Micron Technology’s shares are expected to decline following the company’s weak financial results for the latest quarter. The company reported a 40% decrease in revenue to $4.01 billion compared to the same period last year. Micron’s adjusted loss per share was $1.07, slightly better than its own forecast, and the company anticipates revenue of $4.4 billion for the next quarter, surpassing Wall Street estimates. Micron’s CEO, Sanjay Mehrotra, expressed optimism about the market recovery in 2024 and forecasted record industry revenue in 2025 as artificial intelligence (AI) becomes more prevalent.
Weak demand for memory chips in core end markets like PCs, mobile phones, and data centers has greatly affected Micron’s performance. The company’s previous projections for DRAM and NAND bit demand growth were adjusted downwards, reflecting the challenging market conditions. However, Micron expects demand to strengthen, leading to a pricing inflection and potential strategic purchases by customers. The company forecasts declining unit volumes for PCs and smartphones in the near term but anticipates growth in AI-enabled PCs and AI server demand. Micron has responded to the soft demand by reducing spending, particularly in wafer fabrication equipment.
In conclusion, while Micron Technology’s financial results for the latest quarter were weak, the company is optimistic about the future market recovery and AI-driven demand. The projected revenue for the next quarter exceeded expectations, indicating potential improvement. Micron has been adjusting its forecasts and reducing spending in response to the challenging market conditions. The company sees opportunities in AI-enabled PCs and AI servers, which are expected to drive future memory demand. Despite the current setbacks, Micron is positioning itself for long-term growth and aims to achieve record industry revenue in 2025.