Micron Technology Cont'd To Fall Today?

It came as a “surprise” that China has decided to ban $Micron Technology(MU)$ chips from being imported into China, citing the “US often used alibi” of “national security” as the reason.

This came about after a security review conducted by the Cyberspace Administration of China.

The ban is on operators of “critical information infrastructure” in China from buying products from the US chip giant.

China’s Top Semiconductor Chip Supplier:

  1. $Intel(INTC)$

  2. Samsung

  3. SK Hynix

  4. Micron Technology - it is the 4th largest supplier of chips to the Chinese market.

  5. $Qualcomm(QCOM)$

What Is Unknown?

With the announcement coming out of the blue, there are still many unknows:

  • Duration of ban?

  • Availability of alternative supplier/s.

  • Response from US government. Doubtful response will be forthcoming as the Biden admin will be too “busy” negotiating US Debt Limit crisis. LOL!

Financial / Earnings Impact On Micron Technology:

It is without a doubt that Micron Technology is the scapegoat caught in the line of fire. However the same could be said about US massive ban on technology firm Huawei as well rght!

With the ban enforced, its impact on this chip maker’s earnings will definitely be impacted.

Q2 2023 quarterly earnings reported in Mar 2023

Looking at Micron Technology’s Q2 2023 - Top line & Bottom line.

  • Both top line and bottom line are in the “red”.

  • Doesn’t require much imagination on how going forward, Micron’s earnings will be further impacted.

  • In its quarterly earnings report, there is no breakdown of business by countries or regions. Hence I will not be able to accurately forecast the exact financial impact.

  • As it is the Top 4th supplier of chips to China, it is not unreasonable to estimate a -12% to -18% financial impact to Micron’s future earnings.

In conclusion, I think Micron Technology’s stock price will continue to slide in the foreseeable future.

Stock Price Will Stop Falling When:

  • China lifts the ban on sale of Micron chips to the mainland.

  • Micron is able to find a new customer whose order-volume could cover or eclipse China’s order-volume.

  • Do you think Micron Technology stock price will continue to fall?

  • Do you think Micron Technology will be able to find a new customer to cover the sales void left by China?

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# 💰 Stocks to watch today?(28 Mar)

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  • phongy 45
    ·2023-05-24
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    why surprised at all!! ... USA can bullies others, high time others sanctions 0r ban USA thingy too !!!
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    • Winston
      How can I identify stocks that have the potential to give me high returns in the long run?
      2023-05-25
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  • Moolele
    ·2023-05-25
    TOP
    Went up instead 🤦🏻‍♂️
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    • Moolele
      I sold half earlier the week 🤣
      2023-05-25
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    • JC888
      Isn't this even scarier? Lots of punters out to make a quick buck.
      U dare to join in the "fun"? Lol!
      2023-05-25
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  • Cory2
    ·2023-05-24
    TOP
    It won’t be long before China starts doing most tech in-house IMHO. They want to be cutting edge in Blockchain tech and AI and are already funding the R&D departments accordingly. China is jittery about national security, so it only stands to reason…
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    • FrankCollins
      Is China investing more in tech than other countries?
      2023-05-25
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    • lindsay877
      What advancements in Blockchain and AI can we expect to see from China?
      2023-05-25
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  • GriseldaBrown
    ·2023-05-23
    TOP

    The one underappreciated bright spot in Intel's portfolio is sapphire rapids (and even more so, it's successor chips to come); Intel made significant architectural updates to sapphire rapids (in fact this was one of the reasons given for the multiple delays)

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    • JC888
      If the product is excellent, the sales will follow
      2023-05-23
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  • AugustineMac-
    ·2023-05-23
    TOP

    Intel is only rising in sympathy with tech in general. AMD up another 1.7% today. AMD is almost valued 50% higher than Intel market cap.

