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Chipmaker Micron cuts revenue forecast as demand weakness deepens

By Arghyadeep Dutta - Aug 09, 2022, 01:32 PM ET
Last Updated - Mar 13, 2024, 11:35 AM EDT
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Micron's forecast cut comes after it announced a $40 billion investment in memory chip manufacturing, which would boost its US market share from 2% to 10%

Memory-chip maker Micron Technology Inc (NASDAQ: MU) on Tuesday cut its current-quarter revenue forecast while warning of a negative free cash flow in the upcoming quarter as demand for semiconductors used in personal computers and smartphones continues to drop

Memory-chip maker Micron Technology Inc (NASDAQ: MU) on Tuesday cut its current-quarter revenue forecast while warning of a negative free cash flow in the upcoming quarter as demand for semiconductors used in personal computers and smartphones continues to drop.


In a regulatory filing, the company said its fiscal fourth-quarter revenue may come at or below the low end of its prior forecast of $7.2 billion, plus or minus $400 million.

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The warning sent the shares of Micron down almost 6%.

Micron, which last reported negative free cash flow in 2020, warned it could see significant sequential declines in revenue and margins in its first quarter due to a fall in shipments.

Rising inflation, the Russia-Ukraine war, and renewed COVID-19 lockdowns in key PC market China have hurt demand and worsened supply snags pressuring the sector

Other semiconductor giants, including Intel Corp (NASDAQ: INTC), Advanced Micro Devices (NASDAQ: AMD) and Nvidia Corp (NASDAQ: NVDA), have also flagged the rise in customer inventories.

Micron's forecast cut comes after it announced a $40 billion investment in memory chip manufacturing, which would boost its US market share from 2% to 10%.

Picture Credit: Micron


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