The rollercoaster ride that is investing in Micron (MU -4.82%) stock took another turn Friday, as shares of the computer memory maker slid 4% through 10:40 a.m. ET.
You can blame OpenAI for that.
Image source: Micron.
Easy come, less easy go
Micron (MU -4.82%) blew past earnings estimates yesterday, setting a new all-time high share price and predicting even more gains in store in Q4. The stock closed Thursday up 15.7%, so while today's 4% subsidence is perhaps disappointing, it still leaves Micron stock worth considerably more than it was pre-earnings.
How long will this last, though?
As The New York Times reports, worries over the sudden downturn in the price of SpaceX (SPCX -3.24%) shares post-IPO have OpenAI rethinking whether now's really the right time for it to IPO. OpenAI's financial advisors are telling CEO Sam Altman he has to make a choice: IPO in 2027 and potentially secure a $1 trillion valuation for OpenAI -- or IPO in 2026 and risk a lower valuation.
Again, reportedly, Altman is intent on ringing the trillion-dollar bell and now leans toward postponing the OpenAI IPO.
NASDAQ: MU
Key Data Points
What this means for Micron
What does this have to do with Micron stock? Simply this:
OpenAI's last pre-IPO funding round valued it at $852 billion and raised $122 billion in cash. OpenAI's expected to spend most of this money renting computing capacity from hyperscalers, who in turn will spend heavily on computer chips and memory to outfit gigantic data centers to run OpenAI's artificial intelligence programs.
The same thing will happen when OpenAI raises perhaps even more cash at its IPO. But if OpenAI delays its IPO to 2027, it might also postpone its spending. This delays the windfall for hyperscalers, for chipmakers -- and for Micron, too.
That's why Micron stock is down today.
