MU - Micron Reports More Progress on Recovery -- Is It Too Late to Buy the Stock?
2023-10-02 09:47:00 ET
Memory chips are a commodity, and boy, has it been a year for commodities. After plummeting consumer electronics sales and, later, a downturn in some data center hardware, companies like Micron Technology (NASDAQ: MU) have been working through excess inventories. Not even trimming its workforce and temporarily throttling some of its production lines have saved Micron from a horrific year.
It appears the worst is in the rearview mirror. Micron is reporting incremental improvement, and is even predicting 2025 will be a record year for the memory chip market. Wall Street is buying it. Shares are up 36% so far in 2023. But is it too late to buy?
Micron just closed out its fiscal 2023 (the 12 months ended in August 2023) with a sequential increase in revenue and progress on getting back to breakeven. Revenue was $4 billion, up 7% from the previous quarter. Net losses tallied up to $1.43 billion, better than the $1.9 billion loss last quarter, but still not great. It's been a long way down from the last top in early 2022.
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Micron Reports More Progress on Recovery -- Is It Too Late to Buy the Stock?