Micron shares dropped as investors digested weak guidance. Analysts at Bank of America and UBS lowered their prices targets for the stock after earning.

That explains why Micron is also forecasting earnings of just $1.33 to $1.53 per share for the second quarter, well below the $1.91 analyst view. In addition, the company is looking at a 38.5% adjusted gross margin, down a percentage point on a sequential basis.

Micron Technology issued a revenue outlook that came in below analysts’ expectations, sending shares lower in extended trading Wednesday.

Kim Forrest, CIO of Bokeh Capital Partners, says it's a buying opportunity for Micron as shares plunge on the company's weak chips outlook. She joins Caroline Hyde on "Bloomberg Technology" to discuss.

Key Takeaways Micron shares traded sharply lower in extended trading on Wednesday after the memory chip maker and Nvidia partner issued a weaker-than-expected current-quarter outlook. The stock looks set to stage a decisive breakdown below a trading range on Thursday,

The memory-chip company cited weakness in consumer-facing markets but momentum in higher-margin areas and those levered to AI.

Micron Technology shares tumbled in early Thursday trading after the memory chip maker's muted near-term outlook clouded an otherwise solid quarterly earnings report and triggered a host of price target changes from Wall Street analysts.