Micron Technology, a leading memory-chip maker, has raised its revenue guidance for the fiscal first quarter ending Nov. 30. The company now expects revenue of approximately $4.7 billion and an adjusted loss of $1.00 per share. This improved outlook is due to the “improved supply and demand balance and improved pricing” in the market. Investors, however, may have had even higher expectations for the company.
In September, Micron provided a revenue forecast range of $4.4 billion, with a potential variance of plus or minus $200 million, and an adjusted loss of $1.07 per share at the midpoint of this range.
Despite this positive news, Micron’s stock has declined by 3.9% to $74.50 in Tuesday morning trading.
Micron Technology specializes in dynamic random-access memory (DRAM) for desktop computers and servers, as well as flash memory for smartphones and solid-state hard drives.
In recent months, memory pricing has been on the rise as chip makers reduced production in response to weak demand in the PC and mobile phone markets.
While the improved sales outlook is certainly a positive development, it is crucial for Micron to return to profitability. The company has not reported earnings since the August 2022 quarter.
