micron Shares plunged 16% on Thursday – heading for their worst day since March 2020 and the start of the Covid pandemic – after the chipmaker gave disappointing second-quarter guidance in its earnings report.

The stock fell to $86.78 in early afternoon trading, about 45% below its all-time high in June.

For the second fiscal quarter, Micron expects revenue of $7.9 billion, plus or minus $200 million, and adjusted earnings per share of $1.43, plus or minus 10 cents. According to LSEG, analysts expected revenue of $8.98 billion and earnings per share of $1.91.

CEO Sanjay Mehrotra said on the earnings call that the company, which provides computer memory and data storage, is seeing slower growth in consumer device parts and is experiencing “inventory adjustments.”

“Micron expects a further delay in the PC refresh cycle, citing increased smartphone customer base,” Stifel analysts wrote in a report to clients. The company maintained its Buy rating on the stock but lowered its price target to $130 from $135.

Micron reported an increase in earnings compared to the first quarter: Earnings per share were $1.79, beating the average analyst estimate of $1.75. Revenue rose 84% year over year to $8.71 billion, in line with estimates. The growth was driven by a 400 percent increase in data center revenue, largely driven by demand for artificial intelligence, Micron said.

“We continue to gain share in the highest margin and strategically important parts of the market and are exceptionally well positioned to leverage AI-driven growth to create significant value for all stakeholders,” the company wrote in its report.

REGARD: Micron shares plummet