to build a domestic semiconductor supply chain and reduce reliance on foreign chip production.
Why did Apple halt its iPhone hardware subscription service?
Apple halted its iPhone hardware subscription service project and reassigned the team to other initiatives. The service aimed to allow consumers to pay monthly fees for a new iPhone each year, but the company decided to discontinue the plan.
What is the EU pushing Apple to do regarding its iOS system?
The European Commission is pushing Apple to make iOS more compatible with rival devices like smartwatches, earbuds, and headsets. This includes opening up features like AirDrop, AirPlay, and underlying Wi-Fi protocols to third-party devices.
How is TikTok responding to the potential US ban?
TikTok is challenging the US ban in the Supreme Court, which has agreed to hear the case. The app argues that the ban would be unprecedented and is exploring options, including potential divestiture, though ByteDance has stated it will not sell its prized asset.
What is the impact of the H-1B visa overhaul on immigrant entrepreneurs?
The H-1B visa overhaul expands eligibility and provides clarity, making it easier for immigrant entrepreneurs to start companies in the US. This is particularly beneficial for students who complete their education in the US and want to build businesses without visa-related hurdles.
Why is Snapchat being singled out in lawsuits related to drug sales?
Snapchat is being singled out because its platform is built on disappearing messages, which drug dealers exploit to avoid leaving evidence. The platform has removed 2.2 million pieces of drug-related content and locked over 700,000 dealer accounts in 2023 alone.
What is the significance of Perplexity's $9 billion valuation?
Perplexity's valuation tripled to $9 billion, reflecting strong investor demand in the AI market. The startup, which focuses on real-time information and summaries, has seen significant growth in user queries and is rolling out customized search tools for financial and sports data.
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