To The Moon

Micron (MU) is a leader in the DRAM & NAND memory-semiconductor markets. DRAM stands for dynamic random-access memory, used in desktop computers🖥 & servers, while NAND is flash memory, found in smart 📱& solid-state hard drives. However, it’s share price plummeted when memory chip sales slumped in 2022. MU’s shares have since recovered a little & are up about 17% this year. 

The company's report in Dec didn't go over well with Wall Street as the company reported a wider-than-expected loss & revenue slightly below expectations. MU also forecast a larger-than-expected loss for this Feb-ended quarter & revenue growth slightly ahead of expectations. MU will be releasing its fiscal Q2 2023 earnings report on 28/2 (Tue) after close.

🚨 MU executives on 2/3 warned of a supply-demand mismatch in the industry which would hit its margins…As such, I’m 🐻-ish about $Micron Technology(MU)$ & I expect other chip & tech stocks to be dragged down as well $NVIDIA Corp(NVDA)$ Bearish$Advanced Micro Devices(AMD)$ Bearish$Semiconductor Bull 3X Shares(SOXL)$ Bearish$Nasdaq100 Bear 3X ETF(SQQQ)$ Bullish as investors await the important economic data this coming Thu & Fri. 

🚨 The memory chip market remains subdued &, as a result, prices are weak. The result is set to be a 52% drop in sales $3.74 billion, & MU is expected to report a 2nd consecutive quarter of losses, with its adjusted loss per share at $0.63.

⚠️ Markets believe sales will remain under pressure for the rest of the financial year before recovering in the next, providing little hope in the near-term.

⚠️ Markets thinks losses will bottom-out in the Q3 but it will take longer to return to profit because its margin remains under severe pressure.

🔎 With this in mind, markets want to see cost-cutting efforts to protect profitability & evidence that its efforts to rebalance the supply-demand issues, having already cut back on production of wafers, are starting to pay off. Failing which, MU will likely to face a sell-off after earnings release‼️

🚨 Citi’s analysts say that:

🐻 They expect MU to miss consensus expectations for its quarterly earnings, take a hefty write-down on inventory & report gross negative margins for the 1st time in 14 years‼️ 🐻 They expect a Q2 revenue below the current consensus projection of $3.80 billion & a loss per share that could be worse than consensus of $0.75, due to deteriorating pricing.

⭐️ MU’s reduced spending, alongside that of Korean rival SK Hynix should create a bottom for the DRAM market in the next 6 months.

However, they reiterated a Buy rating on

MU & a $75 target price, arguing that the market for the company’s memory chips is bottoming out.

⭐️ J.P. Morgan is also optimistic on MU’s long-term growth potential—despite the current weak demand for the memory maker’s chips.

⭐️ The current consensus for MU among 39 polled investment analysts is “Buy” with 3 Sell & 0 Underperform, 8 Hold, 5 Outperform, & 23 Buy Ratings🥳🥳🥳

⭐️ The 31 analysts offering 12-month price forecasts for MU have a median🎯 of $66 with a high🎯of $100 & a low🎯 of $45.

Fellow 🐯🐯🐯 given the above info & an uncertain economic climate, I will stay away from MU for now but will keep it in my watch-list👀📝 & only consider entering after I re-assess its Q3 performance🤓 What about you❓Type away in the comments section❣️Do follow me if you enjoy reading analytical stock research🔍 presented in a fun & easily understandable way😉 & for the Latest Stock & 🗞🗞🗞 Updates🕵🏻‍♀️❣️

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