Breaking News
Investing Pro 0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Micron sees dip in chip demand as PC makers face parts shortages

Stock MarketsSep 28, 2021 18:17
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. FILE PHOTO: Micron Technology's solid-state drive for data center customers is presented at a product launch event in San Francisco, U.S., October 24, 2019. REUTERS/Stephen Nellis/File Photo

By Manas Mishra

(Reuters) - Micron Technology Inc (NASDAQ:MU) forecast current-quarter revenue below analysts' expectations and warned that shipments for its memory chips were set to dip in the near term as its customers making personal computers face shortages of other parts.

Shares of the Apple (NASDAQ:AAPL) Inc-supplier, which also said it was experiencing shortages within its own supply chain for some components, fell nearly 4% in extended trading on Tuesday.

The company makes both NAND memory chips that serve the data storage market and DRAM memory chips that are widely used in data centers, personal computers and other devices.

Micron, one of the world's biggest memory chip suppliers, said it expects shipments of both chips to sequentially decline in the near term.

"Some PC customers are adjusting their memory and storage purchases due to shortages of non-memory components that are needed to complete PC bills," Chief Executive Officer Sanjay Mehrotra told analysts.

"We expect this adjustment at our PC customers to be largely resolved in the coming months."

Analysts, however, wondered if this was a "speedbump or the start of a period of extended weakness."

The question around Micron revolves around whether the memory industry is entering a prolonged downcycle, or encountering a more modest demand blip that will correct relatively quickly, Wedbush analyst Matthew Bryson said.

While Micron's comments support the latter view, Bryson said he awaited more concrete data to support this outcome.

Micron forecast current-quarter revenue of $7.65 billion, plus or minus $200 million, while analysts on average expected $8.57 billion, according to IBES data from Refinitiv.

The company also forecast adjusted earnings per share of $2.10, plus or minus 10 cents, missing estimates of $2.33 per share.

In the fourth-quarter ended Sept. 2, Micron earned $2.42 per share on an adjusted basis, beating analysts' average estimate of $2.33 per share.

Micron sees dip in chip demand as PC makers face parts shortages
 

Related Articles

Why did the SEC release a report on GameStop?
Why did the SEC release a report on GameStop? By Reuters - Oct 18, 2021

(Corrects paragraph 6 to clarify that Schwab did not restrict buying or selling of GameStop's shares, but that it adjusted margin requirements and restricted certain advanced...

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email