Micron Technology (NASDAQ: MU) stock has performed relatively well this year, rising by about 22% since early January, amid optimism that the supply-demand balance in the memory markets could improve.
Now Micron’s financial performance has been tough in recent quarters. Over Q2 FY’23 (fiscal year ends August) revenues fell by 52% year-over-year, as average realized prices for both DRAM and NAND declined about 20% sequentially. Demand from key markets, such as mobile and PCs, fell considerably, while industry supply continued to grow. Overall demand growth for 2023 is also expected to be muted, with the company forecasting approximately 5% growth for DRAM – which sees relatively inelastic demand – and a low-teens percentage growth for NAND. Micron is guiding for a 55% year-over-year drop in revenues at the mid-point for its fiscal third quarter (ending May) as well. However, the markets are looking ahead toward recovery. The memory market could see improved supply-demand balance from the second half of this year, with major manufacturers including Samsung, SK Hynix, Micron, Western Digital
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