Memory chip manufacturer (NASDAQ: MU) is still in the depths of a severe downturn. In the fiscal fourth quarter, which ended on Aug. 31, the company booked a 49% year-over-year decline in revenue and a net loss of $1.43 billion. Gross margin was negative 10.8%, pushed down by inventory write-offs and tumbling prices for memory chips.

While Micron expects the situation to improve in its fiscal first quarter of 2024, the picture is still bleak. The company expects its gross margin to remain in negative territory, albeit improving to negative 4%. Revenue will return to year-over-year growth, but only because Micron is starting to lap the beginning of the downturn.

New estimates from TrendForce suggest that Micron's guidance may be a tad conservative. Average selling prices for both DRAM and NAND chips are expected to post healthy rises in the calendar fourth quarter, which partly overlaps Micron's fiscal first quarter. Prolific production cuts by manufacturers and rebounding demand for PCs should deliver an improved pricing environment in the coming months.

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Source Fool.com