Micron (MU) Drops 7% on Memory Chip Production Cut Announcement

Zacks2022-11-17

Micron Technology MU shares plunged 6.7% on Wednesday after the company announced that it would slash memory chip production in response to the current market conditions. The company revealed that it ...

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The company revealed that it ...</p>\n\n<a href=\"https://finance.yahoo.com/news/micron-mu-drops-7-memory-130101791.html\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"BK4527","symbol_name":"明星科技股","start_time":0,"source_url":"https://finance.yahoo.com/news/micron-mu-drops-7-memory-130101791.html","article_id":"2284955177","we_media_id":null,"thumbnails":["https://s.yimg.com/uu/api/res/1.2/hf_2I4mS3iKLS6NqhA7HRA--~B/aD00MDA7dz02MzU7YXBwaWQ9eXRhY2h5b24-/https://media.zenfs.com/en/zacks.com/f137593ef3b3f5b2675404f14056fe62"],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2284955177","pubTimestamp":1668690061,"sourceInfo":{"source_id":"yahoofinance","name":"雅虎金融"},"weMediaInfo":null,"summary":"Micron Technology MU shares plunged 6.7% on Wednesday after the company announced that it would slas","collect":0,"end_time":0,"defaultTopTitle":"yahoo.com","property":[],"viewcount":null,"language":"en","relate_stocks":{"BK4527":"明星科技股","BK4579":"人工智能","BK4145":"电子制造服务","CLS":"天弘科技","BK4533":"AQR资本管理(全球第二大对冲基金)","BK4512":"苹果概念","BK4575":"芯片概念","BK4141":"半导体产品","MU":"美光科技","BK4554":"元宇宙及AR概念","BK4532":"文艺复兴科技持仓","BK4566":"资本集团","LU2286300806.USD":"Allianz Cyber Security AT Acc USD","BK4553":"喜马拉雅资本持仓"},"translate_title":"美光宣布减产，股价下跌7%","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"MU":1,"CLS":0.9},"content_text":"Micron Technology MU shares plunged 6.7% on Wednesday after the company announced that it would slash memory chip production in response to the current market conditions. The company revealed that it would cut production of DRAM and NAND memory chips by approximately 20% compared with the fourth-quarter fiscal 2022 levels.\nWhy Does Micron Intend to Slash Chip Output?\nMicron’s latest plan to reduce the memory chip supply can be seen as an effort to keep inventory levels in check amid the declining demand. The company benefited from the heightened demand for computers and other consumer technology products during the pandemic-led work-and-learn-from-home wave.\nHowever, the reopening of economies, along with recessionary fears and inflation, has been hurting demand. This has resulted in weakening the memory chip demand from the smartphone and personal computer end markets, the major contributors to Micron’s revenues.\n\nMicron Technology, Inc. Price and Consensus\n\nMicron Technology, Inc. price-consensus-chart | Micron Technology, Inc. Quote\n\nA decline in demand has caused an excessive inventory pileup across channel partners. Excess inventory levels are impacting the price of memory chips as these are traded like commodities. Therefore, an excess supply and lower demand will reduce the price of memory prices, thereby impacting the manufacturer’s profitability.\nMicron’s latest initiative will help it improve the total inventory in the supply chain and stabilize falling memory chip prices. Under its production cut strategy, the company intends to shrink the DRAM bit supply in the calendar year 2023 from 2022 while keeping NAND bit supply growth in the single-digit percentage range.\nZacks Rank & Stocks to Consider\nMicron currently carries a Zacks Rank #4 (Sell). Shares of MU have decreased 36.8% year to date (YTD).\nSome better-ranked stocks worth considering from the broader technology sector are Celestica CLS, Zscaler ZS and Coupa Software COUP. Celestica sports a Zacks Rank #1 (Strong Buy) at present, while Zscaler and Coupa each carry a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank stocks here.\nThe Zacks Consensus Estimate for Celestica’s fourth-quarter 2022 earnings has increased by 9 cents to 53 cents per share over the past 30 days. For 2022, earnings estimates have moved 9.4% up to $1.86 per share in the past 30 days.\nCLS' earnings beat the Zacks Consensus Estimate in each of the preceding four quarters, the average surprise being 11.8%. Shares of the company have increased 2.8% YTD.\nThe Zacks Consensus Estimate for Zscaler's second-quarter fiscal 2023 earnings has been revised 5 cents north to 26 cents per share over the past 90 days. For fiscal 2023, earnings estimates have moved a penny north to $1.18 per share in the past 60 days.\nZS’ earnings beat the Zacks Consensus Estimate in each of the preceding four quarters, the average surprise being 28.6%. Shares of the company have declined 56.3% YTD.\nThe Zacks Consensus Estimate for Coupa's fourth-quarter fiscal 2023 earnings has been revised 3 cents northward to 7 cents per share over the past 90 days. For fiscal 2023, earnings estimates have moved upward by 19 cents to 44 cents per share in the past 90 days.\nCoupa's earnings beat the Zacks Consensus Estimate in each of the preceding four quarters, the average surprise being 478.1%. Shares of COUP have slumped 77% YTD.\nWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. \nClick to get this free report\n \n\nMicron Technology, Inc. (MU) : Free Stock Analysis Report\n \n\nCelestica, Inc. (CLS) : Free Stock Analysis Report\n \n\nCoupa Software, Inc. (COUP) : Free Stock Analysis Report\n \n\nZscaler, Inc. (ZS) : Free Stock Analysis Report\n \n\nTo read this article on Zacks.com click here.\n \n\nZacks Investment Research","kind":null,"is_publish_news":null,"is_publish_highlight":null,"is_publish_live":null,"is_publish_wemedia":null,"editions":null,"symbols":[],"gpt_button":1},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.22.4","shortVersion":"4.22.4","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2284955177"}