2023-04-02 07:15:00 ET
One of the top memory-chip makers, Micron Technology (NASDAQ: MU) , just had another incredibly ugly quarter. Sales in fiscal 2023's second quarter were more than halved from the year prior to $3.69 billion (for the three months ended March 2). Net loss was a whopping $2.3 billion, which includes a $1.43 billion non-cash charge to write down the value of inventory.
Things aren't exactly going to get much better in the third quarter for Micron either. However, management provided some commentary on the current demand situation from customers (weak demand is what caused the excess inventory in the first place) which indicates the nasty semiconductor industry slump is just about finished. Micron itself may not be a top buy just yet, but certain other chip stocks certainly might be.
As a manufacturer of a basic commodity that goes into the more complex chip systems designed and made by others, chipmakers like Micron often wind up "taking one for the team" when semiconductor sales go south.
For further details see:
Did Micron Just Signal the Semiconductor Downturn Is Over?