Micron is experiencing the biggest drop since 2020!

U.S. memory chip maker Micron Technology Inc. is facing its biggest drop in stock value in four years. The reason is the weak earnings outlook, which is affected by falling demand for smartphones and personal computers. While demand for artificial intelligence chips is growing, major market segments are bringing complications for the company.

Micron $MU expects its second-quarter fiscal year revenue to be approximately $7.9 billion, well below the average analyst forecast of $8.99 billion. Net income per share, adjusted for certain items, is estimated to be a maximum of $1.53, below expectations of $1.92.

The main reason for the weak results is low demand for chips for smartphones and personal computers. These segments together account for the majority of Micron's production volume. While data center revenue was up 400% from last year and now accounts for more than half of total revenue, it was unable to offset declines in traditional markets.

The company's stock, which had gained 22%…