TECH - Micron's Loss Guidance Overshadows Better-Than-Expected Results | Benzinga
On Wednesday, Micron Technology Inc (NASDAQ: MU) guided for a wider than expected first-quarter loss that triggered concerns of a sluggish recovery in data centers market, causing its shares to drop 2.4%. As it prepares to ramp up production of new product lines, Micron also revealed it is working to become a supplier to Nvidia Corporation (NASDAQ: NVDA) but even its better-than-expected results were overshadowed by the first quarter loss forecast and a later than anticipated return to a positive gross margin, sending its shares down about 5% in premarket trading on Thursday.
Nvidia Could Support Micron’s Recovery
Increasing demand for high-bandwidth memory chips for AI use, a market that is led by SK Hynix who supplies Nvidia has raised hopes of Micron weathering a slow recovery in other end markets. Micron further sparked this hope by announcing a supply deal with Nvidia that is dominating the field as its chips ...