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    • JC888
      Would you agree that chips for notebooks are "equally" distributed between INTC and AMD? LOL.
      2023-05-23
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  • 袋鼠哥
    ·2023-05-25
    TOP
    I believe the whole semi cobductor industry in the US will be concerned.  Their profitability and  sustainabiliy  paticitally  come from their competitiveness on R&D, and also from long arm administration of the US government-it abused its power and attacked/ sanctioned strong competitors from overseas which brought in huge unfair benefit to the whole industry sector. Take Micron as an example, it pursuaded US government to sanction a number of chinese storage chip manufacturers during the past years when it was making huge prifit from that market.  I can tell that in the coming decade,  the semiconductor industry in America will gradually lose its lead on technology,  the competitiveness and value for money on its products,  and gradually it will follow the track of the automobile industry in America-going down the long way. US  government  has been bullying chinese government and chinese high tech companies for too much, too long.
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    • JC888
      Disagree.
      Chip industry will cont'd to grow with US reaping the benefits due to Intellectual Property advantage.
      Only when China is able to buildi the lithographic machine that makes these chips that gets tinier each time, will the hurdle be crossed.
      The machine is the X-factor to solve.
      2023-05-25
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  • 袋鼠哥
    ·2023-05-25
    TOP
    At enormous costs from  companies such as Huawei, Us government had applied a lot of non market-economy style,  anti-free competition policy initiatves as keen effect to kill them in irder to maintain US's leading role on aspects of techlogy where the list is getting shorter very rapidly. Once the chinese counter parts achieved their catching up, good times of all US semi conductor companies will be gone. Then US government will let the stone it lifted with high confidence, to fall hard on its own toes.
    That will be the "best return" that Chinese govern can offer to any opponents who are full of hostility. DON'T even try to bully China, their revenge will come a dacade later.
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    • WinfredBill
      What impact will Chinese catching up have on US tech leadership?
      2023-05-25
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    • JC888
      The difficult part is building the lithographic machine that manufacture the chips.
      There's only a few companies doing that.
      2023-05-25
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  • JC888
    ·2023-05-23
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    Hi, tks for reading my post. Pls give a "LIKe", "Share" & "Re-post" ok. Tks!
    The rating is very important to me. Tks!
    Hope u consider "Follow me" so that you get first hand read of my Daily new posts. Tks!
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    • lyj1999
      kk
      2023-05-23
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  • MalcolmEmily
    ·2023-05-23
    TOP

    Apple announces multi year chip agreement with Broadcom, stock up $20 or 3%. Now that’s a real partner as QualCunt is shown the door on its modems. While Broadcom doesn’t make modems, it shows their diversification otherwise.

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  • ChrisColeman
    ·2023-05-24
    TOP

    Total direct + indirect sales of MU in China is 25% - 30%. MU also has been losing market shares to S Korea.

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    • JC888
      Hi, tks for the info. Will u consider "Follow me" so that you get first hand read of my Daily new posts? Tks!
      2023-05-24
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  • HardyJenny
    ·2023-05-23
    TOP

    Nobody wants to own INTC. AMD going to exceed its normal volume today. INTC wont even be half its normal volume. Nothing will get INTC going. Needs a shot of roids.

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  • ZhongRenChun
    ·2023-05-24
    TOP
    it's about time. I would like to see China ban Intel!
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    • JC888
      If China is willing to sacrifice it's technology manufacturing companies and sector that's a possibility.
      We all have witnessed the iron fist wielded bt the govt to enforce the draconian lockdwn during covid.
      I am not about to dismiss the extreme that the govt is willing n crazy to adopt
      2023-05-25
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  • zaney
    ·2023-05-24
    Great ariticle, would you like to share it?
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    • JC888
      Hi,
      Tks for reading my post.
      Will u consider "Follow me" so that you get first hand read of my Daily new posts? Tks.
      2023-05-24
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  • Sri Yani
    ·2023-05-24
    Great ariticle, would you like to share it?
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    • JC888
      Hi, tks for reading my post. Pls feel free to share or repost. Also wld u consider "Follow me" so that you get first hand read of my Daily new posts? Tks!
      2023-05-24
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  • isjanjan
    ·2023-05-23

    Great ariticle, would you like to share it?

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    • JC888
      Hi, tks for reading my post. Pls feel free to share or repost.
      Will u consider "Follow me" so that you get first hand read of my Daily new posts? Tks.
      2023-05-24
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  • Ongbb
    ·2023-05-25

    Great ariticle, would you like to share it?

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    • JC888
      Hi, tks for reading my post. Pls feel free to share or repost. Tks!
      Would you consider "Follow me" so that you get first hand read of my Daily new posts? Tks!
      2023-05-25
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  • Gsueohav
    ·2023-05-25
    这篇文章不错,转发给大家看看
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    • JC888
      Hi, tks for reading my post.
      Would you consider "Follow me" so that you get first hand read of my Daily new posts. Tks!
      2023-05-25
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  • Smn9931
    ·2023-05-25

    Great ariticle, would you like to share it?

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    • Smn9931
      Follow
      2023-05-25
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    • JC888
      Hi, tks for reading my post.
      Would you consider "Follow me" so that you get first hand read of my Daily new posts. Tks!
      2023-05-25
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  • YF123456
    ·2023-05-25

    這篇文章不錯,轉發給大家看看

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    • JC888
      Hi, tks for reading my post. Pls feel free to share or repost. Tks!
      Would you consider "Follow me" so that you get first hand read of my Daily new posts. Tks!
      2023-05-25
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  • Tyuxiangg
    ·2023-05-25
    Great ariticle, would you like to share it?
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    • JC888
      Hi, tks for reading n reposting my post. Tks!
      Would you consider "Follow me" so that you get first hand read of my Daily new posts. Tks!
      2023-05-25
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