Why Micron Technology Fell Nearly 4% Today
Shares of computer memory maker Micron Technology (NASDAQ: MU) tumbled to the tune of 3.6% on Tuesday, largely in response to a dire forecast for memory chip prices.
Technology market research and analytics outfit TrendForce made the call, publishing a report on Tuesday calling for a 3% to 8% dip in DRAM (dynamic random access memory) computer memory pricing during the fourth quarter compared to the third quarter's typical prices. The company concurrently predicts a 17.9% increase in the industry's total supply of DRAM memory in 2022, which should be more than enough to meet demand. TrendForce analysts already see a slowdown in the amount of DRAM being bought by purchasing managers of companies building computers and servers.
TrendForce's outlook was neither novel nor surprising.
Source Fool.com