2023-06-30 02:20:00
The DRAM and NAND chip industry has been in a tailspin since late 2023 with revenue slumps that have led to huge losses. Micron has followed the same path in the second quarter of the year, announcing revenues of $3,752 million with losses of $668 million. By comparison, in Q2 2022 the company earned $8,642 million with profits of $4,035 million. It is clear that they are not going to be ruined by a few bad quarters, but it will hurt them when it comes to investing in their production expansion.
The continuous production cuts since the end of 2022 together with the lower sales prices of the chips caused revenues to fall to $3,693 million in the first quarter of the year with huge losses of $1,206 million. As I say, it’s not going to bankrupt Micron, because it ended the quarter with $11.4B worth of investments and cash. Even so, it’s down a few billion in recent quarters.
The sector is expected to bottom out in this second or third quarter, before beginning a slow comeback. Everything will depend on how inflation evolves in the West and the geopolitical situation.
Via:
TechPowerUp.
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