MU - Things Are Finally Looking Up for Micron
2023-12-03 08:20:00 ET
Memory chip manufacturer Micron Technology (NASDAQ: MU) has been mired in one of the worst downturns in the industry's history. Demand for DRAM and NAND chips has fallen off a cliff, and pricing has tumbled far quicker than Micron has been able to reduce costs. Industrywide production cuts and slimmed-down capital spending plans were enacted in an attempt to bring supply and demand back into sync.
Micron's last quarterly report was not encouraging. While revenue did edge up from the previous quarter, it was down substantially year over year. Micron also reported a negative gross margin and an enormous net loss. With $4.01 billion in revenue, the company booked a net loss of $1.43 billion.
Micron's guidance wasn't particularly optimistic, either. While revenue was pegged at $4.4 billion for the first quarter of fiscal 2024, about 10% higher sequentially, gross margin was still expected to be negative.
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Things Are Finally Looking Up for Micron