Micron Raises Outlook On Improved Memory-Chip Demand

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Memory-chip maker Micron Technology (in) on Tuesday raised its guidance for revenue and earnings for the quarter, citing an improved supply-demand balance and better pricing. But MU stock has crashed after the update.




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Boise, Idaho-based Micron now expects an adjusted loss of $1 a share on sales of about $4.7 billion for the fiscal year ending Nov. 30. The company had previously forecast an adjusted loss of $1.07 a share on sales of $4.4 billion. Analysts polled by FactSet had expected Micron to lose $1.04 a share on sales of $4.4 billion.

At the start of the year, Micron lost an adjusted 4 cents a share on sales of $4.085 billion.

Micron’s guidance calls for sales to increase 15% year-over-year in the current quarter. That’s a reversal from five consecutive quarters of sales declines in its fiscal fourth-quarter report in September.

MU stock is a recent breakout.

Transactions in the morning Stock market todayMU stock slipped 3.6% to 74.69.

On November 3, Micron’s shares rose from A Flat base By A Point of purchase of 72.31, basis IBD Market Smith Charts.

MU stock hit an all-time high of 98.45 in January 2022.

Micron updated Fiscal Q1 outlook Ahead of the 2023 UBS Global Technology Conference in Scottsdale, Ariz. CEO Sanjay Mehrotra and Chief Financial Officer Mark Murphy are scheduled to speak at the conference.

Analysts responded to the news

Wedbush Securities analyst Matt Bryson’s previous view was “extremely conservative,” adding Micron’s guidance was not a surprise. Bryson outperformed MU stock by 80%.

“As conditions in the memory markets improve, we continue to like MU (and the broader sector) as we expect financials to show strong growth over the next few quarters, with shortages (and traditional high cycle conditions) likely in our view in 2024. Normal server demand to As normal goes.”

Wells Fargo analyst Aaron Ruckers has an overweight rating on MU stock with an 82 price target.

Micron He reiterated his view that 2025 will be a record year for the memory industry, Ruckers said in a note to clients.

Patrick Seitz at X, formerly of Twitter, at @IBD_PSeitz For more stories on consumer technology, software and semiconductor stocks.

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