Shares of Micron Technology Inc (NASDAQ:MU), the largest US maker of computer memory chips, tumbled 16% in late trading on Wednesday after the company issued a second-quarter revenue forecast that fell nearly $1 billion short of analysts' expectations.
Micron said it expects adjusted revenue of $7.7 billion to $8.1 billion for the quarter ending in February, well below Wall Street’s consensus estimate of almost $9 billion.
The midpoint of its guidance, $7.9 billion, represents a $1.1 billion shortfall compared to expectations, raising concerns about broader challenges in the semiconductor industry.
The company's first-quarter results were largely in line with estimates, posting revenue of $8.7 billion and earnings per share of $1.79, narrowly beating analyst projections. However, the disappointing outlook for the second quarter overshadowed its performance, sending shares sharply lower.
Despite the grim short-term outlook, Micron expressed optimism for a recovery later in its fiscal year, stating it anticipates a return to growth in the second half of 2024.