2 Key Takeaways From Micron's Q3 Earnings Report
When semiconductor giant Micron Technology (NASDAQ: MU) released its earnings report for the fiscal third quarter of 2022 (ended June 2) on June 30, the results highlighted strong financials, including revenue hitting an all-time high. But the guidance that management offered for the rest of the fiscal year suggested reasons for concern, as it warned of a slowdown ahead.
Micron is the world's leading producer of memory (DRAM) and storage (NAND) chips. These chips are critical components in current technologies like computers and smartphones, plus new ones like electric vehicles. Micron is a company that investors should definitely play the long game on and the earnings report offered two key takeaways that further confirmation of that assertion. Let's take a closer look at those takeaways.
Investors sent Micron stock plunging after its earnings report, and the rest of the chip sector promptly followed suit. The company's weak guidance was the culprit; it indicated that demand is weakening across the industry, and Micron is responding by trimming supply growth into the end of fiscal 2022 (ending Sept. 2).
Source Fool.com
