Placeholder canvas
9.3 C
Thursday, February 29, 2024
HomeFinance NewsMicron Earnings Beat Expectations, But Stock Slumps with Mixed Outlook

Micron Earnings Beat Expectations, But Stock Slumps with Mixed Outlook


Related stories

Rockstar Games ends remote work, blames leaks ahead of Grand Theft Auto VI release.

Rockstar Games, a division of Take-Two Interactive Software Inc.,...

Confusion Stirs as Labor Department Sends Email on Consumer Prices.

The US Labor Department's statistical agency sent out a...

House to vote on deal to end government shutdown and extend deadlines.

Lawmakers are pushing to pass a short-term government spending...

Top stocks to buy on Wall Street this Tuesday in 13 words or less

Wall Street analysts have been busy making significant calls...

Google Pixel 8 named ‘Best Smartphone’ at MWC 2023

In a remarkable achievement, Google's Pixel 8 series has...

Memory-chip maker Micron Technology, despite reporting strong fiscal fourth-quarter profit and revenue that exceeded expectations, is still facing challenges in a cyclical industry downturn. Micron’s earnings for the quarter ended August 31 fell 26% from the previous year, while revenue dropped 40%. However, the results were better than anticipated due to lowered expectations. Nevertheless, the company’s outlook for the current quarter was mixed, with Micron predicting an adjusted loss of $1.07 per share on revenue of $4.4 billion. Analysts had expected a smaller loss and higher sales.

Although Micron’s financial performance positions it well for a market recovery in 2024, driven by increasing demand and disciplined supply, a decline in MU stock was observed after the earnings report. The stock had previously experienced a 36% increase in 2023, mainly due to excitement surrounding artificial intelligence stocks. Alongside this, the Chinese government’s plan to ban Micron memory chips from its computer network infrastructure is a concern for analysts. Despite these challenges, long-term demand for Nand chips, especially in data centers, is expected to increase due to the growth of artificial intelligence workloads.

Overall, while Micron demonstrated better-than-expected results for the fiscal fourth-quarter, its outlook and challenges in the industry downturn impacted the stock market performance. The company remains optimistic about the future, citing a market recovery and increasing demand. However, concerns such as the Chinese government’s ban on its memory chips dampen prospects. As the industry is expected to stabilize, the demand for Nand chips in data centers driven by artificial intelligence workloads could provide opportunities for Micron.

Source link


- Never miss a story with notifications

- Gain full access to our premium content

- Browse free from up to 5 devices at once

Latest stories


Please enter your comment!
Please enter your name here