Micron Technology Inc (NASDAQ:MU) is expected to shed $15 billion of value this Thursday after the microchip maker’s sales guidance fell well short of expectations.
In a first-quarter trading update published yesterday, Micron projected revenues of $7.9 billion (plus or minus $200 million) on a 37.5% gross market for the next quarter.
This fell some $1 billion short of Wall Street’s expectations.
Micron president and chief executive Sanjay Mehrotra nonetheless hailed a “record quarter”, with data center revenues surpassing 50% of total sales for the first time.
Idaho-based Micron has also secured a $6.1 billion government grant through the CHIP Act to kit out its domestic semiconductor manufacturing capabilities.
However, if Intel Corp's (NASDAQ:INTC, ETR:INL) plummeting valuation is anything to go by, securing multi-billion-dollar grants is hardly a salve for arresting declining market sentiment.
Despite today’s expected 13% share price markdown, Micron has remained relatively well bid in 2024 with a 26% share price rally.