Posted on 09/30/2022 7:06:42 AM PDT by FarCenter
Micron Technology Inc. executives warned about a semiconductor downturn in late June, but now say that a “sharp and sudden” drop in demand exceeded even those expectations, suggesting the current chip glut could get a lot worse.
Micron MU, 0.74% reported a worse-than-expected fiscal fourth quarter Thursday, with revenue plunging 23% from last year, but that wasn’t the big miss. Executives guided for $4 billion to $4.5 billion in revenue in the current quarter, more than $1 billion lower than analysts’ expectations, and suggested they could post a loss in the quarter even on an adjusted basis.
“As we look ahead, macroeconomic uncertainty is high and visibility is low,” Micron Chief Financial Officer Mark Murphy told analysts on a conference call. He forecast the company’s inventories will continue to rise further from their high levels in the first half of fiscal 2023.
Micron’s report should send some fear through the chip sector and its investors — Micron reports earlier than other semiconductor companies because of its odd fiscal year, which ended on Sept. 1, so it can be a harbinger of what is to come throughout the coming earnings season. After Micron executives basically admitted three months ago that the pandemic-era chips party was over, other semiconductor companies such as Intel Corp. INTC, -0.11% and Nvidia Corp. NVDA, 1.10% disappointed investors with later results.
(Excerpt) Read more at marketwatch.com ...
Chip glut. There are a thousand or so trucks in an old empty GM parking lot here waiting on chips. Which is kind of ironic since that plant used to produce chips.
This is terrible, just think of how many millions of 10 year olds will be sent to the unemployment lines in China...
post-Xmas GPU prices are going to be a steal. Don’t buy now!
Yet they say there is a chip shortage?
Wall Street should change its name to Worse than Expected.
One would have to have a heart of stone to not burst out laughing at the thought of that.
IF there is a glut-—WHY are so many UNFINISHED vehicles sitting all around the plants???
>>Chip glut. There are a thousand or so trucks in an old empty GM parking lot here waiting on chips.
I think that the auto industry’s problem is that they use a lot of specialized microcontrollers and other parts made on semiconductor production equipment a couple generations old.
The IC foundries are not expanding production on these lines - they are “cash cow” factories that they continue to run without new investments since they regard them as obsolete.
On the other hand, the auto manufacturers would have to rewrite, retest, requalify software for parts made on newer technologies. It’s also not clear whether the newest technologies meet the longevity, reliability, and temperature range requirements of the auto industry.
People may have to make their smart phones last longer than 6 months!
I suspect that those high end DIMMs are not the ones in the glut. ditto nVidia graphics chips.
Memory chips. Specifically the more modern high speed chips.
IF there is a glut-—WHY are so many UNFINISHED vehicles sitting all around the plants???
Because Micron makes MEMORY CHIPS, not processor chips.
Micron stock rises after reporting mixed earnings
https://finance.yahoo.com/video/micron-stock-rises-reporting-mixed-161531137.html
Micron on Friday was up and also after hours.
50.10+0.09 (+0.18%)
At close: 04:00PM EDT
50.32 +0.22 (+0.44%)
#2 There are 45,000 thousand parked at a raceway.
Funds meant for Salina Sports Complex now diverted to new Micron facility
Those are taxpayer funds.
And now for the cui bono...
Micron Technology, Inc. Common Stock (MU)
The top three names should sound very familiar...
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