Micron's Profit-Killing Downturn Isn't Over Yet
The tide is finally starting to turn in the memory chip markets. Production cuts across major suppliers of DRAM and NAND chips have helped whittle away the excess inventories held by customers. (NASDAQ: MU) has been aggressive in reducing output, and it expects its wafer starts for both DRAM and NAND to be "significantly below" 2022 levels for the foreseeable future.
Average selling prices still declined for Micron in its fiscal fourth quarter, which ended on Aug. 31. DRAM prices were down a high single-digit percentage, while NAND prices were down a mid-teens percentage. But demand seems to have bottomed out. Micron boosted shipments of DRAM by a mid-teens percentage compared to the previous quarter, while NAND shipments soared 40%. Micron's revenue was down compared to the prior-year period, but it edged up 7% from the previous quarter.
While Micron is making progress, it's clear from the company's guidance that a return to solid profitability is still a ways off.
Source Fool.com
Micron Technology Inc. Stock
With 94 Buy predictions and 4 Sell predictions Micron Technology Inc. is one of the favorites of our community.
With a target price of 110 € there is a positive potential of 38.82% for Micron Technology Inc. compared to the current price of 79.24 €.
