Edgewater Research predicts a drop in computer memory chip prices and demand in the second half of 2025. Micron stock is affected, with weak free cash flow. The company’s earnings look decent, but there are concerns about future numbers. Shares of Micron fell 4.3% due to this news.

Edgewater Research suggests that both Micron and SanDisk will face subpar demand and pricing for computer memory in the latter half of 2025. Micron’s stock could be impacted negatively, with a potential bias towards lower performance. Investors may want to reconsider buying Micron Technology stock based on this forecast.

While Micron reported earnings of $6.2 billion, its free cash flow is less than $1.9 billion over the past year. This results in a high price-to-free cash flow ratio of 74. Edgewater Research’s warning of lower demand and pricing in the future could lead to further decline in Micron’s stock value.

The Motley Fool Stock Advisor team did not recommend Micron Technology as one of the top 10 stocks to buy now. They identified other stocks with potential for high returns. It’s important for investors to consider these alternatives and make informed decisions when investing in the market.

Read more at Yahoo Finance: Why Micron Stock Dropped on Monday